Home ImprovementsPivot May 29, 2019


The CAR forms are standard real estate transaction documents created by the California Association of Realtors. These forms are constantly updated to reflect current California laws and rules. The Standard Forms Advisory Committee (SFAC) will release three new and eight revised forms next month.  Below are a summary of the recently created or modified CAR forms.

New Forms

1. Buyer Homeowner Association Advisory (BHAA) – Advises buyers of the importance of a thorough review of HOA documents which will govern, affect and, in some cases, limit their current and future use of the property. More information on buying or selling subject to an HOA can be found in the previous Consigliere: 5 Things to Know Before Buying within an HOA

2. Disclosure Information Advisory (DIA) – Advises sellers of the importance of disclosing what they know affecting the value and desirability of the property, and taking the time to be thorough and complete when making required statutory and contractual disclosures.

3. Tenant Flood Hazard Disclosure (TFHD) – The newly enacted AB 646 requires the owner or person offering the property for rent to disclose to tenant specified information pertaining to the risk of flooding for every lease or rental agreement for residential property entered into or after July 1, 2018. The owner or agent must disclose in writing 1) Insurance issues, information about floods generally, and etc., and 2) The owner’s actual knowledge that the property is either located in a special flood hazard area or an area of potential flooding.

Revised Forms

1. Cancellation of Listing (COL) – The revised COL now gives broker additional options for compensation rights when agreeing to cancel a listing. “BRE” License number is changed to “DRE” Licensed number.

2. Lease/Rental Commission Agreement (LCA) – The LCA is modified so that tenants can agree to pay realtors commission. BRE License number is changed to DRE Licensed number.

3. Lease Listing Agreement (LL) – The revised LL adds language disclosing broker’s policy regarding cooperation. BRE License number is changed to DRE Licensed number.

4. Residential Lease or Month-to-Month Rental Agreement (LR); Residential Lease After Sale (RLAS) – The LR and RLAS are revised to add language referencing the required flood hazard disclosures. Tenant is made responsible for burned out light bulbs. BRE License number is changed to DRE Licensed number.

5. Application to Rent/Screening Fee (LRA) – The revised form adds that landlord may inquire about the nature and length of time from a prior felony after a credit review. Tenant is allow to provide screening information directly to an authorized screening service.

6. Statewide Buyer and Seller Advisory (SBSA) – The new SBSA is reorganized to include a table of contents.

7. Seller Property Questionnaire (SPQ) – The new SPQ adds clarification of questions relating to the lead based paint renovation rule for work on properties built before 1978.

Additional information can be found on the CAR website.