The formal sale or purchase of property usually involves a sales agreement containing the terms and conditions which govern the manner in which consideration is exchanged, i.e. money for property. In commercial transactions involving the purchase of real estate or a business, sales agreement will often include a mutually agreed Completion Date, i.e. the final day consideration is exchanged, which is usually done by inserting a fixed date or condition specifying when completion will take place. The Completion Date is part of the terms and conditions of the sales agreement and therefore legally binding on all parties to the contract pursuant to exchange.
What is a Notice to Complete?
As unpredictable as life itself, unexpected delays may affect a party’s ability to complete the transaction within the schedule Completion Date. Should this issue arise the aggrieved party may instruct his attorney to serve on the defaulting party a ‘Notice to Complete’ on its legal representatives, thereby making time “of the essence”. A properly served Notice pursuant to the standard conditions will provide a new completion date (usually within 14 days of service), upon which that new date now becomes a condition of the contract.
Either party’s failure to complete by the new date entitles the aggrieved party to terminate the sales agreement. If the seller does not complete the sale, the buyer may recover their deposit and claim damages flowing from the breach. Should the buyer fails to complete the sale, they are placed at risk of forfeiting their deposit and face legal action for damages suffered by the seller.
Although serving a Notice to Complete seems simple, the overall process is fraught with potential pitfalls, making it imperative for the aggrieved party to recieve proper legal advice before serving notice. For further assistance on this issue, feel free to contact our offices to schedule a conference with our legal team via email at firstname.lastname@example.org or telephone at (242)806-1290.