Here is a comprehensive list of questions real estate agents typically ask their broker about the Contingency Removal Process, along with clear explanations for each. These questions are commonly raised by both new and experienced agents to ensure compliance and protect their clients.

🧾 Contingency Removal Process – Agent Questions & Explanations

📌 1. What is a contingency in a real estate contract?

Explanation:
A contingency is a contractual condition that must be satisfied for the transaction to move forward—such as inspection, appraisal, loan, or sale of another property.

📆 2. What are the standard contingency timelines in the RPA (Residential Purchase Agreement)?

Explanation:
Under the California RPA, default time periods are:

  • 17 days for buyer investigations, appraisal, and loan approval
  • 21 days for loan contingency removal (unless altered)
    These timeframes can be changed by mutual agreement.

📄 3. When and how do we remove contingencies?

Explanation:
Contingencies are removed using C.A.R. Form CR (Contingency Removal). The buyer checks which contingencies they’re removing and signs the form. It is then delivered to the seller’s agent.

🚨 4. What happens if the buyer doesn’t remove contingencies on time?

Explanation:
The seller may issue a Notice to Perform (C.A.R. Form NBP) giving the buyer 2 days (or other agreed period) to act. If the buyer fails to comply, the seller may cancel the contract.

🤝 5. Can we remove contingencies in parts or only all at once?

Explanation:
Contingencies can be removed one at a time or all at once using the CR form. It’s common to remove them in phases—first inspection, then loan, then appraisal.

📝 6. Is contingency removal automatic when the deadline passes?

Explanation:
No—contingencies are not automatically removed. They remain in place until the buyer signs the CR form and delivers it to the seller.

🧷 7. Can a buyer cancel the deal after contingencies are removed?

Explanation:
Yes, but they risk losing their deposit (good faith deposit) unless the seller breaches the contract or a mutual cancellation is agreed upon.

⚖️ 8. What protections does the buyer lose after removing contingencies?

Explanation:
Once removed, the buyer is essentially saying:

  • “I accept the property condition” (inspections)
  • “I have loan approval” (loan contingency)
  • “I’m satisfied with the appraisal”
    This limits their ability to cancel without penalty.

📬 9. Do we need to deliver the CR form to be effective?

Explanation:
Yes, the form must be signed and delivered to the seller or seller’s agent. It’s not effective until received.

🛑 10. What if the buyer refuses to remove contingencies?

Explanation:
The seller can issue a Notice to Perform and, if there’s no action, cancel the agreement. However, the broker should assess the risk of deposit disputes or legal claims.

📚 11. Where is contingency removal covered in the RPA?

Explanation:
Mainly in Paragraph 14 of the RPA. It outlines contingency timelines, procedures for removal, and consequences for failure to act.

🧾 12. Do I need a CR form if contingencies are waived in the offer?

Explanation:
No, if a buyer waives contingencies in the initial offer, they are considered waived from the start, and no CR form is needed.

🛡️ 13. What disclosures should accompany the CR form?

Explanation:
Although not required, it’s best practice to ensure all inspection reports, disclosures, and due diligence items have been reviewed before advising the client to remove contingencies.