CA Sale: Issuing Notice to Perform (NBP) when carrying hard money

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CA Sale: Issuing Notice to Perform (NBP) when carrying hard money

Ben Tsao
Investor · San Francisco Bay Area · Member since 2026 · 3 posts · 6 votes

Hey BP community,

Selling a NorCal (failed) flip with Close of Escrow scheduled for, Sept 15. Hard money carrying costs are ~$162/day.

The buyer signed Form CR (all contingencies removed) and signed final loan docs early, but the lender refuses to fund prior to Sept 15. The lender had initially verbally agreed to a Sept 9 COE, but today they said "never mind".

I want my listing agent to serve a Notice to Buyer to Perform on Friday, Sept 11 so the mandatory 2-day cure window runs over the weekend. This locks in Sept 15 as an absolute hard stop if the lender delays funding to Sept 16.

My agent thinks sending an NBP is unnecessary and overly aggressive since the buyer has performed in good faith, which is true, it's the lender who changed their mind.

Do you routinely pre-issue an NBP when carrying high daily interest, or do you wait until COE is actually missed?

How do you frame a pre-emptive NBP to the buyer's agent so it feels like a routine administrative step rather than a hostile threat?

    When we bought this home, the seller issued a NBP to us literally the day we were supposed to remove contingencies (per the contract). Our listing agent selling this home is the same one we used to buy it, so maybe this is was a bad idea.

    Thoughts?

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    Don KonipolBusiness Member
    Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
    3w
    Quote from @Ben Tsao:

    Hey BP community,

    Selling a NorCal (failed) flip with Close of Escrow scheduled for, Sept 15. Hard money carrying costs are ~$162/day.

    The buyer signed Form CR (all contingencies removed) and signed final loan docs early, but the lender refuses to fund prior to Sept 15. The lender had initially verbally agreed to a Sept 9 COE, but today they said "never mind".

    I want my listing agent to serve a Notice to Buyer to Perform on Friday, Sept 11 so the mandatory 2-day cure window runs over the weekend. This locks in Sept 15 as an absolute hard stop if the lender delays funding to Sept 16.

    My agent thinks sending an NBP is unnecessary and overly aggressive since the buyer has performed in good faith, which is true, it's the lender who changed their mind.

    Do you routinely pre-issue an NBP when carrying high daily interest, or do you wait until COE is actually missed?

    How do you frame a pre-emptive NBP to the buyer's agent so it feels like a routine administrative step rather than a hostile threat?

      When we bought this home, the seller issued a NBP to us literally the day we were supposed to remove contingencies (per the contract). Our listing agent selling this home is the same one we used to buy it, so maybe this is was a bad idea.

      Thoughts?

      I think you may be a little “paranoid” because of the situation.  Sit back and let the deal unfold before you throw a wrench in the works. 
      Private Mortgage Financing Partners, LLC
      WebsiteView Page
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      • Don KonipolBusiness Member
        Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
        3w
        Quote from @Ben Tsao:

        Hey BP community,

        Selling a NorCal (failed) flip with Close of Escrow scheduled for, Sept 15. Hard money carrying costs are ~$162/day.

        The buyer signed Form CR (all contingencies removed) and signed final loan docs early, but the lender refuses to fund prior to Sept 15. The lender had initially verbally agreed to a Sept 9 COE, but today they said "never mind".

        I want my listing agent to serve a Notice to Buyer to Perform on Friday, Sept 11 so the mandatory 2-day cure window runs over the weekend. This locks in Sept 15 as an absolute hard stop if the lender delays funding to Sept 16.

        My agent thinks sending an NBP is unnecessary and overly aggressive since the buyer has performed in good faith, which is true, it's the lender who changed their mind.

        Do you routinely pre-issue an NBP when carrying high daily interest, or do you wait until COE is actually missed?

        How do you frame a pre-emptive NBP to the buyer's agent so it feels like a routine administrative step rather than a hostile threat?

          When we bought this home, the seller issued a NBP to us literally the day we were supposed to remove contingencies (per the contract). Our listing agent selling this home is the same one we used to buy it, so maybe this is was a bad idea.

          Thoughts?

          I think you may be a little “paranoid” because of the situation.  Sit back and let the deal unfold before you throw a wrench in the works. 
          Private Mortgage Financing Partners, LLC
          WebsiteView Page
          2Reply
        1. Rudy TaghiPro Member
          Investor · Los Angeles California · Member since 2018 · 12 posts · 5 votes
          3w

          Ben, I’m a California Realtor, and I understand why the $162/day carrying cost makes every day feel important. Personally, I’d be careful about using an NBP simply as leverage before an actual contractual deadline has been missed, especially when the buyer has otherwise performed. I’d want the agent and broker to look very closely at the fully ratified contract, contingency dates, and applicable CAR form requirements before treating it as a routine administrative move. Hope it works out smoothly.

          2Reply
        2. Ashish AcharyaBusiness Member
          CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
          3w

          Ben, I’d be careful about using the Notice to Buyer to Perform as a routine pressure tool before there’s actually been a failure to perform. In California, the timing and effect of that notice can be very contract-specific, so I’d have your agent’s broker or a California real estate attorney confirm exactly when it can be served and what rights it actually preserves before relying on it as the mechanism that creates your “hard stop.”

          From the investment side, the important number is what every additional day does to the deal. At $162/day, even a one-week delay is another roughly $1,100+ of carrying cost, before you add utilities, insurance, taxes, or anything else. That should already be built into your flip margin and downside scenario.

          From the tax/accounting side, I’d keep the hard-money interest and all other carrying costs tied specifically to this project. Since this was acquired as a flip, the tax treatment is different from a rental, and some project costs may need to be capitalized into the deal rather than treated like ordinary current expenses.

          I’d protect the contractual position with proper California guidance, but I’d also treat the carrying clock as part of the economics, not just an annoyance at closing.

          Feel free to DM me, I’d be happy to send over a few resources that might help you pressure-test the remaining margin on the flip.

          [email protected]941-914-7779
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