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Time of the Essence Letter

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Fact pattern: In New Jersey, the seller of a house under contract issues a time of essence letter ("TOE") to buyer (in accordance with the terms of original contract). Does seller have to be ready, willing and able to sell at the time the TOE is *issued* for the TOE to be enforceable, or is it enforceable if seller is ready, willing and able to sell by the date specified in TOE (but wasn't ready, willing and able at time the TOE was issued).

For example, if a seller has the contractual obligation to make a minor repair to the house prior to sale, then Seller issues TOE, and Seller does the repair prior to the deadline specified in the TOE. Is the TOE enforceable?
 


quincy

Senior Member
Fact pattern: In New Jersey, the seller of a house under contract issues a time of essence letter ("TOE") to buyer (in accordance with the terms of original contract). Does seller have to be ready, willing and able to sell at the time the TOE is *issued* for the TOE to be enforceable, or is it enforceable if seller is ready, willing and able to sell by the date specified in TOE (but wasn't ready, willing and able at time the TOE was issued).

For example, if a seller has the contractual obligation to make a minor repair to the house prior to sale, then Seller issues TOE, and Seller does the repair prior to the deadline specified in the TOE. Is the TOE enforceable?
It depends on the wording of the contract in its entirety. I would think that if one party to the contract is prepared to act according to the terms outlined in the contract, the contract should be enforceable. But all facts matter.
 

adjusterjack

Senior Member
Analyzing the purchase contract, the TOE document, and the circumstances is light years beyond anything we can do here.
 

zddoodah

Active Member
One would need to review both the contract and the letter to answer the question in an intelligent manner.
 

quincy

Senior Member
One would need to review both the contract and the letter to answer the question in an intelligent manner.
That is why a link to attorney resources in Jonathan’s area of New Jersey was provided. :)

Jonathan should get the documents personally reviewed by a New Jersey attorney. Contract review exceeds the scope of this forum.
 

quincy

Senior Member
Let's assume both the contract and TOE are silent on the matter. What would the case law in NJ be?
That would be a good question for the attorney you meet with in New Jersey.

A “time is of the essence” letter requires that the closing on a property is done on a specified date and time. It would be a breach of the contract for either party to delay the closing past that time/date.
 

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