C.A.R. Forms - June 2018 Forms Release - Summary of Changes & Additions

Of the many Member Benefits of belonging to the Greater San Diego Association of REALTORS® (GSDAR), few are heralded as much as GSDAR’s Risk Management Committee. This Committee is comprised of the best local real estate Attorneys in the industry; Brokers from all different sized companies; and, frequent visits by various levels of law enforcement, including CalBRE, FBI, DA, etc.

GSDAR monitors the content and use of forms at both the local and state level, and, many of the forms designed here to protect our local REALTORS® make their way rapidly across the state. Your input really does matter!

As you are aware, the California Association of REALTORS® (C.A.R.) updates their forms (normally) twice per year; generally, this is in response to Litigation and (upcoming) Legislation! The key legislative dates are 1 Jan, and 1 Jul!

C.A.R. will release another “publish” of forms in the ZipForms® library the week of June 25, 2018. There will be THREE (3) new forms, and, EIGHT (8) “revised” forms! There are additional “soft publishes” throughout the year, but these are usually intended to fix minor errors discovered in the state forms. Regardless of the type of “publish”, rest assured that those updates will never alter a transaction that you have in process; they are only upgraded in your “Library”, your Templates, or, when you add a “new” form to your transaction.

So, how do we find these forms changes? It’s simple; watch for updates from YOUR Greater San Diego Association of REALTORS®! You can even get the “redline version”! So, what are these new changes, and, how are they going to affect you? Let’s take a look!

There are three new forms:

  1. Buyer Homeowner Association Advisory (C.A.R. Form BHAA)—this form explains to the Buyer of properties that may be governed by a Homeowners Association (HOA) of the importance of carefully reviewing the HOA documents prior to taking title to the property. The HOA docs may contain information that would explain any limitations or use that the Buyer may intend for the property.
  2. Disclosure Information Advisory (C.A.R. Form DIA)—this form explains to the Seller the importance of fully and thoroughly disclosing any “material facts affecting the value or desirability of the property” that is the subject of the transaction. It explains further the distinction between statutory and contractual disclosures.
  3. Tenant Flood Hazard Disclosure (C.A.R. Form TFHD)—effective 1 July 2018, this form should be used in all residential rental or lease transactions by the Owner or Agent to disclose certain information regarding flood hazards. This includes any “actual knowledge” that the landlord may have.

There are eight revised forms:

  1. Cancellation of Listing (C.A.R. Form COL)—in addition to changing “BRE” back to “DRE”, this form allows for additional compensation options when a Broker cancels a listing.
  2. Lease/Rental Commission Agreement (C.A.R. Form LCA)—in addition to changing “BRE” back to “DRE”, this form now allows for the Landlord AND/OR Tenant to pay the Broker’s compensation.
  3. Lease Listing Agreement (C.A.R. Form LL)—in addition to changing “BRE” back to “DRE”, this form adds language disclosing the Brokers policy regarding compensation.
  4. Lease Rental or Month to Month Agreement (C.A.R. Form LR)—in addition to changing “BRE” back to “DRE”, this form recognizes the statutory disclosure section, includes language referencing the new required flood hazard disclosure as well as making the Tenant responsible for replacing burnt out light bulbs.
  5. Application to Rent/Screening Fee (C.A.R. Form LRA)—in addition to changing “BRE” back to “DRE”, this form seeks to distinguish between “companion animals” and “pets”. It allows the Tenant to provide screening information directly to an authorized screening service, as well as allowing the landlord to inquire about the nature and length of time from a prior felony (after a credit review).
  6. Residential Lease After Sale (C.A.R. Form RLAS)—in addition to changing “BRE” back to “DRE”, this form recognizes the statutory disclosure section, includes language referencing the new required flood hazard disclosure as well as making the Tenant responsible for replacing burnt out light bulbs.
  7. Statewide Buyer and Seller Advisory (C.A.R. Form SBSA)—the long awaited extensive reorganization of the SBSA form in a more orderly and cohesive format! It also includes a Table of Contents!
  8. Seller Property Questionnaire (C.A.R. Form SPQ)—the changes to this form include a clarification of the question relating to the Lead Based Paint Renovation Rule.

Please remember that you MUST use the new versions of the LR, LRA or RLAS forms as the new forms contain the required references to the statutory flood disclosures! “Statutory” means that the law requires it!

And, that’s it! Some significant changes, others that are minor, but the general thrust of it is that your Greater San Diego Association of REALTORS® is looking out for YOU! At the end of the day, we all experience the highest level of protection from the hard work of the Members of the Greater San Diego Association of REALTORS® Risk Management Committee, as well as the California Association of REALTORS®! Thank you, ALL! So, protect yourself, AND your Broker, by only using the current version of your forms!