A buyer in Sacramento has a C.A.R. RPA with a 17-day inspection contingency. Day 17 passes and the buyer has not removed the contingency or taken any action. What is the status of the buyer's inspection contingency?
Correct Answer
C) The contingency remains in effect but the seller may issue a Notice to Buyer to Perform (NBP) demanding action
Under the C.A.R. RPA, contingencies are NOT automatically removed when the period expires. Instead, the contingency remains in place until the buyer actively removes it. However, once the period expires, the seller may issue a Notice to Buyer to Perform (NBP) demanding the buyer remove the contingency within 2 days or the seller may cancel.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A counteroffer is a response to an original offer that changes one or more terms of the offer, effectively rejecting the original offer and creating a new offer. The party who makes the counteroffer becomes the new offeror.
Earnest money is a deposit made by the buyer at the time of the offer or shortly after to demonstrate good faith and serious intent to purchase the property. It is also called a good faith deposit.
Equitable title is the buyer's interest in a property after a purchase contract is signed but before closing, giving the buyer the right to acquire legal title in the future. The seller retains legal title until the deed is delivered at closing.
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