Legal Question in Real Estate Law in New Jersey

Re: Time of the Essence

You do not explain why the TOE is considered unreasonable. Even if the Buyer knows the Seller cannot perform and no provision was made for deferral of the closing, the TOE may be OK. If the contract of sale had a specific closing date, even if estimated or stated to be a target date, the TOE may be valid. If the TOE was properly granted, the Buyer has the right to compel a closing and seek damages, or call off the closing and get a return of the deposit. A full contract review is necessary to properly answer the questions.

Re: Time of the Essence

With regard to your time is of the essence question, when a contract does not make time of the essence, either seller or buyer may make time of the essence by notice to the other party. If a time of the essence notice is given, and it is reasonable notice, then the failure of either party to perform on that date will be considered a breach of contract. Earlin v. Mors, 1 N.J. 336 (1949). For a notice to be reasonable, it must bear a reasonable relation to the time elapsed after the closing date set forth in the contract of sale. Paradiso v. Mazejy, 3 N.J. 110 (1949). Generally, there is no predetermined number of days that is required for a time of the essence notice. Rather, each case must be examined on its own facts. Notice should not be given until after the date of the closing set forth in the contract.

Whether you are buying or selling a first home, second home or a vacation home, a purchase or sale of any home is a large investment and therefore, you should consult with and retain an attorney to represent your interests in buying or selling any real estate.

Blair C. Lane, Sr., Esquire, is admitted to practice law in the State of New Jersey and the

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