Los Angeles seller guide
Should I Accept an Offer Contingent on the Buyer's Home Sale?
Accept an offer contingent on the buyer's home sale only if you keep the kick-out available and the buyer's own home looks likely to close. The C.A.R. Contingency for Sale of Buyer's Property (Form COP) lets you accept a back-up offer and then give the first buyer a printed default of 3 days to remove the sale and loan contingencies and prove funds to close, or you may cancel in writing.
A buyer who must sell first may write a COP offer, and you have to decide how much to trust the buyer's chain. If the buyer cancels under the sale contingency, the buyer usually gets the deposit back, so waiting costs you time and certainty, not a forfeited deposit. This guide covers the form, the kick-out right, the buyer's home, the timeline, and the tradeoffs against a clean offer.
The short answer
A contingent offer on a Los Angeles home can be a good yes when the buyer's home is priced right, already in escrow, and the kick-out stays available. It is a weaker yes when the buyer's home is unlisted or overpriced, or when you must close by a fixed date. If the buyer cancels under the sale contingency, the buyer usually gets the deposit back, so the deposit protects you mainly after the contingencies come off. Send contract questions to your listing agent, and use escrow for dates, documents and funds status.
Have a contingent offer in hand?
Get a value range for your home, or call to talk through the COP terms and the status of the buyer's home before you reply.
What does a home-sale contingency do to your sale?
A home-sale contingency makes your sale depend on the buyer closing escrow on a different property first. A buyer who must sell a house or condo before buying yours may ask for the C.A.R. Contingency for Sale of Buyer's Property (Form COP), an addendum to the purchase agreement (C.A.R., Contingency for Sale of Buyer's Property (Form COP, Revised 12/17 draft), paragraph 1, checked October 28, 2026). The purchase agreement stays contingent on the close of escrow of the buyer's property, and the contingency can only be removed in writing.
Start with the question most sellers ask next: do you keep the deposit if the buyer's home does not sell? Usually not. Before the buyer removes the contingency, COP paragraph 6 lets the buyer cancel in writing if the buyer's property does not close escrow in time or if the person buying it gives notice of intent to cancel. A buyer who cancels on those grounds is using a right the contract gives, so the deposit normally goes back to the buyer once both of you sign release instructions (CA Civil Code, Civil Code section 1057.3, checked October 28, 2026).
The deposit therefore does not compensate you for waiting on a contingent buyer. It protects you mainly after the buyer removes the contingencies, which the section on a failed sale covers. Waiting without that protection is the main cost of a contingent offer, and the reason the kick-out and a short window to enter escrow matter.
One caution applies to everything below. The text of the COP and of the Back-Up Offer Addendum (Form BUO) used here is the Revised 12/17 version, which C.A.R. publishes as watermarked draft PDFs, and the forms in use today may be newer. Treat the paragraph numbers and day counts as orientation, and have your listing agent confirm each one against the revisions attached to your contract.
Your risk sits in a chain. The buyer's lender, the buyer's own buyer, and the buyer's appraisal all have to hold before your escrow can close. A weak link several steps away from your front door can still cancel your sale, even though you have never met the person on the other end.
Form names matter here. The California Department of Real Estate lists the Notice to Buyer to Perform (NBP) and the Contingency Removal (CR) among the C.A.R. forms used in a purchase (California Department of Real Estate, DRE Reference Book, Chapter 20, checked October 28, 2026). Form COP creates the contingency and carries its own kick-out notice, Form NBP is used for the late-closing and late-evidence deadlines in paragraph 5, and Form CR removes contingencies.
How does the C.A.R. COP form work once you accept?
The COP is an addendum to the purchase agreement, so the two documents read together. The COP says the purchase is contingent on close of escrow of the buyer's property, and only a written removal ends the contingency (C.A.R., Contingency for Sale of Buyer's Property (Form COP, Revised 12/17 draft), paragraph 1, checked October 28, 2026).
Timing depends on where the buyer's home stands on the day you accept. The form sorts buyers into two groups, and the deadlines differ for each. It counts most periods in Days but counts the paragraph 7 deposit period in business days, so ask your agent how your contract defines Days and how it counts a deadline that falls on a weekend or holiday.
- Buyer's home not yet in escrow. The buyer has a printed default of 17 days to enter escrow on that property and deliver Escrow Evidence to you.
- Buyer's home already in escrow. The buyer must deliver Escrow Evidence to you within 5 days after acceptance (COP paragraph 3).
Escrow Evidence has a definition on the form. It means copies of the buyer's sale contract, the escrow instructions and all related documents showing that the buyer's property has entered escrow (COP paragraph 2).
If the buyer is selling a condo or other home in an HOA community, that owner must give the buyer's own buyer the governing documents, HOA financial documents and a statement of assessments (California Department of Real Estate, DRE Reference Book, Chapter 20, checked October 28, 2026). Reviewing them takes time, and a slow review can push the close of the buyer's home past the paragraph 1A deadline.
Seller tip: read the Escrow Evidence the day it arrives. Look at which contingencies remain open and at the scheduled close date, because both tell you how close the buyer is to funding your purchase.
Most day counts in this guide are printed defaults the parties can change. Two periods print without a blank in the Revised 12/17 text, the 5-day Escrow Evidence deadline and the 3-business-day deposit period, so changing either takes a counter offer or addendum.
Review a contingent offer with Justin
Send the offer and Justin will walk through the COP terms, the deadlines and how to weigh a contingent offer before you reply.
When do the clocks and the buyer's deposit start under the COP?
In a California purchase agreement, paragraph 7 of the COP can push back the inspection, contingency, deposit and close-of-escrow dates. It has two boxes, and each one delays something you may assume is already running (C.A.R., Contingency for Sale of Buyer's Property (Form COP, Revised 12/17 draft), paragraph 7, checked October 28, 2026).
- Time periods box. If it is checked, the inspection, contingency and close-of-escrow periods in the purchase agreement start only on the day after the buyer delivers Escrow Evidence, elects in writing to begin the periods, or removes the sale contingency.
- Deposit box. If it is checked, the buyer's deposit is due within 3 business days after the same trigger, not within the time stated in the purchase agreement.
Read those boxes as risk. A seller who agrees may have no deposit in escrow and no running contingency clock for weeks, while the buyer's home sits on the market and your home is under contract. A deposit that has not reached escrow is also money you cannot keep if the buyer later defaults, as the section on a failed sale explains.
Leave both paragraph 7 boxes unchecked, or counter, unless the buyer gives something in return, such as a larger deposit or a shorter window to enter escrow.
What is the kick-out right, and how does a back-up offer work?
The COP preserves your right to keep marketing the home after acceptance. Under paragraph 8, you may continue offering the property for back-up offers, so a stronger buyer can line up behind the contingent one (C.A.R., Contingency for Sale of Buyer's Property (Form COP, Revised 12/17 draft), paragraph 8, checked October 28, 2026).
Accept the second offer only as a back-up. A second buyer's contract signed with no back-up terms can leave you with two competing primary contracts on one home, which the back-up addendum exists to prevent. The C.A.R. Back-Up Offer Addendum (Form BUO) puts the second contract in back-up position and makes it contingent on written cancellation of the prior contracts and related escrows, so it firms up only when you give the back-up buyer copies of written cancellations of the prior contracts signed by all parties to those contracts (C.A.R., Back-Up Offer Addendum (Form BUO, Revised 12/17 draft), paragraph 1, checked October 28, 2026).
The signature requirement limits how much a back-up offer is worth. A back-up buyer can cancel at any time until you deliver cancellations signed by all parties to the first contract, and either side may cancel if you cannot deliver them by the date written into the form (BUO paragraph 1).
If the first buyer will not sign, for example in a deposit dispute, the back-up may never become firm. Your own right to cancel under COP paragraph 5D or 8A does not by itself supply that signature, so set a BUO deadline date, and talk to your agent or a California real estate attorney about the cancellation paperwork before you send the kick-out notice.
Expect the back-up buyer's clock to start fresh. Unless the form's alternative boxes are checked, the back-up buyer's deposit is not delivered to escrow until 3 business days after the signed cancellations are provided, and the back-up buyer's investigation and contingency periods begin the day after (C.A.R., BUO, paragraphs 2 and 3, checked October 28, 2026). A fixed calendar close date is not extended unless both sides agree in writing. A kick-out therefore does not pick up where the first buyer left off.
Once you accept a signed back-up offer and give the first buyer a copy, you can immediately notify that buyer to do three things. The buyer must remove the sale-of-property contingency, remove the loan contingency, and verify funds to close without selling the other home. If the buyer does not complete all three within the printed default of 3 days after delivery of the notice, you may then cancel in writing right away, with no separate Notice to Buyer to Perform.
The notice is the Notice to Remove Contingencies section at the bottom of the COP (in the 12/17 text). The notice carries your signature and date, and the 3-day clock runs from delivery. The form includes a confirmation of receipt that records the date the buyer or the buyer's agent received it, which is not legally required but is worth completing (C.A.R., COP, paragraph 8A and notice block, checked October 28, 2026).
The form also includes an optional delayed-notice box. If it is checked, you agree not to use the notice right during the first 17 days after acceptance (the printed default), or optionally during the term of the agreement, if a second box is checked (C.A.R., COP, paragraph 8B, checked October 28, 2026).
Treat that box as a price. Leaving it unchecked keeps your kick-out available from the start. Agreeing to it can make sense if the buyer offers something in return, such as a higher price or a larger deposit.
What happens if the buyer's own sale falls through?
The COP gives you two kinds of cancellation rights, and only one kind runs through a notice first (C.A.R., Contingency for Sale of Buyer's Property (Form COP, Revised 12/17 draft), paragraphs 5 and 8, checked October 28, 2026).
- Notice first. If the buyer's home does not close escrow by the contingency deadline, or Escrow Evidence is late, you must first give the buyer a Notice to Buyer to Perform. You may cancel in writing only if the buyer still has not performed when that notice period ends.
- No notice needed. If the buyer tells you the contract on the buyer's property was cancelled, or the buyer does not act within the kick-out notice period, you may cancel in writing right away. Paragraph 8A says you may then immediately cancel.
The difference matters if you hold a back-up offer. An unnecessary Notice to Buyer to Perform costs days, and a back-up buyer may not wait. Ask your agent or attorney which paragraph applies before anything goes out.
The buyer carries a duty too. If either party to the buyer's own escrow gives notice to the other to cancel that contract, the buyer must tell you in writing within a printed default of 2 days thereafter (COP paragraph 4). Track that duty from the day you accept.
The buyer has a matching exit. Before removing the contingency, the buyer may cancel in writing if the buyer's property does not close in time, or if the person buying it gives notice of intent to cancel (COP paragraph 6). The deposit heading below covers what that exit means for the money.
Under paragraph 1A the deadline is the earliest of your scheduled close of escrow, the paragraph 3 date for a buyer already in escrow, or another date written into 1A. The buyer's home must therefore close no later than your scheduled close of escrow, or earlier if the paragraph 3 date or another date written into 1A comes first.
Removal alone does not end your protection. Unless the buyer also completes the paragraph 8 steps, you keep your paragraph 5 cancellation rights described above (COP paragraph 1B).
Two more paragraph 1 terms help you here. Under paragraph 1A, the buyer must give you documentation of the close within a printed default of 2 days after the buyer's property closes. Under paragraph 1B, once the buyer's property closes, the buyer can no longer use this contingency to cancel.
What happens to the deposit?
While the sale contingency is in place, expect the buyer to get the deposit back. A buyer who cancels under COP paragraph 6 is using a right in the contract, not breaching it, and California makes the buyer and seller responsible for seeing that deposited funds go back to the person who deposited them, or who is otherwise entitled to them under the contract, when the purchase does not complete (CA Civil Code, Civil Code section 1057.3, checked October 28, 2026). The COP does not say who receives the deposit. The purchase agreement does, so ask your agent which of its paragraphs govern your cancellation.
Release still needs both signatures. The escrow holder is a neutral third party that holds documents and funds in trust until the contract conditions are met (California Department of Real Estate, Surviving the Real Estate Escrow Process in California, checked October 28, 2026). Escrow releases the deposit only when both parties sign matching cancellation instructions, or after a mediation, arbitration or court outcome. Escrow does not pick a side. If the buyer will not sign, ask a California real estate attorney about your options.
Civil Code 1057.3 penalizes a bad-faith refusal to sign a deposit release. A buyer or seller who fails to sign within 30 days after the other side's written demand for the deposit is liable to the person who made the deposit, unless the money is held to resolve a good faith dispute. The statute is written for homes of one to four units that the buyer will occupy, and the buyer usually made the deposit, so it mostly cuts against a seller who stalls on a valid cancellation. Do not hold back your signature without a real dispute.
The deposit is at risk for the buyer after the contingencies come off. Suppose the first buyer answers your kick-out by removing the sale and loan contingencies, then cannot close because the buyer's home did not sell. Your main remedy is then usually the deposit under the liquidated damages clause, if both parties separately initialed it. The DRE Reference Book says that clause applies if the seller proves the buyer breached, and limits your recovery to the buyer's deposit, up to a maximum of 3% of the purchase price (California Department of Real Estate, DRE Reference Book, Chapter 20, checked October 28, 2026).
The 3% line comes from Civil Code 1675, which covers only a dwelling of up to four units that the buyer intends to occupy as a residence when the contract is made. For that home, a retained amount of up to 3% of the price is presumed valid unless the buyer shows it is unreasonable, and an amount above 3% is invalid unless you show it was reasonable (CA Civil Code, Civil Code section 1675, checked October 28, 2026). The statute validates the clause only to the extent payment is actually made, so a deposit that never reached escrow, for example one delayed under paragraph 7B, is not there to keep.
If the clause was not initialed, you are not limited to the deposit, but you must prove your damages. California's general contract rule, Civil Code section 3300, compensates for the detriment the breach proximately caused (CA Civil Code, Civil Code section 3300, checked October 28, 2026). For a buyer's breach of an agreement to buy real property, the specific measure is Civil Code section 3307: the amount due to you under the contract minus the home's value to you, plus consequential damages according to proof, and interest (CA Civil Code, Civil Code section 3307, checked October 28, 2026).
A seller whose home holds its value may recover little under that measure. The standard purchase agreement sends such a dispute to mediation before arbitration or court.
For scale, 3% of the $994,670 September 2026 county median is about $29,840 (C.A.R., September home sales and price report, checked October 28, 2026). That is an illustration, not your cap. If the deposit is increased after acceptance, the DRE book says the parties must sign a separate liquidated damages agreement for the increase to count. A removed contingency is therefore not a guaranteed close, and deposit size is a real term to negotiate on a COP deal.
How do you judge whether the buyer's home will actually sell?
Do the diligence before you accept, not after. A contingent offer is only as strong as the buyer's home, so look at the buyer's property the way a buyer would look at yours.
Start with the property's status. The table shows what each status tells you and what to request under the COP.
| Buyer's home status | What it tells you | What to request |
|---|---|---|
| Not yet listed | The sale has not started, so the whole timeline still sits ahead of you. | A prompt listing, with the entry-into-escrow deadline (the printed default is 17 days) written into the COP. |
| Listed, no accepted offer | The market is still testing the price. | The listing details, days on market, and price history. |
| In escrow | The buyer has a contract, but contingencies may still be open. | Escrow Evidence within 5 days after acceptance, plus a list of which contingencies remain and the scheduled close date. |
| In escrow, buyer's buyer has a loan contingency | The buyer's buyer can still leave if financing or the appraisal fails. | The date each remaining contingency ends. |
Pricing matters most. A buyer's home listed above what nearby homes have sold for is likely to sit, and a sitting listing stretches your timeline. Compare it with recent closed sales, not asking prices.
Local context helps, with a caution. The county's median price for existing single-family homes was $994,670 in September 2026 (C.A.R., September home sales and price report, checked October 28, 2026), a countywide figure and not a neighborhood one, and county sales were down 10.9% from September 2025.
A drop that size suggests a buyer's Los Angeles County home may take longer to sell than it would have a year ago, which is a reason to weigh the buyer's listing status and price before you agree to a long entry window. Countywide volume tells you little about one listing, so ask your agent for closed sales and days on market in the buyer's own submarket and price band, whether that is Silver Lake, Westchester or the San Fernando Valley.
Look at the buyer's financing too. The DRE reference book says buyers typically have 7 days after acceptance to complete loan applications and deliver written verification of funds (California Department of Real Estate, DRE Reference Book, Chapter 20, checked October 28, 2026). Ask whether the buyer's lender has seen the contingent structure, since a lender's rules on a pending sale are the lender's call, not yours.
Start with your value range
Get a value range for your home so you have a number to weigh any offer against, then talk with Justin about how to weigh a contingent one.
What does a contingent offer cost you in price and timeline?
A contingent offer carries more uncertainty than a clean one, and the right comparison is the net outcome, not the headline price. A worked example follows the carry-cost discussion below.
| Factor | Contingent on the COP | Non-contingent offer |
|---|---|---|
| Closing date | Tied to the close of the buyer's own escrow. | Tied to the buyer's loan and the contract dates. |
| Cancellation risk | Adds a link: the buyer's sale can fail. | Fewer outside dependencies. |
| Seller flexibility | Back-up offers stay available, and the kick-out works from day one unless you check the delayed-notice box, which pauses it for 17 days by default or for the whole contract if the second box is checked. | No sale contingency to press on, so the main pressure points are the other contingencies in the contract. |
| Price | The buyer may offer more to offset the wait. | A clean offer may come in lower because it carries less risk for you; the gap is what the contingent buyer is paying for your patience. |
Time is the central price of a COP deal, so lay out how long it can run. The table is an illustration, not a prediction, and it assumes the buyer's home is not yet in escrow and the buyer's own escrow runs about 30 to 33 days.
| Day | Event (illustrative) |
|---|---|
| Day 0 | You accept the contingent offer. |
| Day 17 | The printed default deadline for the buyer to enter escrow on the buyer's home and deliver Escrow Evidence. |
| Day 47 to 50 | The buyer's escrow closes, about 30 to 33 days after it opens. |
| On or after the buyer's close | Your close of escrow, which has to be scheduled on or after the buyer's close for this sequence to hold. |
For this timeline to work, your contract's close-of-escrow date has to fall on or after the buyer's expected close. If it does not, paragraph 1A makes your close date the buyer's deadline. Paragraph 1A also allows the two closes to fall on the same day, so check which structure your contract uses.
A buyer whose home is already in escrow starts closer to the finish line, with Escrow Evidence due within 5 days after acceptance. A buyer who has not yet listed may miss day 17 altogether, which is why that entry deadline matters.
Carry cost belongs in the math, and this line is illustrative too. Each added month of ownership carries your mortgage payment, property tax, homeowners insurance, HOA dues if you have them, and utilities. Using the county median of $994,670 for September 2026 (C.A.R., September home sales and price report, checked October 28, 2026) as a stand-in, property tax at the base 1% rate is about $829 a month, and about $1,036 a month at 1.25%, the level most of Los Angeles County does not exceed (County of Los Angeles, 2024-2025 Taxpayers' Guide, checked October 28, 2026).
Add your own mortgage payment, insurance, HOA dues and utilities from your statements. Your actual tax bill follows your assessed value, which can sit well below market value, so use your own bill.
Worked example: contingent against clean (illustrative)
The prices and costs below are sample figures, not market data. Say a clean offer is $985,000 and a contingent offer is $1,000,000, with monthly carry of a $4,000 mortgage payment, $150 of insurance, $400 of HOA dues and property tax of $829 or $1,036 from the figures above, about $5,379 to $5,586 a month in all. Replace each line with your own statements.
| Line | Clean offer | Contingent, 2 extra months | Contingent, 4 extra months |
|---|---|---|---|
| Offer price | $985,000 | $1,000,000 | $1,000,000 |
| Extra carry cost | None | $10,758 to $11,172 | $21,516 to $22,344 |
| Net before re-listing risk | $985,000 | $988,828 to $989,242 | $977,656 to $978,484 |
With two extra months, the contingent offer nets about $3,828 to $4,242 more than the clean one. With four, it nets about $6,516 to $7,344 less. The table leaves out utilities, the principal part of each mortgage payment that builds your equity, and the cost of re-listing if the deal fails, so a long wait and a failed deal both push the result further against the contingent offer.
Re-listing risk matters too. If the contingent deal fails, your home returns to the market after a stretch in escrow that can run well beyond the day 17 entry deadline. The listing comes back with more days on market, and buyers will ask why it fell out of escrow.
Structure the deal to protect yourself. Options include a shorter window for the buyer to enter escrow, a larger deposit, and leaving the delayed-notice box and the paragraph 7 boxes unchecked to keep the kick-out and the clocks working for you. Your agent can write those terms into a counter.
When does a contingent offer make sense for a Los Angeles seller?
A COP offer makes sense when the rest of the offer is strong and your plans do not depend on speed. Sellers who are not under a move deadline, and who can carry the home for a few extra weeks, or months if the deal fails, are in the best position to say yes.
Signals that favor accepting:
- The buyer's home is already in escrow, or is listed at a price in line with closed sales.
- The kick-out stays available, with the delayed-notice box and the paragraph 7 boxes left unchecked.
- The buyer shows documented funds and a lender that has seen the contingent structure.
- The deposit is large enough to matter after the buyer removes the contingencies, because a separately initialed liquidated damages clause usually limits what you can recover to that deposit.
Signals that favor a counter or a pass:
- The buyer's home is not yet listed, or is priced above nearby closed sales.
- The buyer asks for the delayed-notice box for the full term of the agreement, or for the paragraph 7 boxes.
- You must close by a fixed date, for example because you are buying elsewhere.
- A clean offer at a similar price is on the table.
A counter can add a shorter entry-into-escrow window, ask the buyer to list immediately at a price your agent supports, or request proof of funds. Ask whether the buyer can use bridge or buy-before-you-sell financing to remove the sale contingency up front, which would turn the offer into a clean one.
Whatever you decide, escrow carries out the instructions. Escrow usually opens when a fully executed purchase agreement is delivered to the escrow holder (California Department of Real Estate, Surviving the Real Estate Escrow Process in California, checked October 28, 2026) and the escrow officer tracks the dates, but escrow does not judge whether the buyer's sale will close. That judgment is yours, made with your agent's help.
Talk through your offer
Not sure whether to accept, counter, or pass? Talk it through with Justin before you sign anything.
Frequently asked questions
Can I keep showing my home after I accept a contingent offer?
Yes, for back-up offers. The C.A.R. COP preserves your right to keep offering the property for back-up offers after acceptance, and your listing agent can keep the listing in a status that tells other agents you are taking them. In CRMLS that status is Active Under Contract, and its definition permits marketing and advertising. Status names differ by MLS, so confirm what your contract and your MLS say with your agent.
Does the sale contingency cover the buyer's loan too?
The sale contingency and the loan contingency are separate. The DRE reference book says buyers typically have 17 days to remove loan and appraisal contingencies, though the contract can change that. Under the COP back-up offer process, the buyer must remove the sale contingency, remove the loan contingency, and verify funds to close without the sale. Confirm the days in your contract.
What counts as Escrow Evidence under the COP?
Escrow Evidence means copies of the buyer's sale contract, the escrow instructions and all related documents showing that the buyer's property has entered escrow. For a buyer already in escrow, the form sets delivery within 5 days after acceptance; the form prints no blank for this period, so changing it takes a counter offer or addendum. When the documents arrive, check the remaining contingencies and the scheduled close date, and confirm the terms in your version.
Can I cancel without sending a notice first?
Sometimes. The COP requires a Notice to Buyer to Perform first when the buyer's home misses its closing date or Escrow Evidence is late. If the buyer tells you the other escrow was cancelled, or does not meet the kick-out notice, you may cancel in writing without an NBP. Confirm with your listing agent before sending anything.
Does a contingent offer lower my sale price in Los Angeles?
Not automatically. A contingent buyer may offer more to offset the wait, while a clean offer may come in lower because it carries less risk for you. The comparison is the net result after carry cost, timeline risk and the chance of re-listing, which your agent can model using recent Los Angeles closed sales.
Does the buyer have to put the deposit into escrow right away?
Not always. The purchase agreement sets the deposit deadline, but a box in the COP can instead start the deposit clock only after the buyer delivers Escrow Evidence, elects in writing to begin the time periods, or removes the contingency. Then the deposit is due within 3 business days. Leave that box unchecked, or counter, unless you receive something in return.
Do I keep the deposit if the buyer's home does not sell?
Usually not. While the sale contingency is in place, COP paragraph 6 lets the buyer cancel in writing if the buyer's property does not close in time or the buyer's own buyer gives notice of intent to cancel, and a buyer who cancels on those grounds is normally entitled to the deposit back. Escrow still needs signed release instructions from both parties. Your deposit protection starts after the buyer removes the contingencies, so check the purchase agreement's deposit paragraphs.
What do I recover if a buyer removes the contingencies and then cannot close?
If both parties separately initialed the liquidated damages clause, you usually recover only the buyer's deposit, up to 3% of the purchase price under the DRE Reference Book. The 3% line comes from Civil Code 1675, which covers homes of up to four units that the buyer plans to live in. Without the clause, you must prove damages, measured under Civil Code 3307. A California real estate attorney can confirm the clause in your contract.
Weigh your offer with Justin
Get a value range for your home, then talk with Justin about how to weigh a contingent offer against your price, timing and plans.
About the author
Justin Borges
REALTOR® | CA DRE #01940318
Justin writes LA Metro Home Finder’s guides to 30+ communities across the San Gabriel Valley, Northeast LA, and greater Los Angeles, and has closed $200M+ in career sales with a 106% average list-to-sale ratio.
Justin has held an active California DRE salesperson license since October 2013. View Justin’s author profile.
This guide is educational and is not legal, tax, title, lending, or insurance advice. Contract forms, statutes, and lender rules change. Confirm the terms that apply to your sale with your escrow officer, title officer, lender, or a California real estate attorney.
