A seller in Elk Grove is frustrated because the buyer has not removed contingencies 5 days past the 17-day inspection contingency deadline. The seller's agent issues a Notice to Buyer to Perform (NBP). The buyer does not respond within the 2-day NBP period. What may the seller do next under the C.A.R. RPA?
Correct Answer
D) The seller may cancel the contract by issuing a Cancellation of Contract (CC) form
Under the C.A.R. RPA, after the seller issues an NBP and the buyer fails to respond within the 2-day period, the seller has the right to cancel the contract by issuing a Cancellation of Contract (CC) form. The seller is not obligated to cancel but has earned the right to do so.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Contract termination occurs when a contract is ended or discharged, releasing both parties from their obligations. A contract can be terminated through performance, mutual agreement, operation of law, or breach.
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