If you’ve seen the phrase “Time Is of the Essence” in a purchase and sale agreement and weren’t sure what it meant, you’re not alone. It’s one of the most misunderstood clauses in real estate — and one of the most consequential. Redfin recently reached out to Jonathan White, founder and attorney at Jordan & White, for his perspective on exactly that question.
You can read the full Redfin article here. Below, we expand on what Jonathan shared — and what Massachusetts buyers and sellers should understand before they sign.
What the Clause Actually Does
Most people assume real estate deadlines are targets — flexible points on a timeline that everyone will reasonably accommodate if something runs slightly late. That assumption is wrong, and it can be expensive.
When a contract includes “Time Is of the Essence,” every date listed becomes a hard obligation. Miss a deadline — even by hours — and the other party may have the legal right to declare a default and walk away.
As Jonathan explained in the Redfin article: “While termination isn’t always automatic, a seller can declare a default and walk away the moment a deadline passes.”
The Cash Offer Problem
Here’s the scenario Jonathan sees most often in competitive markets.
A buyer wants to win. To look stronger, they submit a cash offer — waiving the financing contingency. But behind the scenes, they’re still working with a lender. If the lender falls short or runs late, the buyer finds themselves in a precarious spot: they’ve waived their protection, the seller has a backup offer, and the “Time Is of the Essence” clause is fully in play.
The seller can refuse the extension request. The buyer can lose the deal. Depending on the contract, they may lose their deposit too.
This isn’t hypothetical. It happens.
Extensions Are Not Automatic
One of the most common assumptions buyers and sellers make is that extensions are a formality — that everyone will sign off and move on. That’s not always true.
A seller who receives a stronger offer while waiting on a delayed buyer has every incentive to enforce the deadline rather than extend it. And if the buyer doesn’t have a signed, written extension in hand before the deadline passes, a verbal agreement or email chain is unlikely to protect them.
In Massachusetts real estate transactions, changes to contract terms need to be documented carefully. If you’re approaching a deadline and things are not on track, act early — not at the last minute.
What This Means for You
If you are buying or selling property in Massachusetts and your contract includes this clause, a few things are worth understanding before you sign.
The clause can be negotiated. It doesn’t have to apply to every deadline in the contract — sometimes it can be limited to the final closing date. A cure period can also be requested, giving a short window to address a missed deadline before a default is formally declared.
Whether to negotiate, accept, or modify the clause depends on your specific transaction, your timeline, and your leverage. That conversation is worth having with your attorney before you sign — not after a deadline has already passed.
Questions About Your Transaction?
At Jordan & White, we work with buyers, sellers, and developers across Massachusetts on residential and commercial real estate matters. When complex contract language comes up, we help clients understand exactly what they’re agreeing to before they sign.
If you have a real estate transaction coming up and want to make sure you’re protected, schedule a Great Life Discovery Session™ with our team. It’s a focused conversation — no pressure, no jargon.