Tip #6. Time is of the Essence
Once, the contract is “binding” meaning both sides have agreed to the terms and signed all documents, time is of the essence. The bank will typically allow 7 days for the buyer to inspect the property. This is called the “due diligence” period. If the buyer wishes to terminate the contract during this period, earnest money will be returned.
The bank can also specify a time period in which the Buyer is required to obtain a “commitment letter” from their lender. This means that all inspections must be completed, as well as the appraisal. If this letter is not provided by the specified date, the bank can choose to terminate the contract. It is your responsibility to make sure your lender is aware of this contract provision.