Home Buying in Berkeley>Question Details

Kent Mitchell, Real Estate Pro in Berkeley, CA

When using C.A.R. forms, do you have to use the RIPA form whenever a client puts an offer on a duplex?

Asked by Kent Mitchell, Berkeley, CA Wed Jun 2, 2010

Or can you use the California Residential Purchase Agreement for 1,2,3 or 4 unit properties that the owner plans to live in?

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Answers

4
Hi Kent:

Yes, even when owner plans to occupy one unit or 3 units.

Here is why, the RIPA form covers Tenant deposits and Lease Contracts.
It protects the seller and the selling agent.

These terms are not covered in a regular CAR purchase contract.
It also protects you.

Remember you can always call CAR Legal.

Goodluck.
Perry
Web Reference: http://www.ruthandperry.com
0 votes Thank Flag Link Mon Jul 12, 2010
Kent,

It really depends on how how saavy your client is. I don't like the RIPA but in a 4-plex there are circumstances where it may be the preferred contract. The first person to ask is the lender, thay may want one over the other.

I base it on the experience of the investment client. The CAR-RPA is probably enough with a reasonably experianced investor since they will know what they are looking for and have other properties to evaluate and compare with.
Web Reference: http://bob2sell.com
0 votes Thank Flag Link Mon Jun 28, 2010
When it comes to residential income properties, I generally use the RIPA --- after all that IS the one intended for multiple units. There are several differences, one of which is where the owner certifies how many legal units are in the property.

Recently I saw a property that was marketed as a four-plex. But upon review of how it is classified by the city, it's actually a single family home with three unpermitted/non-conforming units. Red flag!
0 votes Thank Flag Link Sun Jun 27, 2010
While best practice is to use the RIPA contract, I have seen the RPA contract used to make offers on multifamily units. But, if you have access to a computer, why not use the correct contract. The contracts were developed by the CAR to best protect all those involved in the transaction.
0 votes Thank Flag Link Tue Jun 8, 2010
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