A buyer makes an offer to purchase a property at 456 Ocean Drive, Victoria, BC, for $1,200,000. The offer includes a subject condition 'Buyer's Solicitor Approval' to be removed within 2 days. The contract stipulates 'time is of the essence'. On the second day, the buyer's solicitor is still reviewing complex title documents and requires more time. The buyer's agent informs the seller's agent that they need an extension. What is the legal implication if the buyer does not remove or waive the subject condition by the deadline?

Question: A buyer makes an offer to purchase a property at 456 Ocean Drive, Victoria, BC, for $1,200,000. The offer includes a subject condition 'Buyer's Solicitor Approval' to be removed within 2 days. The contract stipulates 'time is of the essence'. On the second day, the buyer's solicitor is still reviewing complex title documents and requires more time. The buyer's agent informs the seller's agent that they need an extension. What is the legal implication if the buyer does not remove or waive the subject condition by the deadline?

Answer options:

• The seller is automatically granted an extension to allow the buyer more time to secure legal advice.
• The contract remains binding, but the buyer may be penalized for the delay in removing the subject. ✅ The contract automatically terminates due to the 'time is of the essence' clause and the unfulfilled condition.
• The buyer receives a grace period of 24 hours to fulfill the condition before the contract terminates.

Correct answer: The contract automatically terminates due to the 'time is of the essence' clause and the unfulfilled condition.

Explanation: When 'time is of the essence' is included in a contract, strict adherence to deadlines is required. Failure to remove or waive a subject condition by the stipulated time, in such a contract, typically results in the automatic termination of the agreement.