Coastal San Diego · Buyer and seller guides · Contract deadlines

What a notice to perform is (and what happens next)

Short answer: A notice to perform is a written demand that asks the other side to finish a step in the purchase agreement by a set deadline. The California DRE says that before a party usually cancels the deal, a notice to perform is typically required first. Your signed contract and the notice control the exact deadline and what happens next.

When a deal stalls, people ask me the same thing: can we cancel yet, or do we have to send a written demand first? This guide explains that demand in plain words.

This page is for buyers and sellers in coastal San Diego. It is process only. It is not legal advice, and it is not advice about any one deal.

I’m Weston Clark, Founding Member of the Dickinson-Clark Team at Compass. I help buyers and sellers in coastal San Diego track contract deadlines in writing, so a missed step does not turn into a surprise cancel. You can talk about fees with Weston directly. This form does not give a commission quote.

Talk to Weston Jump to FAQ Cancel rights (contingencies)

Related: Cancel rights · Request for repair · Good-faith deposit · What sellers must tell you · Guides · Liquidated damages · When a sale falls through

What a notice to perform is

A notice to perform is a written demand. It tells the other party that a required step in the purchase agreement is overdue, and it sets a deadline to finish that step.

The California Department of Real Estate (DRE) lists two common California Association of REALTORS® (C.A.R.) forms used for this: Notice To Buyer To Perform (NBP) and Notice To Seller To Perform (NSP). Your signed purchase agreement still controls the rights, the timing, and what must be done.

This is different from a request for repair (a written ask after the inspection). A repair ask is a negotiation. A notice to perform is a demand tied to a deadline already in the contract. See my contingencies guide for cancel windows. Escrow (the neutral company that holds money and papers) moves the papers and money toward closing - see my escrow guide.

When it usually shows up

It shows up when one side says the other has not done something the contract requires on time. Common examples include removing a contingency in writing (ending a cancel right by signed paper, often called contingency removal), delivering required disclosures, depositing earnest money (the good-faith deposit) into escrow, or finishing a loan step the contract called for.

The DRE gives a financing example: if a loan contingency exists and the stated financing is not obtained in the allotted time, the seller can deliver a Notice To Buyer to Perform. The buyer then must remove the financing contingency and move forward, or the seller may choose to cancel.

Sellers can also receive a notice when they miss a delivery the contract requires, such as required disclosures. Always match the notice to the exact step named in your agreement.

The short clock after the notice

The DRE says that if one party does not perform, the other typically may deliver a notice to perform and allow a short time for performance (often described as about a day). The DRE also says a notice to perform is typically required before a party starts a cancellation of the agreement and escrow.

Read the notice and your signed agreement. They set the exact deadline. Do not assume a day count from a blog or from a past deal. The paper in your file controls.

Put every reply in writing. A phone call does not replace the written file escrow and the other side need.

What can happen after the deadline

If the noticed party does what the notice asks by the deadline, the deal can keep moving under the signed terms.

If they do not, the party who sent the notice may have cancellation options under the contract. The DRE notes that unilateral cancellation of the agreement and escrow can be possible after the notice period, but the disposition of funds on deposit must be bilateral. In plain words: ending the deal and deciding who gets the deposit are not always the same step. Deposit releases usually need both sides (or a clear written path your contract and escrow allow).

I cannot promise who keeps a deposit, how fast a cancel finishes, or how a dispute ends. Ask your own attorney about your rights. Escrow follows written instructions it is allowed to follow.

What to do if you get one (or need to send one)

• Read the notice and your purchase agreement side by side. Circle the exact step and the deadline.
• Talk with your agent and, if needed, your attorney the same day. Short clocks leave little room to wait.
• If you can finish the step, do it in writing before the deadline (for example, a signed contingency removal (paper that ends a cancel right) on the form your contract uses).
• If you cannot finish the step, get written advice fast about cancel rights, extensions both sides can sign, or other options in your agreement.
• Keep escrow copied on signed papers so the file matches what both sides signed.

Buyers: a notice about loan or contingency removal is not the same as a repair negotiation. Do not mix those papers. Sellers: if you deliver a notice, keep a clear copy of what you sent and when.

General information only

This guide explains the written demand used when a contract step is overdue. It is not legal advice, lending advice, or advice about any one contract. Your signed agreement controls. Ask your own attorney about your rights. Housing opportunities are open to everyone under fair housing law.

More on sandiego.homes

• Cancel rights: the windows a notice often presses against
• Request for repair: the written inspection ask that is negotiation, not a deadline demand
• Good-faith deposit: the deposit a notice may press you to deliver on time
• Final walk-through: the last look near closing, separate from a notice clock
• Escrow: how signed papers and deposits are held
• What sellers must tell you: required notices sellers often must deliver on time
• Home inspection: the condition check that can sit beside contingency clocks
• As-is sales: current-condition sales still have disclosure timing
• Buyer homework: the wider checklist before you move forward
• Buying and selling: the full path from offer to keys
• Guides: all buyer and seller guides

• More: All guides · Buying and selling · Real estate terms

Talk with Weston about a notice to perform

Tell me whether you received a notice or need to send one, and which contract step it names. I’ll help you read the deadline and the next written move.

Or call (858) 997-8998 · weston@sandiego.homes · Search on Compass

Free tools: What is my home worth? · What would I take home? · Real estate words in plain English

Have another question? Quick answers to common questions

Sources

• California DRE - Basic Contract Provisions and Disclosures (ref. book ch. 20)
• sandiego.homes - Contingencies
• sandiego.homes - Escrow
• sandiego.homes - Disclosures
• sandiego.homes - Buying and selling
• sandiego.homes - Request for repair
• sandiego.homes - Earnest money