Here’s the scenario:
Your the Buyer’s agent, and you just received a NOTICE TO BUYER TO PERFORM to remove all contingencies (No changes were made to the NBP). The Notice was received on Thursday, so when must your client remove contingencies?
The Correct answer is “C” Monday. This is of course unless Monday is a holiday, in which case the contingencies do not have to removed until Tuesday.
PRA-CA – Page 6, Section 22, E – “Days” means calendar days. However, After Acceptance, 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.
This rule is used for any notice received After Acceptance.
So lets look at another scenario, this time the Purchase Agreement was signed by the buyer on Monday, May 18th, delivered and signed by the Seller on Tuesday, May 19th, and delivered back to the buyer on Wednesday, May 20th. So assuming not legal holidays are happening in the next few days, what day is day one of the agreement?
“A binding Agreement is created when a copy of Signed Acceptance is personally received by Buyer or Buyer’s authorized agent whether or not confirmed in this document. (See RPA-CA – Page 10, Confirmation of Acceptance.”
So day one in the example above would be Thursday, May 21st
Hopefully this was able to answer any and all questions you might have had about time requirements in purchase contracts if not please comment below with any further questions
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