A buyer in Oxnard has a C.A.R. RPA with an inspection contingency expiring on Friday. On Thursday, the buyer's agent delivers a Request for Repair (RR) to the seller, asking the seller to replace a water heater. The seller has not responded by Friday. Under the C.A.R. RPA, what happens to the inspection contingency?
Correct Answer
D) The contingency remains active because it was not affirmatively removed, but the seller may issue an NBP
Under the C.A.R. RPA, submitting a repair request does not extend or replace the contingency. However, because the C.A.R. RPA uses active contingency removal, the contingency remains in place even after the period expires until the buyer actively removes it. The seller may issue an NBP to force the buyer to act within 2 days.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
A time is of the essence clause in a contract means that all deadlines and dates specified in the agreement are strictly enforceable, and failure to meet them constitutes a material breach.
An appraisal contingency allows the buyer to cancel or renegotiate the contract if the property's appraised value comes in lower than the agreed-upon purchase price. This contingency protects buyers from overpaying.
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