Residential Purchase Agreement (RPA) Revision Study Group Seeks Your Input

At the January 2002 C.A.R. Director's Meetings, the Standard Forms Advisory Committee was directed to create a study group to look at revising the C.A.R. Residential Purchase Agreement (RPA) and possibly merging it with the Area Edition Residential Purchase Agreement (AEPA), widely used in many parts of Northern California.  Shortly thereafter a geographically and professionally diverse study group was created and began actively working on the form.

The Study Group has carefully discussed and examined many industry changes that have created complexities in today's real estate transaction.  Since you are also impacted by these industry changes, the Study Group recognizes the value of your input.  Therefore, in an expanded effort to solicit member input into the revision process, the Study Group and C.A.R. now seek your comments and suggestions on the Residential Purchase Agreement revision in preparation for its next meeting on July 11-12.  The Study Group has not yet made its final recommendations on the revision to C.A.R. and will be carefully considering all comments.  To assist you in making comments, several summaries, a comparison of the forms and a current draft of the form are available on C.A.R. online here.

Please send your comments by July 10 for consideration at the next Study Group meeting.  Comments received thereafter will continue to be considered by the Study Group until the Study Group forwards all comments along with its final recommendation to C.A.R. Leadership later this summer.  The anticipated release date of the revised form is October 2002.  Please continue to visit the above website address for further information about the progress of the revision.

In addition to your general comments and suggestions, the Study Group and C.A.R. would appreciate your comments and suggestions on the following key issues:

·     The removal of pre-allocation of cost for pest control repairs, paragraph 4A
·     Modification to the method for removal of contingencies (elimination of the passive method and only utilizing   a modified version of the active method), paragraph 14
·     Fixed time periods for reports, inspections and contingencies, paragraph 14
·     Buyer negotiations and cancellation right open for 17 days, unless modified, paragraph 14
·     Seller Notice to Perform, paragraphs 2M, 14C and 26J
·     Cooperating broker compensation, broker box, page 8

Comments and suggestions regarding the revision may be made by e-mail to: carforms@car.org or submitted by fax to (213) 739-7240.  Additionally, questions may be directed to Neil Kalin, assistant general counsel, at (213) 739-8341.