17 Important New Provisions of the CA Residential Purchase Agreement


Professional real estate representatives in California must study, be prepared to discuss with their buyers and sellers, and utilize the CA Residential Purchase Agreement form.

This new RPA-CA was revised and published by the CALIFORNIA ASSOCIATION OF REALTORS®  on November 25, 2014.

California real estate

This contract form has grown in size and scope to include statutory clauses and incorporate evolving needs of real estate professionals.

Residential purchase agreementThe RPA-CA is a most-trusted contract form used by Realtors and professional real estate representatives in California.

Here are 17 of the most important new provisions that real estate professionals and their clients will consider about the new RPA-CA:

1.   This form now takes a unified approach to inspections and repairs.  Wood-destroying pests and organisms inspection, and all other inspections, are treated equally (see paragraph 7.A).

2.   The time to remove the buyer loan contingency has been extended from 17 to 21 days by default on this form (However, this amount time is negotiable between the parties). Coinciding with this change is removal of an optional paragraph allowing the loan contingency to remain until the loan is funded.

3.   A new paragraph has been added to explicitly address the issue of items included in the sale that may not be owned by the seller or that may, by virtue of their presence, cause a lien to be recorded against the property (such as installed solar panels and equipment).

4.   The paragraph concerning what is included in the sale now specifically mentions what is being call “home automation systems”.  These devices allow a home owners to remotely control certain home functions, such as turning on the water, lights, or appliances, or setting the alarm, and adjusting the thermostat on the HVAC system (see paragraph 7.B.8).   Items excluded from the sale (see paragraph 7.B.8.C.).

5.   The default method for the buyer’s obligation to bring a deposit directly to escrow has been changed to an electronic deposit rather than a check (see paragraph 3.A.(1).

6.   No longer will the removal of the loan contingency automatically be deemed a removal of the appraisal contingency (see paragraph 3.J.2).  These two separate important terms are to be independent.  And if the appraisal contingency is removed and the buyer’s chosen lender refuses to loan because the appraisal is too low, the buyer cannot rely on the lender’s appraisal as a reason to cancel the contract without penalty.

7.   Who pays for government requirements and retrofit (see paragraph 7.B)

8.   Agent Visual Inspection disclosure impact (see paragraph 10.2)

9.   Buyer’s right of inspection (see paragraph 12.A.)

10.  Preliminary title report to buyer (see paragraph 13.A).

11.  Time periods and removal of contingencies (see paragraph 14.A. and B)

12.  Effect of Cancellation of Contract (see paragraph 14.G.)

13.  Repairs by seller (see paragraph 16)

14.  Scope of duty of brokers (see paragraph 18.B.)

15.  Representative capacity for signing of documents (see paragraph 19)

16.  Assignment of contract rights (see paragraph 26).

17.  Mediation and arbitration provisions preserved (see paragraph 22.C.)

By Harrison K. Long.  Professional REALTOR® agent and broker representation for property owners, home sellers, private trust estate representatives, estate administrators, executors and heirs, probate and trust attorneys, estate planners, income tax professionals, public guardians, fiduciaries, investor group managers, bankers, and individuals, with listing and sale of properties at Orange County, CA.  Contact us at 949-854-7747 with your questions about market information  and home prices and values at Orange County CA cities and areas.  Thank you. 

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17 Important New Provisions of the CA Residential Purchase Agreement

About Harrison K. Long

Professional real estate representative, Realtor agent, GRI, Broker associate, Evergreen Realty HomeSmart, Orange County, California - CALBRE #01410855 - Serving property owners, estate trustees, executors and administrators, fiduciaries, bankers, investor group managers, with listing and sale of properties - helping people with their best decisions about homes and real estate - Orange County Association of REALTORs, member and prior service on its board of directors for 2012; California Association of Realtors, member and now serving on its board of directors - Also an attorney member of the California State Bar Association #69137 - Contact by telephone or text at 949-701-2515
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