On June 25, 2018, C.A.R. released its mid-year standard forms update. The update includes a few global changes affecting all C.A.R. standard forms, as well as 3 new standard forms and 8 revised standard forms. Here are some of the highlights:

• Update from CalBRE to DRE: All references in C.A.R. standard forms to a real estate agent’s “CalBRE” license number have been changed to “DRE” instead. This revision reflects the upcoming governmental reorganization of the “California Bureau of Real Estate” (CalBRE), which is currently under the California Department of Consumer Affairs (DCA), over to the “California Department of Real Estate” (DRE). The governmental switchover to the DRE shall take effect on July 1, 2018.

• “Date” Fields Blocked: zipForm users will now be blocked from filling in the “Date” field next to any signature line in any C.A.R. standard form. This change allows signers to insert the correct date when they sign their names in DocuSign.

• Broker Review Boxes Removed: C.A.R. has removed the small “Reviewed By” box at the bottom of certain forms used by brokers and managers to initial and date after they have reviewed the document.

• Disclosure Information Advisory (DIA): The new DIA form advises sellers about the importance of providing disclosures and completing the disclosure forms carefully, accurately, and thoroughly. This new form is not a mandatory form, but it is a highly recommended advisory to give to sellers in residential transactions.

• Buyers Homeowners’ Association Advisory (BHAA): This new form informs condominium buyers about the importance of reviewing the HOA documents, such as CC&Rs, bylaws, minutes, and other items. This form also reminds condo buyers that real estate agents will not review the HOA documents nor verify whether they are accurate or complete. The BHAA is not a mandatory form, but it is highly recommended when selling condominiums or other common interest developments.

• Statewide Buyer and Seller Advisory (SBSA): The SBSA has been expanded from 12 to 14 pages. It now includes a Table of Contents (on page 2). The various subject matters have been reorganized into 6 categories: Investigations; Property; Off-Site Conditions; Legal Requirements; Contract Issues; Other Factors; and Local Disclosures.

• Tenant Flood Hazard Disclosure (TFHD): The TFHD is a new required disclosure for all residential landlords entering into a new lease starting July 1, 2018. The form requires the landlord to disclose, among other things, any “actual knowledge” that the property is located in a Special Flood Hazard Area or an Area of Potential Flooding. These areas are the same 2 flood zones included in a Natural Hazard Disclosure. A landlord is deemed to have “actual knowledge” that the property is in a flood zone when: (1) the landlord receives a written flood area notice from a public agency; (2) the landlord’s mortgage lender requires flood insurance; or (3) the landlord currently carries flood insurance.

• Residential Lease (LR) and Residential Lease After Sale (RLAS): These 2 forms have been updated to include a reference to the new Tenant Flood Hazard Disclosure (TFHD). Additionally, all lease disclosure requirements have been reorganized into one paragraph entitled “Statutory Disclosures.”

• Application to Rent (LRA): A few revisions have been made to the existing LRA form. The question about a tenant applicant’s pets now excludes service and companion animals. Also, a notice has been added to the question about whether an applicant has been convicted of a felony. The notice warns a landlord that, instead of summarily rejecting an applicant with a felony, the landlord should give consideration to the nature of the felony and how long ago it occurred. The revised LRA also allows a tenant applicant to give his or her screening information and screening fee directly to the landlord’s screening service.

Source: More information is available on C.A.R.’s Standard Forms webpage (password-protected for C.A.R. members only). C.A.R.’s webpage includes a Quick Summary of the June 2018 C.A.R. Forms Release, as well as draft copies of the new forms and redline versions of the newly revised forms.

Copyright© 2018 Berkshire Hathaway HomeServices California Properties (BHHSCP). All rights reserved. Any unauthorized reproduction or use of this material is strictly prohibited. This information is believed to be accurate as of June 25, 218. It is not intended as a substitute for legal advice in individual situations, and is not intended to nor does it create a standard of care for real estate professionals.