Our expanded list of notes on the new RPA
As we are approaching the upcoming changes to the RPA, we want to make sure everyone is prepared. Here’s a short-hand list of our notes!
RPA Updates
Date Prepared: No legal secret - it is solely for reference
Trusts cannot hold title, so buyer is always a Trustee and then use RCSD
Confirmation of Acceptance is now when final accepting party SENDS the email with fully signed Counter or Offer. Doesn't matter when received party reads the email. It only matters when it is SENT.
Buyers have 8 contingencies - 8 ways to get out of the deal: Loan, Appraisal, Investigation, Review of Seller Documents, Prelim, HOA Docs, Review of Leased or Liened Items, Sale of Buyers Property
All Contingencies now default to 17 days (Loan is no longer 21 Days)
Time of Possession - now defaults to time of recordation
Install Smoke Alarms (1 per level and outside of bedrooms), CO Detectors (1 per level), Water Heater Bracing - must be done within 7 days of acceptance (current form is by COE)
If you check BOTH on who pays, it is assumed to be 50/50
No longer a separate probate or mobile home contract. Must attach either the Probate or Manufactured Home Addendums.
Seller is responsible for reinspection fees if repairs aren't completed correctly or on-time for lender required repairs.
Compensation not included on a listing agreement, in the MLS or another agreement between broker and buyer, are not required to be paid. So any fees listed on the RPA, aren't required to be paid.
Disclosure Updates/Information
RID is changing to DID
FHA & VA Buyers - FVAC states even if buyer removes appraisal contingency and it doesn't appraise, the buyers can still cancel and get their money back.
FHA & VA Buyers - lender required repairs is now outlined on RPA how long buyer has to present seller with list of repairs or that there are no lender required repairs (paragraph 5)
Tentant Occupied Purchase Addendum (TOPA) - new mandatory addendum if property has current tenants, even if they plan on vacating by COE.
If Contract gives seller 7 days to provide disclosures/documents and buyer agrees to release CR in 10 days, then buyer has agreed to give themselves less time for review. If seller misses their 7 day deadline, then it reverts to 5 days to review for the buyer
Private Transfer Fees - typically on houses built between 1990-2001. You can generally find these through the prelim. If there is one, you have to provide the buyer with a Notice of Private Transfer Fee.
Local Retrofitting Requirements can be determined by calling your local building and safety department
New mandatory Appraisal Advisory coming out in the new year that will be attached to the contract.
FVA - that form is going away, all requests for repairs will be done on the RR even if FHA or VA.
Just because seller accepts a FHA or VA offer, does not mean they are agreeing to or required to complete the required repairs.
If you removed your appraisal contingency and the ONLY reason you don't qualify for the loan is because of the appraisal, you cannot cancel due to loan.
NHD, TDS, SPQ, Lead Paint, Fire Hardening, big 5 mandatory disclosures - these all provide a 5 day review and right to cancel even if CR has already been removed. Starts when Buyer Agent receives them (not when Buyer receives them).
When is TDS considered fully complete - Skipped questions make the TDS incomplete. Listing Agent has to sign it and provide their AVID if that box is checked and the TDS is only complete once the AVID is also provided.
FLD is becoming the LPD
Fire Hardening Disclosure is mandatory and carries a 5 day right to cancel. Only required when TDS is required.
No local ordinances in SD or OC County requiring point of sale.
Big 5 must be signed and RETURNED to the seller within the 5 days of review or Day 17 OR the seller can cancel (after notice to perform)