What is meant by "lapse of time" in real estate contracts?

The term "lapse of time" in the context of real estate contracts specifically refers to the situation where an offer remains open for a designated period, and if it is not accepted within that time frame, the offer automatically expires. This is important in real estate transactions because parties involved must act within specified deadlines to maintain their rights or opportunities regarding the property.

In real estate, if an offer is made and the prospective buyer does not accept it within the time frame outlined in the offer, then the offer is considered to have lapsed. This protects sellers by preventing them from being indefinitely bound to an offer or unable to pursue other potential buyers while waiting for a response. Understanding this concept is crucial for both buyers and sellers to ensure they are aware of their rights and obligations during negotiations and offer processes.