Under the C.A.R. RPA, the buyer's investigation contingency is broad in scope. Which of the following would most likely fall OUTSIDE the coverage of that contingency?
Correct Answer
B) Whether the seller has sufficient equity in the property to close without a short sale approval
The buyer's investigation contingency under the C.A.R. RPA is focused on the property itself and its surrounding conditions — physical, legal, environmental, and governmental. The seller's equity position is a transactional or financial matter unrelated to the property's condition or characteristics, and it is not covered by this contingency. A short sale scenario would instead be addressed through a separate short sale addendum.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
A financing contingency makes the purchase contract conditional upon the buyer obtaining mortgage approval within a specified time period. If the buyer cannot secure financing, they can cancel the contract and receive their earnest money back.
An inspection contingency gives the buyer the right to have the property professionally inspected within a specified time frame and to negotiate repairs or cancel the contract based on the findings.
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