Quick Answer

A Notice to Perform is a formal written notice used when one party to a real estate contract believes the other has failed to meet a required deadline—such as removing a contingency or delivering required documents—giving the non-performing party a defined additional period to act before the other party can potentially cancel the contract.

Why This Tool Exists

Real estate transactions run on a series of specific deadlines (see our contingency periods and purchase agreement guides), and California's standard contract forms include a mechanism for addressing a missed deadline that doesn't automatically terminate the contract but rather creates a structured path forward.

How It Generally Works

1. A deadline in the contract passes without the required action being taken—for example, a buyer hasn't removed their inspection contingency by the agreed date
2. The other party (or their agent) can issue a formal Notice to Perform, specifically identifying the missed obligation
3. This creates a defined additional period (commonly around 48 hours, though specific timeframes depend on the contract's terms) for the non-performing party to complete the required action
4. If the action still isn't completed within that window, the party who issued the notice may then have the right to cancel the contract

Why This Tool Matters for Both Buyers and Sellers

• It provides a structured, documented process rather than an ambiguous situation where one party simply assumes the deal is off track without clear communication
• It protects the party issuing the notice by creating a clear record that proper process was followed before any cancellation, which matters if a dispute later arises
• It gives the non-performing party a genuine opportunity to act, rather than facing an immediate, surprise cancellation

Common Situations Where a Notice to Perform Might Be Used

• A buyer hasn't removed contingencies (see our contingency periods guide) by the contractually agreed date
• A seller hasn't delivered required disclosures within the specified timeframe
• Either party hasn't provided a required document or completed a required action by its contractual deadline

What to Do If You Receive a Notice to Perform

1. Don't ignore it—this creates a real, time-sensitive obligation with contractual consequences if not addressed
2. Contact your agent immediately to understand exactly what's being requested and your realistic options
3. Act promptly within the notice period if you're able to complete the required action, or communicate clearly with the other party through your agent if there's a legitimate reason for delay

What to Do If You're Considering Issuing One

• Confirm the specific deadline has genuinely passed and the required action hasn't been completed, rather than issuing a notice prematurely
• Work with your agent to prepare it correctly, since this is a formal contractual document with real consequences if used improperly
• Understand this is a serious step that can lead toward contract cancellation if not resolved—consider whether direct communication might resolve the issue first, depending on your specific relationship and circumstances with the other party

FAQ

Does a Notice to Perform automatically cancel the contract?

No—it creates an additional window for the non-performing party to act; cancellation is only a subsequent option if that window passes without the required action being completed.

Can a Notice to Perform be issued for any missed deadline, or only specific ones?

It's generally used for specific contractual obligations with defined deadlines, such as contingency removal or document delivery—your agent can clarify what's appropriate for a specific situation.

What if I have a legitimate reason for the delay?

Communicate this promptly and clearly through your agent—the other party may be willing to grant additional flexibility informally, though this doesn't change the formal notice period once issued unless both parties agree otherwise.

Should I always use a Notice to Perform the moment a deadline passes?

Not necessarily—depending on your relationship with the other party and the specific circumstances, direct communication to understand the situation may resolve things without needing to formalize the process; discuss the best approach with your agent given your specific situation.

This is general information, not legal advice. Notice to perform procedures is governed by your specific contract's terms—consult your agent and, if needed, a real estate attorney for guidance specific to your transaction.

Bottom Line

A Notice to Perform is a structured, protective tool for addressing missed contractual deadlines—understanding how it works helps you respond appropriately whether you're on the receiving end or considering issuing one yourself.

Navigating a missed deadline in your current transaction? Let's talk through your options right away.

About The Parker George Team

Robert Parker and Josie George lead The Parker George Team , a Berkeley-based real estate team serving Berkeley, Oakland, Kensington, El Cerrito, Piedmont, Alameda, Albany, Emeryville, and Richmond. Robert holds the Certified Luxury Home Marketing Specialist (CLHMS) designation, and the team has been recognized by America's Best and featured in the San Francisco Business Times. Licensed with the California DRE (Robert #01923837, Josie #01990905), the team is based at 801 Delaware St, Berkeley, CA 94710.

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