October 24th, 2022 at 2:41 pm
A. Yes.
B. Yes, if you are added as another “Listing Agent” to the listing agreement.
C. Yes, if you help the seller respond to a submitted offer.
D. No.
Answer: Happy Halloween everyone, because this is a bit of a “trick” question! The correct answer is D. The AVID is not a legally-required document, but that fact should in no way diminish the utmost importance we, as real estate practitioners, place on our AVIDs.
The law requires a listing agent to conduct a diligent and competent visual inspection of the property for transactions involving one-to-four residential units. The law merely requires the visual inspection; it does not require an AVID. However, to help agents prove in writing that they have conducted their visual inspection, the California Association of Realtors (C.A.R.) drafted the AVID about 20 years ago. But C.A.R. is just a trade association in the business of helping agents. C.A.R. is not a legislative or judicial body, nor is it a governmental agency.
Of course, our own company does require our agents to complete AVIDs. But our company requires the AVID to help protect ourselves against potential liability, and not because the AVID is required as a matter of law.
All “trick” questions aside, whether you should do an AVID when you are helping another agent generally depends on your involvement in the transaction. If, for example, you just answer a couple of phone inquiries concerning the availability of the property, but you do nothing else, you don’t need to do an AVID. But if you are added as another “Listing Agent” to the listing agreement (as in Answer B), you should complete an AVID to show that you have conducted your visual inspection.
What if you receive an offer (as in Answer C)? In that case, the seller is likely to expect that you have done a visual inspection to have the requisite knowledge and expertise to help the seller respond to the submitted offer. Hence, in that situation, you should do an AVID.
-Thank You to Randy Freed (Santa Barbara Office) for suggesting this week’s legal tip!
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