New and Revised CAR Forms

Happy 2019! The CAR forms are standard real estate transaction documents created by the California Association of Realtors.

Happy 2019! The CAR forms are standard real estate transaction documents created by the California Association of Realtors. These forms are constantly updated to reflect all recent California laws and rules. The Standard Forms Advisory Committee (SFAC) released two new and several revised forms last December.  Below is a summary of the recently created or modified CAR forms.

New Forms

  1. Pre-Occupancy Storage Addendum (POSA)
    The POSA is appropriate when a buyer wishes to store personal property on the seller’s property prior to close of escrow.

The form includes terms for the pre-occupancy storage, fees that the buyer agrees to pay the seller, location where storage is permitted, a waiver for any breach, including a statement that the waiver does not constitute a continuing waiver for the same or any subsequent breach, and a warning of consequence if escrow does not close on time or at all.

Additionally, the form includes a section for brokers. This part states that brokers do not recommend pre-occupancy storage and have advised the buyer and seller accordingly. Principals of the transaction are additionally recommended to seek legal advice from attorneys.

  1. Summary of Offer—RIPA (SUM-RIPA)
    The SUM-RIPA is a document attached to a Residential Income Purchase Agreement (RIPA). It includes a chart that summarizes the significant terms of the RIPA, including the purchase price, initial deposit amount, deposit amount, loan amount information, the anticipated close of escrow and possession date, and any contingencies and tenant estoppel certificates.

REVISED FORMS

  1. Bed Bug Disclosure (BBD)
    The BBD now contains the affirmation of the tenant’s obligation to timely inform the landlord of any bed bug issues and a waiver agreeing to release the landlord from any liability arising out of the tenant’s failure to comply with the BBD.
  2. Commercial Confidentiality and Non-Disclosure Agreement (CML-CNDA)
    The CML-CNDA has added language to state that notice is sufficient following a specified amount of time after an email is sent, provided that a copy of the notice is also sent on the same day to the secondary email, text number, or fax number set forth in the CML-CNDA.
  3. Homeowner Association Information Request (HOA1)
    HOA1 has been revised to include the relevant statutory language, which requires an HOA to respond within 10 calendar days from receipt of request for documents under the Civil Code Section 4525. The HOA must also complete Forms HOA2 and HOA3.
  4. Receipt for Reports (RFR)
    The RFR has updated to include the form BBD and TFHD in its attachments.
  5. Residential Listing Agreement (RLA)
    The RLA has been updated to include an new checkbox in the “Additional Terms” section. This box will be marked should the seller intend to make any resulting sale of the property contingent on finding a replacement property.
  6. Residential Purchase Agreement and Joint Escrow Instructions (RPA)
    The “Brokers Only Section” has a section added that requires the Listing Agent to inform the Selling Agent, upon request, whether or not the offer was actually presented to the seller. The Listing Agent must tell this to the Selling Agent in writing.
  7. Request for Repair (RR)
    The RR has been amended to include a note regarding credits and new language specifying that the seller is not required to respond to the buyer’s requests.
  8. Seller Multiple Counter Offer (SMCO)
    The SMCO added language in Paragraph 8 to advise seller not to sign in Paragraph 8 if the SMCO is subject to a counter offer and seller does not agree to the terms thereof.
  9. Single Party Compensation Agreement (SP)
    The SP has been revised so it is now applicable to lease transactions.
  10. Tenant Flood Hazard Disclosure (TFHD)
    The TFHD has been amended to indicate that the property is not in a flood zone or in an area of potential flooding by default. However, checking the box under Section 1 of the form will create an affirmative representation that the property is in fact in a flood zone or in an area of potential flooding.
  11. 11. The following forms will contain changes due to the approval of new agency disclosure requirements outlined in Civil Code AB1289 and are effective January1, 2019:

AC – Confirmation of Real Estate Agency Relationships; AD – Disclosure Regarding Real Estate Agency Relationships; BRE – Buyer Representation Agreement Exclusive (Right to Represent); BRNE – Buyer Representation Agreement Non-Exclusive; BRNN – Buyer Representation Agreement (Non-Exclusive/Not for Compensation); CCSPA – Condominium Conversion Subdivision Purchase Agreement and Joint Escrow Instructions; CPA – Commercial Property Purchase Agreement and Joint Escrow Instructions; ESPA – Existing Subdivision Purchase Agreement and Joint Escrow Instructions; MHPA – Manufactured Home Purchase Agreement and Joint Escrow Instructions; NCPA – New Construction Residential Purchase Agreement and Joint Escrow Instructions; NODPA – Notice of Default Purchase Agreement; PPA – Probate Purchase Agreement and Joint Escrow Instructions; PRBS – Possible Representation of More Than One Buyer or Seller; RIPA – Residential Income Property Purchase Agreement and Joint Escrow Instructions; RLA – Residential Listing Agreement – Exclusive; RLAA – Residential Listing Agreement – Agency; RLAN – Residential Listing Agreement – “Open”; RPA – Residential Purchase Agreement and Joint Escrow Instructions; TA – Trust Advisory; VLPA – Vacant Land Purchase Agreement and Joint Escrow Instructions

 

Additional information can be found on the CAR website.

Posted on June 25, 2019 at 11:33 pm
Intero | Category: Pivot

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