Counting Days in Texas Contracts

Days are Days, in Texas Real Estate

Counting days in Texas contracts can be tricky but so important. If you’re involved in a real estate contract in Texas, you must understand how to determine the deadlines.

Texas Real Estate Commission (TREC) and Texas Association of Realtors® (TAR) contracts use calendar days, not business days. You count Sundays, holidays, and everything in between.

What is the Effective Date?

First, you must know the “Effective Date” — the date that all parties have agreed to all terms and signed the contract — and then start counting. Your fully executed contract requires an Effective Date when all parties have signed and agreed to the terms.

You can determine the last day for performance by starting with the day after the effective date as day one and counting the number of days specified. In other words, count the effective date as zero.

For example, if your contract’s effective date is November 11 and there is a ten-day option period, the Buyer has until 5:00 p.m. on November 21 to terminate the contract, provided the option fee is paid within three days after the Effective Date. If the option fee is not paid, the Buyer forfeits the option period, and Paragraph 23 of the contract is no longer honored.

Holidays will affect your ability to get things done!

As the holidays approach, real estate brokerages, title companies, mortgage lenders, and inspection companies often struggle with short staffing, and routine tasks take longer than usual. Make plans as early as possible so your closing won’t be affected.

Bottom Line

 In Texas real estate contracts, parties strictly enforce deadlines, and missing them can lead to serious consequences.

If you fail to meet timelines for tasks such as inspections, financing approvals, or closing, you may be in default of the contract. Missing contract deadlines can result in the forfeiture of earnest money, the loss of the property, or even legal action. Avoid these risks by staying on top of all deadlines. 

It is not intended to serve as legal advice. Consult your attorney or real estate professional.

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