On June 27, 2023, C.A.R. plans to roll out its June 2023 Standard Forms Release with changes to over 100 of its forms. Many of the changes are minor, including the changing of the word “Landlord” to “Housing Provider” for about 20 leasing forms, and an updated revision date for about 30 other forms. Here are some notable highlights of C.A.R.’s Forms Release: 

Contingency Removal Forms (CR-B and CR-S):
The preexisting Contingency Removal (CR) form has been broken up into 2 separate forms: the Buyer Contingency Removal (CR-B) and Seller Contingency Removal (CR-S). Additionally, the CR-B now reminds buyers that their investigation contingency includes their investigation into the availability and cost of homeowner’s insurance (see RPA paragraph 12B(2)). Given that buyers in certain communities may experience difficulty obtaining affordable fire or flood insurance, the CR-B provides checkboxes to use when buyers do not want to remove the insurability aspect of their investigation contingency.

Residential Listing Agreement (RLA):
The RLA and other listing agreements have been revised to address whether a seller’s smart home features will be included or excluded from the sale (see paragraph 4C). The RLA also has a new option for the listing agent’s presentation of offers to the seller. Offers may be presented immediately upon receipt (absent the seller’s written instructions to the contrary) (see paragraph 10B(1)). Alternatively, a box can be checked for the listing agent to hold all offers and present them on a certain day (see paragraph 10B(2)).

Transfer Disclosure Statement and Other Seller Disclosures (TDS, SPQ, and ESD):
In an effort to minimize confusion, the first line of the Transfer Disclosure Statement (TDS) has been revised to give a seller of 2-to-4 units the option of using just one TDS form for all units or, if a box is checked, a separate TDS form for each separate unit. The Seller Property Questionnaire (SPQ) and Exempt Seller Disclosure (ESD) have also just been revised in the same manner. The Agent Visual Inspection Disclosure (AVID) was revised in the same manner a few years ago.

Statewide Buyer and Seller Advisory (SBSA):
The SBSA has been expanded to inform the parties that a Preliminary Title Report is not a guarantee of the condition of title, and the report may contain hyperlinks to important documents (paragraph A15); that certain communities may ban natural gas as a fuel source (paragraph D10); and that solar panel systems may have “net energy metering” that may change a homeowner’s fee structure (paragraph F8).

Residential Units Purchase Addendum (RU-PA):
The RU-PA is a new form to be used with a Commercial Purchase Agreement to address any residential portion of the commercial property. Last year, C.A.R. already released a Mixed-Use Purchase Addendum (MU-PA) to be used with a Residential Purchase Agreement (RPA) or Residential Income Purchase Agreement (RIPA) to address any commercial portion of the residential property.

Rental Property Owner Forms (RPOQ and RPOD):
The preexisting Rental Property Owner Disclosure (RPOD) has been revised to include signature lines for the tenants to acknowledge receipt. The RPOD is formatted like a Seller Property Questionnaire (SPQ), but it is used for a landlord to disclose certain issues to the tenant, such as lead-based paint, periodic pest control service, HOA restrictions, and any other material facts. C.A.R. has also released a new Rental Property Owner Questionnaire (RPOQ). The RPOQ is also formatted like the SPQ, but it is to be used when an agent takes a listing to identify any items that may need to be addressed before leasing the property (such as smoke alarms, carbon monoxide detectors, and water heater strapping). The RPOQ also informs the listing agent about certain aspects of the property that may help with the marketing of the property for lease, such as parking, storage, trash pickup, and pets. Unlike the RPOD, the RPOQ does not need to be given to the tenant.

Animal Terms and Conditions Addendum (ATCA):
What was previously called the Pet Addendum (PET) for lease transactions is now the Animal Terms and Conditions Addendum (ATCA). The ATCA requires tenants to identify their animals, whether the animal is a pet, a service animal, or an emotional support animal. For more guidance on how a landlord should handle a tenant’s animals without running afoul of fair housing laws, go to C.A.R.’s Pets and Animals Q&A  (password-protected for C.A.R. members only).

Source:
More information about C.A.R.’s June 2023 Standard Forms Release is available on C.A.R.’s Standard Forms webpage (password-protected for C.A.R. members only). The webpage includes a Quick Summary Guide of the June 2023 forms, as well as draft copies of the new forms and redline versions of the newly-revised forms.

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 June 26, 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.