Ten Reasons Why a Seller May Cancel

• The buyer fails to remove the applicable contingencies. 
• The buyer fails to deposit the earnest money deposit (or increased deposit) into escrow
• The funds for the earnest money deposit (or increased deposit) are not good when deposited
• The buyer fails to deliver the pre-qualification letter
• The buyer fails to deliver verification of down payment and closing costs
• If the seller has reasonably disapproved of the above-mentioned verification
• The buyer fails to return the TDS, NHD, lead disclosures or other disclosures (if required)
• The buyer fails to sign a separate liquidated damages form for an increased deposit 
• The buyer fails to deliver notice of FHA or VA costs or terms (if there is either an FHA or a VA loan)
• The buyer does not close escrow on time. (When this is the reason for cancellation, the seller must first deliver a DCE prior to cancellation.

REMEMBER: all of the reasons require some type of notice to be given to the buyer:

• NBP – Notice to Buyer to Perform

• DCE – Demand to Close Escrow

The cancellation provisions in the contract summarized above are in RPA-CA in paragraphs:

• 14D(1) and (2)

• 14E

• 14G