Timeline Management & Deadline Tracking Flashcards

A Notice to Perform (NTP) is typically sent when a party:

Answer: Has failed to meet a contractual deadline

A Notice to Perform is sent to a party who has not met a contractual obligation or deadline, giving them a final opportunity to perform before the other party can cancel.

What is the standard time frame for a seller to respond to a Notice to Perform in California?

Answer: 2 business days

Under standard California contracts, a party receiving a Notice to Perform has 2 business days to comply before the other party may exercise their right to cancel.

Which of the following best describes a 'contingency removal' in a real estate transaction?

Answer: The buyer formally waives their right to cancel based on a specific condition

A contingency removal is the buyer's written acknowledgment that a specific condition has been satisfied and they are waiving their right to cancel under that contingency.

A transaction coordinator should log a deadline reminder how far in advance to allow adequate response time?

Answer: At least 2–3 business days before the deadline

Setting reminders 2–3 business days before a deadline gives all parties sufficient time to act, gather documents, or negotiate extensions without breaching the contract.

What is the purpose of the 'appraisal contingency' deadline in a purchase agreement timeline?

Answer: To allow the buyer to cancel or renegotiate if the property appraises below the purchase price

The appraisal contingency protects the buyer by allowing them to cancel or renegotiate the purchase price if the property appraises for less than the agreed purchase price.

When a buyer removes all contingencies in writing, what is the buyer's earnest money deposit status?

Answer: It becomes non-refundable and at risk if the buyer cancels

Once all contingencies are removed, the earnest money deposit is generally at risk, meaning the seller may be entitled to it if the buyer cancels without a valid contractual reason.

What is 'time is of the essence' language in a real estate contract?

Answer: A provision requiring strict compliance with all specified dates and deadlines

'Time is of the essence' is a legal clause requiring that all deadlines in the contract be met exactly as specified, with failure to do so constituting a material breach.