QUESTION: I just saw that CAR changed the pictogram that is to be posted outside of Listed Property that is being shown during the Stay-at-Home Order. Why was it changed and are there new CAR rules?
ANSWER: You are correct. CAR has made several changes.
I. NEW SIGNS AND POSTED RULES: CAR modified their pictogram (released on May 17, 2020) and replaced it with a new pictogram on May 21, 2020. The copy of the new version is attached to this Tip. The change in the pictogram was to remove the requirement for wearing gloves since the emphasis is now on discouraging people from touching any surfaces and washing their hands or using hand sanitizer.
With the new pictogram is another new CAR document which enables the Seller’s Agent to post the rules that the Listing Brokerage is using to allow potential Buyers and other visitors to have access to the Property. That sign is attached to the CAR pictogram available online and a copy is separately attached to this Tip. CAR recommends including a link to these rules in any public advertisement, including the MLS.
II. NEW BEST PRACTICES: CAR has modified its Best Practice recommendations on in-person showing of properties to be in compliance with the Cal-OSHA guidelines that were released two weeks ago.
See Weekly Practice Tip: New State Rules Effective May 8, 2020 (05/08/20)
CAR has created a new FAQ: Industry Guidance on Showings in keeping with Cal-OSHA standards which can be accessed at https://www.carcovidupdates.org/faq-showings. This CAR document includes a Step-by-Step guide on how Agents should conduct themselves in showing properties and continues to emphasize that there are to be NO OPEN HOUSES.
Although CAR is refraining from taking any official position on promoting “open houses by appointment,” CAR apparently recognizes that such terminology is oxymoronic and may well not comply with the True Picture standard of advertising under Article 12 of the National Association of REALTORS® Code of Ethics.
III. NEW PEAD FORMS: CAR has also announced that it is bifurcating the PEAD form so that there will be a Seller version (PEAD-S) and a Visitor version (PEAD-V). However, those documents are not yet available and will probably not be on the Zip platform until sometime next week. It is anticipated that the new PEAD-V will enable Seller’s Agents to secure the written agreement of the Visitors (whether they are an Agent, potential Buyer, Appraiser, Inspector or any other person entering the Property) to abide by the posted rules.
IV. INTERIM STEP: Until such time as the PEAD V is available for use, we recommend that when the Listing Agent is setting up the appointment for anyone to visit the Property that the Listing Agent require all visitors (without any exceptions) to acknowledge receipt of the posted rules. To facilitate that process, separately attached to this Tip is a temporary Compliance Form that includes the CAR pictogram and the new CAR rules.
BEST PRACTICE TIPS: Now that CAR has changed its sign rules and its guidelines but has not yet updated the COVID-19 forms, our best advice is to do all of the following:
- Continue to use all of the current CAR COVID-19 forms in the manner proscribed by CAR; however, add the separately attached temporary Compliance Form to prove that the Visitor is, in fact, agreeing to follow the posted rules.
- Post both of the two (2) CAR signs at the entry to the listed property in a prominent manner and follow the safety and sanitation practices as specified in those new signs.
- Continue to advise clients, vendors, inspectors and all other people who enter properties for sale or rent to follow those same safety and sanitary practices – everyone should sign the most current version of the PEAD form.
- If any client or other person refuses to follow your advice, document your advice warning against unsafe activities in an email to the client. That email should specify what the client has told you, why they will not follow your advice and it needs to confirm that the clients understand that they are assuming the risk of not following your advice. That email should then be placed in the Broker file.
See Weekly Practice Tip: How to Handle Clients Who Will Not Follow Advice? (11/16/2018)
- Even though there is some relaxation in local Shelter-in-Place/Stay-at-Home Orders, Agents should strongly recommend that all persons entering property for sale or rent wash their hands or use hand sanitizer, wear a mask and not touch anything while in the property.
- Remember that stricter local Orders prevail over less strict state Orders. So, for example, if a local Order does not permit showings of seller or tenant-occupied properties, that local rule must still be followed.
- Other Brokers have created their own rules for showing their listings and have developed forms to secure the visitor’s advance approval of those rules. If you are representing a Buyer who wants to see another Broker’s listing and Listing Agent requires all visitors to sign their form, there is nothing wrong with you or your Buyer signing those forms as long as (a) you agree to comply with the other Broker’s procedures (b) the statements made in that form regarding the health of you or the Buyer are true; and (c) the Buyer is not being asked to waive any rights or indemnify, defend or hold harmless anyone.
This Weekly Practice Tip an attorney-client privileged document for the exclusive use of clients of Broker Risk Management and their Agents. It may not be reproduced or distributed without the express written consent of Broker Risk Management. The advice and recommendations contained herein are not necessarily indicative of standards of care in the industry, but rather are intended to suggest good risk management practices.
© Copyright Broker Risk Management 2020 05/22/20