Under California law, a real estate contract may be terminated or discharged in several ways. All of the following are valid methods to terminate a California real estate contract EXCEPT:
Correct Answer
B) Operation of law due to the death of the seller after a binding contract has been formed
Unlike an offer, a binding real estate contract in California does NOT terminate upon the death of a party. The contract obligations pass to the deceased party's estate and heirs. The personal representative or executor is generally required to fulfill the contract terms. This is a common exam trap — death terminates an offer (Civil Code §1587) but not an executed contract.
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Previous Question
A buyer in California includes an escalation clause in her offer on a home in Walnut Creek, stating she will pay $5,000 more than any competing offer up to a maximum of $800,000. The listing agent receives another offer for $760,000. Under California law, what obligation does the listing agent have regarding the escalation clause?
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A buyer in California submits an offer on a property in Ventura using the CAR Residential Purchase Agreement. The offer is made through electronic signatures using DocuSign. The seller's agent questions whether electronic signatures are legally valid for California real estate contracts. What should the listing agent advise?