OFFER TO PURCHASE REAL PROPERTY

Heading
Property address, including county: ________________________________________________
Date: ________________
_______________________________________________________ (Buyer) makes this offer to _______________________________________________________(Seller), to purchase the property described above, for the sum of ___________________ dollars ($_____). Buyer includes a deposit, in the amount of ______________ dollars ($______) evidenced by [choose one: cash/cashier's check/personal check/promissory note/other], payable to ______________ to be held uncashed until the acceptance of this offer, and to be increased to 3% of the purchase amount no later than ______ days after this offer is accepted. If this offer is accepted, the deposit shall be delivered to a mutually agreed escrow holder and applied toward the down payment.
1. Financial Terms
This offer is contingent upon Buyer securing financing as specified in items D, E, F, and G, below, within ___ days from acceptance of this offer.
$__________	A. DEPOSIT to be applied toward the down payment.
$__________	B. DEPOSIT INCREASE to be applied toward the down payment by ______ (date).
$__________	C. DOWN PAYMENT balance, in cash, to be paid into escrow on or before the close of escrow.
$__________	D. FIRST LOAN—NEW LOAN. Buyer shall obtain a new loan, amortized over not fewer than ___ years. Buyer's financing shall be: 
	[  ] Conventional _____________________ [name of lender, if known]
	[  ] Private ________________________ [name of lender, if known]
	[  ] Government (specify): [  ] VA [  ] FHA [  ] Cal-Vet [  ] CHFA
	[  ] Other: __________________________________________________
Buyer's mortgage shall be [choose one: at a maximum fixed rate of ___%/ an adjustable rate loan with a maximum beginning rate of ___%], with the life-of-the-loan cap not to exceed ___ percentage points and the periodic cap not to be adjusted more frequently than ____________. Maximum monthly loan payment including principal, interest, and, if applicable, private mortgage insurance (PMI), during the first year of the loan agreement, shall be $_____. Buyer shall pay a loan origination fee (points) of not more than ____% of the loan amount and application and appraisal fees of not more than $______.
$__________	E. FIRST LOAN—EXISTING LOAN. Buyer shall [choose one: assume/buy] subject to an existing loan under the same terms and conditions that Seller has with ________________, the present lender. The approximate remaining balance is $________, at the current rate of interest of _____% on a ______ [choose one: fixed/adjustable rate] loan, or a remaining term of approximately ______ years, secured by a First Deed of Trust.
$__________	F. SECOND LOAN—NEW LOAN. Buyer shall obtain a new loan, amortized over not fewer than ____ years. Buyer's financing shall be: 
[  ] Conventional ______________________ [name of lender, if known]
[  ] Private _______________________ [name of lender, if known]
[  ] Government (specify): [  ] VA [  ] FHA [  ] Cal-Vet [  ] CHFA
[  ] Other: ________________________
Buyer's mortgage shall be [choose one: at a maximum fixed rate of ______ %/an adjustable rate loan with a maximum beginning rate of _____ %], with the life-of-the-loan cap not to exceed ____ percentage points and the periodic cap not to be adjusted more frequently than _________. Maximum monthly loan payment including principal, interest and, if applicable, private mortgage insurance (PMI), during the first year of the loan agreement, shall be $_______. Buyer shall pay a loan origination fee (points) of not more than _______% of the loan amount and application and appraisal fees of not more than $________.
$__________	G. SECOND LOAN—EXISTING LOAN. Buyer shall [choose one: 
assume/buy] subject to an existing loan under the same terms and conditions that Seller has with __________________, the present lender. The approximate remaining balance is $________, at the current rate of interest of _______% on [choose one: a fixed/an adjustable rate] loan, for a remaining term of approximately _______ years, secured by a Second Deed of Trust.
$__________	H. TOTAL PURCHASE PRICE, EXCLUDING EXPENSES OF SALE AND CLOSING COSTS.

Buyer shall submit complete loan application and financial statement to lender within five days after acceptance. If Buyer, after making a good-faith effort, does not secure financing by the time specified, this contract shall become void, and all deposits shall be returned to Buyer.

In the event of FHA or VA financing, Buyer shall not be obligated to complete the purchase, nor shall Buyer forfeit the deposit, if the offer price exceeds the property's FHA or VA appraised value. Buyer shall, however, have the option of proceeding with the purchase from any above-named lender or a different lender without regard to the appraised value.

2. Escrow
Buyer and Seller shall deliver signed escrow instructions to _____________________, escrow agent located at _______________, within ___ days of acceptance of this offer. Escrow shall close [choose one: within ___ days of acceptance of this offer/on _______(date)]. A deed shall be recorded in favor of Buyer at the close of escrow.

3. Prepayment Penalty and Assumption Fee
Seller shall pay any prepayment penalty or other fees imposed by any existing lender who is paid off during escrow. Buyer shall pay any prepayment penalty, assumption fee, or other fee that becomes due after the close of escrow on any loans assumed from Seller.

4. Expenses of Sale
Expenses of sale, settlement costs, and closing costs, shall be paid for as follows:
			Share
	Buyer	Seller	Equally	
A.	[  ]	[  ]	[  ]	Escrow fees
B. 	[  ]	[  ]	[  ]	Title search
C. 	[  ]	[  ]	[  ]	Title insurance for buyer/owner
D. 	[  ]	[  ]	[  ]	Title insurance for buyer's lender
E. 	[  ]	[  ]	[  ]	Deed preparation fee
F. 	[  ]	[  ]	[  ]	Notary fee
G. 	[  ]	[  ]	[  ]	Recording fee
H. 	[  ]	[  ]	[  ]	Attorney's fee (if attorney hired to clarify title)
I. 	[  ]	[  ]	[  ]	Documentary transfer tax
J. 	[  ]	[  ]	[  ]	City transfer tax
K	[  ]	[  ]	[  ]	Pest control inspection report
L. 	[  ]	[  ]	[  ]	General contractor report
M. 	[  ]	[  ]	[  ]	Roof inspection report
N. 	[  ]	[  ]	[  ]	Other inspections (specify):
1. 	[  ]	[  ]	[  ]	___________________________________
2. 	[  ]	[  ]	[  ]	___________________________________
3. 	[  ]	[  ]	[  ]	___________________________________
O. 	[  ]	[  ]	[  ]	One-year home warranty
P. 				Other (specify): 
1. 	[  ]	[  ]	[  ]	___________________________________
2. 	[  ]	[  ]	[  ]	___________________________________
3. 	[  ]	[  ]	[  ]	___________________________________

5. Property Tax and Insurance Prorations; Noncallable Bonds
Seller shall be responsible for payment of Seller's prorated share of real estate taxes accrued until the deed transferring title to Buyer is recorded. Buyer understands that the property shall be reassessed upon change of ownership and that Buyer shall be sent a supplemental tax bill that may reflect an increase in taxes based on property value.
Any fire insurance policy carried over from Seller to Buyer and any homeowners' association fees shall be prorated, that is, Seller shall pay the portion of the premiums and fees while title is in Seller's name and Buyer shall pay the portion of the premiums and fees while title is in Buyer's name.
Homeowners' association special assessments shall be [choose one: paid current by Seller (payments not yet due shall be assumed by Buyer without credit toward the purchase price)/other:___________________].
Buyer agrees to assume noncallable assessment bond liens (those which cannot be paid off by Seller) as follows: __________________________________________________

6. Fixtures
All fixtures permanently attached to the property, including built-in appliances, electrical, plumbing, light and heating fixtures, garage door openers, attached carpets and other floor coverings, and window shades or blinds, are included in the sale except: __________________

7. Personal Property
The following items of personal property are included in this sale:
[  ] Stove
[  ] Oven
[  ] Refrigerator
[  ] Washer	
[  ] Dryer
[  ] Freezer
[  ] Trash Compactor
[  ] Dishwasher

8. Inspection Contingencies
This offer is conditioned upon Buyer's written approval of the following inspection reports. All reports shall be carried out within ___ days of acceptance. Buyer shall deliver written approval or disapproval to Seller within 3 days of receiving each report. If Buyer does not deliver a written disapproval within the time allowed, Buyer shall be deemed to approve of the report.
Seller is to provide reasonable access to the property to Buyer, [choose one: his/her] agent, all inspectors, and representatives of lending institutions to conduct appraisals.
A. [  ] Pest control report
B. [  ] General contractor report as to the general physical condition of the property 
	including, but not limited to, heating and plumbing, electrical systems, solar 
	energy systems, roof, and appliances
C. [  ] Plumbing contractor report
D. [  ] Soils engineer report
E. [  ] Energy conservation inspection report in accordance with local ordinances
F. [  ] Geologist report
G. [  ] Environmental inspection report
H. [  ] City or county inspection report
I. [  ] Roof inspection report
If Buyer and Seller, after making a good-faith effort, cannot remove in writing the above contingencies by the time specified, this contract shall become void, and all deposits shall be returned to Buyer.

9. Other Contingencies
This offer is contingent upon the following:
A. [  ] Buyer receiving and approving preliminary title report within ___ days of 
	acceptance of this offer.
B. [  ] Seller furnishing a Residential Building Record Report indicating ___ legal units 
	within ____ days of acceptance.
C. [  ] Seller furnishing declaration of restrictions, CC&Rs, bylaws, articles of 
	incorporation, rules and regulations currently in force and a financial statement of 
	the owners' association within ___ days of acceptance.
D. [  ] Sale of Buyer's current residence, the address of which is __________________, 
	___________________________ by __________________________________.
E. [  ] Seller furnishing rental agreements within ____ days of acceptance.
F. [  ] Buyer applying for insurance acceptable to Buyer and Lender so as to indemnify 
both in the event of casualty loss upon Buyer's taking title to the property, and Buyer receiving written commitment of said insurance within ____ days of acceptance of this offer. Seller to furnish Buyer with written disclosure of existing insurance policy and any previous claims, within three business days of acceptance of this offer. 
G. [  ] Other: __________________________________________________________.

Buyer shall deliver written approval or disapproval to Seller within three days of receiving each report or statement. If Buyer does not deliver a written disapproval within the time allowed, Buyer shall be deemed to approve of the report or statement. If Buyer and Seller, after making a good-faith effort, cannot remove in writing the above contingencies, this offer shall become void, and all deposits shall be returned to Buyer.

10. Condition of Property
Seller represents that the heating, plumbing, air conditioning, electrical, septic, drainage, sewers, gutters and downspouts, sprinklers, as well as built-in appliances and other equipment and fixtures, are in working order. Seller agrees to maintain them in that condition, and to maintain all landscaping, grounds, and pools, until possession of the property is delivered to Buyer. Seller shall, by the date of possession, replace any cracked or broken glass.

11. Foreign Investors
If Seller is a foreign person as defined in the Foreign Investment in Real Property Tax Act, Buyer shall, absent a specific exemption, have withheld in escrow ten percent (10%) of the gross sale price of the property. Buyer and Seller shall provide the escrow holder specified in Clause 2 above with all signed documentation required by the Act.

12. Rent Control
The property [choose one: is/is not] located in a city or county subject to local rent control. A rent control ordinance may restrict the rent that can be charged for this property, limit the right of the owner to evict the occupant for other than "just cause,” and control the owner's rights and responsibilities.

13. Title
At close of escrow, title to the property is to be clear of all liens and encumbrances of record except those listed in the preliminary title report and agreed to be assumed by Buyer. Any such liens or encumbrances assumed by Buyer shall be credited toward the purchase price. If Seller cannot remove liens or encumbrances not assumed by Buyer, Buyer shall have the right to cancel this contract and be refunded [choose one: his/her] deposit and costs of inspection reports.

14. Possession
Buyer reserves the right to inspect the property three days before the close of escrow. Seller shall deliver physical possession of property, along with alarms, alarm codes, keys, garage door openers, and all other means to operate all property locks, to Buyer: [choose one: at close of escrow/no later than ___ days after the close of escrow].
If Buyer agrees to let Seller continue to occupy the property after close of escrow, Seller shall deposit into escrow for Buyer a prorated share of Buyer's monthly carrying costs (principal, interest, property taxes, and insurance), for each such day, subject to the terms of a written agreement, specifying rent or security deposit, authorizing a final inspection before Seller vacates, and indicating the length of tenancy, signed by both parties.

15. Agency Confirmation and Commission to Brokers
The following agency relationship(s) are confirmed for this transaction:
Listing agent: _______________________ is the agent of: [choose one: Seller exclusively/Buyer and Seller].
Selling agent: _______________________ is the agent of: [choose one: Buyer exclusively/Buyer and Seller].
NOTICE: The amount or rate of real estate commissions is not fixed by law. They are set by each Broker individually and may be negotiable between the Seller and Broker.
Buyer and Seller shall each pay only those broker's commissions for which Buyer and Seller have separately contracted in writing with a broker licensed by the California Commissioner of Real Estate.
$______ or _______% of selling price to be paid to _________________ by [choose one: Seller/Buyer].
$______ or _______% of selling price to be paid to _________________ by [choose one: Seller/Buyer].

16. Advice
If Buyer or Seller wishes advice concerning the legal or tax aspects of this transaction, Buyer or Seller shall separately contract and pay for it.

[  ] 17. Backup Offer
This offer is being made as a backup offer. Should Seller accept this offer as a backup offer, the following terms and conditions apply:
If Seller accepts this offer as a primary offer, [choose one: he/she] must do so in writing.
Buyer has 24 hours from receipt of Seller's written acceptance to ratify it in writing. If Buyer fails to do so, Buyer's offer shall be deemed withdrawn and any contractual relationship between Buyer and Seller terminated.

18. Duration of Offer
This offer is submitted to Seller by Buyer on _________________________, at _______.m., Pacific Time, and will be considered revoked if not accepted by Seller in writing by _______.m. on ________________________, or, if prior to Seller's acceptance of this offer, Buyer revokes this offer in writing.

19. Other Terms and Conditions
______________________________________________________________________

20. Risk of Damage to Property
If, before Buyer receives title to, or possession of, the property, it is substantially damaged by fire, flood, earthquake, or other cause, Buyer shall be relieved of any obligation to buy the property and shall be refunded all deposits. When Buyer receives possession of the property, Buyer assumes sole responsibility for its physical condition. Seller shall maintain fire insurance on the property until the close of escrow.

21. Liquidated Damages
If Seller accepts this offer, and Buyer later defaults on the contract, Seller shall be released from Seller's obligations under this contract. By signing their initials here, Buyer (______) and Seller (_______) agree that if Buyer defaults, Seller shall keep all deposits, up to three percent (3%) of the purchase price stated above.

22. Mediation of Disputes
If a dispute arises out of, or relates to, this agreement, Buyer and Seller [choose one: agree/do not agree] to first try in good faith to settle the dispute by nonbinding mediation before resorting to court action or binding arbitration. To invoke mediation, one party shall notify the other of [choose one: his/her] intention to proceed with mediation and shall provide the name of a chosen mediator. The other party shall have seven days to respond. If [choose one: he/she] disagrees with the first person's chosen mediator, the parties shall ask the escrow holder to choose the mediator or to recommend someone to choose the mediator. The mediator shall conduct the mediation session or sessions within the next three weeks. Costs of mediation shall be divided equally between Buyer and Seller.

Buyer ___________________________________________________

Buyer ___________________________________________________

Seller ___________________________________________________

Seller ___________________________________________________

23. Arbitration of Disputes
Any dispute or claim in law or equity between Buyer and Seller arising out of this contract or any resulting transaction which is not settled by mediation shall be decided by neutral, binding arbitration and not by court action except as provided by California law for judicial review of arbitration proceedings.
The arbitration shall be conducted in accordance with the rules of either the American Arbitration Association (AAA) or Judicial Arbitration and Mediation Services, Inc. (JAMS). The selection between AAA and JAMS rules shall be made by the claimant first filing for the arbitration. The parties to an arbitration may agree in writing to use different rules and/or arbitrator(s). In all other respects, the arbitration shall be conducted in accordance with Part III, Title 9, of the California Code of Civil Procedure.
Judgment upon the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof. The parties shall have the right to discovery in accordance with Code of Civil Procedure § 1283.05. The following matters are excluded from arbitration hereunder: (a) a judicial or nonjudicial foreclosure or other action or proceeding to enforce a deed of trust, mortgage, or installment land sales contract as defined in Civil Code § 2985, (b) an unlawful detainer action, (c) the filing or enforcement of a mechanic's lien, (d) any matter which is within the jurisdiction of a probate or small claims court, and (e) an action for bodily injury or wrongful death, or for latent or patent defects, to which Code of Civil Procedure § 337.1 or § 337.15 applies. The filing of a judicial action to enable the recording of a notice of pending action, for order of attachment, receivership, injunction, or other provisional remedies, shall not constitute a waiver of the right to arbitrate under this provision.
Any dispute or claim by or against broker(s) and/or associate licensee(s) participating in this transaction shall be submitted to arbitration consistent with the provision above only if the broker(s) and/or associate licensee(s) making the claim or against whom the claim is made shall have agreed to submit it to arbitration consistent with this provision.
"NOTICE: BY INITIALING IN THE SPACE BELOW YOU ARE AGREEING TO HAVE ANY DISPUTE ARISING OUT OF THE MATTERS INCLUDED IN THE 'ARBITRATION OF DISPUTES' PROVISION DECIDED BY NEUTRAL ARBITRATION AS PROVIDED BY CALIFORNIA LAW, AND YOU ARE GIVING UP ANY RIGHTS YOU MIGHT POSSESS TO HAVE THE DISPUTE LITIGATED IN A COURT OR JURY TRIAL. BY INITIALING IN THE SPACE BELOW YOU ARE GIVING UP YOUR JUDICIAL RIGHTS TO DISCOVERY AND APPEAL, UNLESS THOSE RIGHTS ARE SPECIFICALLY INCLUDED IN THE 'ARBITRATION OF DISPUTES' PROVISION. IF YOU REFUSE TO SUBMIT TO ARBITRATION AFTER AGREEING TO THIS PROVISION, YOU MAY BE COMPELLED TO ARBITRATE UNDER THE AUTHORITY OF THE CALIFORNIA CODE OF CIVIL PROCEDURE. YOUR AGREEMENT TO THIS ARBITRATION PROVISION IS VOLUNTARY."
"WE HAVE READ AND UNDERSTAND THE FOREGOING AND AGREE TO SUBMIT DISPUTES ARISING OUT OF THE MATTERS INCLUDED IN THE 'ARBITRATION OF DISPUTES' PROVISION TO NEUTRAL ARBITRATION."

Buyer's(s') Initials __________/__________

Seller's(s') Initials __________/__________

24. Attorneys' Fees
If litigation or arbitration arises from this contract, the prevailing party shall be reimbursed by the other party for reasonable attorneys' fees and court or arbitration costs.

25. Entire Agreement
This document represents the entire agreement between Buyer and Seller. Any modifications or amendments to this contract shall be made in writing, signed, and dated by both parties.

26. Time Is of the Essence
Time is of the essence in this transaction.

27. Disclosures
__________ By initialling here, Buyer acknowledges that [choose one: he/she] has received a copy of the Real Estate Transfer Disclosure Statement, Lead-Based Paint and Lead-Based Paint Hazards Disclosure (for pre-1978 houses), the Natural Hazard Disclosure Statement, and documents concerning local ordinances for smoke detectors, energy and water conservation, and conservation and inspection for hazardous waste (where applicable).
__________ By initialing here, Buyer acknowledges that [choose one: he/she] has received the following disclosure regarding a database of registered sex offenders: "Notice: Pursuant to Section 290.46 of the Penal Code, information about specified registered sex offenders is made available to the public via an Internet Web site maintained by the Department of Justice at www.meganslaw.ca.gov. Depending on an offender's criminal history, this information will include either the address at which the offender resides or the community of residence and ZIP code in which he or she resides."

Buyer shall, within ___ days of acceptance of this offer, make further inquiries at the appropriate government agencies concerning the use of the property. If such inquiries disclose conditions or information unsatisfactory to Buyer, which Seller cannot or will not correct, Buyer may cancel this agreement and be refunded the deposit. If Buyer fails to notify Seller in writing of unsatisfactory conditions or information, Buyer shall be deemed to approve of the condition.

28. Buyer's Signature
This constitutes an offer to purchase the above-listed property. 
Agent __________________________________________________________
by _____________________________________________________________
Address _________________________________________________________
Telephone _______________________________________________________
Email ___________________________________________________________
Date _________________________________ Time ____________________m.

Buyer __________________________________________________________
Buyer__________________________________________________________
by _____________________________________________________________
Address _________________________________________________________
Telephone _______________________________________________________
Email ___________________________________________________________
Date _________________________________ Time ____________________m.

29. Seller's Acceptance
Subject to: ____________________________________________________________
Seller agrees to sell the property to Buyer in accordance to the terms and conditions specified above.

Agent __________________________________________________________
by _____________________________________________________________
Address _________________________________________________________
Telephone _______________________________________________________
Email ___________________________________________________________
Date _________________________________ Time ____________________m.

Seller __________________________________________________________
Seller __________________________________________________________
by _____________________________________________________________
Address _________________________________________________________
Telephone _______________________________________________________
Email ___________________________________________________________
Date _________________________________ Time ____________________m.