April 2016 Betty T. Yee California State Controller 6 Upon completion of the agreement sale, the tax collector must file reports with the State Controller, the county assessor, and the county auditor to report the sale and to address the transfer of title and the distribution of sale proceeds.

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When you’ve finally decided to make an offer on a house, you must present a formal offer to purchase the real estate in a document. While the language in the document may vary by state, the key issues concerning real estate sales are always included. California’s real estate form makes a good example.

Tip

You can use a generic purchase agreement or one designated by your state's real estate board. Be sure the generic form includes all the pertinent information needed to secure the transaction by consulting with a real estate attorney, or use a real estate agent and the state-mandated forms.

The California Offer Form

In California, the offer to buy real estate form is known as the residential purchase agreement. Filling out the form is fairly straightforward, and your real estate agent will fill it out with your assistance. The formal name is California Association of Realtors Residential Purchase Agreement, and your agent has taken courses in the various aspects of the form so that clients are protected.

Agreement Information

Include the date the form was prepared on the document. Fill out the name of the buyer(s), the address of the subject property and the assessor’s parcel number for the dwelling. The purchase price is presented both numerically and spelled out. The agreement refers to the buyer and seller as “parties,” a term which does not include the real estate broker. Both parties must acknowledge they have received the “Disclosure Regarding Real Estate Agency Relationships” and the “Possible Representation of More Than One Buyer and Seller” forms. You must confirm the listing and selling agency on the agreement. The buyer and seller initial each page of the document confirming the information therein.

Financing Information

Financing information regarding the proposed purchase is necessary, including the initial deposit amount, the first loan amount and its type and interest rate. If a second loan is involved, include that information as well. You must include the amount of the down payment held in escrow, along with total purchase price. In an expensive area such as San Francisco, the amounts are higher than elsewhere in the state, and it must be spelled out that the purchase is contingent on the buyer getting financing and that the property appraises for the loan amount.

Adding Buyer Contingencies

The agreement includes other possible buyer contingencies, such as the buyer’s need to sell their current home prior to purchase. Fill out this section of the form as appropriate and attach the applicable addenda to the form. Your real estate agent will let you know which documents are necessary for this purpose.

Delineate Cost Allocations

The agreement also spells out who will pay for what costs, such as inspections, reports and certificates. For example, the seller usually agrees to pay for a termite inspection. Who pays for any state and federally mandated requirements is also spelled out in the agreement. These include transfer taxes.

Review Inclusions and Exclusions

The form lists any items included and excluded from the sale, so that each party knows what stays and what goes. If there are questions about an exclusion, such as a lighting fixture the buyer wants to remain on the property, the parties and their real estate agents must discuss it beforehand.

Set Closing and Possession Dates

The form includes when the closing will occur and when the buyer can take possession of the property.

Other Items

Real estate offer forms do tend to include a lot of boilerplate material, but that doesn’t mean it’s not critical for both parties to read the agreement carefully and understand it. Other items on the form include remedies for a breach of contract, how disputes are resolved, how brokers are compensated and escrow instructions. If you have any questions, your real estate agent should answer them, but if you are not satisfied with the answer, it’s wise to contact a real estate attorney.

About the Author

A graduate of New York University, Jane Meggitt's work has appeared in dozens of publications, including PocketSense, Zack's, Financial Advisor, nj.com, LegalZoom and The Nest.

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Include the date the form was prepared on the document. Fill out the name of the buyer(s), the address of the subject property and the assessor’s parcel number for the dwelling. The purchase price is presented both numerically and spelled out. The agreement refers to the buyer and seller as “parties,” a term which does not include the real estate broker. Both parties must acknowledge they have received the “Disclosure Regarding Real Estate Agency Relationships” and the “Possible Representation of More Than One Buyer and Seller” forms. You must confirm the listing and selling agency on the agreement.

The buyer and seller initial each page of the document confirming the information therein. Financing information regarding the proposed purchase is necessary, including the initial deposit amount, the first loan amount and its type and interest rate. If a second loan is involved, include that information as well. You must include the amount of the down payment held in escrow, along with total purchase price. In an expensive area such as San Francisco, the amounts are higher than elsewhere in the state, and it must be spelled out that the purchase is contingent on the buyer getting financing and that the property appraises for the loan amount. Adding Buyer Contingencies.