25th Anniversary of the Residential Purchase Contract
Twenty-five years ago, the Arizona REALTORS® Forms Committee convened to finish a draft of the new Residential Purchase Contract (RPC); Chairman Cec Daniels presided, Jim Sexton was one of 12 committee members in attendance, as well as outside legal counsel.1
“The original (RPC) from the 1970’s was a one-page front and back document. The only addendum…was a financing addendum…there was no Seller’s Property Disclosure Statement, or any other standard real estate form used in most Arizona residential real estate transactions today.” – Chris Combs, Esq.
The committee developed an eight-page contract (only two pages less than the February 2017 revision). Although the RPC is used in the vast majority of residential transactions in Arizona, and often lauded by other state associations, passing it was an uphill battle in 1993.
“Our committee meetings typically lasted 6-hours,” recalls Jim Sexton. “Final approvals came after much discussion and compromise.” Some members had to be convinced that revisions were even necessary. “The committee went on a statewide tour to successfully explain the benefits,” added Combs.
In a line-by-line recap, Michelle Lind, Esq. (then a member of the state association’s Legal Hotline team and now its CEO) shared some of the provisions giving specific rights to brokers.
“The new Residential Resale Real Estate Purchase Contract is designed not only to be fair to both the buyer and the seller,” wrote Lind, “but to protect the rights of the broker involved in the transaction as well. The broker’s status as a third-party beneficiary to the contract should enable the broker to enforce those rights.”
1The 1993 Forms Committee included REALTORS®, representatives from title and mortgage companies, and legal counsel: Chair Cec Daniels*, Pat Baldwin*, Roberta Burleson, Chris Combs, Michele Edison, John Foltz, Lisa Griffin-Card, Frank Kohlman, Lisa Larkin, Michelle Lind, Mike McInteer, Kathy Pate, Patricia Reed, Tina Robbins, Jim Sexton, Barbara Vickers, Margot Wilson*, Charlie Wing and Cliff Winn*
*Deceased, but not forgotten Tags: Cec Daniels, Chris Combs, contract, forms committee, Jim Sexton, Michelle Lind, Residential Resale Real Estate Purchase Contract, RPC