BROKER RISK MANAGEMENT
WEEKLY PRACTICE TIP
NOTE: All lease/rental and property management forms which contained the word “Landlord” have been revised in this CAR Forms Release to delete that word in favor of “Rental Property Owner” (“RPO”), or “Housing Provider” (a broader term which includes an RPO, property manager, agent, broker or other person who acts on behalf of the property owner).
CFK Cash For Keys: An instruction page was added advising: (1) that it is essential that the tenant sign the CFK before any other party, due to a recent court case; (2) housing provider to seek legal counsel to determine if local laws need to be addressed; and (3) housing providers not to use self-help remedies. Paragraph 1 was modified to make it explicit that this form is not just an offer of a housing provider to pay, but also an offer of the tenant to surrender possession on the terms specified.
ATCA Animal Terms and Conditions Addendum: This new form replaces form PET (Pet Addendum) and can be used for service or support animals in addition to pets, which are animals unrelated to the disability status of the tenant. Tenants must identify if the animal is a service animal, support animal or a pet. Most rules apply to all animals, however, certain rules, identified in ¶12 only apply to non-disability-related pets.
CTT Notice of Change in Terms of Tenancy: The instruction sheet has been modified to explain the Tenant Protection Act (“TPA”) and how the form should be completed if the property is or is not covered by the Act. The form has been reformatted making it easier to understand if the TPA applies, and advising the Housing Provider to consult with a local landlord-tenant attorney regarding the TPA and any local rent or eviction limitations.
FEHN 48-Hour Notice of Inspection Prior to Termination of Tenancy: Added to this form is a notice to tenants that state law permits tenants to reclaim personal property and provides information on costs of doing so.
LCA Lease Rental Commission Agreement: New ¶2 distinguishes between fixed-term extensions and month-to-month extensions. ¶3 was added to allow the option to earn commission on subsequent sales to tenants.
LL Lease Listing Agreement Exclusive Authorization to Lease or Rent: ¶12B has been modified to require the RPO to provide the agent with both an RPOD, Rental Property Owner Disclosure, and an RPOQ, Rental Property Owner Questionnaire.
NPC Notice of Obligation to Pay Rental or Lease Payments in Cash: This form adds language explaining that ¶2A should be used if the lease already addresses the consequences of a bad check (as like Form RLMM) and optional ¶2B is added which alters the lease/rental, if it does not already address dishonored checks. Mailing service has been removed as an option.
NTT Notice of Termination of Tenancy:
PCQ Notice To Perform Covenant (cure) or Quit:
The instruction sheet has been modified to explain the Tenant Protection Act and how the form should be completed if the property is or is not covered by the Act and makes it easier to understand if the Act applies.
PRQ Notice to Pay Rent or Quit: An instruction page was added with warnings not to use this form if: (1) used for rents due more than one year prior to the service of the notice; (2) the property is security for various federal government loans; or (3) the property is subject to a local rent or eviction control ordinance or moratorium. Advice was added for a housing provider to check with the local landlord-tenant attorney.
RCSD-HP (Previously RCSD-LL): Representative Capacity Signature Disclosure (for Housing Provider Representatives)
RCSD-T Representative Capacity Signature Disclosure (for Tenant Representatives):
This revision removes the separate signature boxes for lease, tenant representation, or other agreements.
NOTE: The RPOD has been split into the two forms following revised and new forms. Because of changes made to these two forms, Broker Risk Management is no longer advising agents to delete the CAR RPOD form from the LL and RLMM forms in favor of the BRM form “Landlord Residential Questionnaire and Statutory Disclosure” form, which is being withdrawn.
(Revised) RPOD Rental Property Owner Disclosure: This form, as revised, is now a disclosure by property owner to brokers and tenant conditions about the premises. It is set up in the format of the SPQ and makes disclosures not covered by the RLMM.
NOTE: Question 13 – Death on the Premises asks the RPO to disclose any deaths on the premises within the past 3 years, and the manner of death unless due to HIV/AIDS. Broker Risk Management recommends that any death on the premises at any time known to the RPO or agent be disclosed.
See Weekly Practice Tip “Death on the Property” for details.
(New) RPOQ Rental Property Owner Questionnaire: This form is substantially revised and is used by a property owner to disclose to lease listing brokers (not tenants) conditions about the premises in the format of the SPQ. This form is not to be delivered to tenants. Some questions contain affirmative obligations of the owner, such as water heater bracing and smoke alarm installation that are not required to be disclosed to tenants and cannot be avoided by simply disclosing noncompliance. Some items may be addressed in the body of the RLMM, such as gas and electric meters and parking and storage and assist the broker in completing that form. Some questions address items that can help a broker with management or answering questions posed by potential tenants, such as trash pick-up days, location of mailboxes, whether the owner allows pets and if the property has a laundry room.
RLMM Residential Lease or Month-to-Month Rental Agreement: In paragraph 38, disclosures have been revised to refer to those made in the RPOD which are applicable to the Premises.
PMA Property Management Agreement: ¶4B has been modified to require owner to provide to agent with both an RPOD and an RPOQ. The signature paragraph has been changed to state that this form must be signed by the broker or office manager to be valid, and subtitle to the form indicates this requirement.
WEEKLY PRACTICE TIP: DO NOT FORWARD TO CLIENTS. This Weekly Practice Tip is an attorney-client privileged communication 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 LLP. 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.