Do you have to use the CA Residential Purchase Agreement when submitting an offer to buy a home?
Technically no. A buyer can submit an offer on any type of contract of their choosing. However, it would be wise if a buyer is not using the California RPA to have an attorney draft a purchase contract. With that said there are numerous reasons why it’s beneficial to the buyer to use a California realtor and submit an offer on the CA Residential Purchase Agreement and here is why;
*The California Residential Purchase Agreement is only available to buyers working with a licensed real estate agent.
1. The CA RPA ( residential purchase agreement ) has been tested in the courts and although there will always be the chance of a lawsuit the CA RPA has been tested over and over and is still here. Having a lawyer draft a new offer to purchase contract even if they’re a licensed attorney, if it hasn’t been tested in the courts there’s no way to tell if the contract will hold up in the courts should a problem come up and litigation is required.
2. It has been revised over the years and improved to have better protections especially for buyers. There are contingencies in the contract that protect a buyer if they discover something is wrong with the property during escrow. It also stipulates that a seller agrees to disclose any material facts about the property. This is a major protection for the buyer even after the sale has been completed and provides them with protection if something happens after they close that the seller didn’t disclose. A buyer in this case could potentially have recourse. Basically the RPA protects a buyer from buying a lemon and if they do, due to the seller failing to disclose, they have recourse.
3. There’s a mortgage contingency in the CA RPA so if a buyer can’t get financing they are not obligated to purchase.
4. Many sellers working with realtors require buyers to use the CA RPA. Why? Because it also protects the seller. If a buyer doesn’t perform their duties per the RPA the seller has the right to cancel the contract. If the buyer doesn’t remove their contingencies on time the seller can cancel the contract. If the buyer doesn’t close on time the seller can cancel the contract.
Essentially using a licensed CA realtor and having the benefit and protections of the CA RPA to buy and sell your home benefits everyone.