Summary: C.A.R. recently released a new Rental Property Owner Disclosure (RPOD) form to be used for lease transactions. Here are 6 frequently-asked questions about the RPOD:

1. What is the RPOD? The RPOD is a list of questions for a landlord to answer concerning the condition and other aspects of the property being leased or rented. It is formatted the same way as the Seller Property Questionnaire (SPQ). The RPOD is auto-bundled in zipForms with the C.A.R. Lease Listing Agreement. 

2. Is the RPOD a Required Disclosure? Yes. Under our newly-revised BHHSCP Lease Listing Checklist and Lease Transaction Checklist, our company generally requires you as our agent to obtain the RPOD for a lease. If, however, a client asks you whether the RPOD form itself is “legally required,” the answer is “not entirely.” Paragraph 4 of the RPOD sets forth “statutorily-required disclosures.” A “statute” is a type of law. However, paragraph 5 of the RPOD lists “non-statutory disclosures,” that we nevertheless recommend for a landlord to disclose to avoid potential issues.

3. What is the Problem with the RPOD Form? The current version of the RPOD has signature lines for the landlord and the listing agent, but not the tenant. C.A.R. recently told us that they will consider adding tenant signature lines to their form. In the meantime, any listing agent with a completed RPOD from the landlord must give that RPOD in its entirety to the tenant or tenant’s agent (and get the tenant’s acknowledgment of receipt). Otherwise, if you have a completed RPOD from the landlord that you do not give to the tenant, it may appear as if you are intentionally concealing something on the RPOD from the tenant.

4. What Should a Listing Agent Advise the Landlord-Client? Advise the landlord that we strongly recommend that he or she completes the RPOD. Also inform the landlord upfront that you will be giving any completed RPOD to the tenant and tenant’s agent. Hopefully, telling that to the landlord upfront will help avoid situations where the landlord tries to withhold information from a tenant. You may also point out to the landlord that completing the RPOD is easy to do, because the questions are based on the landlord’s own awareness. As an example, for paragraph 5E concerning bed bugs, if a landlord does not know whether the property has bed bugs, the landlord would simply check the “No” box, which means, “No, I am not aware.”

5. How Should the RPOD Be Given to the Tenant? When you get a tenant to lease a property, you can insert “See Also Attached RPOD” in paragraph 38K of the Residential Lease or Month-to-Month Rental Agreement (RLMM), and attach the entire RPOD accordingly. That way, the tenant’s signature on the lease will also be the tenant’s acknowledgment of receipt of the RPOD. As an added protection, you can also ask the tenant to separately sign and date the bottom of the RPOD to acknowledge receipt.

6. What if a Landlord Refuses to Complete the RPOD? As the listing agent, if your client refuses to complete the RPOD, you should carefully document your file with the following: (1) Proof that you have given the landlord a copy of the RPOD to review; (2) Proof that you have advised the landlord in writing that you strongly recommend that the landlord completes the RPOD, and if not, that there may be legal and other consequences that the landlord should discuss upfront with the landlord’s own attorney or other professional as the landlord deems appropriate; and (3) Landlord’s written acknowledgment of receipt of your advice.

Copyright© 2023 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 February 13, 2023. 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. Written by Stella Ling, Esq.