In a California residential transaction using the C.A.R. RPA, what is the primary purpose of the Contingency Removal (CR) form?
Correct Answer
D) To notify the seller that the buyer is waiving specified contingencies and committing to proceed
The C.A.R. Contingency Removal (CR) form is used by the buyer to formally waive specified contingencies, signaling to the seller that the buyer is satisfied with those aspects of the transaction and is committing to proceed. Once a contingency is removed, the buyer can no longer cancel based on that contingency.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
An option contract gives one party the exclusive right, but not the obligation, to purchase or lease a property at a specified price within a specified time period. The buyer pays option consideration to keep the option open.
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.
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