C.A.R. Forms Updates: California Transaction Forms
Updated January 2024
It’s once again that time of year in California’s real estate industry: new forms and fresh updates on forms from the California Association of Realtors. Although real estate agents aren’t fans of having more forms to fill out, or having to familiarize themselves with updated forms - the newest releases are beneficial for not just California real estate agents, but also their clients.
Maintain Your Clients’ Trust
Without a doubt, these new and updated C.A.R. forms were absolutely necessary. The US Department of Justice (DOJ) has investigated National Association of Realtors (NAR) and Multiple Listing Service (MLS) practices since 2019. Its focus has been on buyer-broker compensation and the Clear Cooperation Policy. Even though the NAR and DOJ agreed on a settlement in 2020, the DOJ pulled out of the agreement the following year. They are supposed to have things resolved in March but California wanted to be ahead of the game and make sure forms are available now.
Both the updated and new forms provide a solid way for real estate agents to maintain client trust in not just the real estate agents, but also the real estate industry as a whole. The clear language used in the new forms, along with the updated forms, allows for higher levels of transparency. When all the cards are out on the table, home buyers and home sellers have an easier time putting their faith in the real estate transaction process.
December 2023 Updates
Unlock the latest updates and new C.A.R. forms!
Simply fill out the form below to download your copy of the latest C.A.R. form updates and stay on top of your real estate game!
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RU-PA (Residential Units Purchase Addendum)
This form addresses the residential aspects of a mixed-use property that is primarily commercial. It should be used with a CPA or VLPA. If the primary purpose of the form is residential with an ancillary commercial use, then form MU-PA, Mixed-Use Purchase Addendum should be used with a RPA or RIPA.
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Although California real estate agents we work with never have to worry about C.A.R. Form updates, we know it’s still important to review many of the changes with everyone. Lucky for the California real estate industry, this time around, even though there have been many C.A.R. Form changes but most of them are minor. Many of the forms are related to lease/rental files.
Let’s review and go over the forms that will impact an agent doing residential listing or transaction.
AOAA (Assignment of Agreement Addendum)
Added paragraph 1C to distinguish a total assignment where no originally named buyers remain on contract from a total assignment of one buyer’s interest but other originally named buyers remain on contract
ATCA (Animal Terms and Conditions Addendum)
Replaces form PET, Pet Addendum. New form can be used for service or support animals in addition to pets unrelated to disability status of the tenant. Most rules apply to all animals. Certain rules, identified in paragraph 12, only applies to nondisability related pets
BCO, SCO, SMCO (Buyer Counter Offer, Seller Counter Offer, Seller Multiple Counter Offer)
Includes an example in 1C explaining how an appraisal gap in original offer is affected by a change in price in a counter offer.
BHAA (Buyer Homeowner Association Advisory)
Added language to paragraph 10 explaining how HOA litigation may impact the willingness of lenders to make a loan on the property.
CC (Cancellation of Contract)
Added language explaining how to fill out the form if one party is canceling independently or proposing a mutual cancellation. Added language addressing a partial release if no deposit has been made.
COL (Cancellation of Listing)
Language added to clarify that any of the numbered paragraphs may be checked but both options within paragraph 1 may apply. Paragraph 2 was modified to avoid confusion over the amount to be paid in the event property is listed with another broker.
CR (Contingency Removal)
CR now has a CR-S for seller contingency removal and CR-B for buyer contingency removal.
CR-B (Buyer’s Contingency Removal)
The buyer portion of the previous contingency removal form (CR) has been separated into its own form. The parenthetical language was added to 2C(3) to make explicit that the insurability of property is not its own contingency but part of the overall investigation contingency and is removed when the investigation contingency is removed. Options are added, in a vertical format for ease in readability, to allow a buyer to exclude fire or flood insurance or both from the removal of the rest of the investigation contingency.
CR-S (Seller’s Contingency Removal)
The seller portion of the previous contingency removal form (CR) has been separated into its own form.
DIA (Disclosure Information Advisory)
This contains a reminder that the seller shall provide current and past reports and other relevant documents.
ESD (Exempt Seller Disclosure) TDS (Real Estate Transfer Disclosure Statement) SPQ (Seller Property Questionnaire)
Added language in paragraph 1 for use if the property contains 2-4 units.
FHDA (Fair Housing & Discrimination Advisory)
Changed reference from landlord to housing provider.
NBP (Notice to Buyer to Perform)
Added language to make clear that if the notice is given too early for some identified contingencies or contract actions, it is only invalid as to those contingencies or contract actions but valid as to the others.
PA-PA (Purchase Agreement Probate Addendum)
Optional sentence added to court confirmation paragraph giving the buyer a cancellation right it no confirmation date within 60 days of acceptance.
RCSD-B (Representative Capacity Signature Disclosure for Buyer Representatives)
Remove separate signature boxes for buyer broker agreements and assignment agreements. Changed landlord to the housing provider.
RLA (Residential Listing Agreement - Exclusive)
Paragraph 4C added to address smart home features. Paragraph 10B was added to address the presentation of offers, defaulting to offers to be presented as they are submitted and giving the seller the option of holding offers to a specific date. Added contact information for sellers in the signature paragraph.
SBSA (Statewide Buyer & Seller Advisory)
Paragraph A15 was added to explain preliminary reports and the importance of reading documents referred to in them, such as CCRs. Paragraph D10 was added to make the parties aware of the impact that State and local jurisdictions may have on the sale and continued use of the property due to laws eliminating the use of carbon fuel appliances in favor of those items powered by the electric grid. Paragraph F3 was modified to create awareness of the right to have discriminatory covenants removed from the title. Paragraph F8 was modified to address those situations where fees or credits to solar power system owners may be reduced or otherwise changed.
SOLAR (Solar Advisory & Questionnaire)
Paragraph 6A(9) was added as a catch-all for any material fact that the seller needs to disclose about the solar power system.
SPRP (Seller’s Purchase of Replacement Property)
Language added to optional paragraph 1B to indicate that if the seller has already entered into a contract to acquire other property then the contingency for finding replacement property is eliminated. Paragraphs 4 and 5 were added to identify the buyer and seller's respective rights to cancel.
TOPA (Tenant Occupied Property Addendum)
Paragraph 1B(3) added to create an obligation of the seller to identify the names of all adult occupants on the property, whether or not paying rent.
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As always, January’s C.A.R. has a plethora of new forms to benefit the California real estate community in the best of ways.
BRBC - Buyer Representation and Broker Compensation Agreement: This form replace the BRE form. It does not have a compensation option.
This agreement lasts for a certain number of days.
Defaults to non-exclusive which means the broker is only entitled to be paid if the buyer purchases a property for which there was “broker involvement”.
Includes an option exclusive representation paragraph stating the broker is entitled to be paid if the buyer purchases a property during the representation period with or without the broker's help.
Has a paragraph that authorizes the broker to include a term in the offer asking the seller to pay the buyer’s broker.
Obligates the broker to disclose to the buyer the compensation the broker expects to obtain from others on any particular property and to also disclose to the buyer the final compensation the broker actually receives.
ABCD - Anticipated Broker Compensation Disclosure
A three-part form that includes:
Part 1 - advises the buyer that seller payment of compensation, direct to a buyer’s broker or indirectly through the seller’s broker may impact the price the seller will accept and the buyer’s broker will disclose on a property-by-property basis the compensation promised to broker through the MLS or elsewhere.
Part 2 - this part is filled out when a property is being shown or when an offer is being made.
Part 3 - is filled out when the buyer's broker discloses the final compensation received.
BTA - Buyer Transactional Advisory
Form is bundled with the new BRBC form and gives buyers more information about an agent's responsibilities and those things a buyer needs to take care of.
COBR - Cancellation of Buyer Representation
A form used when a buyer or broker gives notice of cancellation to the other. A signature is required and identifies the compensation that would be due to the buyer's broker if applicable.
NBIP - Notice of Broker Involved Properties
A Notice of Broker Involved Properties is filled out when the termination of the buyer representation period of a protection period was provided or within five days after either buyer or broker cancels the BRBC.
SPBB - Seller Payment for Buyer’s Broker
If 3G(3) in RPA is checked, the Seller Payment for Buyer’s Broker form will be used to identify the amount of compensation the buyer is asking the seller to pay the buyer’s broker. Assuring everyone that the buyer’s broker will not receive double payment.
NCOA - Non-Contingent Offer Advisory
An NCOA notifies a buyer of the risks associated with making an offer without any contingencies and specifically describes the contractual value of a loan contingency, appraisal contingency and investigation contingency.
SOLAR - Solar Advisory and Questionnaire
One section is an advisory and describes the:
most common types of solar panels and system ownerships and leases
how payments generally work
what gets transferred with the sale of real estate
importance of reviewing all documents and inspection the system
Another section consists of about 20 questions that a seller should answer “if they are aware”.
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With an ever-changing real estate market, old forms either need to be replaced, removed from the real estate transaction process, or they just need a bit of updating in order to clarify verbiage that has been causing some issues for real estate agents, home buyers, and home sellers.
RPA (Residential Purchase Agreement)
No defaults for points.
New optional paragraph for buyers to ask for the seller to pay the buyer’s broker compensation.
Added option for units occupied by persons other than the seller and to add a TOPA (Tenant Occupied Property Addendum) form in a counteroffer if the tenant or other occupant and buyer did not check the box to add the form.
New language that the unit buyer intends to occupy to be vacant at the time of possession. (Buyer to identify which units if there is more than one.)
Items to include any associated hardware and rods (in relation to window coverings) and pool heaters.
New paragraph requires the seller to give the buyer known information about any solar system. New form SOLAR may be used.
Review of seller documents part of buyer investigation was removed. Review of seller documents in its own contingency.
Added new language requiring parties to notify escrow of an assignment. Added language that a nominee will be treated the same as an assignee.
Agent signature lines in the Real Estate broker section changed to include the address, email, and phone number for each brokerage. Allows broker to identify as a designated electronic delivery address the email or phone number identified above or as an alternate by checking the appropriate box
RLMM (previously LR) - Residential Lease or Month to Month Rental Agreement
Defines rental property owner, authorized broker or agent or property manager collectively as “housing provider” because it is possible for any of them to sign the agreement. It is also a way to get away from the use of the word “landlord” which has a negative connotation.
Added language about the limits on accepting multiple rental payments in advance.
Added a warning to the tenant to remove photos and other valuables that the tenant would not want to be seen in photos or videos of the premises posted online for marketing purposes.
MII (Move In Inspection) and MO (Move Out)
Replaces form previously called MIMO.
One form for move-in and one for move-out.
Each item listed is presumed to be satisfactory but can be designated as new or other in which an explanation can be provided or not applicable.
PMOI - Pre-Moveout Inspection
Newly reformatted, it now includes language to allow for the return of the security deposit and a statement regarding the use of the security deposit to be made electronically.
BCO - Buyer Counter Offer
Language added that seller credits in the offer remain unchanged even if the purchase price changes.
New paragraph clarifies the difference between the offered price and the appraisal contingency amount will remain the same even if the purchase price changes.
SCO - Seller Counter Offer
Language has been added stating the seller credits in the offer remain unchanged even if the purchase price changes.
A new paragraph clarifies the difference between the offered price and the appraisal contingency amount will remain the same even if the purchase price changes.
SMCO - Seller Multiple Counter Offer
Additional language explaining that the seller credits in the offer remain unchanged even if the purchase price changes.
Verbiage was added in order to clarify the difference between the offered price and the appraisal contingency amount will remain unchanged even if the purchase price changes.
CC - Cancellation of Contract, Disposition of Deposit & Cancellation of Escrow
Language added proposed mutual cancellation settings time for the recipient party to respond. If there is no timely response, the proposal expires.
CCPA - California Consumer Privacy Act Advisory, Disclosure, and Notice
Language was shortened and revised.
Additional URL added to allow research of any enacted regulations.
ETA - Extension of Time Amendment (instead of Addendum)
Changed from an addendum to an amendment.
Adds a section that establishes a time for the recipient party to respond. If there is no timely response, the proposal to extend the time expires.
MH-PA - Manufactured Home and Mobile Home Purchase Addendum
Language added incorporating terms of existing MHA form informing the parties and making contractual requirements for the condition of the mobile/manufactured home if it is to be occupied.
RLAS - Residential Lease After Sale
Language added advising the maximum security deposit that can be charged.
Language added to the condition of property paragraph for the seller/tenant to acknowledge the condition is as it is disclosed in the purchase agreement.
Smoking paragraph was modified so the seller/tenant is not responsible for smoking damage that already existed at the time lease commenced.
Use a TC to Focus on Your Paperwork
Having a trusted real estate TC as part of your powerhouse team means you won’t have to worry about new forms, updated forms, or forms in general. A skilled California real estate transaction coordinator will focus on all aspects of your real estate transaction paperwork! Give us a call today to set up your first stress-free real estate transaction.
