What is a "notice to perform"?

A "notice to perform" is indeed a formal request made to a party in a contract, requiring them to fulfill their obligations within a specified timeframe. This tool is often used in real estate transactions to ensure that all parties are held accountable for their commitments as outlined in the contract. For instance, if a seller is required to make repairs before closing and fails to do so, the buyer can issue a notice to perform, allowing the seller a defined period to complete the necessary actions.

This process is important because it creates a clear record of communication regarding the fulfillment of contractual duties, which can be crucial in case of disputes. In contrast, the other options do not accurately capture the definition of a "notice to perform": requesting financing pertains to buyer responsibilities, informal reminders lack the formal nature of the notice, and an agreement to negotiate further does not directly relate to the fulfillment of existing obligations.