The Basics of Real Estate Purchase Contracts in California

Whether on the field of the Dodger’s baseball diamond or at the closing table, the success or failure of sports and real estate transactions rely on the core value of community, where each and every player has their responsibilities to the team. These similarities make up some of the basics of the teamwork required on a California real estate purchase contract or C.A.R. RPA. When you understand that the underlying principles of teamwork, strategic planning, practice, and rule understanding hold true for both baseball and real estate, you have a better grasp of what it takes for success in either arena.

So what is a real estate purchase contract? In California, the most commonly used purchase contract is the California Association of Realtor’s Residential Purchase Agreement (C.A.R. RPA). The RPA is a legally binding purchase contract between the buyer and seller of a home. Most contracts require the buyer to put down some sort of earnest money deposit that is held in an escrow account until the deal is closed or terminated, at which time it is either released to the seller or returned to the buyer. The RPA includes contingencies, which are conditions that must be met before the sale can go through. Some of the contingencies the buyer may require are a loan or financing contingency, appraisal contingency, home inspection or due diligence contingency, and the seller’s seller’s disclosure statement.

The Basics of Teamwork

In both baseball and real estate, everyone is on the same team. You might have different roles, like in baseball where some players are pitchers, some are catcher, and some outfielders, but you all want the same outcome: a victory. With real estate, if you are the buyer, you want the best deal for you and your family, and if you are the seller, you want the maximum profit from your sale. The key here is that you all work together to achieve the outcome.

Strategic Planning – The “Game Plan”

An essential part of the real estate purchase contract process is strategic planning. After the deal is on the table, all parties sit down and plan out how each party will contribute to the game plan. This means knowing what the buyer’s ideal offer is, what the seller’s ideal counter-offer is, or what the third party lender will require for loan approval in order for the sale to go through. All offers and counter-offers must be in writing so that when it comes time to close the deal, there is no mistaking what was agreed to, unlike a baseball game where each play is second nature and memorized.

Hiring a Coach

This is where an experienced California real estate agent or real estate attorney come into play. If you play baseball, your coach is likely your team’s manager. So your real estate agent or attorney is your coach. The coach guides the team through the entire process of the sale or purchase and should be a sounding board for any problems you may face. He or she with constantly assess and re-evaluate the best strategy for achieving your ultimate goal, just as a baseball manager/coach would.

Teamwork in Action

In baseball, each player knows when to run, stay back, send the ball to first base, slide into home, and knock a pop fly out of the air. In real estate, you can use this concept during negotiations. Everyone involved knows what to do: you write an offer, the seller accepts your counter-offer and contingencies are put in place, an inspection is done on the property, and then the deal is closed. Win or lose, you go home and re-evaluate your next game to improve your performance and your team’s chances of winning.

Understanding the Rules

Knowing the rules whether on a baseball field or in a ballpark, gives both teams a basic understanding of how to play the game and win a championship. So it is with real estate. The rules of the game are found in the RPA, which outlines rules regarding down payments, contingencies, buyer’s rights, sellers and their disclosure’s, and so on. Understanding the rules of the game gives everyone a chance to win. If you don’t have a firm grasp on the rules, bring in an arbitrator, or in this case, a real estate attorney or agent. A qualified professional can guide you through the rules of the game so that you can be truly satisfied with your purchase, or happy with the sale of your home.

Practice Games Are Worth It

Very few teams go out and win a game off the bat. In a baseball example, most teams run practicing plays over and over again until they become second nature. So it is with real estate. Think about it. Between the time you write an offer and close the deal, you are likely to experience several inspections, appraisals, repairs, loan processes, and so forth, all of which can be time consuming and taxing on your patience. The key is practicing these plays beforehand so that you know what to expect and can implement a plan to deal with obstacles. Create a checklist of everything that must be completed so that once you have bought the home you can relax and enjoy the victory.

Sportsmanship and Fair Play

In order to have fun, you must be good sports. Not every game will go in your favor, and not every deal will go through in your favor. Lose some, win some and keep facing forward and moving forward despite what you face. Agents and attorneys can help get deals done, but they are not miracles workers. When both parties are willing to cooperate – whether playing baseball or navigating comprehensive real estate purchase contracts – you can both win. Plus, you always have the next game to look forward to.

Reviewing the Game Plan

Once the game is done, you sit back and review how you did. What went right? What went wrong? What do you need to work on for next time? The same goes with real estate. Once the deal is done, you review what elements worked for you and what didn’t and adjust for the next deal, whether that be for a purchase or a sale.

It’s in the Team Spirit

In order to win games, there must be a level of commitment by both the players and the fans. So it is with real estate. There has to be a level of commitment between the buyer and seller and their agents (or attorneys) to the process. This means working together, playing fair, and helping one another win in order to win both victories on the field, and in real estate purchases. Reach out to your local organizations to find out how you can become a fan for your local baseball team, or how you can get involved in the world of Real Estate in California. With the spirit of teamwork and good sportsmanship, everyone involved can win.

The basics of understanding how a real estate purchase contract works in California are discussed in detail at: the basics of real estate purchase agreements in California. A real estate purchase contract in California is commonly referred to as a C.A.R. RPA. Understanding how to navigate a real estate purchase contract in California is a must for real estate agents and attorneys. A real estate purchase contract California is a legally binding contract between buyer and seller, and is used most often using the California Association of Realtor’s RPAC (Residential Purchase Agreement). Here is an overview of a real estate purchase contract California.