In California, the form we use to write an offer on a piece of property is called a Residential Purchase Agreement (RPA). On it, we detail all of the important information such as buyer’s name(s), offer price, amount of deposit, type of financing (unless paying all cash), downpayment amount, loan amount, etc. We also specify things like who’s to pay for things like home inspections, termite report and repairs, home warranty, etc. We’ll list items that are to be included in the sale (i.e. security system, oven, perhaps the washer and dryer, etc.) along with items that are excluded from the sale (maybe a shed in the backyard, or a custom chandelier in the dining room). Excluded items are usually pre-designated in the MLS listing. We’ll fill in the requested timeframe of the sale, along with any contingencies that may apply (for example, if you need to sell your current home prior to completing the purchase of the new one).

Contingencies are easy to understand. They can be thought of as “If THIS thing happens, then THAT thing applies”. Here’s a simple example in everyday life. You agree to pay a babysitter $20.00 to watch your child from 7:00-11:00pm. But, if she’s an hour and a half late (thus breaching the original agreement) then the $20 dollars may no longer apply. Same thing with real estate purchases.

Below, you’ll find the “standard” contingencies for timeframes that are pre-printed in the purchase agreement. These can change according to the final terms negotiated by the parties, but they’ll give you some idea as to what’s often expected. Contingencies give the parties certain options (i.e. cancelling) if the contingencies aren’t met. If you have questions about any of these, call…and we’ll discuss them in greater detail.