The California Residential Purchase Agreement—usually called the RPA—is the core contract used in most California home sales. It’s the document that turns “we have a deal” into real deadlines, real obligations, and real consequences.
In Orange County, where timing, inspections, loan terms, HOA rules, and insurance can make or break a deal, understanding the RPA isn’t just helpful—it’s protective.
Quick note: This is educational information, not legal advice. The RPA is updated periodically and transactions vary.
What the RPA actually is
The RPA is a written contract that lays out the full agreement between buyer and seller: price, deposit, timelines, what’s included, what happens during escrow, and what happens if one side doesn’t perform. The most commonly used version in California is produced by the California Association of REALTORS® (C.A.R.).
Once an offer is accepted and properly delivered, the RPA becomes binding. From that moment forward, the escrow follows the contract’s date-driven roadmap (and yes—those dates matter).
The sections that matter most (and where deals usually get won or lost)
1) Price and terms aren’t the whole offer
In Orange County, two offers at the same price can be wildly different in strength based on:
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contingency lengths
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deposit size and timing
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appraisal / loan language
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requested credits or repairs
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occupancy / rent-back terms
The RPA is where those terms live.
2) The deposit and “liquidated damages” (what’s at risk, and when)
The deposit (often called “earnest money”) is typically delivered to escrow shortly after acceptance (the RPA form includes a timeframe that’s commonly written as a small number of business days—often 3—but it’s negotiable and must match what’s written in the contract).
A common misconception: “If the buyer cancels, the seller automatically keeps the deposit.”
Not automatically.
Whether a seller can keep all or part of the deposit depends on the contract terms, whether contingencies were still in place, how cancellation was handled, and whether the parties agreed to a liquidated damages provision.
In California, liquidated damages in many 1–4 unit residential transactions are governed by Civil Code §1675, which sets rules around how much may be retained and when it can be enforced.
Practical takeaway: the deposit is usually safest for the buyer while contingencies remain active; risk increases after contingencies are removed.
3) Contingencies: the buyer’s “exit ramps”
Contingencies are conditions that must be satisfied for the buyer to remain locked into the deal—commonly:
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investigation/inspection
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appraisal
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loan approval
Here’s the part most consumers don’t realize: contingencies don’t “auto-waive” just because time passes. Under the standard C.A.R. approach, contingencies generally must be removed in writing, and if the buyer does not remove them on time, the seller may use a formal notice process (often a “Notice to Buyer to Perform”) to push the issue.
C.A.R.’s consumer guidance commonly references 17 days as a typical inspection contingency period and 21 days as a typical loan contingency period unless modified in the contract—but these timelines are negotiable and vary by deal.
Practical takeaway: the leverage in escrow often swings based on whether contingencies are still open.
4) Investigation and disclosures (where Orange County issues show up)
The RPA ties into disclosures and the buyer’s right to investigate the property. This is where buyers commonly review:
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seller disclosures (condition, known issues, etc.)
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HOA documents (rules, budgets, reserves, litigation—big in OC)
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permits and remodeling history
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solar agreements (owned vs leased)
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insurance availability (especially in higher fire-risk areas)
Orange County reality: the inspection period isn’t just about the home inspector. It’s often about risk review—HOA, insurance, and property history.
5) Repairs and credits: the RPA doesn’t force a seller to fix everything
The RPA is not a blanket “repair list.” It sets the framework for how requests are handled and confirms that changes must be agreed to in writing. That matters because this is where misunderstandings happen: buyers assume repairs are automatic; sellers assume “as-is” means no negotiation.
Practical takeaway: inspections create information; negotiations depend on what the parties agree to—on paper.
6) Appraisal and loan terms: what happens when the numbers don’t line up
If a buyer is financing, the RPA addresses loan type and timing. If an appraisal comes in low, the outcome depends on how the contract was written:
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renegotiate price
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buyer brings additional cash
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buyer cancels (if the contingency is still in place and properly used)
Practical takeaway: appraisal outcomes aren’t just “the bank’s problem.” They’re a contract strategy issue.
7) Closing timeline, occupancy, and rent-backs
In Orange County, possession timing is a big deal. The RPA can provide for:
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possession at close of escrow
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seller rent-back (common when sellers need time to move)
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buyer early possession (less common; higher risk)
A clean rent-back isn’t “just a favor.” It’s a written agreement with dates, daily rent, deposits, and responsibility terms.
8) Disputes: mediation is typically required; arbitration is optional
The standard C.A.R. RPA includes a mediation provision that can require the parties to attempt mediation before litigation or arbitration in order to preserve certain rights (including potential attorney-fee recovery, depending on the clause and circumstances).
Arbitration, on the other hand, is generally an elected provision (meaning the parties typically must agree to it rather than it being automatic).
Practical takeaway: if a dispute happens, the contract often dictates the first step—and the process matters.
What this means for buyers
The RPA is designed to create clarity and protection, but only if it’s used correctly. Buyers typically want:
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the right contingencies
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realistic deadlines
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a clear plan for inspections, disclosures, HOA review, and insurance
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an understanding of when the deposit becomes more exposed
What this means for sellers
Sellers want certainty. The RPA helps create it through:
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firm timelines
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defined buyer obligations
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written performance steps
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clear possession terms
A strong contract is often less about squeezing the buyer and more about reducing the chances of a messy escrow.
Why this matters if you’re an agent (and why good agents are different)
Anyone can open a template and fill in blanks. The difference-maker is:
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knowing where risk concentrates (deposit, deadlines, HOA/insurance, appraisal, occupancy)
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writing terms that match the client’s real situation
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staying ahead of problems before they become cancellations
That’s the kind of professionalism clients remember—and the kind of environment strong agents want to be part of.
A quick Orange County checklist I use when reviewing an RPA
These are the “quiet” items that commonly create friction in OC deals:
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HOA docs + litigation review timeline (and buyer expectations)
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Insurance availability (especially in higher risk zones)
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Permits for additions/remodels
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Solar (owned vs lease vs PPA)
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Mello-Roos / special assessments where applicable
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Rent-back language (who pays utilities, deposit, insurance responsibility)
Bottom line
The Residential Purchase Agreement is the backbone of the transaction. It isn’t just paperwork—it’s the playbook for how escrow will go, what each side must do, and what happens if something doesn’t.
If you’re buying or selling in Orange County and want to understand what you’re agreeing to before you’re on the clock with deadlines, I’m happy to walk through it at a high level.
I’m Darren Shepherd. I’m based in Orange County, California, and I help buyers, sellers, and agents navigate the details so nothing important gets missed.
