What Contract to use to make offers in Ca?

13 Replies

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!!!

The same contract should work for off market properties.

I typically use the CAR. I have a couple that I’ve built but most sellers feel most comfortable with what is institutional and doesn’t look homemade. Not to say the homemade ones can’t be used but you can typically put whatever is needed into the CAR that you can in your own. I guess the main benefit of using your own is you can cut it down to a page or two.

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.

Thanks so much guys! I was just a bit confused since the CAR contract has all the commissions and broker information and what I would be using it for is to purchase straight from the seller with no commissions being paid out or brokerages being used. Hopefully that makes sense?

You could leave the agent and broker information blank, because you are not using it, you may have to disclose that you are a licensed agent but the rest you would just leave blank as it does not apply.

Lloyd segal is a great contact just to run this by him.

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 *** covered legally if anyone tried to get trigger happy with suing my LLC.

Originally posted by @Jo-Ann Lapin :

Lloyd segal is a great contact just to run this by him. 

Thanks Jo-Ann I was actually gonna attend one of Lloyd’s workshops. Would you recommend that? 

Originally posted by @Tori Manuel :

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 *** covered legally if anyone tried to get trigger happy with suing my LLC.

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!

Originally posted by @Aaron Klatt :

You could leave the agent and broker information blank, because you are not using it, you may have to disclose that you are a licensed agent but the rest you would just leave blank as it does not apply.

Thanks so much for the advice Aaron!

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

PRDS

Thank you Sam!

Originally posted by @Sam Shueh :

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

PRDS

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