Important changes to California Residential Purchase Agreement

Posted by BanCorp Properties on Saturday, November 22nd, 2014 at 9:56am.

 

In Monday November 24th 2014 there are sweeping and wholesale changes being made to the California Residential Purchase Agreement and Joint Escrow Instructions, and it is extremely important for all parties to the transaction to be familiar with the alterations and amendments. It is imperative that the South Orange County listing agents and selling agents (as well as their) brokers who will be representing the buyers or sellers have taken some new instructions prior to completing these new forms as to not place their clients in harm’s way or at any type of financial risk.

While it would be difficult to list all of the changes that are being implemented, just one of major ones is how the wood destroying pest report is disclosed. Another one is how solar panels installed on a home that are leased on home would transfer over to the new owner. If your South Orange County Realtor who will be creating this document is not familiar with the new verbiage, they could not only be leaving money on the table, they could put the entire transaction at risk as they possibly could be giving the buyer or seller the ability to rescind the contract at any point of the escrow, even putting the buyers initial deposit at risk.

It is extremely important that the South Orange County professional know exactly what point of the transaction that the transfer disclosure statement needs to be delivered as well as the seller property questionnaire. Was you home built before 1960? If your Real Estate Agent hasn’t asked you to sign an earthquake information booklet, something is wrong. There are important addenda and advisories that must be disclosed early on during the escrow process or your agent is not complying with the Residential purchase agreement. Having your real estate professional stay on top contingency removal throughout the escrow process is paramount to a successful close of escrow.

Before signing your RPA form make sure that the real estate company you are working with is fully compliant with the new wholesale changes that have been made to this important document and other related disclosures.

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