April 10th, 2017 at 5:20 pm
Answer: At the same time. Nothing in the Residential Purchase Agreement prohibits service of both notices at the same time. As for the Notice to Buyer to Perform (NBP), the seller cannot cancel based on the buyer’s failure to remove contingencies unless the seller first serves a 2-day NBP (see paragraph 14D(1)). The NBP cannot be served any sooner than 2 days before the expiration of the applicable timeframe (see paragraph 14E). Moreover, as for the Demand to Close Escrow (DCE), the seller cannot cancel based on the buyer’s failure to close escrow unless the seller first serves a 3-day DCE (see paragraph 14G). The DCE cannot be served any sooner than 3 days before the scheduled close of escrow (see paragraph 14G). In your situation, the time frames for the buyer to remove contingencies and close escrow have both expired, and so the seller can serve both the NBP and DCE. Serving both notices at the same time gives the buyer 2 days to remove all contingencies (otherwise the seller can cancel), and one more day thereafter to close escrow (otherwise the seller can cancel). Of course, if the final day for the buyer to perform falls on a Saturday, Sunday, or legal holiday, the buyer has until the next business day to perform (paragraph 30F).
-Thank you to Daniel Banchik (Beverly Hills Office) for suggesting this week’s legal tip.
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 April 10, 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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