No Deposit From Buyer
What takes place when the buyer fails to submit the initial deposit into escrow within 3 business days after acceptance, as required by the RPA (Residential Purchase Agreement)? Can the seller cancel the transaction?
Not exactly. Although failing to submit the intiial deposit wihtin the timeline can be considered a material breach of contract, the RPA requires that the seller must first serve what is called a Notice to Buyer to Perform (NBP). The NBP gives the buyer at least 2 days to deposit the required funds. According to the RPA, the soonest the seller can serve an NBP is 2 calendar days before the expiration of the applicable time for the buyer to meet an obligation. For example, if acceptance of a contract occurs on Tuesday, June 11, then the buyer has until Friday, June 14 (or 3 business days after acceptance), to submit the deposit into escrow. The seller can serve the buyer with an NBP to submit the deposit into escrow no earlier than Wednesday, June 12 (or 2 calendar days before Friday).
Navigating through the labyrinth of details and information of a transaction is exactly why you, savvy buyers and sellers, need an experienced team. The SARKISSIAN + PERERA GROUP is here to help guide you through this process and ensure that you achieve all of your real estate goals!
© 2019 Berkshire Hathaway HomeServices California Properties (BHHSCP) is a member of the franchise system of BHH Affiliates LLC. Any unauthorized reproduction or use of this material is prohibited. This information is believed to be accurate as of June 3, 2019. 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. BHH Affiliates LLC and BHHSCP do not guarantee accuracy of all data. Information has been obtained from various sources and will not be verified by broker or MLS.