I updated this post for the new version of the FAR BAR As-Is and the lesser used FAR contract.

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Counting dates: Calendar days, business days, Realtor daze

Oct. 30 2021 UPDATE:  As of November 1, 2021 there is a new version (6) of the FAR BAR As-Is Contract,  In this post I go over all the changes to the new Contract.  And, in this post I show how to count days in this NEW version of the FAR BAR As-Is.

THE INFORMATION BELOW IS NO LONGER ACCURATE AS OF 1 NOVEMBER 2021.

By Meredith Caruso

Feb. 19, 2018  Confused about how to count time under the contract forms? No Florida law governs computation of time in all contracts, and it’s important to realize that contracts can calculate time differently. Therefore, reading the contract carefully to determine time calculations is the key to avoiding missed deadlines and potential liability. Let’s review the calculation of time in the Florida Realtors/Florida Bar contracts. Both the standard version and the “AS IS” version are the same. The effective date of these contracts is a baseline date for other calculations – the first step in figuring out many of the deadlines in both forms. Consequently, it should go without saying that you must know the effective date in order to correctly calculate those contract time periods. In the Florida Realtors/Florida Bar contracts, Paragraph 3(b) defines the effective date as the date the last party signs or initials and delivers the offer or final counteroffer. Note that there is an element of delivery, so the effective date isn’t always the date the last party signs. In other words, if the last party signs the offer or final counteroffer on a Tuesday, but the contract doesn’t get delivered back to the other side until Wednesday, the effective date is Wednesday. Standard F: Except for the effective date and time for acceptance, calendar days are to be used to compute time periods, and any time periods or dates ending or occurring on a weekend or national holiday are extended to 5 p.m. of the next business day. An example: If the effective date of the contract is Wednesday, Nov. 21, 2018, and the time period for making the deposit is “within 3 days after the Effective Date,” the deposit must be made no later than 5 p.m. on Monday, Nov. 26, 2018. Here’s why:

• Wednesday, Nov. 21: Not counted as the language states the time for making the deposit begins after the Effective Date
• Thursday, Nov. 22: Day 1 (It counts even though it’s Thanksgiving, a national legal holiday; note that holidays only affect time periods if the deadline ends on the holiday)
• Friday, Nov. 23: Day 2
• Saturday, Nov. 24: While this is technically Day 3, the deposit isn’t due as the time period ended on a weekend, which means the deadline is extended to 5 p.m. of the following business day
• Sunday, Nov. 25: The deposit still isn’t due because Sunday is not a business day
• Monday, Nov. 26: The deposit is due by 5 p.m.

Again, it’s crucial to recognize that contracts may be calculated differently. For example, the Florida Realtors Contract for Residential Sale and Purchase (CRSP) uses business days to calculate time periods. The Commercial Contract uses calendar days to calculate time periods – but not for time periods of 5 days or less. As you can see, there can be many different ways time is calculated! The important thing is to be aware of how time is computed in each of your deals and don’t think all contracts are alike. Taking extra time to double check the time computation section of the contract you’re using can save a lot of headaches later. Meredith Caruso is Manager of Member Legal Communications for Florida Realtors © 2018 Florida Realtors®