Multiple Choice Question: C.A.R. has many standard-form addendums and amendments. At the top of the C.A.R. addendum or amendment form is usually a reference to a preexisting listing or purchase agreement, followed by the word, “dated,” and then a blank space. What date do we use for the blank space? Pick the best answer:

A. Date used for Confirmation of Acceptance.
B. Date of Acceptance.
C. Date by which all parties have signed.
D. Date Prepared (on the upper left-hand corner of the first page).
E. Any of the above.

Answer: Answer A is a correct answer for a purchase agreement, but it’s not the best answer. After all, oftentimes no one completes the Confirmation of Acceptance date. Also, a listing agreement does not have a Confirmation of Acceptance date. Answer B is a correct answer. However, it may not be the best answer either. The reason we insert into an addendum or amendment a date for the preexisting listing or purchase agreement is for reference purposes only. We do not need to spend a lot of time figuring out the date of acceptance to use as a reference. Answer C is also a correct answer, and probably the date that most agents use when completing an addendum or amendment.

As between answers A, B, C, and D, Answer D is probably the best answer. In fact, C.A.R. purposely includes “Date Prepared” prominently on the first page of the listing and purchase agreements so that agents don’t have to rummage around looking for a date to use as reference for an addendum or amendment. Agents, however, don’t seem to like using “Date Prepared,” especially when that date is a long time before the date of acceptance.

Hence, considering all 5 answers, Answer E is the best answer with one caveat, which is to be mindful of what you are doing. If you have prepared only one listing agreement for a certain property, or only one purchase agreement for a set of buyers for a particular property, it doesn’t really matter which date you use to reference that document. There will be no confusion. However, on occasion you might have 2 or more of the same type of document floating around. For example, perhaps you represent a buyer who wrote an offer on an RPA that was not accepted, so the same buyer wrote another offer on another RPA form. In that situation, you should be very careful to reference the second RPA in a manner that avoids any confusion with the first RPA.

-Thank you to Patty Cohen (La Jolla Prospect Office) for suggesting this week’s legal tip.

Copyright© 2019 Berkshire Hathaway HomeServices California Properties (BHHSCP). All rights reserved. Any unauthorized reproduction or use of this material is strictly prohibited. This information is believed to be accurate as of March 25, 2019. It is not intended as a substitute for legal advice in individual situations, and is not intended to nor does it create a standard of care for real estate professionals.