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New and Revised CAR Forms for December, 2021– Part 3 — Renamed Forms and Forms with Minor Revisions

by | Dec 23, 2021 | Contracts and Forms, Forms, Taxation and Property Tax, Virtual Panel 11.6

Q:  I know that CAR released its new Residential Purchase Agreement (“RPA”) in December and that CAR created several new forms. Are there any other revised or renamed forms?

A:  YES. In addition to the revised RPA, which was released the second week in December, CAR has also released seven other completely revamped purchase agreement forms, six brand new forms and made significant revisions to fourteen other forms.

See Weekly Practice Tip, New & Revised CAR Forms for 12/21 – Part 1 – Revised RPA and Seven Other CAR Residential Purchase Agreement Forms (12-3-2021).

See Weekly Practice Tip, New & Revised CAR Forms for 12/21 – Part 2 – Significantly Revised Advisories, Disclosures and Contract-Related Forms (12-10-2021).

CAR has also released eight renamed forms and several other forms that have undergone only minor revisions.  This Tip will focus on the renamed forms and those forms that have undergone only minor revisions:

 

I.  RENAMED FORMS. Aside from new names and/or new form codes, there have been no substantive changes to the following eight forms which are designed for use with the RPA 12/21 form (unless otherwise specified): 

  1. Buyer’s Intent to Exchange Addendum (“BXA”) formerly the Buyer’s Intent to Exchange Supplement (“BES”);
  2. Completed New Construction – Purchase Addendum (“CNC-PA”) formerly the New Construction Addendum to the RPA-CA (“NCRPA”);
  3. Delivery of Increased Deposit (“DID”) formerly the Receipt for Increased Deposit (“RID”);
  4. Lead-Based Paint and Lead-Based Paint Hazards Disclosure, Acknowledgment and Addendum (for Pre-1978 Housing Sales, Leases, or Rentals) (“LPD”) formerly the Lead-Based Paint and Lead-Based Paint Hazards Disclosure, Acknowledgment and Addendum (“FLD”);
  5. Options and Upgrades (Addendum to New Construction Residential Purchase Agreement) (“NCOU”) formerly the New Construction Options and Upgrades Addendum (“NCA”);
  6. Probate Agreement Purchase Addendum (“PA-PA”) formerly the Purchase Agreement Probate Addendum (“PAPA”) – which can now be used if the Property is in a receivership (bankruptcy);
  7. Wildfire Disaster Advisory (“WFDA”) formerly the Wildfire Disaster Advisory (“WDFA”) – which can be used throughout the state due to additional introductory language and was improved by eliminating the blank lines for local information; and
  8. Seller’s Intent to Exchange Addendum (“SXA”) formerly the Seller’s Intent to Exchange Supplement (“SES”).

 

II. FORMS WITH MINOR REVISIONS. The following fifty-four forms were revised so that they would all have the same revision date as the new RPA.  Some of these forms also have minor enhancements that do not impact their use; these forms are designed for use with the RPA 12/21 form unless otherwise specified: 

  1. Additional Agent Acknowledgement (“AAA”);
  2. Buyer’s Affidavit (“AB”) (the FIRPTA statement that Property is being sold for less than $300,000);
  3. Additional Broker Acknowledgement (“ABA”) Note—Only needed if multiple brokerages are representing one of the Parties;
  4. Confirmation of Real Estate Agency Relationships (“AC”);
  5. Disclosure Regarding Real Estate Agency Relationship (“AD”);
  6. Addendum (“ADM”);
  7. Amendment of Existing Agreement Terms (“AEA”);
  8. Assumed Financing Addendum (“AFA”);
  9. Seller’s Affidavit of Nonforeign Status (FIRPTA) (“AS”);
  10. Additional Signature Addendum (“ASA”) — Note this cannot be used to add new Buyers or Sellers;
  11. Agent Visual Inspection Disclosure (“AVID”) — Note that Seller no longer has to sign the AVID; Seller merely initials the document to evidence receipt;
  12. Buyer Early Occupancy Addendum (“BEO”) — Note that use of this form is still strongly disfavored because it is too risky to allow Buyers to occupy the Property prior to COE;
  13. Buyer’s Homeowners’ Association Advisory (“BHAA”)—Note that this form can now be used instead of the Broker Risk Management Homeowner Association Document Advisory for Buyers;
  14. Buyer’s Investigation Advisory (“BIA”) formerly the Buyer’s Inspection Advisory, it is now 2 pages long and explains that there are state and possibly county and/or city restrictions on rental property;
  15. Buyer’s Investigation Elections (“BIE”) – Note this is not a required form but can be used by Buyers’ Agents to document which inspections and investigations the Buyers want to undertake;
  16. Buyer’s Inspection Waiver (“BIW”);
  17. Back-Up Offer Addendum (“BUO”);
  18. Court Confirmation Addendum (“CCA”) — Note this is used when court confirmation is required but it is not a matter being handled by the Probate Court;
  19. Condominium Conversion and Existing Subdivision Supplemental Escrow Instructions (“CEEI”);
  20. Confidentiality and Non-Disclosure Agreement (“CND”);
  21. Demand to Close Escrow (“DCE”);
  22. Declaration Regarding Real Estate License and Tax Reporting (“DLT”);
  23. Electronic Signature Verification for Third Parties (“ESV”);
  24. FHA/VA Amendatory Clause (“FVAC”);
  25. Homeowner Association Information Request (“HOA-IR”);
  26. Homeowner Association Request for Non-Statutory Documents, Other Information and Charges (Disclosures not required by statute but required by the RPA) (“HOA-RN”);
  27. Homeowner Association Request for Required Statutory Documents and Charges (“HOA-RS”);
  28. Interim Occupancy Agreement (“IOA”) — Note that use of this form is still strongly disfavored because it is too risky to allow Buyers to occupy the Property prior to COE;
  29. Residential Lease or Month-to-Month Rental Agreement (“LR”) — Note this is for rental property;
  30. Market Conditions Advisory (“MCA”)­ — Note that this form auto-populates with the RPA and should be presented to Buyers and Sellers before they make any decisions regarding contingencies;
  31. Manufactured or Mobile Home Purchase Addendum (“MH-PA”) — Note that this form is used with the RPA and the old Manufactured Home Purchase Agreement form is being discontinued;
  32. New Construction Property Disclosure Statement (“NCDS”) — Note that this is really an advisory;
  1. Common Interest Subdivision Supplemental Escrow Instructions (“NCEI”) — Note that this is used as an Addendum to the New Construction Residential Purchase Agreement (“NCPA”) form;
  2. New Construction Notice of Completion and Notice to Close Escrow (“NCNC”) — Note that this is used with the New Construction Residential Purchase Agreement (“NCPA”) form;
  3. Notice of Nonresponsibility (“NNR”) — Note that this is recorded with the County by Sellers to limit their liability for injuries or damages caused by Buyers’ inspectors and contractors;
  4. Notice of Private Transfer Fee (“NTF”);
  5. Probate Advisory (“PA”);
  6. Possible Representation of More Than One Buyer or Seller (“PRBS”);
  7. Qualified Substitute Declaration of Possession of Transferor’s Affidavit of Nonforeign Status (“QS”) – Note most Escrow Officers will not use the CAR form but it can be used to determine if the form used by the Escrow Officer complies with the FIRPTA requirements;
  8. Representative Capacity Signature Disclosure for Buyer Representative (“RCSD-B”) — Note that this is not needed at time of sale (unless the Additional Signature Addendum is used and the person signing for the additional Buyer is acting in a representative capacity);
  9. Representative Capacity Signature Disclosure for Seller Representative (“RCSD-S”) —Note that this is not needed for Listing Agreements or at time of sale (unless the Additional Signature Addendum is used and the person signing for the additional Seller is acting in a representative capacity);
  10. REO Advisory (“REO”);
  11. Seller Financing Addendum and Disclosure (“SFA”);
  12. Seller License to Remain in Possession Addendum (“SIP”);
  13. Notice of Your “Supplemental” Property Tax Bill (“SPT”) — Note this form is not needed if the Buyer receives the Statewide Buyer Seller Advisory (“SBSA”);
  14. Short Sale Addendum (“SSA”);
  15. Short Sale Information and Advisory (“SSIA”);
  16. Septic Inspection, Well Inspection, Property Monument, and Propane Tank Allocation of Cost Addendum (“SWPI”);
  17. Trust Advisory (“TA”);
  18. Real Estate Transfer Disclosure Statement (“TDS”) — Note the only change to this form was the CAR revision date;
  19. Verification of Property Condition (“VP”);
  20. Wire Fraud and Electronic Funds Transfer Advisory (“WFA”);
  21. Water Heater Statement of Compliance (“WHS”) — Note only needed if TDS is not used; and
  22. Withdrawal of Offer (“WOO”) – Note this form is used to document the revocation of an Offer or Counteroffer that has not been Signed and Delivered (Accepted).

PRACTICE TIPS: 

  1. Make sure that your Checklist forms reference the correct or new name for all forms listed above and that with any new listings or sales the 12/21 version of these forms is used.
  1. If the prior version of any of the forms listed above was used in connection with an ongoing transaction, it is not necessary to redo the form (e.g., if the 6/20 version of the TDS was used in a current listing or pending sale, the Seller does not need to fill out the new version).

 ATTORNEY-CLIENT PRIVILEGED COMMUNICATION: DO NOT FORWARD TO CLIENTS.  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.

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