December 14th, 2020 at 11:58 am
Multiple Choice Question: What does the zero mean? Pick the best answer:
A. Buyer has zero days as an inspection contingency.
B. Buyer cannot cancel under an inspection contingency.
C. Buyer has zero days to access the property.
D. All of the above.
Answer: Answer A is a correct statement. Paragraph 14B(1) of the RPA provides the buyer with, among other things, a certain number of days to conduct investigations involving the property.
Answer B is wrong. Paragraph 14B(4) specifically states that, even after the zero timeframe, the contingency just continues on. The buyer can still remove the contingency or cancel, until the seller cancels after serving a Notice to Buyer to Perform.
Answer C is also wrong, and so Answer A is not only a correct statement, but it is also the best answer. Paragraph 14B(5) of the RPA provides the buyer with 17 days to access the property, regardless of whether the buyer has an inspection contingency.
To submit a non-contingent offer, a buyer should check the box in paragraph 14C of the RPA for removing contingencies, and attach a Contingency Removal (CR) form identifying the contingencies that are removed.
-A big thank you for suggesting this week’s legal tip goes to Paul Benec (Manager of our Rancho Santa Fe, Del Mar, and Fairbanks Offices).
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