What typically occurs if a buyer fails to deliver the option fee by the agreed date?

If a buyer fails to deliver the option fee by the agreed date, it typically leads to the automatic cancellation of the contract. The option fee serves as consideration for the option to purchase the property, and timely payment is crucial as it solidifies the buyer's commitment and secures their right to purchase within a specified timeframe. Missing this deadline generally indicates that the buyer is not fulfilling their contractual obligations, which can render the agreement void.

In many real estate contracts, the inclusion of precise deadlines for option fees reflects mutual understanding and intent. Therefore, if the buyer does not adhere to this timeframe, it allows the seller to consider the contract terminated without any necessity for further action or discussion regarding the matter. This principle is rooted in contract law, emphasizing the importance of deadlines and performance in transactional agreements.