BROKER RISK MANAGEMENT
WEEKLY PRACTICE TIP
NEWFORMS
CAC Cancellation of Agency Confirmation; Amendment to Purchase Agreement
This form has two uses:
(1) The first section may be used to cancel the agency relationship between the buyer and buyer’s broker before the contract has been accepted (such as when the seller will not pay and the broker has the right in the representation agreement to step out of the transaction).
2)The second section is used to cancel the agency relationship and amend the purchase contract to reflect the proper agency relationship (such as when an agent moves to a new broker and the new and old broker, and the principals, agree to the transfer).
ECC-B Estimated Compensation Costs for Buyer
This form is a tool to help a buyer understand the effect of various changes where the payment to the buyer’s broker comes entirely from buyer, or all or a portion from seller.
ECC-S Estimated Compensation Costs for Seller
This form is a tool for a seller to compare the net proceeds before costs related to paying different amounts to the buyer’s broker.
IDA Increased Deposit Addendum
Due to limited usage, these paragraphs were removed from the RPA and put on a separate addendum for when the parties agree to an increased deposit.
TOBR Transfer of Buyer Representation Agreement
This new form is for the situation where a buyer’s agent leaves one brokerage company for another and continues to work with the buyer either before or after in escrow. Failure to document the transfer to the new broker can be a DRE violation and presents problems for E&O coverage.
While not a party to the agreement, the agent acknowledges their responsibility for files. Agent can sign but the agreement is valid without the agent’s signature. Please note that BRM has an alternative form containing an option to include a release.
REVISED FORMS
BCO Buyer Counter Offer
SCO Seller Counter Offer
SMCO Seller Multiple Counter Offer
Clarifying that this counter is valid even if previous offers/counters expired, and that the parties are able to ratify the contract even if the acceptance comes after the counter offer expired.
BRBC Buyer Representation and Broker Compensation Agreement
Clarifies the broker contingency if the buyer does not have sufficient funds to pay the buyer’s broker’s compensation and seller will not pay. Also added the ability to shorten the cancellation timeframe on exclusive agreements to less than 30 days.
COBR Cancellation of Buyer Representation
¶2B The party(ies) can unilaterally ormutually cancel depending on the situation;
¶2C(2) Added an ability to cancel for certain properties only, specifically, if the broker is exercising the ¶9B(2) contingency because seller will not pay the compensation; and
¶2E The compensation terms are consolidated.
CR-S Seller Contingency Removal
If the SPRP ¶2C gives the seller an option (by checking the box) to extend the COEupon notice to buyer,
CR-S ¶2now has a check box notice to buyer to extend COE when removing the finding of replacement property contingency.
FHDA Fair Housing and Discrimination Advisory
Clarifying that the protected class for race, also includes racial traits.
LPD Lead-Based Paint and Lead-Based Paint Hazards Disclosure Acknowledgment and Addendum
Added changes related to the federal lead-based paint disclosure requirements by the housing provider and by agent for seller, buyer and/or tenant.
MLSA Multiple Listing Service Addendum
Removed the paragraph related to advertising the seller’s willingness to consider offers with concessions. This was moved to the listing agreement.
MT-BR Modification of Terms – Buyer Representation Agreement
Nowapplicable to tenant representation agreements; added preprinted options to amend the property type, location of the property to be found, and to change to an exclusive agreement.
MT-LA Modification of Terms – Listing Agreement
Now applicable for property management agreements.
OHNA-SI Open House Visitor Non-Agency Disclosure and Sign-In
Added a parenthetical to the title that this can also be used for individual private showings.
OA Option (to Buy) Agreement
Formatting of this form changed to be similar to the RPA grid format. Substantially re-organized but most terms remain the same.
PSRA Property Showing and Representation Agreement
Added an ability to attach a list of properties to this agreement. Added a continuation period where the broker may have the right to compensation for broker involved properties.
RLA Residential Listing Agreement – Exclusive
New ¶2E(2) authorizes the broker to publish/advertise the seller’s willingness to consider offers asking for concessions (previously in MLSA). New ¶10 added to explain seller concessions.
RPA California Residential Purchase Agreement and Joint Escrow Instructions
- Moved increase deposit paragraphs to newaddendum form IDA.
- Modified ¶3G to provide more clarity related to seller payments to cover buyer expenses.
- ¶3G(3) now includes the amount being requested for payment to buyer’s broker.
- Buyer is making an affirmative representation that they have a valid agreement that covers the property and that the compensation is at or above the amount requested.
- Requirement of buyer agent to provide proof of the compensation agreement is removed.
- The SPBB is removed. ¶18added clarification related to compensation.
- Modified ¶19D(2) escrow will provide: (i) a disclosure to the buyer of how much the buyer’s broker is receiving; and (ii) a disclosure to the seller of how much the seller’s broker is receiving and any credit being paid to the buyer’s broker.
SIP Seller License to Remain in Possession Addendum
Added language to allow entry for repairs and services required by the buyer’s lender or insurer.
Seller (or Housing Provider) Non-Agency Agreement
Added language to reflect that Buyer/Tenant may have a separate agreement for compensation and that agreements for compensation may be altered through the terms of the purchase agreement.
SPQ Seller Property Questionnaire
Per newdisclosure law, added question 9Bregarding water tank storage assistance during an emergency.
SUM-MO Summary of Multiple Offers
Now lists a net price after seller payments for buyer expenses. Contingencies listed separately.
TOL Transfer of Listing Agreement
¶4 now requires new broker to deliverto escrow any new necessary documents regarding compensation.
WBSA Wooden Balconies and Stairs Addendum
Notes a law extending the date for the first inspection of balconies to January 1, 2026 for non-HOA properties; HOA properties remain unchanged at January 1, 2025. ¶4 added listing Authorized Inspectors.
REVISED FORMS – MINOR CHANGES
Conforming to RPA changes
- ABSPA Already-Built Subdivision Purchase Agreement and Joint Escrow Instruction
- CCSPA Condominium Conversion Subdivision Purchase Agreement and Joint Escrow Instructions
- CPA Commercial Purchase Agreement and Joint Escrow Instructions
- NCPA New Construction Purchase Agreement and Joint Escrow Instructions
- NODPA Notice of Default Purchase Agreement
- RIPA Residential Income Purchase Agreement and Joint Escrow Instructions
- VLPA Vacant Land Purchase Agreement and Joint Escrow Instructions
Conforming to RLA changes
- CLA Commercial and Residential Income Listing Agreement
- RLAN Residential Listing Agreement – “Open”
- RLASR Residential Listing Agreement Seller Reserved
- VLL Vacant Land Listing Agreement
Conforming to RLMM changes
- IOA Interim Occupancy Agreement
- RLAS Residential Lease After Sale
Conforming language to Buyer Representation Agreements
- AD Disclosure Regarding Real Estate Agency Relationships.
NEW LEASE RENTAL FORMS
RPOI Rental Property Owner Intake Form
RPOQ is renamed RPOI to clarify that this form is for the agent to gather information, and NOT as a disclosure to the tenant (e.g., SPQ/VLQ for sales). Added questions regarding the wood balconies and stairs disclosure requirements. Added checkboxes to the Pool/Spa safety section regardingwhat safety features are present.
TRPR Offer of Tenant Positive Rental Payment Reporting
This form is used to inform the tenant that they have the right to request that the housing provider report positive rental payments to a consumer reporting agency. This form may be used at the time of the lease or at a subsequent time to either opt into this reporting or to opt out of this reporting. If the tenant requests to stop the reporting, then they may not request to resume positive reporting for 6 months. Housing provider may charge a fee for this service as outlined in the form.
REVISED LEASE RENTALAND PROPERTY MANAGEMENT FORMS
CL Commercial Lease Agreement
Added ¶7regarding Qualified Commercial Tenants due to new laws providing such tenants added protections, including longer notice requirements in certain circumstances.
LL Lease Listing Agreement
Added information related to new security deposit requirements referencing form SDDA and advising that the RPOto take photographs of the condition prior to tenancy). Added a paragraph informing the RPO that a tenant may request the RPO pay the tenant’s broker.
LRA Application to Lease or Rent/Screening Fee
Updated to reflect the requirement to provide a credit report if a screening fee is paid, and to have the ability to request it when it is obtained without a screening fee being paid. Added a paragraph related to the new law addressing screening fees and when it may have to be returned.
MOI Move Out Inspection
(NOTE: Should only be used by RPOs and Property Managers) Added information about the requirement after April 1, 2025 to provide photographs of the damage and repaired items with the security deposit accounting. Added a line to obtain the tenant’s forwarding address.
PMA Property Management Agreement
Added a paragraph related to the new security deposit law requirements to take photographs, including the date when each part is required.
RLMM Residential Lease or Month-to-Month Rental Agreement
Added ¶42 related to compensation being paid to the owner’s broker and tenant’s broker. Added an ability for RPO to agree to pay the obligation to the tenant’s broker. References new TRPR form.
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.