House Purchase Contract
Paragraph 6: Additional Documents and Consultation Lets the buyer list extra conditions not in the standard contract, providing space for additional preferences or requirements using a multiple- choice form. Paragraph 7: Other Conditions Buyer can add extra conditions not in the standard contract in written form. Paragraph 8: Handling Fees Allocation Specifies who, buyer or seller, will cover certain closing costs. This includes costs related to environmental conditions, reporting fees, title insurance premiums, agency fees, land value taxes, or other government fees. Paragraph 9: Included and Excluded Items Lists accessories included with the house purchase. Details of what is part of the sale, such as carpets, water pipes, and heating systems. Items not typically included, like wall art or furniture, should be confirmed here. Paragraph 10: Construction Safety and Materials Covers the seller's disclosure to the buyer regarding potential hazards or dangerous materials in the house. It includes information on paint materials, disasters, and the buyer's right to cancel the contract. Paragraph 11: Handover Inspection Advises buyers to thoroughly inspect the property's current condition. Despite legal regulations, buyers are encouraged to request the seller's disclosure of any property defects.
Signing a house purchase contract is a crucial step in buying a home. This written agreement, signed and committed to, protects the interests of both the buyer and the seller. However, understanding the contract can be tricky for regular folks due to its use of professional and legal terms. Today, I'll break down the California home purchase contract for you, covering all the details! The latest version, updated in December 2018 (C.A.R. Form RPA-CA, Revised 12/18), is what we'll be discussing. Paragraph 1: Brokerage Firm This part outlines the deal between the buyer and the brokerage company. If you need more details, just ask. Paragraph 2: Broker Confirmation of both the buyer's and seller's brokers and their companies. It checks whether the brokers represent one party or both. Paragraph 3: Bid This section is like a summary, capturing essential details. It includes the buyer's name, the exact address of the property, the offered price, and when the buyer wants to "hand over the house."
Paragraph 4: Payment Details of how the buyer will pay, including
specifying the method for the "INITIAL DEPOSIT" and involving an "Escrow Holder" as a neutral third party to safeguard the deposit. Here, the buyer can note the need for a loan or the use of existing funds for the purchase. Paragraph 5: Sale of Buyer’s Own Home This applies when the buyer must sell their current home before buying this one.
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