June 3rd, 2019 at 2:11 pm
Multiple Choice Question: What should the seller do before cancelling? Pick ALL of the correct answers from the following list:
A. Accept the backup buyer’s offer in writing (using the C.A.R. Backup Offer Addendum).
B. Give a copy of the backup offer to Ben.
C. Give Ben a 3-day notice to remove his loan contingency.
D. Give Ben a 3-day notice to remove his sale contingency.
E. Give Ben a 3-day notice to provide verification of sufficient funds to close escrow without selling his existing home.
Answer: All of the above answers are correct. To cancel under paragraph 8 of the COP, the seller must not only accept a backup buyer’s offer, but also give a copy of that accepted backup offer to Ben. The seller must also give Ben a 3-day notice to remove the loan contingency and sale contingency, as well as show proof of sufficient funds to close escrow without selling Ben’s existing home (paragraph 8A of the COP). As a practice tip, instead of using a 2-day Notice to Buyer to Perform, the seller can complete the bottom section of the COP and deliver it as a 3-day notice to Ben.
-Thank you to Chris Fryson (San Diego Central and La Mesa/El Cajon Manager) for suggesting this week’s legal tip.
Like what you see here? Sign up for more! Our free e-newsletter informs you of listings in your community, insider real estate tips, the latest in home trends, and more.
