A buyer issues a Notice to Seller to Perform (NSP) after the seller fails to deliver the Transfer Disclosure Statement (TDS) by the contractual deadline. The seller does not provide the TDS within the NSP response period. Under the C.A.R. RPA, what is the buyer's most likely contractual right at that point?
Correct Answer
A) The buyer may cancel the contract and recover the earnest money deposit
Under the C.A.R. Residential Purchase Agreement, the Notice to Seller to Perform (NSP) gives the seller a final cure window (typically two days) to fulfill an obligation like delivering the TDS. If the seller still fails to perform within that window, the buyer may cancel the contract and recover the earnest money deposit.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Earnest money is a deposit made by the buyer at the time of the offer or shortly after to demonstrate good faith and serious intent to purchase the property. It is also called a good faith deposit.
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.
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