The Standard Forms Advisory Committee (SFAC) is releasing four new and 14 revised forms this week. The new forms are all related to rental properties. Of the 14 revised forms, eight are listing agreements. Below are links to the forms and a brief description of the changes.
Drafts of the New and Revised Forms and the June Forms Release Quick Summary are also available on the Standard Forms section of the new car.org.
- BBD – Bed Bug Disclosure
- CLR – Cancellation of Lease or Rent
- PPN – Pre-Possession Notice to Tenant to Pay
- WSM – Water Submeter Addendum
The Bed Bug Disclosure and the Water Submeter Addendum will enable landlords to comply with new statutory disclosure requirements.
The Pre-Possession Notice to Tenant to Pay, and the Cancellation of Lease or Rent were approved by the SFAC to address issues that arise when the tenant has paid partial rent at the time of entering into the lease, but before move in, with the obligation to pay the balance of the amount due before move in.
The Seller’s Affidavit has been modified to reflect that most sellers are now using a qualified substitute to comply with the federal withholding rules and the Foreign Investment in Real Property Tax Act. Additionally, the revisions reflect that escrows in California have a responsibility to see that California withholding is complied with.
- CLA – Commercial and Residential Income Listing Agreement
- LL – Lease Listing Agreement
- RLA – Residential Listing Agreement
- RLAA – Residential Listing Agreement – Agency
- RLAN – Residential Listing Agreement – “Open”
- SP – Single Party Compensation Agreement
- VLL – Vacant Land Listing Agreement
- VRL – Exclusive Authorization for Vacation Rental
The revisions to the listing contracts are primarily the same throughout. The arbitration section has been removed. There is, however, an advisory to the parties that they may use a separate arbitration agreement if they do desire to include an arbitration provision.
Sellers are also advised to post some form of notice to inform prospective buyers that there may be security cameras or recording devices on the property.
The LR has been revised to address pre-move in payments and related issues as well as short term rentals, photographs that may have been taken to advertise the rental property, growing marijuana and smoking of any substance, landlord disclosures, and the new bed bug and water-submeter notice requirements.
In the Property Management Agreement, there is a provision to allow tenants to pay rent by automatic deposit, owner representation and disclosure provisions have been revised, and the arbitration provision has been removed as in the listing agreements.
Both the LR and the PMA now include provisions to include the Representative Capacity Signature Disclosure.
- PPA – Probate Purchase Agreement and Joint Escrow Instructions
- REO – REO Advisory
- TA – Trust Advisory
The Probate Purchase Agreement revision removed language about liquidated damages and now clearly requires an Exempt Seller Disclosure.
The TA and the REO Advisories were revised to provide for requirements first with exemptions later, and to better address smoke detectors, carbon monoxide devices and water-conserving plumbing fixtures.
Source: C.A.R. Legal