C.A.R. New and Revised Forms
December 2024 Update
The California Association of Realtors® (C.A.R.) has released new and revised standard forms for December 2024, reflecting compliance with updated laws, evolving practices, and real estate industry feedback. These updates cover transaction forms, property management agreements, and landlord-tenant relationships. Here’s a complete breakdown of these changes to help you stay compliant and informed.
Key Updates to Transaction Forms
1. Residential Purchase Agreement (RPA)
Increased deposit details moved to a separate Increased Deposit Addendum (IDA).
Paragraph G revised to clarify buyer and seller costs, including closing costs (G1), credits (G2), and buyer-side compensation (G3).
Enhanced escrow instructions for transparency in compensation disclosures for both buyer and seller.
Improved formatting for entity names and signatures in Paragraphs 33-34.
2. Buyer Representation and Broker Compensation Agreement (BRBC)
Brokers can shorten cancellation timeframes for exclusive agreements.
Clarifications around buyer broker compensation contingencies when sellers refuse payment.
3. Seller Counter Offer (SCO) and Multiple Counter Offer (SMCO)
New provisions allow counters to remain valid even if previous offers expired.
Buyer and seller signatures now have clear re-signing requirements in cases of delayed acceptance.
4. Seller Property Questionnaire (SPQ)
New questions about emergency water tank storage and multi-family property contingencies.
5. Estimated Compensation Costs for Buyer (ECC-B) and Seller (ECC-S)
Tools for buyers and sellers to calculate and compare compensation costs under different scenarios.
6. Cancellation Forms (CAC, COBR)
Provide flexibility to cancel buyer representation or agency agreements for specific properties or all properties.
Simplified formatting to consolidate compensation terms.
7. Transfer of Buyer Representation (TOBR)
New form ensures smooth transitions when agents switch brokerages during active buyer representation.
Key Updates to Property Management and Landlord-Tenant Forms
1. Residential Lease or Month-to-Month Rental Agreement (RLMM)
Compliance with AB 2747, requiring landlords with 16+ units to offer positive rental payment reporting to tenants.
Allows landlords to pay tenant broker compensation if agreed upon.
2. Lease Listing Agreement (LL)
Encourages landlords to take photos of property condition for security deposit disputes.
Updates for tenant broker compensation under specific scenarios.
3. Application to Lease or Rent/Screening Fee (LRA)
Landlords must provide a credit report if a screening fee is paid.
Updated guidelines for refunding screening fees if tenants are not selected.
4. Rental Property Owner Intake Form (RPOI)
Requires landlords to document tenant safety features, such as pool safety compliance.
Mandatory property condition photos for tenancy start and end, effective July 1, 2025.
5. Move Out Inspections (MOI)
Requires detailed photo documentation of damages and repaired items after April 15, 2025.
6. Offer of Tenant Positive Rental Payment Reporting (TRPR)
Tenants have the right to opt into or out of positive rental payment reporting.
Housing providers may charge a fee for this service, with rules for resuming reporting after opt-outs.
7. Property Management Agreement (PMA)
Updated to reflect requirements for photo documentation under new security deposit laws.
Quick Summary of Additional Form Changes
Already-Built Subdivision Purchase Agreement (ABSPA) and Condominium Conversion Subdivision Purchase Agreement (CCSPA): Revised to conform to RPA changes.
Disclosure Regarding Real Estate Agency Relationship (AD): Updated statutory language for buyer broker representation.
Fair Housing and Discrimination Advisory (FHDA): Added clarification about racial traits in protected classes.
Independent Contractor Agreement (ICA): Adjusted automobile insurance requirements for brokers.
Seller Contingency Removal (CR-S): Checkboxes to extend escrow when finding a replacement property.
Vacant Land Purchase Agreement (VLPA) and New Construction Purchase Agreement (NCPA): Aligned with RPA revisions.
Why These Updates Matter
The December 2024 updates impact how brokers, landlords, and property managers conduct their business in California. From enhanced compensation transparency in the Residential Purchase Agreement to tenant safety compliance in rental agreements, these changes streamline real estate processes and protect all parties involved.
Be Happy TC: Your Partner in Transaction Coordination
Keeping up with evolving forms and legal requirements can be challenging. At Be Happy TC, we specialize in transaction coordination services, handling these complexities for you. Whether it’s navigating new compensation tools or ensuring compliance with tenant laws, we’re here to help your business succeed.
Contact us today at (951) 297-9922 or email info@behappytc.com to simplify your real estate transactions and property management needs.
C.A.R. FORM UPDATES
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AVID - Agent Visual Inspection Disclosure - The inspection date and time, weather conditions, and details of other persons present have been moved from the top of page 1 to the real estate broker signature block. Additional language has been added to the second broker signature section to clarify that the final signature is for the agent who received the form but did not complete it. Extra space has also been added to accommodate information for another bedroom and bathroom.
BHAA - Buyer Homeowners’ Insurance Advisory - Paragraph 2 has been updated to remind buyers that insurance challenges can also impact homeowners' associations (HOAs).
CBC - Cooperating Broer Compensation Agreement - The updated form has been simplified compared to the previous version, with all references to MLS offers of compensation and MLS membership removed. This form should now be used to clearly document agreements between listing brokers and buyer's brokers, ensuring there is no confusion about payment agreements.
CA - Compensation Agreement - The title has been changed from "Commission Agreement." A subtitle has been added to indicate that the form should be used only when no other signed listing, buyer representation, or single-party agreement exists. Language regarding MLS and images has been updated to align with other listings. The signature block has been modified to accommodate entity signers.
DM-LA - Disclosure and Modification to Listing Agreement - This new form is used to modify a listing agreement in effect before June 2024. It informs the seller that, following a proposed NAR settlement expected to be implemented in July 2024, offering compensation through the MLS will be prohibited. The broker’s efforts to offer compensation outside the MLS will fulfill the broker’s duty to the seller. This form should be used before the expected implementation date in July 2024. Listings taken after the release of the revised RLA in June do not require this form.
CC - Cancellation of Contract, Disposition of Deposit and Cancellation of Escrow - On page two, in the cancellation of escrow section, optional language has been added to the paragraph where the seller agrees to release the full deposit to the buyer, now also obligating the seller to cover the buyer's out-of-pocket costs.
COP - Contingency for the Sale of Buyer’s Property - Language added to paragraph 1C, contingency for the close of escrow of buyer’s property, to allow the buyer to indicate when the other property is supposed to close escrow according to that contract.
CR-B - Buyer Contingency Removal - New language has been added to paragraphs 2D and 3 to address the stand-alone insurance contingency in the revised RPA.
DCE - Demand to Close Escrow - The note to the seller has been modified to clarify that if the seller does not close, the buyer may cancel the agreement and pursue legal action.
MT-LA - Modification of Terms - Listing Agreement - This new form should be used to document changes in the listing agreement. While preprinted language already allowed for changes to price and expiration date, the new preprinted language now also permits changes to compensation.
RLA - Residential Listing Agreement - Exclusive - Compensation: Compensation for the seller’s broker and buyer’s broker is now unbundled (2C(1)). An optional paragraph is included for cooperation with the buyer’s broker (2C(2)). An optional paragraph is provided for compensation to the seller’s broker if the buyer is unrepresented (2C(3)). There is a provision allowing for changes in compensation if the same agent represents both the buyer and the seller (2C(4)). An optional paragraph is available if the seller is open to advertising concessions (2D). Paragraph 5 explains seller concessions. The form is bundled with the new Broker Compensation Advisory (C.A.R. Form BCA) (3A). The form also addresses scenarios involving dual agency or non-representation when showing properties (14C(2) and 14D). The following listing agreements have been updated to reflect changes to the RLA where applicable: Residential Listing Agreement Seller Reserved (RLASR), Residential Listing Agreement – Open (RLAN), Commercial and Residential Income Listing Agreement (CLA), Vacant Land Listing Agreement (VLL), and Business Listing Agreement (BLA).
RLAS - Residential Lease After Sale - Language has been added to paragraph 5A of the security deposit section to set the default security deposit to one month’s rent. A reference to the new Security Deposit Exemptions Disclosure and Addendum (C.A.R. Form SDDA) has been included. This form can be used to document if the owner is exempt from the one-month security deposit law or if the tenant is a service member, which would make the one-month law applicable even if the owner is exempt.
SDDA - Security Deposit Exemptions Disclosure and Addendum - This new form has been created to document whether the owner is exempt from the one-month security deposit law or if the tenant is a service member, which would make the one-month law applicable even if the owner is exempt.
SIP - Seller License to Remain in Possession Addendum - Paragraph 3A, which assigns maintenance responsibility to the seller, has been modified to excuse the seller if the issue is caused by a latent defect or factors beyond the seller's control. The buyer, as the new owner, should have insurance to protect against such losses.
SPQ - Seller Property Questionnaire - The following updates have been made to the form:
- Added question 6K to address a new law requiring inspections and repairs of balconies, stairways, and other elevated wood structures on buildings with three or more units.
- Paragraph 7E now includes language asking if lead-based paint renovations were conducted according to EPA rules.
- Paragraph 7F has been updated to comply with a law requiring "flipper" owners to disclose a list of improvements made by contractors and the names of those contractors.
- Paragraph 8B addresses solar power systems.
- Paragraph 8E clarifies whether dwelling units have separate meters and if they are permitted as ADUs.
- Paragraphs 18D and 18E require the seller to indicate if the property is currently tenant-occupied or was previously tenant-occupied and if the latter, how the unit became vacant. A general question on material facts has been given its own numbered paragraph.
SPRP - Seller’s Purchase of Replacement Property - The form was previously updated to specify reasons for buyer or seller cancellation. Paragraph 6C was added to clarify that if the seller cancels, the buyer is entitled to the return of the deposit. Additionally, if the corresponding box is checked, the buyer is also entitled to out-of-pocket expenses, which can be limited. The language in the SPRP is now consistent with the new language added to the CC form.
VP - Verification of Property Condition - The language has been updated to include a date and time for when the verification was made and to acknowledge if someone other than the buyer conducted the verification.
WBSA - Wooden Balcony, Stairs and Other Elevated Elements Addendum - This new form addresses a law effective January 1, 2025, which requires structures with three or more units to have inspections and repairs of wooden balconies, stairs, and decks if they are above ground level. The seller is obligated to provide the buyer with a copy of the inspection report along with other seller documents.
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NAR Settlement Related Forms will go into effect August 17th.
ABCD - Anticipated Broker Compensation Disclosure - Section 1 of the updated form serves as a disclosure and is the sole part requiring a signature. The expanded grid feature enables agents to list more properties compared to the previous version. Due to the removal of compensation fields in the MLS, the use of the ABCD form is likely to increase.
BFPI - Buyer Financial and Personal Information - This new form assists buyer agents in evaluating a buyer’s qualifications for a desired property. It considers factors such as the amount and source of the down payment, maximum loan amount, type of financing, the buyer’s current renting or owning status, property experience, and whether the buyer is a licensed real estate professional. All information provided on the form is confidential. This form is intended to be used alongside the BRBC.
BIPP - Buyer Identification of Preferences and Priorities - Numerous factors can influence a buyer's decision on which properties to make an offer on. The BRBC outlines the minimum requirements to secure a broker’s right to compensation. The BIPP form assists buyer agents in understanding what is important to the buyer, such as price range, the number of bedrooms and bathrooms, single-story versus multi-level homes, school districts, and features like eco-friendly and accessibility options. The information on this form is confidential and subject to change over time. The BIPP replaces the C.A.R. Buyer Material Issues form.
BRBC - Buyer Representation and Broker Compensation Agreement - Property to be Acquired: Defaults to a single-family home, condo, or mobile home, with options for multi-family and other types (2B(1)). The price range has been removed, but options for specifying city or county remain (2B(2)). Buyer preferences can be detailed in paragraph 2C by attaching the Buyer Identification of Preferences and Priorities (BIPP) form. The BIPP enables buyers to inform brokers, in writing, of their desired price range and property features. Third-Party Payments: Brokers are not allowed to receive any excess compensation unless the BRBC is amended later (2D(2)). Financial/Personal Info: The form can indicate if the buyer lacks funds to pay or is not permitted to pay the broker (2F), with further explanation provided in paragraph 9B regarding the consequences. Warning about Signing Multiple Agreements: Buyers are cautioned about the risks of signing different representation agreements with multiple brokers (7). Confirmation of Compensation: Reaffirms the compensation obligation on the same page as the buyer's signature, so only the last page of the BRBC is needed to show proof to the seller if the buyer requests the seller to pay the buyer’s broker in the purchase agreement (15).
BCA - Buyer Compensation Advisory - This new one-page form explains how brokers can receive payment in a transaction. In listing agreements, Paragraph 1 covers the seller's side of the transaction, detailing payments to listing brokers and potential payments to buyer brokers, including the benefits of listing brokers offering cooperation with buyer brokers.
MT-BR - Modification of Terms - Buyer Representation Agreement - This new form should be used to document changes in the buyer representation agreement. The preprinted language allows for adjustments to the expiration date and compensation. Additionally, this form can be used alongside the DM-BR if the broker believes that the original BRBC was established at an insufficient compensation rate.
SPBB - Seller Payment to Buyer’s Broker - The revised form has been simplified. Paragraph 1A specifies the amount the buyer is asking the seller to pay. Paragraph 1B limits this amount if the seller’s broker is making a payment to the buyer’s broker and clarifies that without a buyer representation agreement, the seller has no payment obligation. Paragraph 3 allows the buyer’s broker, not just escrow, to disclose compensation to the seller. The final page of the revised BRBC can be used to fulfill this requirement. Paragraph 4 designates the buyer’s broker as a third-party beneficiary of the seller’s agreement to pay, allowing the broker to pursue the seller if payment is not made. Paragraph 5 ensures the seller receives full credit for the amount that would be paid to a separate brokerage firm, even if the seller’s broker offers a compensation discount to a dual agent broker.
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NEW FORMS
BHIA - Buyer Homeowner’s Insurance Advisory - This form bundles RPA with solutions to problems with insurance availability, contract contingencies, and resources.
MT - Modification of Listing, Buyer Representation, or Other Agreement between Principal and Broker - The text has been updated to include a statutory limitation that renewal of exclusive listing cannot exceed 12 months.
RLA - Residential Listing Agreement - Exclusive - The text has been updated to include a statutory limitation that renewal of exclusive listing cannot exceed 12 months.
RLMM - Residential Lease or Month-to-Month Rental Agreement - Periodic pest treatment paragraph only applies to houses. The insurance paragraph changed to only require the tenant liability policy to name HP and PM as additional interest parties, not additional insured. Local jurisdictions may require addenda.
RR - Request for Repair - Seller response to partial agreement has been modified to include optional paragraphs for credits and revised purchase price. The revised forms now conform to the RRRR form.
SPQ - Seller Property Questionnaire - There are two changes. The first change is adding a new question, 8D, which asks about accessory dwelling units (ADUs). The second change is adding a new item, 18C, which asks if the property was originally a manufactured or mobile home.
SPRP - Seller’s Purchase of Replacement Property - A new provision was added to the text, which requires the seller to provide evidence that they have a replacement property. If the seller is unable to provide this evidence, or if the replacement property transaction fails, the buyer may cancel the contract.
TEC - Tenant Estoppel Certificate - Reformatted to easier-to-use grid format. 3 categories were identified: General terms, utilities and services, and appliances. The latter two make it easy to identify the responsible tenant or housing provider.
TOPA - Tenant Occupied Property Addendum - If the property is to be delivered vacant, the seller must identify how they were able to get the tenants to leave. A new paragraph has been added that addresses the situation where the buyer is a tenant. 2E(7) has been added to specify the existing legal requirement to identify the use of security deposits, if any.
WCMD - Water-Conserving Plumbing Fixtures and Carbon Monoxide Detector Advisory - Changed title from “Notice” to “Advisory”
WHS - Water Heater Statement of Compliance - A note has been added to clarify that the form used when sellers are exempt from TDS is still required to include a water heater statement. This is because the water heater statement is still required even if the seller is exempt from TDS.
WHSD - Water Heater and Smoke Detector Statement of Compliance - This note is added to the text to clarify that REO sales are exempt from TDS.
MINOR UPDATES
AOAA - Assignment of Agreement Addendum - The optional consideration paragraph 3B was added to make it clear that the buyer has not, and will not, receive monetary consideration for any assignment. This is important because it ensures that the buyer is not being compensated for assigning the contract to another party.
RPA - Residential Purchase Agreement - Fortress Fire Wildfire Disclosure Report can now be ordered via a drop-down menu in 3Q(2).
RRRR - Seller Response and Buyer Reply to Request for Repair - The language in paragraph 2 has been updated to make it explicit that the seller must sign the RRRR form or an alternative. This change was made to ensure that there is no confusion about the seller's obligations.
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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.
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.
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.
