In addition to the purchase price, an important set of points to consider on the RPA is of course the distribution of costs (page 2). It is customary for the seller to pay all city, county or HOA transfer fees. report on natural hazards; and termite inspection. Typically, the buyer and seller share trust and title costs. For all other inspection costs, the buyer is usually at the expense. Other local treatments to destroy termites exist, but do not guarantee the complete eradication of the house. These methods are still quite invasive and include drilling and the use of toxic pesticides, hot, cold, microwave energy or electricity. However, this process can take some time, usually well beyond the typical due diligence period, which is included in most sales contracts. Therefore, ordering a new SSC inspection is the most prudent when there is a delay. 4.
A section relating to leased or pledged items and systems is added to the section detailing the items that are included and excluded from sale. This need has been mainly due to the increasing presence of solar installations with a long-term lease agreement. The buyer`s agreement and the ability to accept the lease are actually a purchase emergency. Annual controls/inspections are certainly a good thing. However, each inspection is limited to what is visible and accessible and can sometimes create a „false sense of security“ in the termite world. 5. A large „Scope of Duty“ section has been added to the sales contract. This has nothing to do with the contractual conditions between the buyer and the seller. This is a section of the CYA to protect brokers.
It describes the many things that brokers are not responsible for and do not have to do. The entire section was drawn from an existing consultation on buyers and sellers, which unfortunately is not always used by agents. 6. An important change, noticed in particular by southern California agents, is the removal of the termite report from the list of inspections whose costs are attributed by negotiation to either the buyer or the seller. In addition, a widespread endorsement (EPA) – which indicates who will pay for termite repairs – is no longer mentioned in the treaty. In addition to lenders` and legal requirements, home buyers can always include a termite inspection in their sales contract. If the seller refuses to cover a termite inspection, a prudent buyer will pay for their own termite inspection of the property along with a periodic home inspection. 1.
The Financing section has been accompanied by a paragraph entitled Lender`s Limits for Loans to the Buyer. It states that „any credit to the Buyer, from any source, for closing or other costs agreed upon by the parties („Contractual Credit“) is disclosed to buyer`s lender. If the total credit authorized by Buyer`s lender („Lender`s Authorized Loan“) is less than the Contractual Credit, (i) the Contractual Credit is reduced to the Lender`s Authorized Credit, and (ii) in the absence of a separate written agreement between the parties, the Purchase Price is not automatically adjusted to offset the difference between the Contractual Credit and the Lender`s Authorized Loan. „I don`t expect someone to close a deal without getting a termite inspection. Entering into a transaction without termite control would create potential liability for the agent. You can order less work and more credits, but that wouldn`t be the end of the world. If the termite company is good at what it does, the buyer will use them in the future. A broker wouldn`t do their job by not advising their clients to get a quality termite inspection. Market conditions are currently creating a free termite inspection environment and termite companies are striving to reduce prices rather than develop quality services. For the first time since 2010, in October 2014, the California Association of Realtors is spending a complete transformation of the Residential Purchase Agreement (RPA) standard, the standard residential purchase agreement used in the vast majority of California home sales. .