BROKER RISK MANAGEMENT
WEEKLY PRACTICE TIP
NEW FORMS
RAD Realtor Acknowledgment and Disclosure – Replaces Realtor Acknowledgement – This form makes more succinct the benefits of using a Realtor. Added a section to make disclosures required by the Realtor Code of Ethics including relationship to a principal, and disclosures related to compensation including referral fees paid or received.
- RFA Referral Fee Agreement (Existing form) – This form was revised to a reference to the new RAD form (See above).
UOA Unsolicited Offer Attestation – New California law requires for properties in certain zip codes an attestation by Buyer and Seller that the offer was not unsolicited, which must be documented by Buyer.
REVISED FORMS
BCO Buyer Counter Offer, SCO Seller Counter Offer, SMCO Seller Multiple Counter Offer – Change was made to clarify time frames when there is a late acceptance.
BRBC Buyer Representation and Broker Compensation Agreement – In accordance with DRE regulations, changes have been added clarifying that the representation period should not exceed 90 days and, pursuant to paragraph 2A(1), does not exceed 90 days even if a longer time has been specified. Also, added a reference to the new CAR form RAD for certain Realtor disclosures. Paragraph 4E(4) added to indicate if Broker is paying a referral fee. Clarifies when the agent’s agency with client is terminated.
CAC Cancellation of Agency Confirmation; Amendment to Purchase Agreement – CAR added language to help clarify when and how to use this form: (¶1) for a Buyer’s Broker cancelling representation of Buyer; or (¶2) for when representation of Buyer or Seller changes during the transaction.
DIA Disclosure Information Advisory – A change clarifies that the SPQ can be used by exempt sellers who have material information about the property.
DM Demand for Mediation – The name of mediation service is changed, and the form has been updated to make it usable in disputes between housing provider and tenant.
ETA Extension of Time Amendment – Conformed the paragraphs to be the same as other agreements and amendments with an expiration of offer, acceptance, and not accepted sections.
HOA-RS Homeowner Association Request for Required Statutory Documents and Charges – Added that HOA must deliver a copy of the report of the inspection of balconies and other exterior elevated elements (“EEE”) as required by new law.
MLSA Multiple Listing Service Addendum – This form has added an option to begin the marketing at the selected date in the future to “Seller Instructions to Broker” page.
PSRA Property Showing and Representation Agreement – Changes include: (1) Paragraph 4B(4) added to indicate if Broker is paying a referral fee; and (2) added the Disclosure Regarding Real Estate Agency Relationship as an attachment, as required by new law.
RFR Receipt for Reports – Form has added language to clarify and expand the use of each section of the form.
RLA Residential Listing Agreement – Exclusive – Added Paragraph 2C(5) added to indicate if Broker is paying a referral fee. Also add is ¶ 12C related to the new law and using digitally altered photographs. The following listing forms were conformed to the RLA changes:
CLA Commercial and Residential Income Listing Agreement
LL Lease Listing
RLAN Residential Listing Agreement – “Open”
RLASR Residential Listing Agreement Seller Reserved
VLL Vacant Land Listing Agreement
RPA California Residential Purchase Agreement and Joint Escrow Instructions – This revision: (1) rearranges the order of paragraphs to place paragraphs to be initialed directly prior to the signature page; (2) adds ¶11E regarding electrical system inspection and disclosure; (3) adds a disclosure related to the electrical system as required by a new law; (4) updates the Geographic Targeting Order paragraph as a result of a new law; (4) changes ¶23 to clarify that Seller may reject an assignment if the request comes after the time specified or if Buyer is receiving compensation for the Assignment. The following purchase agreement forms are conformed to the RPA:
ABSPA Already-Built Subdivision Purchase Agreement & Joint Escrow Instructions
CPA Commercial Purchase Agreement
NCPA New Construction Purchase Agreement
NODPA Notice of Default Purchase Agreement
RIPA Residential Income Purchase Agreement
BPA Business Purchase Agreement
CCSPA Condo Conversion Subdivision Purchase Agreement
VLPA Vacant Land Purchase Agreement
SOLAR Solar Advisory and Questionnaire – This form is substantially revised creating three sections – Advisory, Questionnaire Instructions, and Questionnaire, which: (1) adds information to the advisory to provide better explanation for the clients; (2) adds a question about Solar Documents which shall be provided to Buyer; (3) adds and clarifies questions to provide more information to Buyer; and (4) adds checkboxes to owned, lease, or subject to power purchase agreement to provide more clarity.
SPQ Seller Property Questionnaire – This revision adds: (1) ¶17D adding questions related to any requirements related to the future replacement of gas appliances; and (2) ¶18B adding a question related to residue from smoking tobacco or nicotine products as required by a new law.
SWPI Septic Inspection, Well Inspection, Property Monument, and Propane Tank Allocation of Cost Addendum – This revision adds clarifying language about the time to deliver items or perform actions in the SWPI.
WFDA Wildfire Disaster Advisory – This revision updates the information resources and adds a warning about Buyer responsibility to obtain compliance post-closing, if applicable.
PROPERTY OWNER TENANT REVISED FORMS
RLMM Residential Lease or Month-To-Month Agreement – Revised adding a paragraph related to the new law that may require Housing Provider to provide a stove and refrigerator and giving the Tenant the option to provide and maintain their own refrigerator. Clarify the language related to Tenant breach and what may be charged by Housing Provider.
RLAS Residential Lease After Sale – Was conformed to RLMM changes.
RPOA Rental Property Owner Advisory – The revision added information conforming to the new laws related to providing a stove and refrigerator and the possibility of the Housing Provider being required to return the security deposit electronically.
RPOI Rental Property Owner Intake Form – A question was added about the existence of a stove and refrigerator that is required under a new law.
STRA Short-Term Rental Agreement
STRL Short-Term Rental Listing
SVRA Short Term (Vacation) Rental Advisory
Added information: (1) To STRA regarding cleaning charges; and (2) to STRL and SVRA about a new law requiring advertising on the internet to include any additional fees or charges and including specifically, any cleaning charges.
PROPERTY MANAGEMENT REVISED FORMS
CTT Notice of Change in Terms of Tenancy – This revision added language required by the law requiring Housing Provider to provide a stove and refrigerator on all new leases or amendments.
EL Extension of Lease – This form added language conforming to the law requiring Housing Provider to provide a stove and refrigerator on all new leases or amendments.
MOI Move Out Inspection – This form now has added information to the instruction sheet related to the new law that may require Housing Provider to return the security deposit electronically.
NRI Notice of Right to Inspection Prior to Termination of Tenancy – New information was added related to the new law that may require Housing Provider to return the security deposit electronically.
PMOI Pre-Move Out Inspection Statement – New information was added related to the new law that may require Housing Provider to return the security deposit electronically.
SUM-PMOI Pre-Move – Out Inspection Summary – New information was added regarding a new law that may require Housing Provider to return the security deposit electronically.
MINOR CHANGES
ACS Agent Commission Sharing Agreement – Changes the name of mediation service.
SSLA Short Sale Listing Addendum (no new date) – Adds Seller’s initials.
TEAM Team Agreement – Changes the name of mediation service.
TMEA Team Member Exit Agreement (no new date) – Changes the name of mediation service.
AAA Additional Agent Acknowledgement – Added checkbox to add more than 5 agents. Changes Landlord to Housing Provider. Conforms signature acknowledgment.
AC Confirmation of Real Estate Agency Relationships – Changes Landlord to Housing Provider. Conforms signature acknowledgment.
TRPR Offer of Tenant Positive Rental Payment Reporting – No substantive change was made but clarified language to make terms clearer.
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 practice.