Under the FR/BAR Contract calendar days are used when calculating time periods versus the CRSP-12 Contract form, in which business days are used. Consequently, it is much easier to count time periods using the FR/BAR since you don’t have to worry about excluding national legal holidays when counting your time periods. You don’t count the first day as Day 1 but rather the next day as Day 1. For instance, if the Effective Date of your Contract is February 4, 2013 and the Initial Deposit is due 3 days after Effective Date, then Day 1 would be February 5 so the Initial Deposit would be due by 11:59 p.m. on February 7, 2013. Most time periods run from the Effective Date of the Contract, so it is important the parties sign and date when signing the contract, as well as initialing and dating any changes made to the Contract.
When dealing with the FR/BAR Contract, if a time period ends on a Saturday, Sunday or national legal holiday, then it would be extended to 5:00 p.m. the next business day; otherwise, the time period ends at 11:59 p.m. since calendar days are used. However, you need to be careful when counting backwards. Under Paragraph 9(c), the title period is at least ____ (if blank, then 5) days prior to Closing. Therefore, if your Closing is February 28, 2013, and the title period was left blank, then the title would be due February 22. You would count back 5 days which ends up on Saturday, February 23. You would not extend it to Monday as the next business day but bump it back to Friday, February 23, since it calls for at least 5 days prior to Closing. Likewise, the Survey Period under Paragraph 9(d) is at least 5 days prior to Closing and would be due on Friday, February 23. Otherwise, if the time period just calls for 5 days prior to Closing and doesn’t state “at least”, then it would be extended to Monday as the next business day.
With regards to acceptance deadlines, technically it is a time period and would fall under Standard F if the time period ends on a Saturday, Sunday or national legal holiday and be extended to the next business day. Therefore, if you want the acceptance deadline to not be subject to Standard F, it should be so stated in Paragraph 3(a) of the Contract under Acceptance Deadline.
In summary, be sure to check the time period to see if it contains the words “at least” before you extend the time period to the next business day. Always, make sure you initial and date your changes to the contract so that the Effective Date can be determined by looking at the 4 corners of the contract to avoid the closing agent having to bother the real estate agents to determine when the last party signed or initialed the last change to the contract.
This communication is not intended to establish an attorney client relationship, and to the extent anything contained herein could be construed as legal advice or guidance, you are strongly encouraged to consult with your own attorney before relying upon any information contained herein.
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