Calculating Contract Deadlines the Right Way

Time Is of the Essence

Deadlines aren't suggestions - they're contractual. And yet, one of the most common mistakes I see is how agents calculate dates incorrectly.

As most deadlines are based on the Effective Date, it is important to confirm the date, which is defined as "the date when the last one of the Buyer and Seller has signed or initialed and delivered this offer or final counter-offer." [See Paragraph 3(b) of contract]

Here's a simple breakdown to help you get it right every time. 

Do You Count Calendar or Business Days?

Calendar days, based on where the property is located, are used in calculating time periods. Other than for time of acceptance and Effective Date, any time period that ends or occurs on a Saturday, Sunday, national legal holiday or a day on which a national holiday is observed, shall extend to the next calendar day which is not a Saturday, Sunday, national legal holiday, or a day on which a national legal holiday is observed.

Don't Count the Effective Date!
The Effective Date is Day 0. Start counting the next day as Day 1.

 📌 Example 1: Initial Earnest Money Deposit

The Initial Earnest Money Deposit is due three (3) days after the Effective Date of June 26,  2025:

Day 1 = June 27, 2025

Day 2 = June 28, 2025

Day 3 = June 29, 2025

Since June 29, 2025 is a Sunday, the deadline extends to the next calendar day NOT a Saturday, Sunday, a national legal holiday or a day on which a national legal holiday is observed, which is Monday, June 30, 2025.

📌 Example 2: Inspection Period

The Inspection Period expires 10 days after the Effective Date of June 26, 2025. 

Day 1 = June 27, 2025; Day 10 = July 6, 2025

Since July 6, 2025 is a Sunday, the deadline extends to the next calendar day NOT a Saturday, Sunday, a national legal holiday or a day on which a national legal holiday is observed, which is Monday, July 7, 2025. For an 'AS IS' Contract, if the buyer wants to  terminate the Contract, written notice must be given to the seller no later than 11:59 p.m. on Monday, July 7, 2025.

📌 Example 3: Title Commitment

The title evidence (or commitment) for the property is due 15 days prior to closing date. Closing Date is August 15, 2025. Counting backwards from the Closing Date:

Day 1 = August 14, 2025; Day 15 = July 31, 2025

💡Pro Tip: If the 15th day before the Closing Date falls on a Saturday, Sunday, a national legal holiday or a day on which a national legal holiday is observed, the deadline extends to the next calendar day that is before the Saturday, Sunday, a national legal public holiday or a day on which a national legal holiday is observed since the Contract requires at least 15 days prior to the Closing Date.

Example: Closing Date is August 18, 2025. Day 1 = August 17, 2025, Day 15 = August 3, 2025, a Sunday. Deadline is Friday, August 1, 2025.

✅ Final Thought

Understanding how to properly calculate contract deadlines is more than good practice - it's a safeguard for your clients and the deal. Whether it's the earnest money deposit, inspections, loan approval, title commitment, association approval, or closing date, knowing how (and when) the clock ticks is crucial to avoid potential pitfalls and keep everyone moving confidently toward closing.