Assistance with the Offer Contract

CALIFORNIA RESIDENTIAL OFFER PACKAGE GUIDE

How New Agents Should Prepare, Complete & Submit a Strong Offer

1. OFFER PACKAGE ORDER (What 99% of Agents Send)

Every professionally submitted offer package in California includes the following:

Core Offer Documents

  1. Residential Purchase Agreement (RPA – the Offer)

  2. Agency Disclosure (AD)

  3. Wire Fraud Advisory (WFA)

  4. Buyer Representation Agreement (if applicable)

  5. Proof of Funds (POF)

  6. Pre-Approval Letter / DU Findings

Required Disclosures (Always Include):

  • Buyer Inspection Advisory (BIA)

  • Statewide Buyer & Seller Advisory (SBSA)

  • Lead-Based Paint Disclosure (LBP) – only if property built before 1978

  • Water Heater / Smoke Detector / CO Detector Disclosure

Applicable Addenda (Include if relevant):

  • HOA Addendum (if property is in an association)

  • As-Is Addendum

  • Solar Addendum / Solar Lease Transfer

  • Septic, Well, or Property-specific addenda (if applicable)

2. WHAT EACH DOCUMENT IS & WHY IT’S INCLUDED

Mandatory Disclosures

FormRequired WhenNotes
LBPPre-1978 homesMust include EPA pamphlet + signed form
NHD ReportAlwaysOrdered from 3rd party; seller provides
SBSAAlwaysCovers statewide risks; must mirror C.A.R.
BIAAlwaysExplains buyer duty to inspect
WFAAlwaysRequired due to increasing wire fraud
ADAlwaysRequired to document representation
Water Heater/Smoke/COAlwaysConfirms legal safety compliance

3. BROKER GUIDANCE: HOW TO COMPLETE THE OFFER

Fields You MUST Complete (Never leave blank):

  • Buyer’s full legal name

  • Seller’s name exactly as shown on title

  • Purchase price

  • Deposit (EMD) amount

  • Financing terms (loan type, down payment %, interest cap)

  • Contingency timelines

  • Close of escrow timeline

  • Included/excluded items

  • Agency information

  • Signatures & initials on every page

4. PURCHASE PRICE & FINANCING (New Agent Pain Point #1)

Common Loan Types in California

  • Conventional (80%+ of all transactions)

  • FHA

  • VA

  • Cash

Interest Rate Guidance (Safe Wording in Offers):

“Buyer’s interest rate not to exceed ___%.”
Typical today: 7–8% depending on market.

5. DEPOSIT (EARNEST MONEY DEPOSIT)

Industry Standards

  • Standard deposit: 1–3% of purchase price

  • Strongest: 3%

Deposit Timing

  • Standard CA: Buyer deposits within 3 business days

  • Competitive markets: 1 day EMD

6. CONTINGENCY TIMELINES (New Agent Pain Point #2)

California Norms

ContingencyStandard CACompetitiveNotes
Inspection10–17 days7 days17 days = C.A.R. default
Appraisal14–17 days10 daysOften shortened for strength
Loan17–21 days14 daysUsually longest contingency
Disclosure Review5 days after delivery3 daysRequired by law
COE (Close of Escrow)30 days21–14 daysCash: 14 days or faster

7. INCLUDED & EXCLUDED ITEMS (Most Forgotten Section)

Items you MUST Clarify

  • Refrigerator

  • Washer & Dryer

  • Security Cameras

  • Ring Doorbells

  • Smart Thermostats

  • Water Softeners

  • Solar Panels (Owned vs. Leased)

Industry Standard Rule of Thumb

“All existing appliances remain unless excluded.”

To avoid disputes — always list items explicitly.

8. HOW TO MAKE YOUR OFFER STRONGER

(For agents competing in multiple-offer situations)

✓ Larger deposit (3%)
✓ Shortened contingency periods
✓ Cross-qualification with seller’s lender
✓ Shortened COE timeline
✓ Buyer paying own home warranty
✓ Removing minor credits
✓ Clear, professional packaging of all documents
✓ Proof of funds showing liquidity beyond down payment

 

9. OFFER CHECKLIST (Before You Hit Send)

✔ Core Offer Docs

  • RPA Completed

  • All pages initialed

  • AD

  • WFA

  • BIA

  • SBSA

  • Buyer Representation Agreement (if applicable)

✔ Financials

  • POF (Bank statements, screenshots with name visible)

  • Pre-approval + DU findings

  • Proof of EMD funds

✔ Required Disclosures

  • LBP disclosure + EPA pamphlet (if pre-1978)

  • Water Heater/Smoke/CO

  • Any other property-specific disclosures delivered by listing agent

✔ Property-Specific Items

  • HOA docs requested

  • Solar ownership verified (lease/loan/PPA)

  • Trust/Probate documents

  • Tenant estoppel packets (if applicable)

✔ Contract Accuracy

  • Correct legal names

  • Contingency timelines appropriate

  • COE reasonable

  • Included/excluded items listed

  • No blank fields

  • No missing signatures

10. SELLER DISCLOSURES BROKERS MUST EXPECT

Seller is legally required to provide:

  • TDS (Transfer Disclosure Statement)

  • SPQ (Seller Property Questionnaire)

  • NHD report

  • HOA disclosures

  • Professional inspection reports (if any)

  • Receipts for repairs

  • Lead-based paint disclosures

  • Any known material defects

Buyers can cancel the contract if these are not delivered properly.

11. EXAMPLES FOR NEW AGENTS (Useful Script Responses)

“How much should we put for the deposit?”

“Standard in California is 1–3% of the purchase price.
To strengthen the offer, 3% is best.”

“What contingency timelines should we use?”

Inspection: 7–10 days
Appraisal: 10–14 days
Loan: 17–21 days

“What should our COE be?”

Standard is 30 days unless cash — then 14–21 days.

“Which loan type should we check?”

Conventional is most common unless your buyer is using FHA/VA.

12. NEW AGENT QUICK REFERENCE (One-Page Summary)

Deposit: 1–3% (3% strongest)
Inspection: 7–17 days
Appraisal: 10–17 days
Loan: 17–21 days
Disclosure Review: 5 days (3 competitive)
COE: 30 days (or 21/14 days competitive)
Must Include: RPA, AD, WFA, BIA, SBSA, POF, Pre-Approval, Required Disclosures
Never Forget: Solar terms, HOA fees, included/excluded items, signatures.