NEW FORMS
CSPQ Commercial Seller Property Questionnaire: Use with CPA or RIPA (5+ Residential) for seller to disclose information required by the purchase agreement, by law, or for good risk management practice.
DEDA Designated Electronic Delivery Address Amendment: Use this form to add or change a designated electronic address for delivery of documents on page 16 of the RPA, or on other CAR purchase agreement forms
FAAA Fair Appraisal Act Addendum: As of July 1, 2022, California law requires all purchase agreements for real property include specific language stating that appraisals must be unbiased, objective and basically not violate state Fair Housing laws. This required language is in this Addendum which is bundled with all CAR contract forms except the NCPA form does not have an appraisal contingency; however, was instead added to paragraph 4U in the grid in that form.
ICA Independent Contractor Agreement Forms, Binding, Non-Binding, and Combined: This form combines the former ICA-BA and ICA-NA into one with Binding Arbitration if initialed by Associate licensee. Language was added to paragraph 3D making the associate-licensee (either salesperson or broker associate) responsible for legal compliance with individual websites. Paragraph 4E already provides that associate licensee is responsible for compliance with anti-discrimination laws, and paragraph 14A already provides for indemnity to the broker for unlawful acts of associate-licensees.
MU-PA Mixed-Use Purchase Addendum: Use this Addendum with the RPA and RIPA to address the commercial portion of mixed-use property. Paragraphs are added to address a description of the commercial portion of the property; commercial tenants to remain in possession; financing method to allow for assumed or subject-to loans; and providing documentation for the commercial tenancies.
NSF Non-Standard Forms Advisory: This form informs buyers and sellers that terms in non-standard forms may negatively impact the principal, that brokers will not advise on such forms, and principals should consult with a qualified California real estate attorney with questions regarding the forms.
REVISED FORMS
(Some Forms With Minor Revisions Are Not Included Here)
_________________________________________________________________________
PURCHASE AND LISTING AGREEMENT FORMS
PURCHASE AGREEMENT FORMS – RPA, RIPA, CPA, VLPA, NODPA, NCPA, ABSPA, CCSPA: A new paragraph referring to the Fair Appraisal Act Addendum (C.A.R. Form FAAA) is being added to each of the purchase agreements in the appraisal paragraph. The only exception is that since the NCPA does not have an appraisal contingency, the new language referring to the addendum was instead added to paragraph 4U in the grid in that form.
*ABSPA Already-Built Subdivision Purchase Agreement and Joint escrow Instruction: In addition to the FAAA, the paragraph referring to SB 800 requires that a buyer be provided with the entire statute addressing new home builder statutory warranty and repair requirements. The statute is bundled with the forms and doubles the number of pages. The clause has been made optional, so it does not need to be checked, and the extra language does not need to be provided, if seller has previously provided buyer the statutory language or has created their own addendum to do so. If checked, zipForm will add the statutory language to the transaction from the ePubs library.
*NCPA New Construction Residential Purchase Agreement and Joint Escrow Instructions: In addition to the FAAA, the paragraph referring to SB 800 requires that a buyer be provided with the entire statute addressing new home builder statutory warranty and repair requirements. The statute is bundled with the forms and doubles the number of pages. The clause has been made optional, so it does not need to be checked, and the extra language does not need to be provided, if seller has previously provided buyer the statutory language or has created their own addendum to do so. If checked, zipForms will add the statutory language to the transaction from the ePubs library.
LISTING AGREEMENT FORMS – RLA, RLAS, RLAN The attorney fees clause was modified to remove the prevailing party language and replace it with language that each party is responsible for the payment of their own attorneys’ fees. The signature block was modified to allow for entity signatures like the new RPA. A legally authorized signer paragraph was added for conformity, so an RCSD-S is no longer needed with these forms.
*CLA Commercial and Residential Income Listing Agreement A subheading was added to clarify that the listing can be used for any residential income property, whether 5 or more units or 4 or fewer. Paragraphs 5, 6 and 7 were added to conform to the residential listing regarding the application of the MLS. Paragraph 8 was added to address issues applicable to 1-4 properties but not 5 or more or commercial, such as Clear Cooperation policies and Buyer letters. The attorney fees clause was modified to remove the prevailing party language and replace it with language that each party is responsible for the payment of their own attorneys’ fees.
*MHLA Manufactured/Mobile Home Listing Addendum Paragraph 1 of this form is updated to conform to property description in the Manufactured Home Purchase Agreement.
OTHER FORMS
ABA Additional Broker Acknowledgement: Now requires a signature by a broker or office manager.
CC Cancellation of Contract: Paragraph 1 has been modified to separate One-Party Cancellation from a Proposed Mutual Cancellation which requires both parties to sign in Paragraph 2 to be effective. Paragraph 2C(2) was modified to state that the 3% cap on liquidated damages only applies if the property is residential, with one to four units, one of which the buyer intends to occupy. Paragraph 2C(4) was added to address the situation where escrow needs to be cancelled but no deposit has been made.
COP Contingency for the Sale of Buyer’s Property: A reminder was added to 7B that the bottom of page 2 of the COP form can be used to give notice to the buyer to remove the COP contingency, rather than an NBP. Language added to the notice paragraph at the bottom of page 2 expressly identifying the conditions required to remove the COP contingency in paragraph 7.
FHDS Fire Hardening and Defensible Space Disclosure and Addendum: Substantial changes to the FHDS are discussed in a separate Weekly Practice Tip.
RR, RRRR Request for Repair: The RR was modified to allow a seller to require a buyer to sign a contingency removal form prepared by seller as a condition of the seller’s total or partial agreement to the buyer’s requests, removing the need for an RRRR in this situation. WARNING: This revision does not address the issue that the default position in paragraph 4A(1) is that if Seller accepts all of buyer’s requests, or seller accepts some buyer requests and buyer accepts seller’s partial agreement, then in that case, buyer is removing THE ENTIRE INVESTIGATION OF PROPERTY CONTINGENCY. Buyer agents should consider checking paragraph 4A(2) and adding a CR form removing only those contingencies that buyer is willing to remove in consideration of seller’s agreement to buyer’s requests.
BNA, SNA Buyer/Seller Non-Agency: These forms were modified to remove the reference to agency disclosure since it is only applicable for an agent representing a party and these forms establish non-agency. These forms should be used EVERY TIME a seller or buyer is engaging in a 1031 Exchange.
PA-PA Probate Agreement Purchase Addendum: Added language that seller has no obligation to sign escrow instruction or incur costs prior to court confirmation, when paragraph 4 applies. Added language to comply with probate court requirements that buyer designate manner of taking title (vesting). Removed individual paragraph references to primary contract documents for liquidated damages, mediation and arbitration and replace with paragraph simply deleting those paragraphs by name.
SIP Seller License to Remain in Possession: Language was added to the opening paragraph and paragraph 10 NOTE to warn buyer that if the possession exceeds the 29-day recommended limit, a local landlord-tenant attorney should be consulted as a landlord-tenant relationship could be established.
SMCO Seller Multiple Counter Offer: Language added to paragraph 8 to address the situation if the seller wants to put a buyer-accepted multiple counter offer in back-up position.
SPQ Seller Property Questionnaire: Paragraph 4 states that a “yes “answer should be provided regardless of how long an asked about event occurred. Paragraph 6A addresses the disclosure of the manner of death in addition to the death itself. Disclosure of Material Facts is made the last item in paragraph 6. Paragraph 7E was reformatted explaining when to answer sub-questions.
TOPA Tenant Occupied Property Addendum: This form was modified to make clear that the reason for the attaching a Rent Cap and Just Cause Addendum (Form RCJC) is for informational purposes only, and that the attached form does not have to be completed by seller and buyer. WARNING: Agents representing buyers should advise all buyers to consult with a local landlord-tenant attorney prior to signing this form. Paragraph 1A Buyer is taking the property subject to tenant rights of which most buyers may not be familiar. Paragraph 1B requires buyer to waive certain rights if seller is unable to remove tenant prior to the close of escrow.
WDFA Wildfire Disaster Advisory: Added language removed from the FHDS form advising that a buyer may consider information in the FHDS material even if the seller is not legally obligated to answers question in, or even provide, the FHDS.
NEW AND REVISED LANDLORD TENANT FORMS
NOTE: Landlords should be advised to review these forms with their local landlord-tenant attorney prior to using. Agents who are not property managers for the subject property should never advise landlords which forms to use, nor prepare or deliver forms to tenants.
PRQ Notice to Pay Rent or Quit
PRQCRP-2 Notice to Pay COVID-19 Recovery Period Rent or Quit
PRQ-TP-4 Notice to Pay COVID Transition Period Rent of Quit
PCQ Notice to Cure; Or Perform Covenant or Quit
PMCCRP-2 Notice to Cure; COVID Recovery Period Monetary Covenant or Quit
PMC-TP-4 Notice to Cure: COVID Transition Period Monetary Covenant or Quit
DISCONTINUED FORMS:
PRQ-CRP Notice to Pay COVID-19 Recovery Period Rent or Quit 2/21 Replaced by PRQ-CRP-2
PRQ-TP-3 Notice to Pay COVID Transition Period Rent of Quit 2/21 Replaced by PRQ-TP-4
PMC-CRP Notice to Cure; COVID Recovery Period Monetary Covenant or Quit 2/21 Replaced by PMC-CRP-2
PMC-TP-3 Notice to Cure: COVID Transition Period Monetary Covenant or Quit 2/21 Replaced by PMC-TP-4