Time is of the Essence

Posts Tagged ‘Avery-Hess’

Time is of the Essence

I had to smile the other day when I was teaching a class on the new NVAR Sales Contract to be released January 1st 2012.

Among the changes I noticed was the inclusion of clause 30; “TIME IS OF THE ESSENCE AS TO ALL THE TERMS OF THIS CONTRACT”.

In my 34 plus years in Real Estate this clause has appeared and disappeared in our contract iterations several times. Most recently it was not part of the main contract but inserted in the various Jurisdictional addenda’s. This got me thinking about how sales associates go about explaining this clause if their client asks, or holding to it.

We spend time reviewing and commenting on contracts, with stock words or phrases that should mean a lot to us – but oftentimes little, if anything, to our clients. Some of those words or phrases are absolutely essential; others have lost their impact over time. One of the latter is the phrase: “time is of the essence,” which Black’s Law Dictionary defines as, “performance by one party at [a] time or within [a] period specified in [the] contract is essential to enable him to require performance by [the] other party.”

So can we explain this? What does it mean in plain English? Well, by including this phrase it simply means that one party to a contract is automatically entitled to terminate the contract if the other party fails to perform upon the time and conditions specified in the contract.

And that’s important, right? Ok… let’s explore the possibilities.

Most lawyers I know dislike vagueness in any contract language and “time is of the essence as to all the terms of this contract” certainly qualifies. Inclusion of the phrase provides a judge with evidence of your intentions when you entered into the contract, but in and of itself, and without further specificity, this may not be sufficiently strong enough to support a verdict in your favor, if a contract problem ever gets that far. Given all that, I would encourage you not to rely too heavily on the simple existence of this stock phrase in your contracts. Instead be sure your requirements for performance are accurate, specific and time-constrained.

In practice, since no one ever wants to spend the time, money and emotional angst trying to prove their case in court, here are three recommendations to strengthen intent and give it some enforcement:

Clearly state your expectations – both time and quality, for performance or delivery. Do not fall victim to vagueness, either yours or that of your client. This will not serve either party well in the end.
Confirm that all dates and deadlines are accurate. Do not allow for assumptions, or performance, to be qualified as “best efforts.” You want the terms plain and clear to both parties.
Put on your judge’s hat. If it’s vague, or unclear to you, chances are, it would be to a judge as well. Step back from your contract and try to see it through a third party’s eyes. Consider how a judge, months or years down the line, might interpret the language which documents this contractual agreement.

Know your contract, be accurate, be precise and be clear.

- Scott Avery, President, Avery-Hess Realtors

Find your home, Plan your life: www.averyhess.com

Frederick County, MD 3/8/11

The Median Sold Price for Frederick County, as a whole, for last month was $249,743. This number dropped from $258,476 in 2010. This -3.38% Sold Price change has many wondering what will happen this spring. Have prices finally fallen to the bottom? Is the Frederick Real Estate Market ever going to stabilize? These are questions we all would like to have answers to.

Looking at the Average for Frederick County does not accurately show the Good News – that I am happy to report in many areas. New Market (zip code 21744) has an Average Sold Price of $287,682, Middletown (21769) Average Sold Price of $312,000, Dickerson (20842) $855,000 and Jefferson (21755) $870,000 have a lot to be proud of. All of these numbers are well above the average for the county. I see a very productive spring and summer ahead for 2011!

Downtown Frederick, named a Great American Main Street by the National Trust for Historic Preservation, has a lot of historic charm, and is home to Carroll Creek Park. Shop for gifts, antiques and more or dine at the city’s share of more than 200 eateries countywide. Sports enthusiasts can catch a Frederick Keys game at a home stadium that’s the envy of other minor league baseball teams.

If you enjoy the open spaces Frederick County has several award-winning wineries or take in the natural beauty of a 78-foot waterfall at Cunningham Falls. Hike the C&O Canal towpath.

Interested in History? Then explore Frederick County’s deep-rooted Civil War history by visiting the National Museum of Civil War Medicine, the Barbara Fritchie House or Monocacy Battlefield.

Market data and commentary provided by Kathy Fleskes & Serena Toro, Rockville Regional Office.

Search for homes in Frederick County, and all of the DC Metro: www.averyhess.com

Video Profile: About Avery-Hess

Recently, we decided a shoot a piece that would give our audience a video snapshot of what Avery-Hess is all about. We put cameras in front of our President, Scott Avery, and agent Mary Grace Mandaro so they could tell you a little bit about our company and what we have to offer.

About Avery-Hess from Amit Kulkarni on Vimeo.

Learn more about Avery-Hess, and search for homes in all of the DC Metro: www.averyhess.com

Meet Our People – The Match Masters: Albert Crider and Judy Radvanyi

At Avery-Hess, our people are our most important asset. Learn more about two of our best, Albert Crider and Judy Radvanyi, also known as The Match Masters, from our Tysons Corner, Virginia Regional Office.

Meet Avery-Hess – The Match Masters: Albert Crider and Judy Radvanyi from Amit Kulkarni on Vimeo.

Search for homes and learn more about Avery-Hess: www.averyhess.com

What Are Agents Saying About Avery-Hess?

In recent months, Avery-Hess, Realtors has undergone some changes throughout the company.

We’ve seen some personnel changes, along with the relocation of our Front Royal office. However, these changes are just part of the bigger picture here at Avery-Hess. Last month our President, Scott Avery, issued a letter to all of our employees and agents, which described the company’s overall vision and plan.

In his letter, Scott expressed our company’s focus on three main areas: customers, innovation, and long-term thinking. Concentrating on our customers—both sales associates and the public—lends itself to innovative and long-term thinking, which will lead to profitability and sustainability.

So given these changes and new company outlook, just what are our agents saying about Avery-Hess?

Scott, I concur wholeheartedly with your vision of the future and your decisions to move truly into the “new era.” I’m with you 100%. (J.A.)

Now when I tailor my listing appointments to replicate these significant changes, I have something [that sets me apart] (K.S.)

Bravo! I can tell there was a lot of forethought and serious deliberation [in determining our new direction]. [This is a] great inspiration for more success in the future. (J.S.)

Well put. Not every company and its leaders understand the importance of the “internal” customer and how to best optimize and manage that. (F.I.)

These are exciting times for Real Estate and exciting times for Avery-Hess. To learn more, visit www.averyhess.com or contact Scott Avery at savery@averyhess.com or Amit Kulkarni at akulkarni@averyhess.com.

Search for homes in all of the DC Metro: www.averyhess.com

Meet Our People – Seema Rodriguez

At Avery-Hess, our people are our most important asset. Learn more about one of our best, Seema Rodriguez from our Montgomery County, Maryland Regional Office.