Home Selling in San Ramon>Question Details

Dezinno, Home Seller in Alaska

Buyer chose not to inspect the house, date passed for them to cancel due to repair requests. Buyer failed to order appraisal by time frame in contrac

Asked by Dezinno, Alaska Mon Feb 11, 2013

Buyer did not perform their own inspection, they used an inspection conducted by a previous buyer 2 mo ago. Buyer asked for repairs during the inspection period, seller refused to make any repairs. Buyer has a 3 day window in which to cancel the contract if seller and buyer cant reach agreement on repairs. That 3 days passed and buyer has not submitted a cancellation of the contract. Does this mean the buyer must proceed with the purchase or risk losing the EM?

Also, the contract states if the buyer fails to have the property inspected, or fails to provide seller with list of repairs in accordance with this purchase agreement, buyer accepts the property in its current condition. Since the buyer did not have an inspection done, does this mean they accept the property in its current condition as soon as the time passed for them to get an inspection?

Time is of the essence in this contract and they were to order an appraisal 5 days ago, before the 3 day window to cancel

Help the community by answering this question:


It is in your best interest to discuss this situation with your agent. In CA, if using the RPA, contingencies are removed by taking action. The mere passing of time does not remove the contingencies. Both the buyer and seller agents should understand this and your agent should be able to explain all the details to you.

However, I notice that you are "from" Alaska...this state may have different rules and contracts than California. Again, talk with your agent for clarification.

Sally Blaze
1 vote Thank Flag Link Mon Feb 11, 2013
This is an older one but I feel my general answer may help anyone reading this.

The deposit is only at risk after the buyer signs the contingency removal to move forward with the purchase. In California we have 17 days to do the inspections and remove contingencies. If day 17 comes and the Seller have given the Buyers their disclosures, ect on time. The buyer needs to sign the contingencies removal form to move forward. the request for repairs was denied, so the buyer signs or cancels. If they have not signed or won't sign the buyer would be given a notice to perform and they have 3 days to perform per the contract or the Sellers has the right to cancel the sale and put their property back on the market. The deposit goes back to the buyer because they never removed their contingencies. If they haven't ordered the appraisal then most likely the buyer never intended to move forward and they are just wasting time or hoping you will give in and agree to the request for repairs so the deal keep going.

Not getting their own home inspection does not mean they agreed to the properties current condition at all. The only draw back to not paying for your own home inspection is that if the original home inspector makes a major mistake on the inspection the current buyer does not have a contract with the home inspection if things needed to go to court. The buyer would assume all risk.
0 votes Thank Flag Link Wed Mar 11, 2015
Hi Dezinno, assuming:

1) Buyer's offer was submitted using the most recent CAR Residential Purchase Agreement (RPA);

2) There were NO changes to contract terms via addendums;

3) At least one of the Buyer's contract contingencies (inspection, loan, and appraisal) HAVE NOT been removed; then, it is quite likely the EMD will be returned. Note the three contract contingencies above require written and "active" removal - passing a certain date does not typically remove the contingency (REO Addendums may remove the "active" element in favor of a "passive" removal).

You should speak to your agent about whether it's time to send a "Notice to Perform".

You may also want to review Para 14F of the CAR RPA which states:

"If Buyer or Seller gives written notice of cancellation ….A Buyer or Seller may be subject to a civil penalty of up to $1,000 for refusal to sign such instructions if no good faith dispute exists as to who is entitled to the deposited funds (Civil Code §1057.3)." The Seller must release the deposit within 30 days per Civil Code §1057.3"

( Civil Code §1057.3 can be found at http://law.onecle.com/california/civil/1057.3.html )

This is a question your Agent should be addressing and clarifying for you based on what actually occurred. The details and timelines of your contract are unknown; thus, with imperfect information anyone answering this question can only speculate what action should take place.

0 votes Thank Flag Link Mon Feb 11, 2013
Let's start with the buyer's loan....is it conventional? VA? FHA? If it's VA or FHA, they can get their deposit back for any reason, so the questions on the inspections and repairs are a moot point.

What is the buyers agent telling you? Are they communicating with you at all?

Cindi Hagley
0 votes Thank Flag Link Mon Feb 11, 2013
Hi Cindi, thanks for your response. No, the loan is not VA or FHA. The buyer's agent enjoys playing the silence game. My agent states he has been trying to reach buyers agent for 5 days with no response.

I did not know VA or FHA can get their EM back at any time for any reason. Doesn't seem fair, does it?
Flag Mon Feb 11, 2013
The Hagley G…, Real Estate Pro in Pleasanton, CA
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer