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HomeBusiness and Professions CodeDiv. 8Ch. 5Art. 7§ 19902 Contract Closing Date Rules

§ 19902 Contract Closing Date Rules

Business and Professions Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 19902 Contract Closing Date Rules

Key Takeaways

  • •If you're selling or leasing property that needs approval from the commission, the contract can't set a closing date before that approval is given.
  • •Any part of the contract that sets an earlier closing date is invalid, but the rest of the contract is still okay.
  • •This rule applies to both real property (like houses or land) and personal property (like cars or furniture).

Example

You're selling a house, but the buyer needs approval from the commission first.

The contract can't say the sale will be finalized before the buyer gets that approval. If it does, that part of the contract is invalid, but the rest of the contract is still good.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 19902 Contract Closing Date Rules

When any person contracts to sell or lease any property or interest in property, real or personal, under circumstances that require the approval or licensing of the purchaser or lessee by the commission pursuant to subdivision (a) of Section 19853, the contract shall not specify a closing date for the transaction that is prior to that approval or licensing by the commission. Any provision of a contract that specifies an earlier closing date is void for all purposes, but the invalidity does not affect the validity of any other provision of the contract. (Amended by Stats. 2011, Ch. 391, Sec. 1. (AB 156) Effective January 1, 2012.)

Last verified: January 22, 2026

Key Terms

contracts to sell or leaseapproval or licensingclosing datevoid

Related Statutes

  • § 19903 Contract Fee Responsibility Clause
  • § 19900 Gambling License Security Approval
  • § 19901 Gambling Operation Financial Restrictions
  • § 19904 Gambling License Transfer Approval
  • § 19905 Credit Transaction Reporting Rules

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Business and Professions Code. Section 19902.
View Official Source