Buyer Protections 

Overview

Once under contract, the seller in the California Residential Purchase Agreement (RPA) has seven days unless stated otherwise to provide disclosures to the buyer. In addition, the buyer has 17 days or as specified otherwise to complete all inspections and have the home appraised and by 21 days or specified otherwise the loan contingency is removed.

Sample disclosures from seller

• Natural Hazards Disclosure
• Preliminary Title Report
• HOA Documents (if applicable)
• Transfer Disclosure Statement / Seller Property Questionnaire
• Other as required by contract or local laws and regulations

It is important that these documents are thoroughly reviewed with your advisor to ensure there are no major issues. The seller has intimate knowledge about their home and there may be some things you want to find out quickly. Due to this, you will require certain disclosures in your offer. Obtaining these types of disclosures should always be a part of your offer, and time is of the essence.

Inspections You Should Require

There are four key inspections that the buyer should require:

• Appraisal – The appraisal is key for the lender to determine how much they will lend against the property, so if your purchase price is over the appraised value, you will either have to come up with the cash to make up the difference, renegotiate price with seller, or walk away.
• Home Inspection – The home inspection by a licensed professional is a discovery element for unknown defects or items in need of repair with the property that the buyer can request of the seller or negotiate a discount in the purchase price. A lack of an inspection could be very costly.
• Pest/Termite Inspection – The pest and termite inspection by a licensed professional will uncover any major issues with the property that could cause structural damage or thousands of dollars in repairs.
• Final walkthrough – You will want to revisit the property to ensure it is in the condition you have required in your offer, and to inspect that any required repairs have been performed. You should do this no sooner than five days before you intend to close. Make sure this right to do a final inspection is included in your offer to purchase the home

The above list is not inclusive as there may be other inspections or reports based on the property.