California Real Estate Purchase Agreement: Template Guide

A real estate purchase agreement is the contract in which a buyer agrees to buy and a seller agrees to sell a property on stated terms. In California, it sets the price, financing, deposit, contingencies, disclosures and closing timeline, and it drives the escrow process from offer to recording.

This page outlines our original California purchase agreement template, with extra items for tenant-occupied rental property. It is a general template, not legal advice. Most California transactions involve licensed agents and standardized forms, and the stakes are high, so have a California real estate attorney or licensed agent review the agreement before signing.

What it is

The purchase agreement becomes binding once both parties sign and acceptance is delivered. From there, the buyer deposits earnest money into escrow, works through contingencies and reviews disclosures, while the seller prepares to deliver clear title. Escrow closes when all conditions are met and the deed is recorded.

This template covers single-family homes, condos and small rental properties of up to four units. Larger commercial deals usually need additional terms.

California rules to know

Check these well-known items against current law:

• Seller disclosures. Sellers of most residential property must provide a transfer disclosure statement describing known conditions, and a natural hazard disclosure covering zones such as flood, fire and earthquake fault areas. Other disclosures may apply, such as lead-based paint for homes built before 1978 and HOA documents for common interest developments.
• Right to cancel after late disclosures. If a required disclosure is delivered after the buyer signs, the buyer generally has a short window to cancel, commonly 3 days after hand delivery or 5 days after mailing.
• Megan’s Law notice. Purchase agreements commonly include a notice about the public sex offender database.
• Withholding. Federal and California tax withholding rules may apply to the seller’s proceeds. The escrow holder typically handles the paperwork, but sellers should ask a CPA.
• Tenant-occupied property. The buyer generally takes the property subject to existing leases, rent caps and just cause protections. Security deposits must be transferred to the buyer or refunded to tenants, with notice.

What you cannot include

• Terms that waive required seller disclosures for residential sales covered by the law
• Agreements to hide known material defects
• Promises to remove tenants in ways that violate California tenant protections
• Vague contingency deadlines that leave both sides unsure of their rights

How to fill it out

1. Identify the parties and how the buyer will hold title.
2. Describe the property with address, parcel number and included or excluded items.
3. Set the price and financing, including loan type and any seller credits.
4. State the deposit amount and the deadline to deliver it to escrow.
5. List contingencies with clear removal deadlines.
6. Schedule disclosures, with dates for delivery and buyer review.
7. Choose escrow and title providers and allocate closing costs.
8. Add income property items, such as leases, the rent roll, deposit transfers and estoppel certificates.
9. Sign and date, and deliver acceptance.

eSignature

Offers and counteroffers move fast. With TenantLoop eSignature, parties can sign documents online and keep a dated record. After closing, new owners can onboard tenants, set up rent collection and record the acquisition in accounting. Our buying introduction covers what to review before you make an offer.

Bottom line

A California purchase agreement must handle price, contingencies, disclosures and closing details precisely, and rental purchases add leases, deposits and tenant protections to the list. Use this outline to organize the deal, confirm current requirements, and have a California attorney or licensed agent prepare or review the final contract.