Release of Contingencies

Seb FreySanta Cruz Real Estate

Yesterday I met with a client for “The Big Day.”  In most real estate transactions I’ve been a part of, there are several big days, but for me, the biggest day is the release of contingencies date.  You see, in a standard C.A.R. (California Association of Realtors) Purchase Agreement, which we mostly use here in Santa Cruz, the buyer is given an inspection or contingency period – by default, 17 days – in which to inspect the property and make sure that it is acceptable.  During this time the buyer may, for instance, order a home inspection, termite inspection, etc. Until the 17 days are up (or however long the contract states that the inspection period shall be), the buyer is free to back out of the transaction with absolutely no risk of losing the deposit.  It’s great for a buyer, not so great for the seller.  Once the seller agrees to the purchase, the seller can’t legally back out, but the buyer can, up to the end of the inspection period.  What’s nice also is that there’s no arguing – the seller can’t say, for example, “Oh no, there’s no mold!” – the buyer can back out for any reason whatsoever (“I don’t like the way the sun hits the deck”) and really, the buyer doesn’t have to give a reason at all. When the inspection period is over, and if the buyer wishes to proceed with the purchase, there’s a document to sign called the Release of Contingencies form.  There are two sets of … Read More