California Real Estate Forms Just Got an Update! (June 2025)
The California Association of Realtors (C.A.R.) just rolled out its June 2025 standard form release—and it’s a big one.
95 total updated forms
11 brand-new forms
32 with substantial revisions
52 revised for formatting, terminology, or clarity only
You don’t need to learn all 95.
This post breaks down only the most important form updates California real estate agents need to know, especially those working with residential sales, post-closing occupancy, and fire zone disclosures.
1. Fire Hardening Disclosure Form (FHDS) Got Smarter
If you work in areas with wildfire risk, this is a big one.
What’s new:
If the property was built on or after January 1, 2010, you can now check a box to skip sections 2B and 2C.
Section 2C is new and becomes mandatory on July 1, 2025. It no longer relies on seller knowledge, meaning if they aren’t sure about something (like roof class or vent screen size), it’s better to mark “No” and explain what they do know.
A new mandatory handout must be included with this form.
Why it matters: This reduces liability and makes it easier for sellers to answer accurately in high fire-risk zones.
2. New Mandatory Advisories: Rentals and Post-Close Possession
Three new C.A.R. advisory forms are now part of everyday transactions:
Rental Property Owner Advisory (RPOA):
Required when a seller stays in the home up to 29 days after closing. Legally, that makes them a landlord—even if just for a few weeks. This form explains the legal and financial risks involved.
Seller in Possession Advisory (SIPA):
Also required for short post-closing occupancy. It covers key concerns like condition verification, tenancy risks, and insurance coverage.
Short Term Vacation Rental Advisory (SVRA):
Covers short-term use of properties (like Airbnb). It alerts owners to HOA restrictions, city rules, and tax obligations. Strongly advises speaking with an attorney.
3. Buyer Broker Compensation Language Is Simplified
One of the most important California purchase agreement updates:
The Residential Purchase Agreement (RPA) now simply states:
“Seller agrees to pay the buyer’s broker % or $_ from transaction proceeds.”
No more complicated language about buyer representation agreements. Agents are also no longer required—or advised—to ask for a copy of the buyer broker agreement.
For deeper context, see paragraph 18A in the RPA.
4. New and Revised Forms You’ll Actually Use
Here are the most practical new forms and updates for daily TC and agent use:
Addendum - Generic (ADM-GEN):
Use when someone other than a buyer or seller (like an agent or lender) needs to sign. Uses the word “Principal” instead of “Buyer/Seller.”
Amendment to Prior Disclosure (APD):
If a seller needs to update a TDS or SPQ, this is the new go-to. It even lets you name the paragraph being changed.
Referral Fee Agreement (RFA):
Updated to clearly identify who’s paying, who’s referring, and when compensation applies. Brokers must sign; agents can acknowledge it.
Additional Signature Addendum (ASA):
When more than two buyers or sellers are involved, this addendum is now pre-filled with bundled disclosures—no need to manually list them all.
Liquidated Damages and Arbitration Addendum (LDAA):
Brand new. Use this if extra signers need to agree to arbitration or liquidated damages terms.
5. Minor Form Tweaks Worth Knowing
Buyer’s Inspection Elections (BIE): Top 3 inspections (home, insurance, termite) now appear first.
Buyer’s Inspection Waiver (BIW): Clarifies waivers based on other third-party reports.
FHA/VA Amendatory Clause (FVAC): Adds a checkbox to reflect revised purchase prices when earlier forms were outdated.
Final Thoughts
These June 2025 form updates aim to make real estate transactions in California smoother and less risky for everyone, especially when it comes to fire disclosures, post-close occupancy, and commission transparency.
Need help keeping up with these changes while managing your deals?
At Be Happy TC, we handle all the paperwork, disclosures, compliance checks, and communication so you can focus on your clients, not the chaos.
Book a free consultation today at hello@behappytc.com or call 951-297-9922.
