After completing their due diligence, a buyer under a C.A.R. RPA is satisfied with the property's condition and wants to formally satisfy the inspection contingency and commit to proceeding with the purchase. The seller has not yet issued any notices. What is the buyer's most appropriate next step?
Correct Answer
C) Submit a Contingency Removal (CR) form removing the inspection contingency
The C.A.R. Contingency Removal (CR) form is the proper instrument for a buyer to affirmatively satisfy and release a specific contingency. Submitting the CR form for the inspection contingency creates a clear contractual record that the buyer has completed their investigation and is proceeding without that protection. Proactive removal also reduces the seller's uncertainty and strengthens the buyer's position.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Specific performance is a court-ordered remedy that compels the breaching party to fulfill their obligations under the contract rather than simply paying monetary damages. It is an equitable remedy used when monetary damages would be inadequate.
The Statute of Frauds is a legal requirement that certain types of contracts must be in writing and signed to be enforceable. In real estate, all contracts for the sale of land or interests in land must be in writing.
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