That stands for the California Residential Purchase Agreement and Joint Escrow Instructions that realtors use when helping home buyers write an offer to purchase a home.
So why am I bringing this up?
The RPA-CA is a comprehensive purchase agreement that protects both buyer and seller in the purchase and sale of a home. This agreement contains many contingency clauses that give the buyer and seller the opportunity to insure the home purchase is performed correctly and legally.
One of the contingency clauses refers to the home inspection. The home inspection allows the buyer the opportunity to hire a professional home inspector (at the buyer’s expense) to perform a detailed home inspection and provide a written analysis of the condition of the home to both the buyer, the seller, the buyer’s agent, the listing agent, and the escrow officer.
The home inspection allows the buyer to know exactly the condition of the home and, based on the terms of the purchase agreement, allows the buyer to make requests for repairs. That being said, the seller can agree to all or only some of the repair requests, or not agree to any repairs. The buyer and seller can negotiate these terms, or agree (Within the contingency time period) to not go through with the sale of the home.
Some things that buyers need to consider when conducting the home inspection:
Typically, every home will have some signs of at least cosmetic wear and tear. Sellers may opt not to respond to requests for cosmetic repairs. You as a buyer always have the right to request these repairs, however.
Pay particular attention to any safety issues that arise as a result of the home inspection. Fire hazards, electrical issues, and security concerns are items that you should especially focus on in making your request for repairs to the seller.
If the buyer signed an “as-is” addendum provided by the seller on an REO purchase, the buyer may ask for the repairs, but they should be prepared for either no response or a rejection. The liability for a credit or for completing the repairs is huge, as far as the REO Bank is concerned. Their attorneys have drafted this “As-is” addendum to protect the bank (seller) from further losses.
If you have questions about this or any other home purchase contingency, or have questions about home buying in general, feel free to contact me. I’ll be glad to answer all of your questions at no obligation to you.
Keller Williams VIP Properties
25124 Springfield Court Suite 100
Valencia CA 91355
Toll Free: 800-891-6415