Understanding the Latest C.A.R. Form Updates: June and July 2024
The real estate landscape is undergoing significant changes, driven by the NAR Settlement. In response, the California Association of Realtors (C.A.R.) has released a series of new and revised forms in June and pending end of July. These updates are crucial for agents to stay compliant and efficient in their transactions. Let's dive into the key changes and what they mean for your real estate practice.
June 2024 Forms Update
C.A.R.'s semi-annual forms update in June saw the release of 48 new and revised standard forms. These updates reflect the latest legal requirements and best practices in real estate transactions. Here are some of the most notable changes:
Wooden Balcony and Stairs Addendum (WBSA)
Purpose: This form is for sellers of properties with three or more dwelling units, addressing inspection and repair requirements for balconies and elevated elements.
Importance: Ensures compliance with new safety standards.
Security Deposit Exemptions Disclosure and Addendum (SDDA)
Purpose: Explains the one month security deposit presumptive limit and covers if rule is applicable to the housing provider.
Importance: Helps landlords understand and apply the correct security deposit rules.
Revised Residential Purchase Agreement (RPA)
Changes:
Introduction of a stand-alone Insurance Contingency to navigate the difficult insurance market.
Default method of document delivery is now electronic unless otherwise agreed.
Seller Property Questionnaire (SPQ)
Changes: New questions related to the “Flipper” Disclosure law, requiring additional disclosures for properties owned for less than 18 months.
For a detailed list of the forms released in June, visit C.A.R. Forms Update June 2024.
July 2024 Forms Update
In July, C.A.R. will release 30 more forms, responding to the legal environment shaped by the proposed settlement between the National Association of Realtors (NAR) and homeseller plaintiffs in antitrust lawsuits. After DOJ review a significant change in these forms is the removal of broker-to-broker offers of compensation, a proactive step towards adapting to anticipated industry changes.
Removal of Commission Sharing References
Purpose: To prepare members for a future where compensation decisions are made independently, rather than relying on traditional practices.
Impact: Encourages transparency and fairness in real estate transactions.
New Buyer Representation Agreement and Listing Agreement
Purpose: C.A.R. has adjusted the forms to better align with consumer protection standards and regulatory expectations.
For more details on the latest forms and revisions, check out the full list of new forms.
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Training and Compliance
To navigate these changes effectively, real estate agents should seek training through C.A.R.'s various educational resources. C.A.R. offers comprehensive courses that cover the new forms and best practices in real estate transactions. You can find training sessions on their Education page, which includes live lectures, webinars, and online courses.
There may be things that you need to do in your transactions right now to stay compliant. This includes redoing your TDS/SPQ if old versions were used subject to AB2960. Many older listing agreement will need to have DM-LA signed by their seller to cover pending changes in many MLS's.
Conclusion
Staying updated with the latest C.A.R. forms is crucial for compliance and efficiency in real estate transactions. By understanding and utilizing these new forms, agents can better serve their clients and navigate the evolving legal landscape. For ongoing education and to ensure you're using these forms correctly, take advantage of the resources provided by your broker or C.A.R.
For more insights and updates on real estate practices, visit our blog page and explore articles on various topics, including new real estate laws in California and broker management systems.