Once buyers have seen your home and decided they want to purchase it, they will make an offer using the Standard California Residential Purchase Agreement (RPA). This legal document outlines the terms and conditions agreed upon by both parties.

Overview of RPA

An RPA, also known as a real estate purchase contract, serves as the roadmap for the transaction. It covers all aspects of the purchase, including the agreed-upon price, contingencies, closing date, and more. Once both parties sign the RPA, it becomes a legally binding contract.

The RPA is a critical document in the home-selling process, so it’s essential to ensure every detail is correct and understood by both parties.

Key Terms and Contingencies

Key terms in the RPA typically include:

1. Purchase Price: This is the final agreed-upon price after negotiations.
2. Deposit: Often referred to as earnest money, this is the amount the buyer puts down to show they’re serious about the purchase.
3. Closing Date: This is when the title of the property is expected to be transferred to the buyer.
4. Included Items: These are specific items included in the sale, such as appliances or furniture.
5. Excluded Items: Conversely, these are items specifically not included in the sale.

Contingencies in the RPA are conditions that must be met for the sale to proceed. Common contingencies include:

1. Inspection Contingency: Allows the buyer to conduct a professional home inspection.
2. Financing Contingency: States that the agreement depends on the buyer securing the necessary financing.
3. Appraisal Contingency: The sale is contingent on the property being appraised at or above a certain value.
4. Title Contingency: Ensures the seller can provide a clean (or clear) title upon closing.

Understanding all terms and contingencies is crucial, so be sure to review the RPA thoroughly with your real estate agent or a legal advisor. This protects your interests throughout the transaction.