November 15th, 2021 at 11:33 am
C.A.R. plans to release its newly-revised Residential Purchase Agreement (RPA) during the week of December 13, 2021. The 2021 version is a major reorganization of the RPA, although many of the substantive provisions remain the same as before.
Here’s a quick summary of the upcoming changes:
- The new RPA will be 16 pages, instead of the current 10 pages.
- The first 3 pages of the new RPA are mostly “the Grid,” which sets forth the negotiable terms of the agreement, such as purchase price, close of escrow date, expiration of offer, and so on.
- The next 10 pages of the new RPA are the substantive provisions, with similar matters now grouped together, such as contingencies and disclosures.
- The last 3 pages of the new RPA are the pages for initials and signatures grouped together.
- Approximately 63 other C.A.R. forms referenced in the RPA will also have a new 12/21 revision date, such as the SCO, SMCO, RR, CR, and NBP. Some of these other forms will have major changes, but many of them will have minor changes.
- These forms are still subject to last-minute changes before their December 2021 release.
For more information including a draft copy of the 2021 RPA, visit C.A.R.’s December 2021 Forms Release webpage (password-protected for C.A.R. members only). C.A.R. also offers its members various legal webinars on the new RPA. They have a recorded one-hour 2021 RPA Overview, as well as a more extensive 7-hour RPA Spotlight Series.
-Thank you to Kathy King (Calabasas and Encino Manager) for suggesting this week’s legal tip.
Copyright© 2021 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 November 15, 2021. 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. Written by Stella Ling, Esq.
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