There's no way to sugarcoat this topic... Be prepared for a lot of paperwork when you are ready to write an offer on a home for sale in San Diego. I've heard from many of my out-of-state clients that there is so much more paperwork here in California than they are accustomed to (compared to past home purchases in other states). The purchase contract, itself, is eight pages long. It will be accompanied by several multi-page disclosures and contract addendums.
Many wish that writing an offer was as simple as typing up a couple paragraphs and sending off an email, but it just isn't that easy these days. Even though the paperwork can be overwhelming even to those who have bought and sold several homes over the years, your real estate agent should be well-versed in all the documents (I go to great lengths to make sure that I'm an expert on the California Association of REALTORS® documents that my buyer-clients will see throughout the transaction, so that I am able to advise you rather than ask you to "sign here"). I encourage you to take your time interviewing exclusive buyer agents to find one who is an expert at helping you with the offer to purchase. I've found that my clients truly find value in me being able to make changes to the documents that work in their favor. When you are ready to write an offer to purchase a home or condo for sale here in San Diego, here is what will most likely be included with your offer paperwork:
(1) AD-2: Disclosure Regarding Real Estate Agency Relationship (two-page disclosure)
(2) RPA-CA: California Residential Purchase Agreement and Joint Escrow Instructions (eight-page agreement)
(3) SBSA: Statewide Buyer and Seller Advisory (ten-page disclosure)
(4) WPA: Wood-Destroying Pest Inspection and Allocation of Cost Addendum (one-page addendum)
(5) LAD: Local Area Disclosures (several-page disclosure from the San Diego Association of REALTORS®)
(6) MCA: Market Conditions Advisory (one-page disclosure)
(7) BIA-A: Buyer's Inspection Advisory (two-page disclosure)
(8) PAA-1: Purchase Agreement Addendum #1 (possible two-page addendum for terms that do not fit on the RPA-CA document)
(9) ADM-1: Addendum #1 (another possible one-page addendum with more terms that do not fit on the RPA-CA or PAA-1 documents)
If the home or condo you are attempting to purchase is part of a Home Owner's Association (HOA), we may also include an HOA Certification form. If the offer is for a bank-owned foreclosure or a short sale listing, there will be additional paperwork, and I will write about those in a future blog post.
Once the offer is accepted, there will be much more paperwork (also to be written about in a future blog post).
In summary, there is an intense amount of paperwork involved in residential real estate transactions these days (at least in San Diego). Take your time when you are hiring an exclusive buyer agent to represent you with your home purchase. Make sure you hire someone who has the proper training, expertise, and experience to truly help you, and not just show you properties and "sell you a home." As you know, my philosophy is to be your consultant throughout your purchase process. A true exclusive buyer agent is not a salesperson (that's the job of the seller's agent), rather he/she is your teammate to help you purchase the right property and represent your (the home buyer's) best interests throughout the entire purchase process. If you have questions about real estate paperwork for a San Diego home purchase, call me to schedule a free consultation at 858-437-2662.
Justin Gramm is the founder and principal broker of Globella Buyers Realty, your San Diego Exclusive Buyer Brokerage. He also writes this blog, "For San Diego Home Buyers."
Exclusive Buyer Agents do not list homes for sale and never represent sellers. They have no "inventory" to try to sell you. They can represent you in purchasing any home. They are specialists at representing buyers only on the buyers' side of the transaction. Exclusive Buyer Agents work to get buyers the best price and terms when they buy a home.
If you have excellent credit and plan to buy a home or condo in San Diego County within 90 days, contact Justin Gramm to hire an agent on your side of the transaction. Call Justin at (858) 437-2662 or E-mail.