A California homeowner and a buyer agree to a land contract (contract for deed) for a property in Modesto priced at $380,000. Under California Civil Code §2985, what unique protection does the buyer receive in this type of arrangement?
Correct Answer
C) The buyer has the right to a grace period and specific notice requirements before the seller can declare a forfeiture
Under California Civil Code §2985, land contracts (installment sales contracts) provide buyers with specific protections, including notice requirements and grace periods before a seller can declare forfeiture. After the buyer has paid a substantial amount, additional protections apply, including the right to cure defaults.
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A California real estate broker receives two offers simultaneously on a property listed in Stockton for $550,000. Offer A is for $540,000 and Offer B is for $555,000. The seller's agent presents only Offer B to the seller, who accepts it. If the buyer from Offer A later discovers this, what violation has the seller's agent committed under California law?
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A buyer and seller in California execute a purchase agreement for a home in Napa Valley. The contract includes a time is of the essence clause. The buyer fails to deposit earnest money by the deadline specified in the contract. Under California law, what is the legal effect of missing this deadline?