2009 California Civil Code - Section 886.010-886.050 :: Chapter 6. Unperformed Contracts For Sale Of Real Property

CIVIL CODE
SECTION 886.010-886.050

886.010.  As used in this chapter:
   (a) "Contract for sale of real property" means an agreement
wherein one party agrees to convey title to real property to another
party upon the satisfaction of specified conditions set forth in the
contract and which requires conveyance of title within one year from
the date of formation of the contract, whether designated in the
agreement a "contract for sale of real property," "land sale
contract," "deposit receipt," "agreement for sale," "agreement to
convey," or otherwise.
   (b) "Recorded contract for sale of real property" includes the
entire terms of a contract for sale of real property that is recorded
in its entirety or is evidenced by a recorded memorandum or short
form of the contract.

886.020.  If the party to whom title to real property is to be
conveyed pursuant to a recorded contract for the sale of real
property fails to satisfy the specified conditions set forth in the
contract and does not seek performance of the contract or restitution
of amounts paid under the contract, the party shall, upon demand
therefor made after the operative date of this chapter, execute a
release of the contract, duly acknowledged for record, to the party
who agreed to convey title. Willful violation of this section by the
party to whom title is to be conveyed without good cause makes the
party liable for the damages the party who agreed to convey title
sustains by reason of the violation, including but not limited to
court costs and reasonable attorney's fees in an action to clear
title to the real property. Nothing in this section makes a release
or a demand therefor a condition precedent to an action to clear
title to the real property.

886.030.  (a) Except as otherwise provided in this section, a
recorded contract for sale of real property expires of record at the
later of the following times:
   (1) Five years after the date for conveyance of title provided in
the contract or, if no date for conveyance of title is provided in
the contract, five years after the last date provided in the contract
for satisfaction of the specified conditions set forth in the
contract.
   (2) If there is a recorded extension of the contract within the
time prescribed in paragraph (1), five years after the date for
conveyance of title provided in the extension or, if no date for
conveyance of title is provided in the extension, five years after
the last date provided in the extension for satisfaction of the
specified conditions set forth in the contract.
   (b) The time prescribed in this section may be waived or extended
only by an instrument that is recorded before expiration of the
prescribed times.

886.040.  Upon the expiration of record of a recorded contract for
sale of real property pursuant to this chapter, the contract has no
effect, and does not constitute an encumbrance or cloud, on the title
to the real property as against a person other than a party to the
contract.

886.050.  (a) Except as otherwise provided in this section, this
chapter applies on the operative date to all recorded contracts for
sale of real property, whether recorded before, on, or after the
operative date.
   (b) This chapter shall not cause a recorded contract for sale of
real property to expire of record before the passage of two years
after the operative date of this chapter.

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