The Rhode Island Association of REALTORS® Forms Committee has revised the Purchase Price and Deposits Section of all RIAR Purchase and Sales Agreements to clarify the use of “time is of the essence” in this section. If the “time is of the essence” box is checked “yes” in this section, the requirement applies only to the deadlines for the initial and additional deposits. It does not apply to the payment of the final balance or the closing date.
The highlighted language was added to the purchase and sales agreements.
3. PURCHASE PRICE AND DEPOSITS
Time is of the essence as it applies to the Deposits in Section 3. (check one) Yes No
Buyer agrees to pay Seller a Purchase Price for the Property in the amount of:
Checking the “yes” box means that the dates for payment of the deposits are “drop dead” dates. If the buyer fails to deliver the funds to the escrow agent by the deadline, the buyer is in breach of contract, and the seller can terminate the agreement.
RIAR sent the revisions to Instanet, dotloop, and zipLogix on June 15, 2021. These vendors post forms updates at different times.
Questions? Please contact the RIAR Legal Department at 401-432-6945 or email email@example.com.