Contract — Page 5: Fees, Closing Cost & Home Warranty

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Residential Purchase Agreement (RPA)

Open the contract as you work through this lesson — every Line reference below maps to the PDF.

Open RPA PDF

Section 5 of the Buyer Contract Training course. This lesson walks through page 5 — fees, closing cost & home warranty. Open the RPA PDF below and follow every line reference as you read.

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Cash Deals — Title & Appraisal

  • If it is a CASH deal, the Lender’s Title Policy is N/A and the Appraisal is WAIVED or N/A.
  • (A cash buyer can still pay for an appraisal if they wish.)
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Closing Costs

  • For investors, max is 2%. For owner-occupier, aim for 2.5–3.5%.
  • Place the actual $$$ amount in the space, not a percentage — e.g., 2% of $100k = $2,000. (Unless lender or client advises otherwise — this way it moves with counters on price.)
  • Get with your Lender to know how much will be needed — you also get a feel for the lender. Our partnered lenders at ZHL & Note Mortgage are top-notch on communication.

⚠️ Critical — Closing Cost / Seller Concessions Rule

Seller concessions and closing cost credits apply ONLY to financed deals.

  • This is true whether your buyer is an Investor or an Owner-Occupier — the structure (2% investor, 2.5-3.5% owner-occupier) is the same.
  • Cash deals do NOT get seller concessions or closing cost credits. The lender is the reason concessions exist — no lender, no concession structure. Don’t write closing cost into a cash offer; you’ll get it bounced back.

If the buyer flips from financed to cash mid-deal, the concession line has to come out via amendment or the deal won’t fund the way it’s written.

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Home Warranty

  • We have a great relationship with Lisa Waldeck and ACHOSA — $825 covers the Prime Plus plan.
  • The greatest benefit of ACHOSA is that the client can choose their own vendor.
  • If the issue was not flagged on inspection, it will most likely be covered after close of escrow at the warranty company’s policy limit.

🎯 Why this matters

Page 5 is dollars and partners. Use real dollar amounts (not %), point clients to ZHL/Note Mortgage on financing, and ACHOSA/Lisa Waldeck on home warranty.