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ARTICLE · 18 JULY 2024

The Double Default Rule In Real Estate Transactions

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These are familiar words to those who buy and sell real estate. They embody the notion that, on the time appointed for the closing of the transaction, a party is ready to close and has their ducks in a row to do so.

CanadaReal Estate and Construction
Simon Crawford
Simon Crawford
Jacob Schroeter
Jacob Schroeter
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"We're ready, willing and able to close. Are you?"

These are familiar words to those who buy and sell real estate. They embody the notion that, on the time appointed for the closing of the transaction, a party is ready to close and has their ducks in a row to do so.

And of course, these words are also often thought of in the context of another phrase: "time is of the essence" (which we will refer to as TOE)—the contractual concept that the dates and times in the purchase and sale agreement are to be adhered to strictly.

So combined, the two phrases connote, that on the set closing date and time, the parties are to show up with all of their required deliveries and moneys to complete the transaction, failing which, someone will be liable for damages.

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