You represent Cynthia and Ronald, who signed a contract to buy Margie's home. The contract included the phrase, "time is of the essence." You explain to Cynthia and Ronald that this phrase means ______.

The phrase "time is of the essence" in a real estate contract indicates that the parties involved must adhere to the timelines specified in the agreement. This means that each party is obligated to perform their contractual duties within the designated time frames. The inclusion of this phrase emphasizes the importance of each deadline and expresses the intention that any delays could be considered a breach of the contract.

When communicating this to Cynthia and Ronald, it's crucial to highlight that this phrase establishes that the parties agree to act in good faith and avoid undue delays. If one party does not fulfill their obligations within the agreed-upon time, it could give the other party the right to pursue legal remedies, such as terminating the contract or seeking damages.

Understanding the significance of this phrase helps ensure that buyers and sellers maintain clarity about their responsibilities regarding timing, which is crucial for the smooth execution of the transaction. In contrast, the other options do not accurately convey the strictness of this contractual term, as they suggest a level of flexibility or leniency towards deadlines that contradict the essence of the phrase.