California is an active-removal state — a buyer’s contingencies do not quietly disappear when a deadline passes; they stay in force until the buyer signs them off in writing.
Passive vs. active — the core difference
Under passive removal (used in some other states), a contingency is automatically waived if the buyer takes no action by the deadline — silence equals removal. Under active removal (California’s model in the C.A.R. RPA), silence does the opposite: the contingency stays until the buyer signs a written removal. Nothing happens automatically just because a date arrives.
How active removal works in the C.A.R. RPA
The C.A.R. Quick Guide is explicit: contingencies are not waived automatically after the time period. To remove a contingency, the buyer signs the C.A.R. Contingency Removal (CR) form — in writing — for that specific contingency. Until then, the buyer keeps the right to cancel based on the open contingency, even after the nominal deadline has passed.
What it means for buyers
For buyers, active removal is protective: you don’t lose your inspection, appraisal, or loan exit just because a calendar date slipped. But it’s also a responsibility — you should remove each contingency deliberately, only when its work is genuinely done, and you should respond promptly if the seller issues a Notice to Buyer to Perform. Don’t sit on an open contingency indefinitely assuming nothing can happen.
What it means for sellers
For sellers, active removal means a passed deadline does not automatically free you to move on. If the buyer hasn’t removed a contingency after its period elapses, your tool is the Notice to Buyer to Perform (NBP) — which gives the buyer a short window (a 2-day default) to act before you can cancel. Sellers should track contingency dates and be ready to issue an NBP rather than assuming a lapsed buyer is gone.
Why this trips up out-of-state buyers and sellers
People who’ve transacted in passive-removal states often assume California contingencies expire on their own. They don’t. This single difference changes how deadlines, cancellations, and deposits work, and it’s one of the most common sources of confusion in California escrows. When in doubt, treat every contingency as live until you see a signed removal.
Disclaimer
Brian Cooper is a licensed California REALTOR® with eXp Realty — not an attorney. This page is general information about common California real-estate practice under the C.A.R. Residential Purchase Agreement (RPA); it is not legal advice and does not create an agent-client relationship. Contract defaults can be changed by negotiation, the C.A.R. forms are revised periodically, and your transaction may differ. Always confirm the current C.A.R. forms and the exact terms written into your contract, and for any dispute — especially over a deposit — consult a qualified California real estate attorney.
Frequently Asked Questions
Is California an active or passive contingency-removal state?
Active. Under the C.A.R. RPA, contingencies stay in place until the buyer signs a written Contingency Removal — they don’t auto-expire when a deadline passes.
What happens if a contingency deadline passes and nothing is signed?
The contingency remains in force. The seller’s remedy is to deliver a Notice to Buyer to Perform (NBP), giving the buyer a short window (2-day default) to remove it or be subject to cancellation.
Does silence remove a contingency in California?
No — that’s passive removal, which California does not use. Silence keeps the contingency alive. Only a signed, written removal takes it off.
Why does active removal matter to buyers?
It protects you: you don’t lose your inspection, appraisal, or loan exit just because a date passed. But you should still remove contingencies deliberately and respond promptly to any NBP.
Why does active removal matter to sellers?
A passed deadline doesn’t automatically free you. To move on from a non-performing buyer, you generally must issue a Notice to Buyer to Perform first, then cancel if the buyer still doesn’t act.
Is this different from other states?
Yes. Many states use passive removal, where contingencies waive automatically at the deadline. California’s active model is a frequent surprise for out-of-state buyers and sellers.
