Welcome to class today at Home 101, today’s class is on Understanding Your CA Real Estate Contract!
In the State of California, the “California Residential Purchase Agreement & Joint Escrow Instructions” is the purchase agreement which has become the “standard of the industry” among most CA REALTORS®. Today’s contract is currently 8 pages long and at times can be very complex.
The current version has come a very long way from a 2 page contract (of days gone by) it’s evolved to the current 8-page version. Actually in CA (a little known fact I experienced decades ago) many of the brokers had their own contracts, their own purchase agreements, prior to the “standard” forms as we know them today. Working with, and understanding different contracts depending on the brokerage (albeit relatively short compared to where we are today) was a challenge in itself. Today most of us in CA use the CAR (California Association of REALTORS®.
When it comes to home buying or home selling it’s essential you work with a knowledgeable REALTOR® who understands the contract inside and out, from the front to the back. I can’t tell you how many times we’ve experienced issues during a transaction and my fundamental response to any of the agents in my office is, “What does your contract say?” You always go back to the contract, it’s the “foundation” of the home buying or home selling process!