GLOSSARY — REAL ESTATE TERMS
Notice to Perform
A Notice to Perform is a formal written demand from one party to the other requiring specific contractual action, such as removing a contingency, within a set timeframe, or risk the other party canceling the contract.
When a Notice to Perform is used
If a buyer hasn't removed a contingency or completed a required action by its deadline, the seller can issue a Notice to Perform, giving the buyer a shortened window -- commonly 2 days under the standard California contract -- to comply or risk cancellation.
What happens if the deadline still passes
If the buyer doesn't act within the notice period, the seller generally gains the right to cancel the contract. This tool exists specifically to prevent a contract from staying in limbo indefinitely when one side isn't moving toward closing.
WHAT TO DO IF YOU RECEIVE A NOTICE TO PERFORM
- Read the specific action required and its exact deadline immediately
- Contact your agent the same day, not after the deadline approaches
- Complete or formally respond to the required action within the notice period
- Get written confirmation once you've complied with the notice
Can a buyer also send a Notice to Perform to a seller?
Yes -- it works in both directions if the seller fails to complete a required action, such as delivering disclosures on time.
How much time does a Notice to Perform typically give?
Under the standard California purchase agreement, it's commonly 2 days, though the exact period depends on the specific contract terms negotiated.
Does receiving a Notice to Perform automatically cancel the contract?
No -- it starts a countdown to act. The contract isn't canceled unless the required action still isn't completed once that period expires.