Page 10 - SELLER AND BUYER DISCLOUSURES

228 Y O U R GUIDE '1 () Tl-:lh cALJFORNJA RESIDENTIAL PURCHASI AGREEMENT

In paragraph 3 2 of the RPA the seller can accept a buyer's offer in its entirety o r accept
suhject to a counter offer o n specific terms. If the seller is responding to more than o n e
buyer's offer a t the same time, the seller should use a multiple counter offer form so that th e
seiler will not be bound to any particular buyer i f more than o n e buyer accepts the terms of
the multiple counter offer. A seller is only bound by the terms of a·multiple counter offer
i f the seller resigns the form after the buyer has signed an4 returned it. If the buyer wants
to respond to either a seller counter offer or a seller multiple counter offer in any way o th e r
than a n outright acceptance, the buyer should d o so o n a buyer counter offer form.
Regardless of which counter offer form is used, the liquidated damage clause a n d th e
arbitration clause are automatically deleted from the final contract unless initialed b y b o th
parties in the body of the RPA o r specifically referenced in o n e of the counter offer terms.
I f the price for the property is being changed, the buyer's down payment and loan a m o u n t
automatically adjust to the same percentage of the new purchase price as they were to th e
old purchase price in the original offer. The buyer o r seller does not have to calculate th e
amounts as part of the counter offer terms.

In paragraph lC of any of the counter offer forms, the party issuing the counter offer
specifies the terms of the contract that are being changed o r added. lt is helpful to n u m h c r
the items in the counter offer and to specifically reference the-clause in the RPA o r a
previous counter offer that is being modified. In order for the counter offer to result in a
binding agreement, the person making the counter offer must sign it a n d deliver it to th e
other party. The other party then must sign and return it to the person making the counter,
o r that person's authorized agent specifically identified in the counter offer form. T h e
signing in and of itself by the person receiving the counter offer does n o t create a binding
contract. And, as stated above, i f the seller is issuing a multiple counter offer, the seller
must sign a second time a n d return the twice-signed multiple counter offer back to th e
buyer o r identified agent. All of this must happen within the time specified.

If the seller has received offers from more than one buyer, rather than issuing multiple
a
counter offers to each buyer the seller wn ts to respond to, the seller may counter th e m
sequentially, putting one in primary position and the others in back u p position. I f this is
done, the BUO form should be included.

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