If there is no specific closing date named in the escrow instructions, escrow is to close:
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within a reasonable period of time.
While 'reasonable time' is a common legal concept, California real estate law has established a specific 60-day default period, leaving no room for subjective interpretation in escrow transactions.
within 30 days.
30 days is insufficient for most real estate transactions, which typically require time for inspections, appraisals, loan processing, and document preparation beyond what 30 days typically allows.
within 60 days.
within 90 days.
90 days exceeds the statutory default period in California and would only apply if specifically agreed upon by the parties in writing, not as the default when no date is specified.
Why is this correct?
California Civil Code § 1059.5 explicitly states that if no closing date is specified, escrow must close within 60 days. This statutory timeframe serves as the default requirement when parties fail to specify a closing date in their agreement.
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