California Code, Civil Code - CIV § 929

(a) Nothing in this chapter prohibits the builder from making only a cash offer and no repair.  In this situation, the homeowner is free to accept the offer, or he or she may reject the offer and proceed with the filing of an action.  If the latter occurs, the standards of the other chapters of this title shall continue to apply to the action.

(b) The builder may obtain a reasonable release in exchange for the cash payment.  The builder may negotiate the terms and conditions of any reasonable release in terms of scope and consideration in conjunction with a cash payment under this chapter.

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