The California Residential Purchase Agreement is the standard contract used for nearly every home sale in the state. Published by the California Association of Realtors (C.A.R.) and most recently revised in July 2024, it sets the price, the financing terms, the deadlines, the disclosures, and the remedies if something falls apart. It is a proprietary C.A.R. form, so buyers and sellers almost always sign one that a licensed agent has prepared through C.A.R.’s ZipForms Plus platform.
If you are buying or selling without an agent, you can still use the RPA, but you will need to obtain it through an agent, an escrow company, or a real estate attorney who subscribes to ZipForms. There is no free government version.
Who and What the Contract Identifies
The top of the form captures the parties and the property. Small errors here create real problems at recording, so the details need to be right the first time.
- Buyer and seller names should match government-issued identification exactly. When a trust or LLC is on either side, both the entity name and the authorized signer’s name go on the form.
- The property is identified by street address and Assessor’s Parcel Number. The APN appears on the most recent property tax bill or on the county assessor’s website.
- The close of escrow date has no pre-printed default. You fill in either a calendar date or a number of days after acceptance. Most California residential deals close in 30 to 45 days; cash can move faster, and jumbo loans sometimes need longer.
Price, Financing, and Earnest Money
Paragraph 3 is where the offer proves itself. State the total purchase price in both numbers and words, then break it into the down payment, each loan you plan to use, and any additional financing. On a $750,000 home with 20 percent down, the form should show $150,000 in cash and $600,000 in loan proceeds. The figures need to match what your lender has actually committed to in your pre-approval letter and proof-of-funds statements.
Identify the loan type for each mortgage: conventional, FHA, VA, seller financing, or assumed financing. The checkbox has consequences beyond labeling. FHA-backed purchases require an amendatory clause letting the buyer cancel and recover the full deposit if the appraisal comes in below the purchase price. VA loans carry a mandatory escape clause with specific language protecting the veteran from being forced to close on an overvalued property.
The earnest money deposit runs 1 to 3 percent of the purchase price by California custom, sometimes higher in competitive markets. The RPA’s default requires the deposit within three business days of acceptance, delivered to the escrow holder by wire transfer. The form allows for an increased deposit later if the seller wants added security. Misrepresenting available funds or missing the deposit deadline puts the buyer in breach.
Contingency Deadlines You Need to Watch
Contingencies let the buyer walk away without losing the deposit if the property, the financing, or the insurance does not check out. The current RPA sets a default period for each one, measured from the date of acceptance. These can be shortened or lengthened by agreement, but the starting points are:
- Physical inspection (investigation of property): 17 days
- Appraisal: 17 days
- Loan: 17 days
- Insurance: 17 days
- Review of seller documents: 17 days after acceptance or 5 days after delivery, whichever is later
- Preliminary title report review: 17 days after acceptance or 5 days after delivery, whichever is later
The seller has 7 days after acceptance to deliver disclosure documents under the default timeline. If a contingency deadline passes without the buyer removing it in writing, the seller can issue a Notice to Buyer to Perform, giving the buyer at least 2 additional days to act. A buyer who still does not remove the contingency or cancel risks having the seller cancel on their behalf.
In heated markets, buyers sometimes waive or shorten contingencies to make an offer stand out. Waiving the appraisal contingency, for example, commits the buyer to covering any gap between the appraised value and the purchase price out of pocket.
Disclosures the Seller Must Deliver
California imposes some of the heaviest seller disclosure requirements in the country. The RPA tracks which disclosures have been ordered, delivered, and reviewed.
Transfer Disclosure Statement
California Civil Code Section 1102 requires sellers of most single-family homes to complete a Transfer Disclosure Statement in the format prescribed by Section 1102.6. The seller describes the condition of the roof, plumbing, electrical systems, appliances, and other structural and mechanical components, and discloses known defects, past repairs, neighborhood nuisances, and environmental hazards. A seller cannot waive this obligation, even in an as-is sale.
Seller Property Questionnaire
The Seller Property Questionnaire is a C.A.R. form, not a state-mandated document, that supplements the TDS with detailed questions about insurance claims, unpermitted work, boundary disputes, and homeowner association issues. It is standard practice in California transactions and most listing agents include it in the disclosure package.
Natural Hazard Disclosure
The Natural Hazard Disclosure report identifies whether the property sits in a flood zone, fire hazard area, earthquake fault zone, or other mapped risk area. Third-party companies prepare these reports; residential versions currently run roughly $55 to $110 depending on the provider. The RPA specifies which party pays.
Lead-Based Paint Disclosure
Federal law adds a disclosure for any home built before 1978. Under Section 1018 of the Residential Lead-Based Paint Hazard Reduction Act, the seller must disclose any known lead-based paint or hazards, provide available records and reports, and give the buyer a copy of the EPA pamphlet “Protect Your Family From Lead in Your Home.” Buyers get a 10-day window to conduct a lead paint inspection before the contract becomes binding on that issue.
Who Pays What at Closing
The RPA has fields to allocate specific transaction costs. California has strong regional customs, and your agent will know what is typical in your county, but every line is negotiable.
Owner’s title insurance generally runs 0.5 to 1 percent of the purchase price. In much of Southern California the seller customarily pays for the owner’s policy; in many Northern California counties the buyer does. Escrow fees follow a similar geographic split.
California counties impose a documentary transfer tax of $0.55 per $500 of the sale price, or $1.10 per $1,000. Cities within those counties can add their own tax at half the county rate. On a $750,000 home in an unincorporated area, the county transfer tax alone comes to $825. The seller customarily pays it, though the RPA lets the parties allocate it however they choose.
The Two Clauses You Have to Initial Separately
Liquidated Damages
The RPA contains an optional liquidated damages clause that both buyer and seller must separately initial for it to take effect. When activated, it caps the seller’s remedy if the buyer defaults: the seller keeps the earnest money deposit as their sole compensation instead of suing for actual damages. California Civil Code Section 1675 creates a presumption that the clause is valid as long as the retained amount does not exceed 3 percent of the purchase price. Above that threshold, the seller has the burden of proving the amount is reasonable.
Mediation and Arbitration
The RPA requires both parties to attempt mediation before filing a lawsuit or demanding arbitration over any dispute arising from the agreement. Skip mediation and you forfeit the right to recover attorney fees, even if you win the case. Mediation fees are split equally. The arbitration clause is separate and optional; both parties must initial it for disputes to go to binding arbitration instead of court. Small claims actions, unlawful detainer cases, and foreclosure proceedings are carved out from both processes.
Submitting the Offer and Getting to Acceptance
Once the buyer signs, the RPA goes to the listing agent for the seller’s review. Most offers move electronically through platforms like DocuSign, which timestamps every signature.
The offer expires by default three calendar days after the buyer signs, at 5:00 p.m. Buyers can write in a different date, shorter to pressure a decision or longer if the seller is traveling. If the seller does not respond before the deadline, the offer dies on its own terms and the buyer owes nothing.
The seller has three options: accept as written, reject, or counter. A counter uses a separate C.A.R. form, either the Seller Counter Offer for a single buyer or the Seller Multiple Counter Offer when negotiating with several buyers at once. The multiple counter offer does not bind the seller until the seller signs a final selection after the buyer has accepted the counter terms. Each counter modifies specific terms of the original RPA (price, closing date, contingency lengths, credits) while leaving the rest intact. The back-and-forth continues until both sides agree or someone walks away.
The contract becomes binding when the last party signs and that signed copy is delivered back to the other side. That moment, not the day someone first put pen to paper, is the official date of acceptance. Every deadline in the contract runs from it.
What Happens Once It’s Signed
The fully executed RPA goes to a neutral third-party escrow holder. The escrow officer opens a file, orders a title search, and prepares escrow instructions based on the terms of the contract. During escrow, the buyer’s lender orders an appraisal, the buyer schedules inspections and reviews disclosures, and the title company issues a preliminary title report. If the property is in a homeowner association, HOA documents are ordered and reviewed within the contingency window.
As each contingency deadline approaches, the buyer either removes the contingency in writing using C.A.R.’s contingency removal forms or cancels the transaction. Once all contingencies are removed, the lender finalizes loan documents, the buyer signs them, the loan funds, and the deed is recorded with the county. Ownership transfers on recording, and the escrow officer disburses funds to the seller, pays off existing liens, and sends closing statements to both parties.