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When a California contingency deadline passes

The date came and went and nothing arrived from the buyer. Here is what that actually means in California, which is far less than most sellers assume.

Why the deadline is not self-executing

In most states a contingency lapses when its date arrives. California works the other way: the contingency continues until the buyer signs a removal and delivers it. A seller watching a calendar is watching something that will not, by itself, ever change the contract.

This surprises agents who have worked in other states, and it surprises sellers almost universally. It is also the single most useful thing to know about a California transaction that has gone quiet.

What the notice does and does not do

The notice does not end the deal. It starts a short period during which the buyer can still do the thing they were supposed to do. If they do it, the transaction carries on as though nothing happened. Only if the period runs out with the buyer still not having acted does the right to end the contract become available.

The delivery is the part that matters. The clock runs from delivery, so a notice that was prepared and never sent, or sent to the wrong person, has started nothing at all.

Ending the contract is its own document

If the seller does end the transaction, that is a separate step with its own form, and it interacts with the deposit. Ending a contract does not by itself determine who receives the money — escrow still needs instructions both parties sign, or an order.

What a seller can do, in order

StepEffect
The contingency deadline passesNothing changes. The contingency is still in force.
Seller delivers a Notice to Buyer to PerformStarts a period — two days by default — for the buyer to act.
The period runs out with no actionThe seller may now act to end the contract.
Seller signs and delivers a cancellationThe contract ends. Who receives the deposit is still a separate question.

Forms this touches

Named so you know which document the conversation ends in. Their text is not reproduced here.

  • NBP — Notice to Buyer to Perform
  • CR — Contingency Removal
  • CCA — Cancellation of Contract

Questions that come up

Can a seller cancel the moment a contingency deadline passes?

No. The deadline passing does not remove the contingency or create a right to end the contract. A notice to perform has to be delivered first, and its period has to run out.

How long is the notice period?

Two days after delivery by default, unless the agreement specifies a different period.

What if the buyer acts during the notice period?

The transaction continues. The notice creates an opportunity to perform, not an ending.

Describe the change in plain English

Amendly drafts the California amendment or addendum for your deal from a sentence. You review every line before it goes anywhere.

Draft your first amendment

Related in this guide

Where this comes from

This page describes how California residential transactions typically work. It is general information, not legal advice, and it is not a substitute for an attorney on a specific deal. Amendly is not a law firm. Forms are named and described here; their text is not reproduced. Amendly is not affiliated with or endorsed by the California Association of REALTORS® or any state agency.