Under the C.A.R. RPA, a seller who issues a Notice to Buyer to Perform (NBP) must satisfy several requirements. Which of the following is NOT a valid requirement for issuing an enforceable NBP?
Correct Answer
D) The seller must have first issued a Demand to Close Escrow (DCE) before the NBP can be served
The C.A.R. RPA does not require the seller to issue a Demand to Close Escrow (DCE) before serving a Notice to Buyer to Perform. The NBP and DCE are independent contractual notices used in different circumstances — the NBP addresses unfulfilled contingencies or obligations, while the DCE is used when the buyer fails to close. No sequencing requirement between the two exists under the RPA.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
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.
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