A buyer in Torrance wants to cancel a C.A.R. RPA transaction within the inspection contingency period after discovering significant termite damage. Which C.A.R. form should the buyer's agent use to formally cancel the contract?
Correct Answer
B) The Cancellation of Contract, Release of Deposit
The C.A.R. Cancellation of Contract, Release of Deposit, and Joint Escrow Instructions (CC) form is the proper document used to cancel a transaction and provide instructions for the release of the deposit. When the buyer cancels within an active contingency period, this form documents the cancellation and directs the escrow holder to refund the deposit.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
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.
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