Why We Don't Redo Real Estate Purchase Agreements on the CAR Form
We sometimes get agents who submit offers that get accepted on the Home Bay California real estate purchase agreement, and thereafter they ask us and the seller to switch over to the CAR purchase agreement for purposes of escrow. We do not generally accommodate this request. This post explains why.
When we put offer instructions into the MLS, we instruct agents to submit their offer on the Home Bay California real estate purchase agreement or the CAR form. It is at the agent's option. We will happily work with either form.
Once an offer is accepted on the Home Bay form, however, we generally will not switch over. The primary reason is that switching forms requires a new attorney review at Home Bay. We need to be sure that what is in the second contract exact matches what was in the Home Bay California real estate purchase agreement. Without this second layer of review, mistakes can occur.
Switching forms is wholly unnecessary. While the CAR form is the most common form used in California, it is not the only form used:
- We handle approximately 50 offers per month on the Home Bay form, and escrow companies and lenders readily work with it.
- In many parts of California, the CAR form isn't used at all. For example, agents in certain parts of the Bay Area commonly use the PRDS form.
- When agents submit offers on new construction developments in California, it rarely occurs on the CAR form. Typically, those contracts are written on the forms of the builder, such as Davidson Homes.
So there is no reason to switch other than perhaps the preference of a broker.
Nonetheless, if you used the Home Bay form instead of the CAR form because you didn't follow the offer instructions and now want to switch, we can accommodate your request to switch if:
- Our seller is fine reviewing and signing the CAR form, and
- You as the agent pay us $350 for the second attorney review. We can bill you via credit card.
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