Under the C.A.R. Residential Purchase Agreement, a seller issues a Notice to Buyer to Perform (NBP) after the buyer's inspection contingency period has expired without the contingency being removed. How many days does the buyer have to respond to the NBP before the seller may cancel the contract?
Correct Answer
C) 2 days (48 hours) from receipt of the NBP
Under the C.A.R. RPA, once a contingency period has expired and the buyer has not removed the contingency, the seller may issue a Notice to Buyer to Perform. Upon receipt of the NBP, the buyer has 2 days (48 hours) to remove the contingency or take the specified action. If the buyer fails to respond within that window, the seller has the right to cancel the contract.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An option contract gives one party the exclusive right, but not the obligation, to purchase or lease a property at a specified price within a specified time period. The buyer pays option consideration to keep the option open.
A purchase agreement is a legally binding contract between a buyer and seller that outlines the terms and conditions for the sale of real property. It is also commonly called a sales contract, purchase and sale agreement, or earnest money agreement.
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.
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