California Association of Realtors Business Purchase Agreement

The California Association of Realtors Business Purchase Agreement: An Overview

If you`re looking to purchase or sell a business in California, it`s important to understand the legal requirements and documents necessary for a successful transaction. One such document is the California Association of Realtors Business Purchase Agreement, also known as the CAR BPA.

What is the CAR BPA?

The CAR BPA is a legal document that outlines the terms and conditions of a business sale. It is often used by real estate agents and brokers when representing clients in the purchase or sale of a business. The agreement covers a variety of important details related to the transaction, such as the sale price, payment terms, and contingencies.

What Does the CAR BPA Include?

The CAR BPA is a comprehensive document that covers a wide range of topics related to buying and selling a business. Here are some of the key details included in the agreement:

Purchase Price

The purchase price is one of the most important details in any business sale. The CAR BPA outlines the agreed-upon purchase price, as well as any adjustments that may need to be made based on inventory, accounts receivable, or other factors.

Financing Terms

If the buyer is financing the purchase of the business, the financing terms will be outlined in the CAR BPA. This includes details such as the interest rate, payment schedule, and any collateral required.


Contingencies are conditions that must be met before the sale can be finalized. The CAR BPA includes a section for contingencies, which may include things like obtaining financing or obtaining necessary licenses and permits.

Closing Date

The closing date is the date on which the sale will be finalized. The CAR BPA includes the agreed-upon closing date, as well as any provisions for extending the closing date if necessary.

Representations and Warranties

The seller will make certain representations and warranties about the business being sold. These may include things like the accuracy of financial statements, the absence of any legal disputes, and the condition of equipment and inventory.

Why is the CAR BPA Important?

The CAR BPA is important for several reasons. First, it provides a clear and comprehensive outline of the terms and conditions of the business sale. This can help prevent misunderstandings and disputes between the buyer and seller.

Second, the CAR BPA is a legally binding document that can be used to enforce the terms of the sale. If either party violates the terms of the agreement, the other party may take legal action to recover damages.

Finally, the CAR BPA provides protection for both the buyer and seller. By outlining the contingencies, warranties, and other details of the sale, both parties can feel confident that they are getting a fair deal.


If you`re considering buying or selling a business in California, the CAR BPA is an essential document that should not be overlooked. By working with an experienced real estate agent or broker who is familiar with the CAR BPA, you can ensure a smooth and successful transaction that protects your interests and provides peace of mind.