June 12th, 2017 at 10:10 am
Answer: It depends. The RPA has two different NBP timeframes for removing contingencies:
1. The first timeframe requires the seller to give the buyer at least 2 days after serving a NBP to remove an applicable contingency (see first sentence in paragraph14E of the RPA). This timeframe can be changed by inserting a different number of days in the blank space (such as “3” in our scenario). For this timeframe, if the seller serves a 2-day NBP instead of inserting 3 days in the NBP, the notice is unlikely to be defective. The buyer can always try arguing that the NBP is defective, but the NBP form itself specifically states that the timeframe is 2 days “but no less than the time specified in the Agreement.”
2. The second timeframe does not allow the seller to serve a NBP until 2 days before the expiration of an applicable contingency period (see second sentence in paragraph 14E of the RPA). This timeframe does not have a blank space for inserting a different number of days. For this timeframe, the RPA does not address exactly what happens if the NBP is served too early. However, the buyer does have a strong argument that serving it too early means that the notice is defective and must be served again.
-Thank you to Michael Sobel (Encino Office) and Wayne Woodyard (Monarch Beach and San Clemente Manager) for suggesting this week’s legal tip (they did so independently of one another).
Copyright© 2017 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 June 12, 2017. 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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