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A California licensee is preparing a C.A.R. RPA for a buyer. The buyer wants to include a provision that the sale is contingent upon the buyer selling their current home first. How should the licensee handle this request?

Correct Answer

B) Use the C.A.R. Sale of Buyer's Property contingency addendum form

C.A.R. provides a specific addendum form for the sale of the buyer's property contingency (COP form). Using the standardized form ensures proper legal language, appropriate timelines, and compliance with California contract law.

Answer Options
A
Include the contingency as a handwritten addendum on the back of the RPA
B
Use the C.A.R. Sale of Buyer's Property contingency addendum form
C
Write the contingency into the inspection contingency section of the RPA
D
Advise the buyer that the C.A.R. RPA does not permit sale contingencies

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Related Topics & Key Terms

Key Terms:

sale_contingencyCOP_formaddendumRPACAR_forms

Related Concepts

Specific performance is a court-ordered remedy that compels the breaching party to fulfill their obligations under the contract rather than simply paying monetary damages. It is an equitable remedy used when monetary damages would be inadequate.

The Statute of Frauds is a legal requirement that certain types of contracts must be in writing and signed to be enforceable. In real estate, all contracts for the sale of land or interests in land must be in writing.

A time is of the essence clause in a contract means that all deadlines and dates specified in the agreement are strictly enforceable, and failure to meet them constitutes a material breach.

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