Paragraph 9A of the Central Carolina Realtors Association contract says that the buyer will have a ten (10) Business Day Due Diligence Period beginning at the time of final Contract acceptance to conduct any inspection, examination and testing the buyer desires. It is important to understand when a Business Day begins and ends in order to properly calculate the period. This post will examine when the period begins. Our next post will cover when the period ends.
In calculating Business Days there are three rules to understand. First, a Business Day is defined under Paragraph 29 as a 24-hour period beginning at 8 AM of any week day. Thus, a Business Day begins at 8:00 AM and ends the next Business Day at 7:59 AM. Secondly, the first Business Day begins at 8 AM of the first Business Day following the date of final contract acceptance. Thirdly, a Business Day may not begin or end on a Saturday, Sunday of Federal Holiday.
Here are several examples:
1) If a contract is accepted at 10 AM on Tuesday the first Business Day would begin on Wednesday at 8 AM.
2) If a contract is accepted on Friday at 4:00 PM, the first Business Day does not begin until Monday at 8 AM.
3) If your client accepts a contract on the Friday before Memorial Day the first Business Day begins at 8 AM on Tuesday. Remember a Business Day may not begin on a Saturday, Sunday or Federal Holiday. So in this example your client’s Due Diligence period is actually extended three days.
4) If your client accepts a contract at 8:15 AM, the first Business Day does not begin until the next Business Day at 8 AM.
5) If your client accepts a contract at 7:45 AM, the first Business Day begins at 8 AM the same day.
Historical Fact- Fort Jackson is approaching its 100-Year Anniversary. In 1916 Columbia Civic leaders proposed an Army Installation cite to the Commander of the All-Eastern Army, General Leonard Wood. In May the following year, Major Douglas McArthur announced that the Army cantonment would be established near Columbia. Shortly thereafter, the US began the draft for World War I. Columbia’s Chamber of Commerce raised $50,000 to purchase the Hampton Estate. Additionally, Columbia residents donated 1,192 acres and the federal government purchased over 19,700 acres and leased thousands of other acres. Construction of Camp Jackson began in June 1917 by Georgia Company, Hardaway Contracting Company. At the time the land had no roads or trails and was so thick with under-brush that a horse and rider could not proceed. On June 22, 1917 the first soldiers arrived for training.