April 23rd, 2018 at 2:19 pm
A. The seller cannot cancel, because the seller cannot serve an NBP until after the buyer’s contingencies have expired.
B. 9:01 a.m. on Friday, because the buyer has 48 hours after service of the NBP to remove contingencies.
C. 12:01 a.m. on Saturday, because the buyer has 2 entire days after service of the NBP to remove contingencies.
D. 12:01 a.m. on Monday, because the seller cannot cancel on a Saturday, Sunday, or legal holiday.
Answer: Answer A is wrong. The seller can serve a NBP up to 2 days before the expiration of the buyer’s contingencies under paragraph 14E of the RPA. Answer B is wrong. The buyer has 2 “Days After” the service of the NBP to remove contingencies (under paragraph 14E). The words “Days After” are specifically defined as calendar days ending at 11:59 p.m. of the final day (see paragraph 30G). They are not defined as 48 hours. Answer C is the best answer. It’s not altogether clear as to whether the seller can cancel at 12:00:00 a.m. or at 12:00:01 a.m., so 12:01 a.m. is a safe answer. Answer D is wrong. You do not count a Saturday, Sunday, or legal holiday if it’ll be the last day for performance of an act required by the contract (see paragraph 30F). In this situation, the contemplated act to be performed is the seller’s cancellation. Saturday, April 28, is the first day that the seller may cancel. It is not the last day the seller is required to cancel, so Saturdays, Sundays, and legal holidays are not excluded.
-Thank you to Dan Mancinelli (Los Feliz Office) for suggesting this week’s legal tip.
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