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The cancellation provisions are found in Paragraphs 14C (1) and (2), and in Paragraph 14E of the CA-RPA. Regardless of the reason, the seller must give some type of notice to the buyer, however (either a Notice to Perform or a Demand to Close Escrow) before the seller can cancel.
The short answer is yes \u2013 under certain circumstances. In fact, it's not uncommon for homeowners to get cold feet and want out of a real estate contract. However, the choice to back out of a purchase agreement may come with added expense and potential legal consequences.
Buyer's Failure to Close escrow on time: In addition, the seller can elect to cancel the purchase agreement when the buyer does not close escrow on time. Pursuant to the RPA-CA, the seller must first deliver a written \u201cDemand to Close Escrow\u201d (DCE) notification prior to the cancellation.
If your buyer is delaying the closing, have your real estate agent draft a Demand to Close Escrow. The document gives the buyers a minimum of three days to get their ducks in a row and close the deal.
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