Paragraph 16, Final Verification of Condition (CAR form RPA-CA). This paragraph seems to get lost as far as most buyers are concerned. But it is very important to a buyer. The buyer wants to make certain that the property is in the same condition as of the date of acceptance of the purchase agreement. If the seller has agreed to make repairs at the request of the buyer, those repairs also need to be confirmed. This paragraph gives the buyer usually five days to make a final inspection of the property before the close of escrow. In paragraph 9, Condition of Property (CAR Form RPA-CA) of the purchase agreement, unless otherwise agreed, the property is being sold in its present physical (as-is) condition subject to a physical inspection by the buyer and any agreed to repairs by the seller. Paragraph 15 Repairs (CAR Form RPA-CA) states that any repairs by the seller will be completed prior to the final verification of condition. It also goes on the state that the agreed to repairs may be made by the seller or through others. But any repairs must comply with applicable law. In other words if the repairs require a permit, then a permit must be obtained. Repairs are also to be completed in a good, skillful manner. It can’t be sloppy. The seller also has to supply to the buyer receipts for repairs provided by others and if the seller makes the repairs then receipts for the costs must be provided. So if you are a buyer it just might be advisable that instead of the seller having responsibility for any repairs, you might have the seller issue a credit, to you, through escrow for agreed to repair costs. That way the buyer does not have to worry if the seller made the repairs or made the repairs in the correct way. The buyer can have those repairs completed after escrow closes and can have complete control to make sure they are completely correctly and that should give every buyer a little more peace of mind. It may seem easier to have the seller make those repairs, but you may be sorry you agreed to it.

The statement above is not intended as legal advice. Buyers and Sellers should always consult with real estate attorneys if they have questions about the contents a real estate contract.

California Real Estate Forms (PDF)