Under the C.A.R. RPA, a buyer wishes to remove the inspection contingency while keeping the loan and appraisal contingencies active. Which statement correctly describes the buyer's ability to do this?
Correct Answer
A) Yes, the buyer may selectively remove individual contingencies using the Contingency Removal (CR) form
Under the C.A.R. RPA, each contingency operates independently. The Contingency Removal (CR) form allows the buyer to remove one or more specific contingencies at any time without affecting the others. There is no requirement to remove all contingencies together or in any particular sequence.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Liquidated damages are a predetermined amount of money specified in the contract that the non-breaching party is entitled to receive if the other party breaches. In real estate, the earnest money deposit typically serves as liquidated damages.
Novation is the substitution of a new contract for an existing one, or the replacement of one party with a new party, with the consent of all parties involved. The original party is completely released from all obligations.
Offer and acceptance is the process by which one party proposes specific terms for a contract and the other party agrees to those exact terms, creating mutual assent. This mutual agreement, also called a meeting of the minds, is an essential element of every valid contract.
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