August 26th, 2019 at 2:22 pm
Question: In last week’s legal tip, you addressed paragraph 8 of C.A.R.’s Contingency for Sale of Buyer’s Property (COP), which allows a seller to accept a written backup offer and then serve the first buyer with a written notice to do 3 things: (1) remove the sale contingency; (2) remove the loan contingency; and (3) provide proof of sufficient funds to close escrow without selling the buyer’s property. I understand that you called that a “bump notice” to emphasize the fact that it’s not a Notice to Buyer to Perform, a right of first refusal, or what some agents call a “first right of refusal.” However, we do not have a C.A.R. form called a “Bump Notice.” What form does a seller use to serve the notice under paragraph 8 of the COP?
Answer: The seller would use the COP itself. The very bottom of the COP form is a “Notice to Remove Contingencies” which the seller can sign and serve onto the buyer.
Listing Agents Beware! This notice is inconspicuous and few agents realize it’s at the bottom of the COP itself. Hence, when you serve the notice, make it abundantly clear to the buyer’s agent by email, phone, or otherwise, that you are serving the notice under paragraph 8 of the COP. Additionally, the COP requires the seller to provide the buyer with a copy of the signed, accepted back-up offer.
-Thank you to Randy Freed (Santa Barbara Office) for suggesting this week’s legal tip.
Copyright© 2019 Berkshire Hathaway HomeServices California Properties (BHHSCP). All rights reserved. Any unauthorized reproduction or use of this material is strictly prohibited. This information is believed to be accurate as of August 26, 2019. It is not intended as a substitute for legal advice in individual situations, and is not intended to nor does it create a standard of care for real estate professionals.
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