In Texas the feasibility period on a commercial real estate contract expires a certain number of days (this is negotiable) AFTER the effective date. Because of this it’s imperative that you know two things: know 100% what the effective date is! AND know when a day actually ends. Messing up on this could potentially cost you thousands!
How to Calculate the Feasibility End Date:
Suppose you negotiated a feasibility period of 50 days and your effective date was October 26th, 2015. You may terminate your contract within 50 days AFTER the effective date. Your feasibility period in this case would expire at 11:59 pm on December 15th, 2015. If you had not terminated the contract before this time you would lose your earnest money and be required to fulfill the performance requirements of the contract. If you terminate the contract within the 50 days your earnest money will be released minus the money you committed for the right to terminate.
Legal Disclaimer: The information provided above is only for informational purposes and should not be thought of as legal advice for your commercial contract. This information is also subject to change by TAR & TREC. We always recommend that you call your attorney to review and advise you on your commercial real estate contract as individual situations may differ from situation to situation. If you don’t have an attorney we would be happy to recommend a few to you.