Happy 2019! The CAR forms are standard real estate transaction documents created by the California Association of Realtors.
The CAR forms are standard real estate transaction documents created by the California Association of Realtors. These forms are constantly updated to reflect current California laws and rules. The Standard Forms Advisory Committee (SFAC) will release three new and eight revised forms next month. Below are a summary of the recently created or modified CAR forms.
When purchasing property that is under the jurisdiction of a homeowners’ association (HOA), buyers should be aware of the following five things.
SB442, codified as Business and Professions Code Section 7195, effective January 1 2018, doubles the safety standards for residential swimming pools. The law requires any new pool or spa, or any remodeling of an existing pool or spa, to include at least two of the seven drowning prevention safety features outlined below. Formerly, the law required only one of seven features.
When landlords decide to sell a residential rental property in California, tenants can sometimes be a bit of a wild card. Most sellers prefer to list properties vacant for a variety of reasons. Tenants have a lot of rights at law and it’s important to understand the local rules when helping to administer the end of a residential tenancy ahead of sale.
The Code of Ethics and Standard of Practice of the National Association of Realtors (“NAR”) has been a vital part of the real estate industry. It was created by NAR more than 100 years ago, and the Code now has 17 articles covering fair dealings with clients, the public and colleagues. Failure to comply can result in disciplinary action and fines. Here are some tips on how to avoid the most common ethics complaints.
Dispute Resolution in the CAR and PRDS purchase agreements
Both the CAR and PRDS purchase contracts have a mandatory mediation clause and an optional arbitration clause. The parties to an agreement need to initial the arbitration clause in order to invoke it, while the mediation clause is built-in as a part of the purchase agreement. Both are alternative dispute resolutions that allow the parties to resolve matters privately rather than through litigation. However, mediation and arbitration should not be confused with each other as they have significant differences.
The purpose of antitrust laws is to preserve a competitive economy in the free market. Under Section 1 of the Sherman Act, “[e]very contract, combination in form of trust or otherwise, or conspiracy, in restraint of trade… is hereby declared illegal.” When two or more brokerages conspire to restrain trade, a per se violation of the Act arises. In a per se violation, the intent of the wrongdoer does not matter. As long as the conduct occurs the violator is liable. Potential per se antitrust violations include price/term fixing, boycotting, and market allocation.
There are severe penalties for violations of antitrust laws. These can include 1) prison sentences of up to 10 years per offense, and 2) fines of up to $1,000,000 on each individual perpetrator.