The New CAR Purchase Agreement changes - Expert

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If you are a California agent,  you should know that CAR is going to be changing the residential purchase agreement (RPA) in April.  Advance copies (subject to change) show that there are several minor changes that you need to understand. If you don't,  you might meet me personally during the lawsuit when I get hired as an expert witness.


  • There is new language for the Buyer to understand that the Pest Control paragraph is a contingency.  Since the property is sold AS IS,  too many agents don't realize that the buyer has a right to investigate anything under the property condition paragraph.  Thus if a buyer disappoves the Pest Report,  they can cancell using the property condition contingency.  It also affirms that the buyer must provide ALL reports to the Seller.
  • New language makes it more clear that the buyers deposit will be considered GOOD when deposited into escrow
  • Another change is badly needed.  Too often,  the agent forgets to inform their clients about a transaction fee.  The revised contract addresses this issue
  • CAR is also coming out with a new purchase form later in 2010.  Those of you who have been in the biz a while will remember that the CAR form used to have a maintenance clause which asked the seller to provide certain systems in good repair condition.  Limited information available today.  Frankly,  I hope it comes an addendum instead of a whole new contract.



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Guy Berry

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