For this discussion board, review the 10 page contract entitled: California Residential Purchase Agreement and Joint Escrow Instructions. Please Note: as of two months ago in Dec 2021, this Purchase Agreement is now 16 pages.

This contract serves as a binding purchase agreement for real property, instructions to the escrow company, it confirms agency relationships, it serves as evidence of an agreement to pay broker compensation and even as a deposit receipt to the buyer. Years ago we simply called this contract the deposit receipt because the buyer would present an initial deposit (earnest money) to indicate their intent on completing the agreement. Nowadays, most buyers send their initial deposit electronically directly to escrow and you the agent should always request this.

This is perhaps the most important contract in residential real estate, along with another 15 to 20 to complete an entire transaction. After reading this contract, please share your thoughts on the discussion board. Do you find the contract complex? Intimidating? Do you think you could fully explain and answer questions for your buyer? No need for alarm as once you receive your real estate license, your first employing office will (should) provide extensive training on these contracts and hopefully assign you to a mentor agent.