Vokshori Law Group

In the real estate market, buyers may have more leverage, which increases their chances of getting an offer accepted with contractual contingencies remaining intact. But what exactly are contingencies, and how do they affect real estate transactions? This article will explore the standard contingencies in the California Residential Purchase Agreement and Joint Escrow Instructions (C.A.R. Form RPA) and provide helpful tips for buyers and sellers.

Standard Contract Contingencies

The C.A.R. Form RPA includes at least five and as many as seven standard contingencies in the contract. These contingencies are:

• Loan
• Appraisal
• Investigation of Property
• Review of Seller Documents
• Preliminary (“Title”) Report
• Common Interest Disclosures – If applicable
• Review of Leased or Leaned Items – If applicable

It is important to note that the deadline for removal of each of these …

In a market where buyers have more leverage, sellers may be more willing to negotiate repairs than they typically are in a so-called “seller’s” market. Negotiating repairs can be a very important, yet very complicated, part of a sales transaction. Inspect early to allow time to negotiate

The standard time period in the Residential Purchase

Agreement and Joint Escrow Instructions (C.A.R. Form RPA) for the buyer to inspect the property and exercise their investigation contingency is 17 Days. If the buyer wants to have the best opportunity to negotiate any potential repairs with the seller, they should have their inspections done early and not wait until just before the deadline.

How can Buyers request repairs?

The buyer should use the Request for Repair (C.A.R. Form RR) to propose that the …