What Contract to use to make offers in Ca?

Question

Quick question and maybe some direction? So I’m a licensed  realtor in Ca and have used the CAR purchase agreement for making offers on the MLS but wanted to get some insite and suggestions for what contracts are being used to purchase non listed properties directly from a homeowner. My wife and I want to make offers on fix and flip properties and just not sure what type of contract to go with? This would be for properties in Ca. Thank you so much for any help!!!

Max Gradowitz · Answer

You can use any purchase agreement you want.  But, if you are a Realtor and pay for access to the CAR forms, you should be able to use those for your own off-market offers.  There are more advantages to this too - sellers, escrow companies, lenders, and everyone else involved are more familiar with the standard CAR form.

That being said, I've had plenty of people ask me to draft custom purchase agreements to use for making offers, so I know that occurs, especially with off-market wholesale transactions.

Aaron K. · Answer

The same contract should work for off market properties.

Sam Shueh · Answer

C.A.R. Form RPA-CA, Revised 4/10

PRDS

Tori Manuel · Answer

@Danny Cerecedes I paid about $400 for the real estate attorney services.

Danny Cerecedes · Answer

Thanks so much for the advice Aaron!

Danny Cerecedes · Answer

Thanks Tori for the advice. If you don’t mind me asking what does an attorney charge to tailor an addendum to my offers and would you recommend anyone specific....thank you so much!

Tori Manuel · Answer

Yes, I highly suggest running the CAR form with a real estate attorney. They will tailor an addendum specifically to your real estate investing goals (wholesaler, flipper, non-licensed vs. licensed)...a CAR contract you use with the addendum, which over-writes certain provisions of it.

I did this when I first started investing in California and helped me sleep better at night knowing I had my ass covered legally if anyone tried to get trigger happy with suing my LLC.

What Contract to use to make offers in Ca?

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