Residential real estate transactions in California are based primarily on a suite of forms provided by the California Association of Realtors.
Your agent has access to these forms based on CAR membership. While other states conduct transfers of real property through attorneys, CAR employs a fleet of attorneys to create and update these forms to leave the transaction in the hands of agents, escrow and title professionals.
A major advantage of this method is that your agent is the beneficiary of a vast mind trust and has a collective knowledge of trending issues, which the CAR team reviews and updates the form to avoid misunderstandings to buyers, sellers, agents and brokers. uses to.
The most commonly used form in this suite of equipment is the residential purchase agreement. This form has been changed over the years, but a sweeping change is expected this December.
As a potential home buyer and/or seller, this should be seen as a great step towards making your transaction easier, primarily by making the most important deal points clear to all participants. However, change always comes with some consequences.
Here are some of the things that could happen after the implementation of this new form.
For starters, agents need to accelerate into this new look, starting with buyers’ agents. Since buyers are the ones who get the ball rolling in these transactions, their agent will be the first to use the new RPA.
Hopefully, they will take advantage of the training that is available through CAR, their brokerage, and other real estate training resources.
Agents, please note: You don’t want to sit down with your buyers with a new RPA form without at least looking at it first. The form has grown to 14 pages. Items that used to be on pages 6 and 7 are now on pages 1 and 2. There are also new items that need to be discussed and decided upon in order to complete the form.
For listing agents, you may want to take a look at the new form in anticipation of receiving one or more in an attempt to sell your client’s home. Especially in this market, where many offers are the new normal, it will be important to understand the specifics of the new RPA in order to compare and contrast the offers you get.
For escrow officers, it will be important to understand the new form to translate the details included in the new RPA into escrow instructions.
The new RPA aims to make transactions more clear and help the process run more smoothly. We all need to be aware of how the new form is to be used. And it will take time and effort on everyone’s part.
So, expect a few bumps on the road while everyone else is riding.
Leslie Sargent Eskildson is an agent with RealtyOne Group West and a member of the Board of Directors of the California Association of Realtors. He can be contacted at 949-678-3373 or [email protected]