I live in northern California and have a question for California real estate investors. Before flipping a property to another investor, you must have that property under contract. Must we use the 8 page California Residential Purchase Agreement to put the house under contract or can we use a shorter, modified purchase agreement?
First of all, are you working with a Realtor, or are you doing For Sale By Owner (FSBO)? If you are working with a Realtor, you are required to use a C.A.R. Purchase Agreement. CAR Forms are for Realtor use only. Meaning you must be a Realtor to access these forms. If not, it is a violation of the California Business and Professions Code Section 10177.
However, if you are selling the property yourself to an Investor, you can use any contract - short or long, because this is a transaction between two parties that are not Realtors.
If you have any more questions, feel free to contact me: [email protected] I am also located in Northern CA.
@Stephanie Brown, log on to:
Then move your cursor to "Forms" to download. And there may be a price.
Thank you both for your comments. I'm new to real estate investment. I am not a realtor and will be selling the property myself to another investor. I have a three page purchase contract right now but didn't know if I would get into trouble for using it. I will check out First Tuesday's website.
Thanks again. You've saved me a few grey hairs ;-)
Hey Stephanie, if you have never done this before, I would strongly urge you to consult a real estate attorney, because from some past dealings, it isn't just the sales agreement that is important, but all the disclaimers pertaining to abestos, earthquake zone, fire zone, landslide zone, visual inspection forms, smoke detectors etc etc, that shields you from liability and needs to be signed by both buyer and sellers. I am not sure if a FSBO requires it, but when I did an FSBO, the escrow company still had all parties sign these disclosure forms.
Thanks for the good advice. As a new house flipper, I can use all the help that I can get.
Thank you all!
Furthermore, be honest with the seller whom you are not the buyer, and you are going to sell the contract, and I heard through the grapevine that California will start coming down hard on false and misleading real estate contracts. Get a lawyer to draw up the contract.
Thanks for the news and the tip.
which one would you recommend if I am purchasing from fsbo all cash?
also, which one if a loan was needed(fha)?
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