Santa Clarita Attorney Explains New California Residential Purchase Agreement

Buying or selling property in Santa Clarita? Make sure you understand the new 2022 California Residential Purchase Agreement.

If you’re paying attention to the real estate market, then you know the market is still hot in 2022. 

Despite some predictions otherwise, the current California real estate market is still booming, and it shows no sign of slowing down thanks to low supply and continuously high demand. 

But one thing is different from last year. And that’s the California Residential Purchase Agreement, an essential document included in the purchase of a home.

What’s A California Residential Purchase Agreement?

Created by the California Association of Realtors (CAR), the California Residential Purchase Agreement is an important, detailed form involved in the purchase of a home. In fact, CAR describes this document as the “cornerstone of every successful real estate transaction in California,” and it contains the essential terms for the formation of a real estate contract. Ultimately, it’s designed to address most issues involved in the purchase and sale of real property, so future disputes are prevented. 

According to CAR, this multi-functional document serves many purposes, as it’s: 

• an offer to purchase real property
• a completed contract, once it’s signed by the buyer and seller and communication of acceptance is received
• a receipt for the good faith earnest money deposit
• joint escrow instructions
• a mediation and arbitration agreement
• a confirmation of the agency relationships
• and an irrevocable assignment of compensation to brokers

How Has It Changed?

The California Residential Purchase Agreement changed, effective Dec. 14, 2021, in an effort to make it more easily understood by buyers and sellers. 

“The California Association of Realtors has put out a completely new contract,” Steffanie explained. “Instead of 10 pages, it’s now 16 pages. The first five pages are the actual contract, and the next 10 pages essentially define and explain all the terms laid out in the first 5 pages. While the goal was to make this document easier to understand, it’s still a very complex and confusing document, especially if it’s your first time filling it out.” 

While not too much has changed from a legal perspective, the order of information and terms used have changed significantly. This means you really have to know what you’re looking for to get a firm understanding, and it’s best to complete this document with the help of an expert. 
Learn more about the new California Residential Purchase Agreement from Founding Partner Steffanie Stelnick.

Why Does It Matter? 

In the State of California, if you sign a Residential Purchase Agreement, you’re charged with the knowledge of everything that’s inside the four corners of that contract. Whether or not you read all 16 pages, the court will hold you accountable to every word, once you sign it. 

“This document specifies exactly what the buyer and seller are required to do. As a buyer, you need to know what your responsibilities and obligations are, and so does a seller,” Steffanie explained. “So it’s very important to understand what you’re signing.”

What Should I Do Next? 

Your real estate agent or broker should go over your agreement with you in detail, so you understand how to fill it out. But a lawyer can help you understand all the legal ramifications of the contract you’re entering. 

Additionally, in the case that your agent doesn’t adequately review the agreement with you, a lawyer can help bridge that gap, answering questions about both the risks and benefits of your transaction. 

“If you’re considering buying or selling property, please reach out to us as early as possible, and we can help you navigate the California Residential Purchase Agreement properly from the very beginning,” Steffanie added. “We can answer all your questions. We’ll walk you through everything and ensure that you and your assets are protected. That’s what we’re here for, and that’s where our expertise can help.”

If you have questions about the new CAR Residential Purchase Agreement, please schedule a complimentary case evaluation, and we will thoroughly review your contract, as well as answer all your questions about the document, your transaction, escrow and more.

About The Law Offices of Steffanie Stelnick 

The Law Offices of Steffanie Stelnick is a full-service civil litigation law firm in California that focuses on real estate law, with cases in estate planning, probate, landlord and tenant disputes and contract disputes. Mrs. Steffanie Stelnick represents builders, small and large property management companies, investors, brokers and all types of real property owners. In 2020, she was recognized by the American Institute of Trial Lawyers as Litigator of the Year. Mrs. Stelnick believes all landlords and tenants should know their rights, and when it comes to representation, experience matters. The Law Offices of Steffanie Stelnick has handled thousands of real estate cases with a strong, aggressive approach that ensures all clients operate on an even playing field in a litigation environment. Founded in the Santa Clarita Valley, this premiere real estate law firm has offices throughout the state of California, including Encino, San Francisco and Sacramento.