Contracts
A California residential purchase agreement includes a 17-day inspection contingency. On day 18, the buyer has not removed the contingency or canceled. What is the correct procedure for the seller?
AThe seller may immediately keep the buyer's deposit
BThe seller may issue a Notice to Buyer to Perform, giving the buyer at least 2 days to remove the contingency or cancel✓ Correct
CThe contract automatically cancels on day 18
DThe seller must extend the contingency for another 17 days
Explanation
Under the C.A.R. Residential Purchase Agreement, if a buyer fails to perform (e.g., remove a contingency) by the deadline, the seller must first serve a Notice to Buyer to Perform (NBP), giving the buyer at least 2 days to comply before the seller can cancel the contract.
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