Under the C.A.R. Residential Purchase Agreement, which of the following is NOT a standard contractual protection afforded to the buyer?
Correct Answer
C) The buyer may cancel the contract without penalty at any time before close of escrow simply by notifying the seller in writing
The C.A.R. RPA does not give the buyer an unconditional right to cancel at any time before close of escrow without consequence. Cancellation rights are contingency-based and time-limited. Once contingencies are removed, the buyer's deposit may be at risk if the buyer cancels without a contractual basis. An unrestricted right to cancel without penalty is not a standard RPA protection.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A breach of contract occurs when one party fails to perform their obligations under the contract without a legal excuse. The non-breaching party is entitled to legal remedies including damages, specific performance, or contract rescission.
Consideration is something of value exchanged between parties to a contract, making the agreement legally binding. It can be money, a promise to act, a promise to refrain from acting, or anything else of value.
Contingencies are conditions written into a real estate contract that must be met before the transaction can close. If a contingency is not satisfied, the buyer can typically cancel the contract without penalty.
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