Wow, I'm simply floored your Agent would advise removal of the loan contingency without fully vetting the HOA.
Assuming you used the most recent CAR Residential Purchase Agreement (4/10), here are a few points to consider:
1) The three primary contingencies of the CAR Residential Purchase Agreement [Loan/Appraisal/Inspection(s)] require "active" removal in writing; as opposed to a "passive" removal where a date simply passes and automatically removes the contingency.
If the Buyer is in default, then Seller can cancel the contract and claim the Buyerâ€™s deposit per Para 16 -Liquidated Damages; HOWEVER, ALL buyer contingencies must be removed in order to do so.
2) Para 14C(1) of the RPA states, "If, within time specified in this Agreement, Buyer does not, in writing, Deliver to Seller a removal of the applicable contingency or cancellation of this Agreement then Seller, after first Delivering to Buyer a Notice to Buyer to Perform (C.A.R. Form NBP) may cancel this Agreement. In such event, Seller shall authorize return of Buyer's deposit."
3) Para 14F of the RPA states, "If Buyer or Seller gives written notice of cancellation â€¦.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 Â§1057.3)." The Seller must release the deposit within 30 days per Civil Code Â§1057.3 http://law.onecle.com/california/civil/1057.3.html
Now, if you have removed ALL of your contingencies in writing.... well, your next step might be talking with a RE lawyer and/or the Agent's broker because removing all contingencies before fully vetting the HOA was a questionable move in my opinion.
Again, assuming you used the most recent CAR RPA you normally have a duty to use Mediation and Arbitration as a means of resolution (Para 26 â€œDispute Resolutionâ€); however, at the same time, due to the deposit amount, you can go directly to small claims court via Para 26C1.