NOTE: These new and revised forms have been released and are now available on zipForms.
NEW FORMS
BIRN – Notice Regarding Background Investigation Reports Pursuant To California Law:
This new form provides Notice that consumers (i) can expect to be the subject of an “Investigative Consumer Report” or a “Consumer Credit Report” by a creditor (such as a landlord); and (ii) have a right to review such reports. This form is bundled with the Application to Rent (form LRA) and is not intended to be used when no “Investigative Consumer Report” or “Consumer Credit Report” is obtained.
CCPA – “California Consumer Privacy Act” Advisory:
A consumer Advisory explaining that (i) a person may have the ability to prevent the dissemination of personal information; and (ii) that information provided in the course of a purchase transaction might be considered personal information.
RECOMMENDED USE: Provide to ALL Sellers along with Listing Agreement forms, and to ALL Buyers along with Purchase Agreement forms whether or not the Brokerage is subject to the provision of the California Consumer Privacy Act of 2018. However, it is not necessary to provide this Advisory to non-clients on the other side of a transaction. It is also recommended that the form be provided to Sellers on pending listings that have not sold. If a Property has already been sold in 2019 (whether or not it closes in 2020), there is no requirement to provide the form to either the Seller or the Buyer.
RCJC – Rent Cap and Just Cause Addendum:
This Addendum was created to address the new Rent Cap and Just Cause Eviction law restrictions and exemptions. NOTE: If a Landlord intends to claim that the Property is Exempt, the Landlord needs to indicate which exemptions apply by checking the box in the exemption paragraph of the RCJC Addendum. CAR has announced that the RCJC Addendum should be provided to all Landlords before January 1, 2020 so that Landlords can immediately take advantage of any applicable exemption. If the exemption language is not in the lease, then the Landlord’s premises may be subject to the limitations detailed in the new law.
NOTE: For more information, see Weekly Practice Tip “Rent Cap and Just Cause Addendum.”
SVLA – Seller’s Vacant Land Advisory:
Like other Seller Advisories on various types of transactions, this Advisory explains the Seller’s disclosure and contractual obligations in the sale of vacant land. This Advisory should be given to Seller at the time that a vacant land listing is taken.
REVISED FORMS: NOTE: It is NOT OK to use prior versions of these forms except as indicated below. However, even if prior versions are OK to use, using prior versions of forms is always discouraged.
DRA – Denial of Rental Application for Credit or Other Reasons:
This form has been reformatted and language has been added to address investigative consumer reports which cover specified items such as eviction status reports and criminal history.
LR – Residential Lease or Month-To-Month Rental Agreement:
This form now modifies existing obligations of a Tenant to vacate the premises at the termination of the lease unless “mandated by any rent increase cap or just cause eviction control under any state or local law.” A new paragraph was added to remind Landlord and Tenant that statutory protections are given to members of the armed services. The RCJC Addendum is automatically included with this form.
LRA – Application to Rent/Screening Fee:
Due to changes in California law, the LRA limits felony history information to the previous 7 years and provides that criminal history information should not be considered until after other factors have been reviewed. Language has been added so an applicant can authorize Landlord to obtain an “Investigative Consumer Report” (“ICR”) in addition to a credit check, and includes a receipt of the separate BIRN form. A check box gives applicant the right to have an ICR provided free of charge.
RLA – Residential Listing Agreement
RLAN – Residential Listing Agreement – “Open”
RLASR – Residential Listing Agreement Seller Reserved (Prev. “Exclusive Agency”):
Language has been added to all three of these listing forms to let sellers know broker may contract with third-party companies to take videos/photographs and that such contracts may limit brokers’ future control over the use of such images; and that those third-party companies may retain certain rights to those images. OK TO USE PRIOR VERSIONS OF THESE THREE LISTING FORMS.
RLAS – Residential Lease After Sale:
This form now modifies the obligation of Seller/Tenant to vacate the premises at the termination of the lease unless “mandated by any rent increase cap or just cause eviction control under any state or local law.” The RCJC Addendum is automatically included with this form because CAR has recommended using that Addendum with all documents that create a Landlord-Tenant relationship.
SELM – Seller Instruction to Exclude Listing from the Multiple Listing Service:
Language has been modified to explain that different MLSs may distinguish between Days on Market and Days on MLS. Explicit language has been added to give Sellers the option to prevent any marketing of the Property for a defined period of time after the listing is executed. Contains a check box for Sellers to enable Seller to instruct Broker to exclude the listing from the MLS and that NO advertising or marketing will occur during the excluded period pursuant to the MLSs “Clear Cooperation Policy” as issued by NAR. OK TO USE PRIOR VERSION OF THIS FORM.
NOTE: THE FOLLOWING FORMS WERE REVISED SPECIFICALLY TO COMPLY WITH THE NEW RENT CAP AND JUST CAUSE EVICTION LAW. IT IS NOT OK TO USE PRIOR VERSIONS OF THESE FORMS.
NTT – Notice of Termination of Tenancy:
PCQ – Notice to Perform Covenant (Cure) or Quit:
CTT – Notice of Change in Terms of Tenancy:
A note to the Landlord has been added to all three Notices regarding the Rent Cap and Just Cause Eviction law and that these Notices should NOT be used if the premises is subject to that law. The information regarding Delivery of Notice has been updated to better reflect the required procedures.
The PCQ (while not mentioned in the form) required three (3) Day notice to the tenant cannot now include Saturdays, Sundays or judicial holidays.
The CTT has a checkbox to specify that the RCJC Addendum is attached.
A note to the Landlord has been added to this Notice regarding the Rent Cap and Just Cause Eviction law and that this form should not be used if the premises is subject to that law. The information regarding Delivery of Notice has been updated to better reflect the required procedures. Also added to this Notice are two additional reasons for using the form: holdover after sale and failure to cure breach under the Rent Cap and Just Cause Eviction law.
Form was modified to add a recommendation to seek local counsel if rent control applies. There is also a new checkbox to add the new RCJC Addendum (if rent is being increased at the time of the extension) to the Extension.
IOA – Interim Occupancy Agreement:
RCJC Addendum is now automatically bundled with this form.
PRQ – Notice to Pay Rent or Quit: While not mentioned in the form, the required three (3) Day notice to the tenant cannot now include Saturdays, Sundays or judicial holidays. The information regarding Delivery of Notice has been updated to better reflect the required procedures.
This Weekly Practice Tip is 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 2019 Broker Risk Management 12/20 /19