Q: I notice that C.A.R. has recently announced that they are working with “Glide” to provide a mechanism for sellers to complete disclosure documents online. How does this work? Is this really a good idea, and is there anything I, as a listing agent, should look out for?
A: It is true that C.A.R. has signed an agreement with Glide to provide an online tool to allow listing agents to forward disclosure documents to their seller-clients for completion online. This program is being made available to REALTORS® statewide. Here is some of the information on Glide from C.A.R which includes links to informative pages and instructional videos:
“COLLECT TDS, SPQ & AVID FORMS SECURELY ONLINE
Glide replaces today’s dense PDF and paper forms with an easy-to-use, step-by-step online wizard experience that integrates directly with your existing zipForm® Plus account. Glide offers several benefits to you and your clients by ensuring all required questions have been answered, ensuring all responses are neatly typed, updating the response when new information arises easily, and much more. Get started today by creating your free account at Glide.com, follow the prompts, then you will be asked to link your zipForm® Plus account once you or your seller have completed at least one form. For additional help, access videos and tutorials are here: http://subscribe.car.org/e/85202/2018-08-14/5lxdnz/499532983.
“Glide is available as a free member benefit to over half of California REALTORS® through 12 local association and MLS partnerships.”
“LET CLIENTS FILL OUT THEIR DISCLOSURES! zipForm® is getting better and better and California members can now have their clients fill out those hefty disclosure publications easier than ever before. Use the SHARE button in zipForm® Plus and you will launch zipCommunity™, an online destination clients can visit to fill out their disclosures. See what else you can do with zipCommunity™, a member benefit for all REALTORS® statewide.”
Benefits: It is true that Glide does make the completion of disclosure documents easier for sellers and makes it easier for listing agents to get these forms to their seller-clients. Glide also has a number of useful features such as requiring all questions to be answered before completion of the form and requiring that all “Yes” answers include an explanation. It will also be easier for listing agents to discern where sellers have questions or are uncertain how to answer.
Potential Drawbacks: However, there are concerns because the Glide program does not currently include any type of Advisory to sellers, such as the new C.A.R. “Disclosure Information Advisory” (“DIA”), or a comparable equivalent (such as our Broker Risk Management “Seller Advisory Regarding Completing the TDS and Other Seller Disclosure Forms”) to explain the significance of the disclosure process. Unless the listing agent provides a proper Advisory to their seller-clients in advance of using the Glide program, their sellers will not receive proper guidance as to what steps should be taken before filling out the disclosure forms.
The fact that a seller is completing disclosure documents online does not change a listing agent’s obligation to assure that the seller understands their disclosure obligations. Sellers need to understand the importance of gathering and using “any known and available documentation to refresh your memory of past and current issues.” DIA, Paragraph 2.C. The online completion of forms is a convenient tool but it does not change the agent’s standard of care to provide their clients with appropriate advice and recommendations.
It should also be recognized that in addition to the sellers’ obligation to complete certain disclosure documents, sellers are obligated to deliver to buyers all documents in their possession which does or could affect the value or desirability of the Property. Remember the simple rule: “YOU GOT IT, YOU GIVE IT.” That rule applies equally to sellers and real estate licensees.
At present, the Glide program does not prompt sellers to review and/or provide documents in their possession to buyers and it does not have a means to upload the seller’s existing disclosures and reports so that the sellers’ documents can be provided with the disclosure forms.
PRACTICE TIPS
- It is essential for listing agents to deliver the DIA, or an equivalent Advisory, to sellers prior to sellers starting to complete their disclosure documents. This step is needed, regardless of the medium that sellers are using to complete their disclosure forms. Sellers must understand the need to review their existing disclosures and reports before they fill out these forms. The DIA and equivalent Advisories provide the requisite advice and information that sellers need; use of that Advisory helps to fulfill the listing agent’s obligation to provide proper advice to their sellers.
- It is always a good risk management practice for listing agents to provide the DIA, or an equivalent Advisory, to ALL sellers prior to, or at least concurrent with, delivery of the disclosure forms. This type of documentation has already proven useful in defending claims against listing brokers when sellers allege that the listing agent did not properly advise them of their disclosure obligations.
- Remind sellers to not only gather all available documents and review them prior to completing their disclosures, but to also deliver all of that documentation to the buyer, preferably at the same time as delivery of the fully-completed disclosure forms.
- Listing agents should always advise sellers in writing that if sellers have any general questions about completing disclosure documents, they should contact the listing agent; sellers need to know that their listing agent is available to answer general real estate questions. However, if sellers want to know how much they have to disclose or the best way to protect themselves in making those disclosures, sellers should be advised to consult with their qualified California real estate attorney.
DO NOT FORWARD TO SELLERS OR BUYERS. 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 2018 08/24/18