August 19th, 2024 at 2:59 pm
Multiple Choice Question: What C.A.R. form should you use to cancel the BRBC? Pick the best answer:
A. Modification of Terms – Buyer Representation Agreement (MT-BR).
B. Cancellation of Listing (COL).
C. Cancellation of Buyer Representation (COBR).
D. Termination of Buyer Agency (TBA).
E. Any of the above.
Answer: Answer A is not the best answer. You would generally use the MT-BR to modify the terms of an existing BRBC, such as when changing the expiration date, compensation, or other terms. You can use an MT-BR to cancel your BRBC, but you are generally better off using the form that C.A.R. drafted for this purpose, as further discussed below.
Answer B is wrong. The COL should be used by listing agents to cancel a listing agreement with a seller. It’s not a good idea to use the COL to cancel a BRBC.
Answer C is the correct answer! Use the COBR to cancel a BRBC. If you have a “Continuation Period” (or safe harbor clause) in paragraph 2E(3) of the BRBC, you can list in paragraph 3A of the COBR any properties you have shown, as well as any other broker-involved properties. “Broker Involvement” is defined in paragraph 4B(4) of the BRBC. Alternatively, if you have a long list of broker-involved properties, you can incorporate into the COBR by reference a separate C.A.R. Notice of Broker Involved Properties (NBIP) form.
Answers D and E are wrong. C.A.R. used to have a TBA form, but it has been replaced by the COBR.
-A big thank you for suggesting this week’s legal tip goes to Marilyn Simon (Pasadena Manager) and Scott Brown (Director of Agent Growth & Development)!
Like what you see here? Sign up for more! Our free e-newsletter informs you of listings in your community, insider real estate tips, the latest in home trends, and more.
