Legal Question in Real Estate Law in California

Legal Offer? Dispute Res Paragraph on RPA is Deleted

An offer we rec'd today shows Paragraph 17 being totally deleted, is that legal to do?

Secondly we made prior arrangements to negate the sellers role under Paragraph 4 (Cost Allocation) shouldnt there be some continuation verbage regarding our intended waiver under 14B(2)(as the form directs)? The offer submitted today only ref's 14A being waived. My gut tells me that if your waiving your rights to disclosure, time or costs your better off not waiving anything 100%, as this agreement seems to be getting us to do in several areas.

As to the above, I understand it may be imposs to answer without 1st seeing the agreement. Maybe a better question to pose would be What can and cannot be deleted from a RE Purchase Agreement, within reason


Asked on 3/09/07, 2:47 am

2 Answers from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Legal Offer? Dispute Res Paragraph on RPA is Deleted

If the part about prevailing-party attorney fees is deleted, I'd be concerned that the offering party expects to breach. The main effect of deleting all dispute-resolution terms including mediation, arbitration and attorney fees is that you are dropped back into the dark ages of dispute litigation; you'd be in court and each party would pay its own attorney fees, irrespective of blame or righteousness.

There is no requirement to use or not use any part(s) of the form contract. Real estate used to, and still sometimes does, change hands on the basis of handwritten agreements, some quite bare-bones.

I have a strong personal belief that the residential real-estate industry has become too casual and careless in its preparation and handling of contract documents. By the time the third counter-counter offer has been FAXed back and forth five times between the principals and their agents, it is no longer readable, and you can't tell who crossed off what, and the interlineations and attachments cannot be read or traced. In the same vein, I would disapprove of making extensive changes to a pre-printed contract form for several reasons, including readability and possible unintended impacts on other sections of the contract or on the deal as a whole.

Finally, there are some rights that cannot be waived and some duties that cannot be shrugged off. For example, the seller is required by law to make disclosures, and someone will have to pay the closing costs.

If you aren't using a licensed real estate professional, maybe you should consult with a local real-estate lawyer before you sign a heavily-modified preprinted contract.

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Answered on 3/09/07, 12:22 pm
OCEAN BEACH ASSOCIATES OCEAN BEACH ASSOCIATES

Re: Legal Offer? Dispute Res Paragraph on RPA is Deleted

You are asking for problems when using form contracts to begin with. You may wish to have an attorney on a small yearly retainer to cover matters such as these and other concerns. Call me directly.

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Answered on 3/09/07, 8:14 pm


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