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CAR December 2020 Forms Release – Revised Forms

by | Dec 22, 2020 | Advisories and Forms, Contracts and Forms

NEW FORMS:

For December, CAR issued two new forms which have been discussed in previous Tips:

  1. Fair Housing and Discrimination Advisory (FHDA) discussed in the 10/1/20 Tip.
  2. Home Fire Hardening Disclosure and Advisory (HHDA) discussed in the 12/18/20 Tip.

REVISED FORMS:  This Tip discusses the five revised forms for this CAR December forms release.

  1. CONTINGENCY FOR THE SALE OF BUYER’S PROPERTY (COP) 

It is important to read the entire revised COP form to understand how the revised form works. 

This form has been substantially restructured and modified to create a contingency for a buyer to be able to sell another property to bring funds to purchase the subject property. Significant changes have been made to the entire COP form. So, before its use, you must familiarize yourself with the form and consult with your broker or manager with any questions.

Note:  Broker Risk Management will be issuing a Weekly Practice Tip which will address these changes and how to use this form.

  1. RENT CAP AND JUST CAUSE ADDENDUM (RCJC) 

The form has been reorganized to bring the exemptions to the front of the form to make it more prominent for exempt owners to check a box confirming that when this form is provided to tenants with the box in Section II checked, they are exempt from the state rent cap and just cause eviction laws.

Note:  See the RCJC form Section II for which properties are exempt from both Rent Cap Requirements and Just Cause Evictions; and Section III for additional exemptions only applicable to Just Cause evictions. 

Finally, the RCJC is reorganized to make clear the reasons that either an “At Fault” or a “No Fault” termination of tenancy can be brought, and discusses the Notices that are required for a Just Cause eviction.

  1. SQUARE FOOTAGE AND LOT SIZE DISCLOSURE AND ADVISORY (SFLS) 

The form was reorganized to clarify each party’s representations and acknowledgments.  This revision makes clear that even if no numbers are inserted in the grid (i.e., no numbers are being disclosed), the form may still be used as an advisory.

  1. CONTINGENCY REMOVAL (CR) 

The form has been updated in paragraph 7.A and 7.B to reflect the changes made to the COP form.

  1. NOTICE TO BUYER TO PERFORM (NBP) 

The form has been updated in paragraphs G, H, V, W, X and Y to reflect the changes to the COP form.

WEEKLY PRACTICE TIP: DO NOT FORWARD TO CLIENTS.  This Weekly Practice Tip is 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                          12/22/20