The California Residential Purchase Agreement (RPA) is a crucial document for anyone looking to buy or sell a residential property in California. The RPA outlines the terms and conditions of the sale, including the purchase price, financing, contingencies, and closing dates. In December 2018, the California Association of Realtors (CAR) released a revised version of the RPA to reflect changes in state law and industry practices. In this article, we will explore the changes in the California Residential Purchase Agreement Revised 12/18 and what they mean for buyers and sellers.
First and foremost, the revised RPA includes new provisions related to the legalization of cannabis in California. The RPA now includes language that addresses the presence of cannabis plants on the property and the buyer`s right to conduct inspections for the presence of mold or other issues related to cannabis cultivation. This new provision reflects the changing landscape of cannabis laws in California and provides greater clarity for buyers and sellers when it comes to the sale of properties where cannabis is grown or used.
Another significant change in the revised RPA is the inclusion of a mediation clause. This clause requires buyers and sellers to engage in mediation before resorting to litigation in the event of a dispute. This provision is designed to encourage parties to resolve disputes amicably and avoid costly and time-consuming litigation. Mediation can be a more cost-effective and efficient alternative to traditional legal proceedings, and the inclusion of this clause in the RPA reflects a growing trend toward alternative dispute resolution in real estate transactions.
The revised RPA also includes several updates related to financing. The new version of the RPA includes language related to the use of electronic signatures on loan documents, which reflects industry practices that have become increasingly common in recent years. Additionally, the revised RPA includes new provisions related to the use of FHA and VA loans, which are popular among first-time homebuyers and military veterans, respectively. These updates reflect changes in state and federal law related to mortgage lending and provide greater clarity for buyers and sellers when it comes to financing options.
Finally, the revised RPA includes several updates related to disclosures and inspections. The new version of the RPA requires sellers to disclose any known defects related to the property, including those related to lead-based paint and other hazardous materials. Additionally, the revised RPA includes new provisions related to inspections for pests and other issues, which are critical for ensuring that buyers are aware of any potential problems before closing.
In conclusion, the California Residential Purchase Agreement Revised 12/18 reflects changes in state law and industry practices related to cannabis, financing, mediation, and disclosure. These updates provide greater clarity and protection for buyers and sellers in California`s residential real estate market. As a professional, it is essential to ensure that any content related to the RPA includes the most up-to-date information to provide accurate and valuable information to readers.