Here’s a detailed list of questions real estate agents commonly ask about the Contingency for Sale of Buyer’s Property form (CAR Form COP), including explanations for each. This form is used when a buyer wants to make an offer contingent upon the sale and/or close of escrow of their existing property.

🧾 GENERAL PURPOSE

  1. What is the purpose of the Contingency for Sale of Buyer’s Property (COP) form?
    It allows the buyer to make their purchase offer contingent upon the sale and/or close of escrow of another propertythey currently own. This protects the buyer from being obligated to buy the new property if their current one doesn’t sell.

🕰️ TIMING & DEADLINES

  1. Does the form specify a deadline for the buyer to sell their property?
    Yes. The form typically includes a deadline by which the buyer’s property must be sold and/or closed, or the seller may have the right to cancel.
  2. What happens if the buyer doesn’t meet the deadline?
    If the buyer fails to sell or close by the specified date, the seller may issue a Notice to Buyer to Perform (NBP) and cancel the contract if the contingency isn’t removed within the notice period.
  3. Can the deadline be extended?
    Yes, but both parties must agree in writing. Agents can use an Addendum (Form ADM) to extend dates.

🔄 BACKUP OFFERS & CONTINGENCY REMOVAL

  1. Can the seller continue to market the property and accept backup offers?
    Yes. The COP form has a “release clause” (sometimes called a kick-out clause), allowing the seller to accept another offer and give the buyer notice to remove the contingency or step aside.
  2. What is a release clause or kick-out provision?
    It allows the seller to continue marketing the home. If they get another acceptable offer, they can notify the buyer, who then has a short window (typically 2-3 days) to remove their sale contingency or the contract is automatically canceled.
  3. Can a buyer remove just the sale contingency and still keep the loan/appraisal contingencies?
    Yes. The COP form and standard CAR contract allow for separate removal of contingencies. However, once the sale contingency is removed, the buyer is expected to perform regardless of their sale status.

💰 FINANCIAL CONCERNS

  1. Does the COP form protect the buyer’s deposit if their property doesn’t sell?
    Yes—as long as the contingency is active and not removed, the buyer can cancel without forfeiting the deposit.
  2. Can the seller request proof of the buyer’s property being listed or in escrow?
    Yes, and it is common. Listing agents often ask for MLS listing info or a copy of the buyer’s accepted offer or escrow instructions to verify legitimacy.

🔍 DISCLOSURE & STRATEGY

  1. Does the buyer have to disclose that their purchase is contingent on a sale?
    Yes. It must be disclosed clearly via the COP form and reflected in the Residential Purchase Agreement (RPA).
  2. Should a buyer submit an offer if their current property isn’t even listed yet?
    It’s not advisable, as sellers are unlikely to accept an offer with a vague or unlisted sale contingency. Ideally, the buyer’s home should at least be active on the market.

🤝 NEGOTIATION & BEST PRACTICES

  1. Is it harder for a buyer to get an offer accepted with a COP contingency?
    Yes. Sellers often prefer non-contingent offers, especially in competitive markets. Agents should set proper expectations with their buyers.
  2. What’s the difference between sale contingency and close-of-escrow contingency?
  • Sale contingency: Buyer hasn’t yet found a buyer.
  • Close-of-escrow contingency: Buyer is already in escrow but still needs that escrow to close.
  1. Should a seller accept an offer with a COP form?
    It depends on market conditions. If the buyer’s sale is already in escrow, the risk is lower. If the buyer hasn’t listed their home, it may be too risky.

📝 DOCUMENTATION & COMPLIANCE

  1. Is the COP form mandatory if the buyer’s purchase depends on their sale?
    Yes, if the buyer’s ability to perform is contingent on selling their current home, the COP form should be included to clearly outline the terms.
  2. Should the listing agent counter any COP terms they disagree with?
    Yes. If the seller wants shorter timeframes, proof of listing/escrow, or different release terms, the agent should issue a counter offer modifying those COP terms.
  3. Can the buyer waive the contingency later?
    Yes. The buyer may remove the contingency in writing using CAR Form CR (Contingency Removal), but doing so makes them fully obligated to perform regardless of whether their property sells.