A new Residential Purchase Agreement was published by the California Association of Realtors last week. There were a lot of changes, additions and clarifications. Along with a new RPA, there were over 40 other forms that were updated or added. It's a big year for change so don't be surprised when you go to make an offer, there is a lot to review. Make sure to sit down with your agent and to review the contract before signing.
Here are a few highlights:
The new RPA is now 16 pages instead of 10
Terms have been moved to the front of the contract instead of being scattered throughout.
The use of a table makes it easier to review the main points of the contract
There is a new section that allows buyers to specifically choose which items they want to be included in the sale
It clarifies how smart home equipment should be considered in the sale. All smart home and security system control devices are in included in thh sale except for non-dedicated personal computer, tablets or phone
It defines time frames more clearly to distinguish calendar days from business days and it spells out how to handle expirations when they fall on a weekend or holiday
There is a new section that addresses abandoned property after close of escrow. The new owner must notify the seller that property was left and if there is no response within 3 days, they have a right to dispose of it.
It specifies that a Seller or their agent has the right to contact the Buyer's lender to determine the status of the Buyer's loan
Smoke alarms and Carbon Monoxide detectors need to be installed within 7 days after Acceptance
It added a section for Representative Capacity Signatures so you don't have to do a separate form.
There are many more changes and updates but I just wanted to provide some of the highlights. It will take some time for all of us to get used to the new form but it's meant to protect both the Buyer and Seller from litigation and that's a positive!