South Lake Tahoe Learns the New California Purchase Contract

Like it or not, the “old dogs” are learning some new tricks.  Beginning April 28th, the California Association of Realtors will be releasing the newest form of their Residential Purchase agreement.  This will be the first major revision since 2002.  This morning, Gov Hutchinson, Assistant general Counsel and Staff Vice President of the California Association of Realtors, presented a class this morning, April 2nd in South Lake Tahoe through the South Tahoe Association of Realtors.  Every page of the eight page contract reflected changes and each page was covered, practically line by line.  In attendance were approximately 120 Realtors from the surrounding area.  Following the class, many stayed to take a test required to earn continuing education credits.

Significant among the changes were clarifications to timelines.  No longer can a deadline fall on a weekend or a legal holiday.  While these days can be counted within a timeline, the deadline must be be extended beyond the weekend or legal holiday.  For example, if the 17th day of an inspection contingency falls on a Sunday and the following Monday is a holiday as well, the deadline then becomes Tuesday.  Another major change to the contract makes it clear that a deposit check can be electronically transferred into escrow without having to go through the hands of the agent.  Further changes included: the notice to perform, FHA and VA loans, financing, appraisal contingencies, pest inspections, home warranties and contingencies.  There was even language included that addresses whether or not brackets holding up a flat screen tv is considered a fixture or personal property (definitely a sign of the times.)

What do these changes mean to the consumer?  Whether a buyer or seller, the greater the clarification in contract terms, the better the protection and risk management.  More than ever, a local, knowledgeable Realtor is a valuable asset to the real estate transaction.  The next time you find yourself interviewing Realtors, ask them about their continuing education and what they are doing to stay one step ahead of the market trends.  You’re going to be pleasantly surprised.