Addendum to California Residential Purchase Agreement

If you are looking to buy or sell a home in California, you`ll be asked to sign a California Residential Purchase Agreement (RPA). This agreement is a legally binding contract that outlines the terms and conditions of the sale. However, there are times when an addendum may be necessary to ensure that the transaction goes smoothly.

An addendum to a California Residential Purchase Agreement is a legal document that modifies or adds to the terms of the original agreement. It can be used to address issues that may arise during the sale process that were not covered by the original agreement. For example, an addendum may be used to address issues such as repairs, closing dates, or contingencies.

There are several types of addenda that may be added to a California Residential Purchase Agreement:

1. Inspection Contingency Addendum

An inspection contingency addendum is commonly used when the buyer wants to ensure that the property is in good condition before completing the sale. This addendum may require the seller to complete necessary repairs before the sale is final or give the buyer the option to back out of the sale if certain issues are found during the inspection.

2. Appraisal Contingency Addendum

An appraisal contingency addendum is used when the buyer is obtaining financing for the purchase and the lender requires an appraisal of the property. This addendum may provide the buyer with the right to cancel the sale if the property does not appraise for the agreed-upon sale price.

3. Homeowner Association Addendum

A homeowner association addendum is used when the property is located in a community that has an HOA. This addendum may outline the HOA rules and regulations, the fees associated with the HOA, and any special assessments that may be required.

4. Buyer`s Sale of Property Addendum

A buyer`s sale of property addendum is used when the buyer needs to sell their current property in order to purchase the new property. This addendum may include a contingency that the sale of the buyer`s property must be completed before the purchase of the new property.

5. Contingency Removal Addendum

A contingency removal addendum is used when all of the contingencies outlined in the original RPA have been met. This addendum specifies that the contingencies have been removed from the contract, making it a final agreement.

In conclusion, an addendum to a California Residential Purchase Agreement is an important legal document that can make or break a sale. It is important to have a knowledgeable and experienced real estate professional help you navigate the complexities of an addendum if one is necessary. By understanding the different types of addenda available and their purpose, you will be better equipped to handle any issues that may arise during the sale process.