September 7th, 2020 at 10:27 am

Fact Pattern: You are the listing agent for a pending sales transaction. In response to the buyer’s Request for Repair, the seller agreed to have Section 1 work completed. Escrow is scheduled to close this Friday, September 11, 2020.

Multiple Choice Question: By what day should the Section 1 work be completed? Pick the best answer:

A. Thursday, September 10, 2020.
B. Wednesday, September 9, 2020.
C. Tuesday, September 8, 2020.
D. Labor Day Monday, September 7, 2020.
E. Sunday, September 6, 2020. 

Answer: The correct answer is E or 5 calendar days before the scheduled day to close escrow. Under the default language of the Request for Repair (RR), Section 1 work, including a written termite clearance, must be completed “no later than 5 Days Prior to Close of Escrow” (see paragraph 1(b)(iii) of the RR).

The capitalization of the words, “Days Prior,” in the RR means that the term is contractually defined. Under paragraph 30H of the RPA, “Days Prior” means “the specific number of calendar days before the occurrence of the event specified, not counting the day on which the specified event occurs.” Saturdays, Sundays, and legal holidays are not excluded.

As the listing agent, make sure that your sellers understand the timing requirement for any repairs that they agree to perform. Unless otherwise specified, such repairs must be completed at least 5 calendar days before the scheduled close of escrow date, regardless of whether the fifth day falls on a Saturday, Sunday, or legal holiday.

-Happy Labor Day! Today, we celebrate the contributions and achievements of American workers.

Copyright© 2020 Berkshire Hathaway HomeServices California Properties (BHHSCP). All rights reserved. Any unauthorized reproduction or use of this material is strictly prohibited. This information is believed to be accurate as of September 7, 2020. It is not intended as a substitute for legal advice in individual situations, and is not intended to nor does it create a standard of care for real estate professionals.

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