Newly Revised C.A.R. Forms

On December 14, 2021, C.A.R. not only revamped its standard-form Residential Purchase Agreement (RPA), but it also released over 90 other revised forms. Many of the revisions to the RPA-related forms are minor changes, but the forms were nevertheless assigned a new “12/21 revision date” so you’ll know that you can use them with the updated “12/21 RPA.”

Here are some of the substantive changes to the RPA-related forms:  (more…)

Receiving an Offer on the Old RPA

Multiple Choice Question: You are the listing agent for a new listing. You receive an offer on the old RPA, even though C.A.R. recently revised the RPA on December 14, 2021. What should you do? Pick the best answer:

A. Advise the buyer’s agent to resubmit the offer on the new RPA.
B. Advise the seller to ignore the offer, and let the buyer’s side decide what to do next.
C. Advise the seller to reject the offer, and let the buyer’s side decide what to do next.
D. Present the offer to the seller, and let the seller decide what to do next.  (more…)

C.A.R. to Release Revised RPA

On December 14, 2021, C.A.R. intends to release its newly revised Residential Purchase Agreement (RPA), along with approximately 98 other new or revised forms. The 2021 RPA is a major reorganization. The standard-form agreement will be 16 pages, instead of the current 10 pages. The negotiable terms of the agreement will be set forth in a “Grid” in the first few pages of the agreement.

Many of the substantive provisions of the 2021 RPA remain the same as before, but here are some of the significant revisions:  (more…)

Removing Contingencies One By One

Fact Pattern: You are the buyers’ agent for a pending sales transaction using the C.A.R. Residential Purchase Agreement (RPA). All the timeframes for the buyers’ contingencies have expired. The seller’s side has served a Notice to Buyer to Perform (NBP) to remove all contingencies. The buyers want to remove their contingencies by checking 6 checkboxes for each of their 6 applicable contingencies in paragraph I.2.A. of the Contingency Removal form (CR). They do not want to check the one checkbox to remove any and all contingencies in paragraph I.2.C. of the CR. The buyers say they feel uncomfortable checking the “remove all contingencies” checkbox.

Multiple Choice Question: Can the buyers remove each contingency in paragraph I.2.A. of the CR, rather than all contingencies in paragraph I.2.C.? Pick the best answer:

A. Yes, because checking each box to remove each contingency is essentially the same thing as checking one box to remove all contingencies.
B. No, because the seller has requested the removal of all contingencies.
C. No, because the buyers are acting in bad faith.
D. Both B and C.  (more…)

Is There a Contract?

Fact Pattern: A buyer submits an offer on a C.A.R. Residential Purchase Agreement (RPA). The seller issues a Seller Counter Offer (SCO#1), which the buyer counters concerning the price only using a Buyer Counter Offer (BCO#1). The seller then signs the BCO#1 without checking the box “Subject to the Attached Counteroffer.” However, above the parties’ signatures on BCO#1, the seller inserts a new provision to incorporate an attached one-page As-Is Addendum. The seller initials right next to the new provision on BCO#1, and also signs at the bottom of the As-Is Addendum.

Multiple Choice Question: Is there a binding contract? Pick the best answer:

A. Yes, because the As-Is Addendum is just a disclosure anyway.
B. Yes, but the parties’ agreement excludes both the new provision on BCO#1 and the As-Is Addendum.
C. Yes, if the buyer initials next to the seller’s initials on BCO#1, signs BCO#1 again, signs the As-Is Addendum, and immediately returns both signed documents to the seller.
D. No, because the seller should have issued an SCO#2, rather than alter BCO#1.  (more…)