*REVISED* July 2024 California Residential Purchase Agreement and Seller Payment of Buyer's Broker

[@johana_fitness_lifestyle]

I'm so happy I found you. I can easily binge watch all your videos because 1) you're straightforward and clear no bs and 2) you're quirky sense of humor lol I love it. It helps me to keep watching and as a result learn and feel confident. Thank you!! 😊

[@BalboaRealEstate]

I'm happy to hear it's helpful. Thanks for the feedback!

[@pat.maher.real.estate]

First, thank you. Second, and for total clarification purposes for my own understanding---IF an agent writes an offer but does NOT have a buyer agreement [for whatever reason] agent can still be in compliance with the new rules IF they write in that seller will pay buyer's agent % at COE in the areas that you described in your video. Thank you again and thank you in advance for your time and response.

[@BalboaRealEstate]

This is a great question. NAR and Each MLS are creating their own policy based on the settlement. Although they may be worded differently, the requirement is essentially the same - for a realtor to have a written agreement with a buyer before accessing the property. If an unrepresented buyer has already seen the property, like at an open house, OR maybe is an investor that makes offers prior to touring the property then I don't see anything prohibiting an agent (without a rep. agreement) from writing an offer - which must address compensation. Once the properly filled RPA is signed, the buyer's agent now has a written agreement and can proceed with accessing the property and carrying on the transaction.

[@pat.maher.real.estate]

@@BalboaRealEstate Thank you for this clarification.

[@jacquelinebone4556]

Love your video, made me feel more comfortable about making an offer for my buyer😊😊

[@JuliaAlfahoum]

Love all of your videos, I feel more comfortable, Thank you.

[@LordCruse]

Loving all your videos. I am taking a lot of notes and feeling much more confident 💪 thank you!!

[@michaelbullock2183]

Thanks to your vidieos I am more confident now. Always a pleasure kistening . Thanks and have a great evening.

[@mackandtaj]

Hi There. Thanks so much for your videos!! I'm wondering why the buyer would ask for a seller credit/concession over offering a lower purchase price, if say they needed to do necessary hard-scaping or renovate a bathroom to accommodate their needs?

[@BalboaRealEstate]

A credit or concession puts money in the buyer's pocket right at closing. A reduction gives a small monthly discount and takes years to recoup the benefit. Only cash buyers should choose reductions. Everyone else should get a credit.

[@andresfarias7700]

Thank you for sharing the informative tutorial video. It was greatly beneficial. I have a quick question regarding paragraph '16' where you insert your transaction coordinator fee. I recently adopted this practice in my work as well. During my last transaction, an agent's broker persistently attempted to counter this fee from our contract, arguing that it should be part of the BRBC agreement, not the RPA. Eventually, it was kept in the contract. I would appreciate hearing your prospective on this matter. Thank you again for all your hard work on making these videos.

[@BalboaRealEstate]

In theory, it could be added to a BRBC, but it doesn't need to be there. In fact, I think it's more suitable in the RPA because it's a line item for services rendered separate of compensation. The BRBC is just intended for broker compensation. The RPA parses out closing costs for services rendered, ie inspections, reports, and even a transaction coordinator fee. Thank you for your comment.

[@AngieTheClosingQueen]

You are the BEST of the BEST! Thank you 1000 times for helping me.

[@myh9611]

Do you need to attach the BRBC with your RPA when submitting your offer. Thank you for all your videos! I have learned so much from you.

[@BalboaRealEstate]

No, just the SPBB. But once the offer is accepted the seller can request a copy of the BRBC.

[@robertglover8819]

Excellent explanation and common sense.

[@deborahbostick3075]

Very understanding, any updates?

[@vivianz1284]

Thanks for the video. Question: is the earnest money refundable if buyer is an LLC?

[@BalboaRealEstate]

Yes, until all contingencies have been removed.

[@chrishendrickson9035]

Thank you. So, in summary, it is not completely necessary for buyers to sign the BRBC, right? We can write either "buyer to pay __%" or "seller to pay ___%" in the (R) OTHER TERMS or Q(16) "_________fees or costs". Is that right? I can still write that the buyer or seller is to pay a percent in the RPA itself? Thanks!

[@BalboaRealEstate]

The BRBC is required prior to accessing the property with a potential buyer. There maybe exceptions in which you draft an offer without a BRBC, like the buyer already viewed at an open house. In that case, yes, you can write in the commission on the RPA. However, a BRBC and a SPBB with the offer is the preferable course of action.

[@gabrielaserranorealtor3813]

I just checked with the CAR attorney and he says not to add additional finance terms on the RPA page 3 of 17 "OTHER TERMS" what a seller should be paying at the close of escrow to the buyers agent. He stated that is why we have the SPBB in place. And starting next year if no BRBC your license will be suspended.

[@BalboaRealEstate]

That atty. is advising the standard procedure because using Other Terms is an advanced move and sidesteps the limitations built into the SPBB - but all is fair play. CAR is lobbying to make a BRBC agreement state law and I'm 99% sure it will pass.

[@justsayin5177]

The only thing concerning leaving spaces blank. I would put n/a which means, non applicable. Then have both seller and buyer initial it and every other similar blank spa e. That way it's understood and agreed that nothing was to be put there and it can't be changed at a later date. Just Sayin...

[@BalboaRealEstate]

Years ago I worked in an office where some agents would just put lines (dashes) through any blank space. Virtually no one crosses out or initials blanks spaces; that's just the industry. I find it excessive to initial blank spaces as problems almost never arise from this, but to each their own.

[@michaelbullock2183]

Two thing I heard yesterday. 1. The SPBB will be incorporated into the RPA in December. 2. As of Jan 1 if you do not have a BRBC signed you will lose your license.

[@BalboaRealEstate]

1. The SPBB should already be in the RPA, but CAR hates simplicity. 2. Unless a new state law passes your license is not in jeopardy, just your realtor membership. The BRBC is a made-up form to comply with a made-up rule that ONLY pertains to realtors, and not real estate licensees that are not NAR/CAR realtors.

[@OSNATREALTOR]

Hi, Regarding (G1) Where on MLS would I see if Seller offers concession to buyer? Or is it something that buyer requests regardless? (I am not referring to buyer's agent fees). Thanks.

[@BalboaRealEstate]

Some MLSs have a field that shows whether the seller is offering concession. My suggestion is to have the buyer request it regardless of whether there is anything on the MLS.

[@OSNATREALTOR]

@@BalboaRealEstate Thanks.

[@albertogava1866]

Does the SPBB has to have the same percentage that is on the BRBC or can it be a fraction if the seller is only paying that and the rest is paid by the buyer?

[@BalboaRealEstate]

The SPBB can be less if the buyer is paying the difference.

[@mariselaguillen5363]

Thank you , as always very well explained

[@Panavista01]

Excellent video. Very helpful. Thanks.

[@garonkiesel1646]

I know buyer broker agreements may become California Law however, for the time being, agents and brokers may decide to enter a concession amount in section G1 for a percentage and then checking the (Other) box and then state on G2 Additional Finance Terms: "Seller to pay buyer broker 2.5% of purchase price at close of escrow."

[@BalboaRealEstate]

You cannot do what you describe without a buyer rep. agreement.

[@cs7441]

Thank you so much.

[@robertaehlers7102]

Thank you so much!

[@michaelbullock2183]

Thank you again for your help.

[@elviacastillocastaneda8764]

Can you kindly make a video regarding VLPA?

[@BalboaRealEstate]

Yes, I will add that to the list this week.

[@BalboaRealEstate]

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[@mikepajouhesh]

Thank you great video

[@xavierguerrero2712]

If we have the unrepresented buyer section in RLA, how would that affect the RPA when doing dual agency?

[@BalboaRealEstate]

It's totally separate from dual agency. For dual agency the listing agent represents the buyer and must ask for a commission to represent the buyer in the purchase agreement. Conversely, unrepresented buyers are on their own - and that is addressed on line C2 in the RLA.

[@thealextello]

Thank You So

[@NolbertoPardo]

Appreciate you, thank you.

[@tovarco]

Well done.

[@reytaji3334]

Thank you 🙏🏻

[@BenAhmadi-h5m]

Can I make a copy of these forms

[@BalboaRealEstate]

No, they cannot be reproduced.

[@swaranjeetkaur5157]

Thanks

[@minare2024]

Thank you 🙏

[@thelmapena7231]

Thanks