Contingencies and Contingency Removal in California
Contingencies let you check the home and your loan before you're fully committed. Here's how long they last and how removal works.
Last updated November 2026
What a contingency is
A contingency is a condition in your purchase agreement. Until you remove it, it gives you a way out for the reason it covers.
Common contingencies and default periods
"Acceptance" is when the signed offer, or the final counter offer, is delivered back. Deadlines count from that moment.
| Contingency | RPA default |
|---|---|
| Investigation | 17 days after acceptance |
| Loan | 17 days after acceptance |
| Appraisal | 17 days after acceptance |
| Insurance | 17 days after acceptance |
| Review of seller documents, preliminary title report and HOA documents | 17 days after acceptance or 5 days after delivery, whichever is later |
These are the defaults in the standard C.A.R. California Residential Purchase Agreement (RPA). Your own contract may set different deadlines.
How removal works
Contingencies are removed in writing, signed by the buyer. Once removed, that way out is gone.
Notice to Buyer to Perform
If a deadline passes, the other side can deliver a Notice to Buyer (or Seller) to Perform. They may cancel only if the deadline has passed and at least 2 days have gone by after the notice was delivered.
Your deposit before and after removal
Before removal, a contingency gives you a way to cancel for the reason it covers.
After removal, if you don't close, the liquidated damages clause may apply.
For a home of 1–4 units the buyer intends to live in, a forfeited deposit of 3% of the price or less is presumed valid. More than 3% is presumed invalid unless shown to be reasonable (Civil Code §1675).
The RPA caps the amount kept at 3%. Both buyer and seller must separately initial the liquidated damages clause (§1677).
Contingency FAQ
How long is the contingency period in California?
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In the standard RPA, the investigation, loan, appraisal and insurance contingencies run 17 days after acceptance. Your contract may set different periods.
How do you remove a contingency?
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In writing, signed by the buyer.
What is a Notice to Buyer to Perform?
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A notice the seller can deliver after a deadline passes. The seller may cancel only if the deadline has passed and at least 2 days have gone by after the notice was delivered.
Is my deposit at risk after I remove contingencies?
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It can be. If you don't close after removing contingencies, the liquidated damages clause may apply, if both sides initialed it. The RPA caps the amount kept at 3%.
Ready to open escrow?
This guide is general information, not legal or tax advice. Customs vary by county, and every cost is negotiable in your purchase agreement.