C.A.R. RESIDENTIAL PURCHASE AGREEMENT
BUYER TO PERFORM (“NBP”); NOTICE TO SELLER TO PERFORM (“NSP”);
DEMAND TO CLOSE ESCROW (“DCE”).
C.A.R. RESIDENTIAL PURCHASE AGREEMENT
The RPA requires (i) buyers and/or sellers to respond to a NBP or NSP within 2 “days after” delivery and (ii) buyers and/or sellers to respond to a DCE within 3 “days after” delivery. The RPA defines “Days,” “Days After” and “Days Before” as follows:
“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. (See paragraph 3OF of the RPA)
“Days After” means the specified number of calendar days after the occurrence of the event specified, not counting the calendar date on which the specified date occurs, and ending at 11:59 P.M. on the final day. (See paragraph 30G of the RPA)
“Days Prior” means the specified number of calendar days before the occurrence of the event specified, not counting the calendar date on which the specified date on which the specified event is scheduled to occur. (See paragraph 30H of the RPA)
1. PARTIES have 2 “Days After” delivery to RESPOND to a NBP or NSP (See paragraph 14E of the RPA).
The NBP and NSP each require a response within 2 “Days After” delivery calculated as follows:
I. The day that the NBP or NSP is served does not count. For example, if you serve a NBP or NSP on Tuesday at 9:00 a.m., then you cannot cancel until after 11:59 p.m. on Thursday night. In other words, only complete days counts toward calculating the deadline.
II. The time of day that you serve the NBP or NSP is irrelevant. For example, if seller serves the NBP on Tuesday at 9:00 a.m., then Wednesday and Thursday are the two days that count. The seller cannot cancel until after 11:59 p.m. on Thursday.
III. The date that the scheduled event is to occur does not count. For example, assume that buyer has until March 15th to remove contingencies. The earliest that you can serve a NBP would be any time of day on March 12 (3 days prior to the contingency removal date).
The first full day that counts is March 13th. The second full day that counts is March 14th. March 15th does not count since that is the date that buyer is required to remove contingencies. You must remember that the day that a party is required to remove contingencies, provide documents, or close escrow does not count towards the calculation.
IV. Deadlines that fall on Saturday, Sunday or a Legal Holiday are extended until the next business day. For example, if you serve a NBP or NSP on Thursday, then the deadline would be Saturday at 11:59 p.m. However, since the deadline falls on a Saturday, you cannot cancel until Monday morning (i.e. the next business day).
2. PARTIES have 3 “Days After” delivery to RESPOND to a DCE (See paragraph 14G of the RPA)
The DCE requires a response within 3 “Days After” delivery calculated as follows:
I. The day that the DCE is served does not count. For example, if you serve a DCE on Tuesday at 9:00 a.m., then you cannot cancel until after 11:59 p.m. on Friday night. In other words, only complete days count toward calculating the deadline.
II. The time of day that you serve the DCE is irrelevant. For example, if seller serves the DCE on Tuesday at 9:00 a.m., then Wednesday, Thursday and Friday are the three days that count. Because you cannot cancel on Saturday or Sunday, the seller cannot properly cancel until Monday.
III. The date that the scheduled event is to occur does not count. For example, assume that March 15th is the closing date. The earliest that you can serve a DCE would be any time of day on March 11 (4 days prior to close of escrow).
The first full day that counts is March 12th. The second full day that counts is March 13th. The third full day that counts is March 14th. March 15th does not
count since that is the closing date. The actual closing date does not count towards calculating “days prior” for purposes of a DCE.
IV. Deadlines that fall on Saturday, Sunday or a Legal Holiday are extended until the next business day. For example, if you serve a NBP or NSP on Thursday, then the deadline would be Saturday at 11:59 p.m. However, since the deadline falls on a Saturday, you cannot cancel until Monday morning (i.e. the next business day).
Learning these deadlines and how they are calculated will prevent an untimely cancellation. A party to an untimely cancellation is in material breach of the RPA and is set-up to pay the other party’s attorney fees.
