The Real Estate CMA Acronym.
All industries have their own slang or acronyms. The “CMA” acronym is used by Realtors all the time and not always recognized by the public. It stands for “Comparative Market Analysis”. It is almost the same as an appraisal. Appraisers are looking at past history for the last three to six months of home sales. The Realtor CMA is looking at past sales, current pending sales, expired listings (which did not sell) and similar active listings which we call “the competition”. In addition a seasoned Realtor is making an educated guess at where the market is going in the next 30 to 60 days. That is the hard part.
The RPA is an acronym we use in California. RPA stands for the “Residential Purchase Agreement” or real estate contract form. By the way ALL forms used by Realtors are standardized and written by the lawyers at the CA Bureau of Real Estate. The full name of the contract is actually the Residential Purchase Contract AND Escrow Instructions. When you are sent “escrow instructions” you will notice that the title is “addendum to escrow instruction” because the contract included basic escrow instructions.
What is the difference between “IN CONTRACT” and ” IN ESCROW”. When an offer is accepted by a seller, whether it is the first offer or one of many counters, the last signature shows that there is an agreement. Then the agent who accepts the last offer must return it to the other party which constitutes an acknowledgement. The next CALENDAR DAY is the first day of the contract. The current real estate contract allows the buyer 17 days for removal of inspection contingencies and 21 day for loan contingency removal. Since CA is an “escrow state”, then the fully executed contract is delivered to a licensed escrow company the next business day. When the escrow company receives the contract and the buyers earnest money then the escrow is officially opened.
What we are all looking for is the COE. Yes the COE is the Close of Escrow. By the way the final piece of the puzzle after the buyer’s funds arrive and the lender’s funds arrive is for the title company to RECORD THE DEED AT THE COUNTY. Once the recording has taken place the ownership of the property has officially transferred.
For expert real estate representation on South Orange County California, call Ron Buck at Keller Williams Realty. 949-456-0505 or click here.