Is it true that you need to have a real estate license in California to fill out a purchase agreement?

Question

I just got off of the phone with an escrow agent who said that I am not allowed to fill out a CRA Purchase agreement without a license.  They said that they would be able to complete a concurrent close however I would have to bring the seller to the office to fill out the purchase agreement or have team up with a real estate agent to fill out the paperwork.  Is this true?  What if I took the CRA Purchase Agreement to a Lawyer and altered it to fit my needs?  would I still need a license to fill out that contract?  thank you in advance

Luis Castillo · Answer

I just googled ca real estate purchase contract and there are several for sale and some that are free. By the way, your actual question was "do you need a license to fill out a purchase agreement in Ca."  The answer is no. You need the license to use CAR forms.

Account Closed · Answer

You need to do whatever makes escrow "comfortable" with you and your deal.  If possible don't use the CAR contract, it's not that great anyway.

I doubt escrow can cite any actual law about how you have to be licensed to use the CAR contract.  Escrow and title people always say "illegal" when they mean against company "policy".  There's kind of a big difference.  It's one of their many unattractive qualities but makes sense when you think of them as bureaucrats who forgot to apply for a government job.

I used the CAR contract for years until I realized I didn't have to.  Almost any contract is better from an investor perspective.  The CAR contract used to have verbiage right on the bottom of the front page that stated that is was for use by all real estate professionals.  That would mean like lawyers who aren't licensed agents.

David C.  Do you have a copy of the CAR around?  Is that verbiage still on it?

NA Foster · Answer

Matthew
You can shop for California forms at www.firsttuesday.us

Account Closed · Answer

As long as you are a principal (buyer or seller) in the transaction you can use any form you and the other principal agree on. I doubt you will ever change escrow's mind however. You could try another escrow office and see what they say. You don't even need a contract, escrow could (if they will) generate escrow instructions directly, both sign and move ahead. Lots of options.

Check out firsttuesday dot us, they have excellent forms...and they even let people with a license use them.

Account Closed · Answer

This kind of advice coming from escrow makes me more than a little irritated. The CAR contract is pro-buyer, pro-consumer. In a double escrow situation there are two escrows, one where you are the buyer and one where you are the seller.  IMO, it's probably not a good idea to use a generic fill-in form that was created for the benefit of buyers when you are the seller.  It's risky for you to use the form as a seller unless you know what you are doing and know how to amend it.  The escrow officer probably didn't mention that.

Never take legal or tax advice from escrow officers.  They have a legal dept. that analyzes their own company risk (not yours) and create guidelines/policies from that analysis.  Escrow and title officers just follow orders.  You need your own legal resources for any concerns about contracts and liability, and your own tax advisor for tax concerns.

Account Closed · Answer

Your comment is rational and logical.  You'll never get to be an escrow officer thinking like that.

John Baxter · Answer

I just talked to a real estate attorney yesterday that told me you need to be licensed to purchase the contract but not to use it. You can find older copies for free.

Account Closed · Answer

Thanks' for the compliment!

I don't have access to the forms directly by know somebody that does.  Looking at the CAR Residential Purchase Agreement (RPA-CA), below is what it says at the bottom of the pages.  It pretty clearly says the form is available for use by the entire real estate industry and that it is NOT intended to identify you as a realtor.  It does not say anything about being limited to licensees.  I think the copyright remarks have to do with copying blank forms.

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The copyright laws of the United States (Title 17 U.S. Code) forbid the unauthorized reproduction of this form, or any portion thereof, by photocopy machine or any other means, including facsimile or computerized formats.

THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR ADEQUACY OF ANY PROVISION IN ANY SPECIFIC TRANSACTION. A REAL ESTATE BROKER IS THE PERSON QUALIFIED TO ADVISE ON REAL ESTATE TRANSACTIONS. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL.

This form is available for use by the entire real estate industry. It is not intended to identify the user as a REALTOR®. REALTOR® is a registered collective membership mark which may be used only by members of the NATIONAL ASSOCIATION OF REALTORS® who subscribe to its Code of Ethics.
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Matthew Newman · Answer

Chris Martin still, thank you for your input

Chris Martin · Answer

I shouldn't have posted. I don't live in CA. It's like a foreign country out there. In NC, the issue is venue. The NC REC if you arte a broker and NC GS if not. Your escrow company (if you were in NC) would be sizing up the risk.

Again, I wont post anymore on this topic since I am not in CA.

Carry on....

Is it true that you need to have a real estate license in California to fill out a purchase agreement?

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