May 23rd, 2016 at 7:42 pm
A.? Thursday, May 26.
B.? Friday, May 27.
C.? Saturday, May 28.
D.? Monday, May 30.
E.? Tuesday, May 31.
Answer: The correct answer is C. When a sales transaction is scheduled to close escrow a certain number of “Days After Acceptance” under paragraph 1D of the RPA, the capitalized word, “Days,” is specifically defined. Under paragraph 30G of the RPA, “Days” means calendar days, but “the last Day for performance of any act required by this Agreement (including Close of Escrow) shall not include any Saturday, Sunday, or legal holiday, and shall instead be the next Day.” For this particular? transaction, the last day of the 60-day escrow falls on Sunday, May 29, 2016. Hence, escrow is not scheduled to close until Tuesday, May 31, 2016, because Monday is Memorial Day which is a legal holiday (Cal. Gov’t Code section 6700).
As for the DCE, a seller cannot serve the DCE “any earlier than 3 Days Prior to the scheduled close of escrow” (paragraph 14G). In your case, 3 days before Tuesday, May 31, is Saturday, May 28. The above rule excluding Saturdays, Sundays, and legal holidays does not prevent the seller from serving a DCE on a Saturday. That rule only applies when “the last Day for performance” falls on a Saturday, Sunday, or legal holiday, such as removing contingencies or closing escrow, not serving a DCE.
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