The California Association of Realtors Purchase Agreement: Everything You Need to Know
The California Association of Realtors Purchase Agreement (CAR Purchase Agreement) is the standard form used by real estate agents and home buyers in California. It outlines the terms and conditions of the sale and is a legally binding document once both parties sign it.
As a home buyer, it’s important to understand the CAR Purchase Agreement before signing it. Here are some key things to know:
1. It’s customizable
The CAR Purchase Agreement is a template that can be customized to meet the needs of each individual sale. This means that certain sections may be added or removed depending on the specifics of the transaction.
2. It covers the basics
The agreement covers the basics of the sale, including the purchase price, financing, contingencies, and closing date. It also outlines any personal property that will be included in the sale, such as appliances or fixtures.
3. It includes contingencies
Contingencies are conditions that must be met in order for the sale to go through. The CAR Purchase Agreement includes several standard contingencies, such as inspection contingencies, appraisal contingencies, and loan contingencies.
4. It’s legally binding
Once both parties sign the CAR Purchase Agreement, it becomes a legally binding document. This means that both parties are obligated to follow the terms and conditions outlined in the agreement.
5. It’s important to review it carefully
Before signing the CAR Purchase Agreement, it’s important to review it carefully and make sure you understand all of the terms and conditions. If you have any questions or concerns, don’t hesitate to ask your real estate agent or an attorney.
Overall, the California Association of Realtors Purchase Agreement is an important document that outlines the terms and conditions of a home sale in California. As a home buyer, it’s important to understand the agreement and review it carefully before signing it to ensure a smooth and successful transaction.