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What is a time of the essence clause and when should I use it?

A time of the essence clause sets a firm, legally enforceable closing deadline - if the buyer fails to close by that date, they are in default and risk forfeiting their deposit. Use it when you need certainty, such as when you have a 1031 exchange deadline or a purchase contingent on closing proceeds. New York courts require "reasonable" notice, typically 30 days, before the deadline takes effect.

From the seller playbook: Time of the Essence Clauses - Seller Strategy for Closing Deadline Enforcement

This is general information, not legal, tax or accounting advice. Every situation is different. Talk to a licensed attorney, accountant or tax professional before you act.

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