Here is a complete list of questions real estate agents ask their broker about contingencies in the Residential Purchase Agreement (RPA) — specifically the California Association of REALTORS® version — along with detailed explanations. These questions reflect all possible concerns agents face when guiding buyers or sellers through contingency-related decisions.
📋 Contingencies in the RPA – Broker FAQs From Agents
🔍 GENERAL UNDERSTANDING
- What is a contingency in the RPA?
Explanation:
A contingency is a contractual condition that must be satisfied before the buyer is obligated to close escrow. If the condition isn’t met, the buyer may cancel the contract without penalty.
- What are the standard contingencies in the California RPA?
Explanation:
- Investigation of Property (Inspection) – default: 17 days
- Appraisal – default: 17 days
- Loan (Financing) – default: 21 days
- Other contingencies may include sale of buyer’s property, title review, HOA document review, etc.
🗓️ TIMING & DEADLINES
- When do contingency periods begin?
Explanation:
They begin the day after acceptance of the offer (i.e., once both parties sign and deliver the contract).
- Can contingency periods be shortened or extended?
Explanation:
Yes. They can be customized in the offer, counteroffer, or later extended by mutual written agreement using a form like CAR Form ETA (Extension of Time Addendum).
- What happens if a contingency deadline passes and the buyer hasn’t removed it?
Explanation:
The seller can issue a Notice to Perform (CAR Form NBP), giving the buyer 2 additional days to remove the contingency or risk cancellation by the seller.
✅ REMOVAL OF CONTINGENCIES
- How does a buyer remove contingencies?
Explanation:
In writing, using CAR Form CR (Contingency Removal). The form specifies which contingencies are being removed (one or all).
- Can contingencies be removed verbally?
Explanation:
No. All contingency removals must be in writing to be legally valid.
- Can contingencies be removed individually?
Explanation:
Yes. For example, the buyer can remove the inspection contingency while keeping the loan or appraisal contingency in place.
- What is “removal of all contingencies”?
Explanation:
This is a statement that the buyer has completed all investigations and removed all conditions. It makes the contract non-contingent, meaning the buyer is now fully committed.
- Is there a form to remove all contingencies at once?
Explanation:
Yes. CAR Form CR has a checkbox to remove all contingencies at once, often used before loan docs are released.
❌ FAILURE TO REMOVE OR CANCEL
- Can a buyer cancel the contract after removing all contingencies?
Explanation:
Only with the seller’s agreement. The buyer risks losing the earnest money deposit under the liquidated damages clause if they cancel after removing contingencies.
- What happens if the buyer doesn’t remove contingencies and refuses to cancel?
Explanation:
The seller may cancel the contract only after issuing a Notice to Perform and waiting two days.
- Can a seller cancel if the buyer misses a contingency deadline?
Explanation:
Not immediately. The seller must first deliver a Notice to Perform, giving the buyer 2 days to comply.
- What happens to the buyer’s deposit if they cancel before removing contingencies?
Explanation:
The deposit is typically refunded in full, provided cancellation is within the contingency period.
🛠️ SPECIFIC CONTINGENCIES
- What is the inspection contingency used for?
Explanation:
To allow the buyer time to conduct property inspections, review disclosures, and investigate the neighborhood.
- What is the loan contingency for?
Explanation:
To allow time for the buyer to secure loan approval from their lender.
- What is the appraisal contingency for?
Explanation:
To protect the buyer if the appraised value is lower than the purchase price. The buyer can cancel or renegotiate.
- Can the buyer waive the loan or appraisal contingency?
Explanation:
Yes — either in the initial offer or later using Form CR. However, waiving them increases buyer risk if the loan is denied or the appraisal is low.
- Is there a title contingency?
Explanation:
Yes. The RPA gives the buyer time to review the preliminary title report. It can be negotiated or shortened.
- What about a contingency to sell the buyer’s current home?
Explanation:
This is a non-standard contingency, included using CAR Form COP (Contingency for Sale of Buyer’s Property). The seller must agree to it.
💬 AGENT STRATEGY & NEGOTIATION QUESTIONS
- Should my buyer remove contingencies early to get their offer accepted?
Explanation:
Only if they understand and accept the risks. Brokers often recommend against removing contingencies prematurely unless inspections, loan, and appraisal are complete.
- Can the seller counteroffer to shorten the contingency periods?
Explanation:
Yes. Sellers often counter with shorter deadlines to make the buyer more committed earlier.
- Can contingencies be re-instated once removed?
Explanation:
No. Once contingencies are removed in writing, they cannot be reinstated unless the seller agrees to a new contingency through an amendment.
- How do I explain the contingency process to my client?
Explanation:
Brokers often advise agents to compare contingencies to “escape clauses” — they give the buyer time to investigate, secure financing, and walk away if needed without penalty (until removed).
- Do contingencies delay escrow closing?
Explanation:
They can if not managed properly. That’s why brokers often recommend agents track contingency deadlines and proactively handle removals or extension requests.
📌 Helpful Forms Involving Contingencies
| Form | Purpose |
| RPA | Main agreement outlining all contingencies |
| CR (Contingency Removal) | Used to remove one or all contingencies |
| NBP (Notice to Buyer to Perform) | Used by seller to demand contingency removal |
| ETA (Extension of Time Addendum) | Used to extend contingency deadlines |
| COP (Contingency for Sale of Property) | Used when buyer must sell another home |