California Residential Purchase and Sale Agreement
A California residential purchase and sale agreement is a contract between a buyer and a seller to purchase real estate at an agreed-upon sales price. The agreement must include all terms and contingencies related to the sale. Typically, the buyer is required to make an earnest money deposit at the time of purchase, which is held in a trust account until the closing or termination of the agreement.
When does a Purchase Agreement become Legally Binding?
The legal obligation of the parties to the contract is established upon two key events: the acknowledgment of the seller’s acceptance by the buyer, which is generally effected by means such as electronic mail or telephone communication, and the signing of the agreement by both parties. Only after these conditions are met does the purchase agreement become legally binding.
Lead-Based Paint Disclosure Form – Owners of housing units built before 1978 must inform of lead paint hazards.
Death – Must disclose whether a death has occurred on the property within the past three years, except deaths stemming from HIV.
Flood Hazard – Must disclose if the property is in a flood hazard area.
Megan’s Law Disclosure – Disclosure must be included in every residential contract in California. A disclosure copy can be accessed in PDF, MS Word, or ODT format.
Mold Disclosure – a legal requirement to provide tenants with a mold disclosure document attached to the agreement.
Ordnance Locations – In writing, a residential dwelling unit must inform the prospective buyers if they know any former federal or state ordnance locations in the area.
Methamphetamine or Fentanyl Contamination Disclosure – Must provide written notice to all future buyers if the property has been found contaminated or is under remediation. The landlord must also give the potential tenant with a copy of the related order.