June 22nd, 2020 at 2:21 pm
• Transfer Disclosure Statement (TDS): This is an important announcement! One new checkbox has been added to Section I of the TDS. There are now a total of 3 checkboxes in Section I, and a seller must check at least one of them. If a seller does not check the first checkbox (Box 1) to indicate there are “Inspection reports completed pursuant to the contract of sale or receipt for deposit,” and the seller does not check Box 2 to indicate that there are “Additional inspection reports or disclosures,” the seller must now check the new Box 3 stating “No substituted disclosures for this transfer.” Section I has often been overlooked by both clients and agents. However, effective January 1, 2020, the TDS law has been revised to clearly delineate precisely when a buyer’s 3- or 5-day right to cancel begins. The new law provides that the TDS cancellation timeframe begins when Sections I, II, and III of the TDS are completed and delivered to the buyer or buyer’s agent. If the seller does not check any of the 3 boxes in Section I, the TDS will not appear to be complete, and a buyer may try to use that apparent lack of completion as a way to cancel the transaction at the last minute without losing the deposit.
• Disclosure Information Advisory (DIA): The DIA is a C.A.R. advisory that helps sellers complete their disclosures by addressing issues that commonly arise. The DIA has been newly revised to explain that one of the 3 checkboxes in Section I of the TDS must be checked (as discussed above).
• Property Visit and Open House Advisory (PVOH): This new form advises visitors of certain nonCOVID-related risks of viewing a property, such as the possibility that they may be seen or heard through hidden cameras or recording devices, or they may get injured. The PVOH also requires a visitor to take responsibility for any accompanying minors. Listing agents may want to upload the PVOH into their MLS listing along with the PEAD-V, and instruct buyers’ agents to get their clients’ signatures on both forms before viewing the property.
• Square Footage and Lot Size Advisory (SFLS): This new C.A.R. advisory is very similar to our own BHHS Square Footage Advisory. The new SFLS informs buyers that there may be different sources of square footage measurements and other square footage issues. It also provides a grid for sellers to disclose the square footage measurements from referenced sources.
• Residential Listing Agreement – Exclusive (RLA): The standard residential listing agreement has been updated to address the new NAR Clear Cooperation Policy (CCP). The RLA explains to sellers that, under the CCP, listings must be entered into the MLS within one business day of any public marketing as defined. Other revisions to the RLA include a recommendation for condo owners to consider ordering the HOA docs as soon as possible to avoid delays.
• Lease-Related Forms Revised: Five landlord notices for existing tenants have been revised to comport with the 2020 Statewide Rent Control law (CTT, NTQ, NTT, PCQ, and PRQ). As a reminder, our company does not provide any property management services to clients after the landlord and tenant have entered into a lease agreement.
Source: More information is available on C.A.R.’s Standard Forms webpage (password-protected for C.A.R. members only). This webpage includes a Quick Summary of the June 2020 C.A.R. Forms Release, as well as draft copies of the new forms and redline versions of the revised forms.
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