You write 17 days for the loan contingency because that is what the form prints. On day 16 the appraisal is still out, the underwriter has four open conditions, and the listing agent is asking when the removal is coming. The contract had a loan contingency timeline. Nobody checked it against the lender's.
The two calendars run on different rules. The C.A.R. Residential Purchase Agreement (RPA) counts calendar days from acceptance. The lender works in business days, and federal law puts fixed waiting periods in front of the signing. A 30-day escrow has room for both. A 21-day escrow has room only if most of the loan work was done before the offer.
Bill Lewis at Choice One Mortgage has spent more than 30 years closing purchase loans on California contracts. In this guide, we'll put the RPA's default dates next to the lender's real milestones, show a day-by-day 30-day escrow, and spell out what has to be true before you write shorter dates.
Quick answer: The RPA defaults to 17 days after acceptance for the loan, appraisal and investigation contingencies, with the deposit due in 3 business days. A lender with a prepared buyer typically has the appraisal back and a conditional approval by days 10 to 14, a clear to close around day 20, and funds on day 29 or 30. The one date nobody can compress is the Closing Disclosure: your buyer must receive it at least three business days before signing loan documents. Shorter contingencies work when the file was underwritten before the offer and the appraisal is ordered on day 1.
The RPA Default Dates That Touch the Loan
These are the printed defaults in the paragraph 3 grid of the RPA. Each has a blank next to it, so your signed contract controls, and C.A.R. revises its forms twice a year.
| RPA Item | Printed Default | Why the Lender Cares |
|---|---|---|
| Initial deposit, 3D(1) | 3 business days after acceptance | It should come from an account we have already verified. |
| Proof of funds, 3H(2), and lender letter, 3H(3) | Attached to the offer, or 3 days after acceptance | The lender letter has boxes for prequalification, preapproval and fully underwritten preapproval. Check the one that is true. |
| Seller delivery of documents, 3N(1) | 7 days after acceptance | Solar leases and HOA documents feed underwriting conditions. |
| Loan contingency, 3L(1) | 17 days after acceptance | By this date your buyer needs a conditional approval they are willing to rely on. |
| Appraisal contingency, 3L(2) | 17 days after acceptance | The report has to be back and reviewed. |
| Investigation of property, 3L(3) | 17 days after acceptance | Insurability sits here. |
| Final verification of condition, 3J | 5 days before close of escrow | Any lender-required repairs must be finished and re-inspected before this. |
How the Form Counts Days
- Days are calendar days. Acceptance is day zero and the next day is day 1. Weekends and holidays count.
- The deposit is the exception. It runs on business days.
- The last day rolls forward. If the last day to perform, including close of escrow, lands on a Saturday, Sunday or legal holiday, performance moves to the next day that is not one.
- Contingencies do not expire on their own. Your buyer removes each one in writing. If the date passes, the seller can deliver a Notice to Buyer to Perform, which gives the buyer 2 days to remove the contingency or cancel before the seller may cancel.
Two details surprise people. Removing the loan contingency does not remove the appraisal contingency. And the form says a buyer who cannot get insurance may have a reason to cancel under the investigation contingency, but not under the loan contingency. Questions about what a clause means for your client belong with your broker or a real estate attorney.
What the Lender Has to Finish, in Order
A purchase loan moves through the same stages every time. Our mortgage document checklist lists what the buyer supplies at each one.
- Application and Loan Estimate. Once we have the property address, the application is complete and the Loan Estimate is due within three business days. The lender cannot charge for the appraisal until the buyer has it and confirms they want to proceed.
- Appraisal. Typically 5 to 10 days from order to report on a tract home in Indio or Torrance. Custom homes run longer.
- Conditional approval. The underwriter approves the file subject to a list of conditions. This is what your buyer leans on when removing the loan contingency.
- Clear to close. Every condition is signed off, including title, insurance and the appraisal.
- Closing Disclosure, then the three-business-day wait.
- Signing, funding and recording. The buyer signs with a notary, the lender reviews the package and re-verifies employment, funds are wired, and the deed records.
Turn times in this article are typical for a prepared buyer and a cooperative property. They are examples, not promises, and they stretch when appraisers are busy or documents come in late.
A 30-Day Escrow, Day by Day
Here is a conventional loan on RPA default dates, with a buyer who was pre-approved on documents before writing the offer.
| Day | On the Contract | At the Lender |
|---|---|---|
| 0 | Acceptance. The count starts tomorrow. | You send the executed contract to the loan officer the same day. |
| 1 | Escrow opens. | Address added to the application. Loan Estimate issued. Buyer confirms intent to proceed and the appraisal is ordered. |
| 3 | Deposit due (3 business days). Proof of funds and lender letter due if not attached to the offer. | File goes to underwriting with the contract and preliminary title report. |
| 4 to 8 | Inspections. Seller documents due by day 7. | Appraiser inspects. Buyer orders an insurance quote. We request HOA or solar documents. |
| 9 to 12 | Repair requests go back and forth. | Appraisal report arrives. Underwriter issues the conditional approval. |
| 13 to 16 | Buyer decides on contingencies. | Buyer clears conditions. Underwriter reviews the appraisal. |
| 17 | Loan, appraisal and investigation contingencies due for removal. | Conditional approval in hand, appraisal accepted, no open question about income, assets or the property. |
| 18 to 21 | Final conditions cleared. Clear to close. | |
| 22 to 23 | Closing Disclosure sent. Buyer opens and acknowledges it the same day. | |
| 25 | Final verification of condition (5 days before close). | Waiting period runs. Loan documents drawn and sent to escrow. |
| 26 to 27 | Buyer signs loan documents and wires the balance of the down payment. | |
| 28 to 29 | Lender reviews the signed package, re-verifies employment, and funds. | |
| 30 | Close of escrow. Deed records. | Keys. |
There are two cushions of about five days each: one before day 17 and one between clear to close and signing. A slow appraisal eats the first. A late change to the numbers eats the second.
The Three-Business-Day Closing Disclosure Rule
Under the federal TRID rule, in Regulation Z, section 1026.19, the borrower must receive the Closing Disclosure no later than three business days before consummation. In California, consummation is the day the buyer signs the note. For this count, a business day is every calendar day except Sundays and federal holidays, so Saturday counts.
- Received Monday: the buyer can sign Thursday.
- Received Thursday: the buyer can sign Monday.
- Sent by email and never opened: it is treated as received three business days after it was sent, which pushes signing back by as much as three more days. Tell your buyer to open and acknowledge it the day it arrives.
There is a second floor. The Loan Estimate has to go out at least seven business days before signing, which is why a financed purchase cannot close in a week.
What Triggers a New Three-Day Wait
Only three changes after the Closing Disclosure restart the clock:
- The APR becomes inaccurate. On a fixed-rate loan that means it rises by more than one-eighth of a percentage point over the figure disclosed.
- The loan product changes, for example from a fixed rate to an adjustable rate.
- A prepayment penalty is added.
A changed seller credit or a corrected escrow fee does not restart it. The buyer gets a corrected Closing Disclosure at or before signing. A rate lock that expires and reprices on day 27 can, which is the usual way a closing loses three days at the end.
How the Loan Type Changes the Timeline
| Loan Type | What Is Different | Typical Close | Contingency Dates That Fit |
|---|---|---|---|
| Conventional | Some files receive an appraisal waiver from the automated underwriting system. | 21 to 30 days | 17 days works. 10 to 14 with an underwritten file. |
| FHA and VA | FHA needs an FHA roster appraiser and VA assigns its own. Both can call for repairs before closing, and the amendatory clause (C.A.R. Form FVAC) is part of the contract. | 30 to 35 days | 17 days for the loan. Leave room for a repair re-inspection. |
| Jumbo | More asset and reserve documentation. Larger loan amounts often require a second appraisal or a desk review. | 30 to 35 days | 17 to 21 days for loan and appraisal. |
| Non-QM (bank statement, DSCR, asset depletion) | Income is calculated from 12 or 24 months of statements or the property's rent. Fast when that analysis was done before the offer, slow when it was not. | 21 to 30 days | 17 days. 21 if the income analysis has not been underwritten. |
Condos add a step on every loan type: the HOA questionnaire and project review. See the late-escrow items that delay closings for lead times on HOA documents, leased solar and PACE liens.
Shortened Contingencies: What Has to Be True Up Front
Your buyer is competing for a listing in Manhattan Beach and wants to offer a 21-day close with a 10-day loan contingency. It can be done if the first two weeks of loan work are finished or started before acceptance.
| Milestone | 30-Day Default | 21-Day Close, 10-Day Loan Contingency | What Must Be True Before the Offer |
|---|---|---|---|
| Underwriting | Conditional approval by days 10 to 14 | Conditional approval by day 5 | An underwriter has already approved income, assets and credit. Only property conditions remain. |
| Appraisal | Ordered day 1 to 3, back day 9 to 12 | Ordered day 1 with a rush fee, back by day 7 to 8 | Buyer has agreed to pay the rush fee and the listing agent will give access within 24 hours. |
| Insurance | Quote by day 10 | Policy quoted by day 3 | Buyer has an agent who has already confirmed the address is insurable. |
| Title and HOA | Preliminary report by day 5, HOA documents by day 14 | Preliminary report by day 3, HOA questionnaire ordered day 1 | Seller ordered the preliminary report at listing. Condo documents are ready. |
| Clear to close | Day 20 to 21 | Day 12 to 13 | No change to price, loan amount or program after day 5. |
| Closing Disclosure | Day 22 to 23 | Day 14 to 15 | Rate locked at acceptance for the full escrow. |
| Signing and funding | Day 26 to 30 | Day 18 to 21 | Buyer is in town and funds to close are liquid. |
If any box in the last column is not true, write the default dates. A fully underwritten approval is what makes the 10-day loan contingency reasonable. A pre-qualification does not.
A Checklist for Writing Realistic Dates
- Call the loan officer before you fill in paragraph 3. Ask one question: what has an underwriter signed off on?
- Ask for the appraisal turn time in that neighborhood this week. It changes with the season in the desert.
- Set the loan and appraisal contingencies together. A loan contingency removed before the appraisal is back protects very little.
- Count the close of escrow backward. Take the closing date, subtract two days for funding, three business days for the Closing Disclosure, and two for document prep. That is your clear-to-close deadline.
- Schedule a day 10 check-in with the loan officer so any extension request goes out before day 17.
Your buyer can see the cash side of those dates with our closing cost calculator, and compare loan structures in the purchase loan scenario builder.
Mistakes That Cost Days
- Holding the contract until the deposit is in. Three days of lender time are gone before anyone starts.
- Removing the loan contingency on a pre-approval. The conditional approval comes after the underwriter has seen the contract, title and appraisal.
- Changing the deal after day 20. A price reduction or a switch from price reduction to seller credit means new numbers, a new approval and sometimes a new Closing Disclosure wait.
- Letting the rate lock expire. A 30-day lock on a 30-day escrow leaves no margin.
The Bottom Line
The RPA's 17 days are enough for a prepared buyer and a cooperative property, and tight for anyone else. The date that decides most closings is not on the contract at all: it is the day the Closing Disclosure goes out, and everything before it is a countdown to that.
Call us before you write the offer and we will tell you which dates the file supports, in writing if the listing agent wants it. Buyers who have not started can begin with our purchase loan page.
Writing an offer this week?
Call Bill Lewis at (310) 614-5920 and we will give you contingency and closing dates the file can actually meet.
Get a Free ConsultationFrequently Asked Questions About Contingencies and the Loan Timeline
How many days is the loan contingency in the California purchase agreement?
The printed default in the C.A.R. Residential Purchase Agreement is 17 days after acceptance, and the appraisal and investigation contingencies carry the same default. Each has a blank, so the parties can agree to more or fewer days. Older versions of the form used 21 days for the loan contingency.
Does the loan contingency expire automatically on day 17?
No. Under the RPA a contingency stays in place until the buyer removes it in writing. Once the date passes, the seller can deliver a Notice to Buyer to Perform, and if the buyer does not remove the contingency or cancel within 2 days, the seller may cancel.
Can a financed purchase close in 14 days?
Sometimes, with a file that was fully underwritten before the offer and an appraisal waiver or a rushed appraisal. The federal floor is the Loan Estimate at least seven business days before signing and the Closing Disclosure at least three business days before signing.
Does a price reduction after the appraisal restart the three-day Closing Disclosure wait?
Usually not. A lower price or a new seller credit changes the cash to close, and the buyer receives a corrected Closing Disclosure at or before signing. A new wait is required only if the APR becomes inaccurate, the loan product changes, or a prepayment penalty is added.
Can the buyer waive the three-day waiting period to close on time?
Only for a bona fide personal financial emergency, described in a dated statement the borrower writes and signs (preprinted forms are not allowed). Wanting to meet the contract date is not an emergency under the rule, and lenders almost never accept a waiver on a purchase. Plan the date so the waiver is never needed.
What is the difference between a conditional approval and a clear to close?
A conditional approval means an underwriter has approved the loan subject to a list of remaining items, such as an updated pay stub or the insurance binder. A clear to close means every item is signed off and the lender is ready to prepare loan documents. Buyers typically remove the loan contingency at conditional approval, so ask what is still on the list.
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About the Author: Bill Lewis
Mortgage Loan Originator, Choice One Mortgage · NMLS #284797
Bill Lewis has spent more than 30 years helping Southern California homebuyers and the Realtors who serve them structure financing that fits their real situation. Based in La Quinta, Choice One Mortgage serves buyers throughout the Coachella Valley, Ventura County, and the South Bay. Learn more about our team or call (310) 614-5920.
This article is general information for real estate professionals, not legal advice and not an interpretation of any contract. C.A.R. forms are revised regularly and the signed agreement and its addenda control; direct questions about contract rights, notices and contingency removal to your broker or a California real estate attorney. Lender turn times shown are typical examples and are not guaranteed. This is not a commitment to lend. All loans are subject to credit approval, underwriting guidelines, and property valuation. Equal Housing Opportunity. COMC, Inc. dba Choice One Mortgage Company. Licensed by the CA DRE #01238593. NMLS #233784.