The Consumer Federation of America has voiced concerns regarding the California Association of Realtors new forms. In wanting to always provide our students with the most updated information, we have continued to forward their articles to you. I believe it’s valuable for you to be aware of discussions and opinions from both sides, even when they may be critical, so you can form your own opinion. The more we know, the better we do.
After reviewing the CFA’s recent statement, you will see CAR’s response, along with another update from CAR regarding revised forms.
The Consumer Federation of America (CFA) today released a report on C.A.R.’s new residential listing agreement (RLA). Similar to the CFA’s report on C.A.R.’s buyer representation agreement, this commentary is on an earlier draft of the agreement that was still a work in progress, and spends an inordinate amount of time examining grammar, formatting, and design in an early draft of the form.
Moreover, the report contains wild speculations that brokers using C.A.R. forms will try to get around the NAR settlement. C.A.R. supports the goals of the settlement and is working to help members have clear conversations with their sellers around compensation options. The report also says that the draft form has too much information about what sellers can expect regarding marketing their home. Instead, we think information about the MLS and the offer process helps educate the seller and makes the form more consumer friendly.
The assertion that the agreement is overwhelming and unlikely to be read or understood by the average seller underestimates the capabilities and responsibilities of both sellers and their real estate agents. The complexity of the agreement reflects the complexity of California real estate transactions. The agreement is designed to cover various scenarios and provide clear guidelines, which ultimately benefit the seller by ensuring that all potential issues are addressed upfront. Sellers are not left to navigate these complexities alone; their real estate professional is there to guide them through each provision, ensuring they fully understand the terms before agreeing to them.
For decades, C.A.R. forms have been the best in the industry for a number of reasons, from transparency to compliance. C.A.R. continues to work diligently to create new forms that will continue that tradition.
July 2, 2024
C.A.R. to release revised forms
On June 25, C.A.R. released 48 new and revised forms as part of its semi-annual update to its standard forms. We informed you then that C.A.R. would be postponing the release date of other forms to ensure that they met our high standards for use by members and consumers in light of the practice changes associated with the NAR settlement.
On July 10, the remaining forms will be posted on www.car.org. Beginning with the release of these forms and given the significant practice-related changes facing members at this time, C.A.R. will be providing numerous training opportunities to members on the use of these forms. Our leadership and legal staff will be hosting townhall meetings beginning July 10, with additional training through August as part of an aggressive training schedule. Many of these sessions will be recorded, as well. Additionally, our online class on the new buyer representation form will be made available free of charge to members. The forms will be released in zipForm® and other forms platforms on July 24. In order to be in full compliance by August 17, when the mandates of the NAR settlement go into effect, it is imperative that C.A.R. members are ready to use the new forms and prepared to discuss the changes with their clients.
While we understand change is difficult, we are also in an environment that continues to shift. As your partner, C.A.R. is fully committed to adapting however necessary and communicating with you, our members, as often as needed.
We have taken great care to create new and revised forms that are easy to understand. Standard forms are evolving documents, and we believe that these revisions not only meet the needs of the current moment but also equip our members with the best possible tools to ensure their ongoing success.
Melanie Barker
C.A.R. President
July 3, 2024
Update: “The forms will be released in zipForm® and other forms platforms on July 24. As a reminder, in order to be in full compliance by August 17, when the mandates of the NAR settlement go into effect, it is imperative that C.A.R. members are ready to use the new forms and prepared to discuss the changes with their clients.”
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