The Mutual Agreement Date is the date the last party making an offer or counter offer receives notification that their offer (or counter offer) was accepted and both parties have agreed to all terms and conditions of the Purchase and Sale agreement.
We often say it is the date the contract was “signed around”, or day of “Mutual Acceptance.” All deadlines in the agreement start with that date. Essentially, it is when the “clock starts ticking.” It is the countdown date for your due diligence period, inspection contingency, financing contingency, and any other items that may be specified in the contract. If a contingency has a time line of 10 days, then day one of the 10 days starts the day after the Mutual Agreement Date. Any specified period of 5 days or less shall not include Saturdays, Sundays or legal holidays.
It is a joyful date for both Buyers and Sellers. They are now in contract to buy and sell. However, it also means “okay, we are in contract and things need to move forward in a timely fashion.” The work begins, the clock is now ticking …A common term in often heard in the world of Real Estate is “Time is of the Essence.”
Image provided by flickr.com by Candie_N