Courtside Real Estate: How REALTORS® Create Exceptional Value for Clients


This is a crucial time for real estate agents and brokers to understand and communicate the  immense value they bring to their clients. Having a  clear understanding of your “Value Proposition”  (the unique skills, knowledge, and value you as an agent bring to the table) is essential in a time of real estate boom and in times of uncertainty and change. This article will identify a few specific  deliverables all agents and associations can bring to  the table that stand out regardless of where the  market is. While the real estate industry seems to  be ever evolving because of technology and  changing structural dynamics, having a clear  understanding and ability to articulate your Value  Proposition will serve as a concrete pillar and  anchor during times of change or times of prosperity.  

Local Market Expertise: Your Key to Real Estate  Mastery 

One of the most significant ways REALTORS® can  serve as an asset to a client or transaction is being  knowledgeable in the local market. REALTORS®  provide Local Market Expertise in a manner that  technology and systems cannot yet match  (although Artificial Intelligence “AI” may narrow  this gap in the next few years).  

Think about the knowledge that comes from a  qualified agent working and living in a particular  market for an extended period of time. As agents  spend time working (and often living) in a given  market, they come to possess in-depth knowledge  of that market, the businesses, the people, and the  local ordinances and practices that make it up. This  knowledge includes understanding pricing trends,  neighborhoods, school districts, who the  powerbrokers of that community are, and  community amenities among other things. This  expertise is invaluable when assisting clients in  finding the right property, because an agent can  utilize these pieces of information to curtail the  transaction process to suit the client’s individual  wants and needs, ultimately finding the best match  of what the market has to offer with the client’s  desires and goals.  

Negotiation Skills: The Art of Closing Successful  Deals 

Building on this Local Market Expertise is the set of  essential Negotiation Skills that agents use in their  day-to-day business. Standing in between sellers  and buyers as a part of a standard course of  business, REALTORS® negotiate in some capacity  every single day they show up to work. As  repetition and practice refine an agent’s  negotiation skills, agents are better able to work on  behalf of their clients to secure the best possible  deal. Most agents do not realize it but given how  much time they spend negotiating each day, many  become very proficient at negotiating in their  practice. Ultimately, the development of sharp  negotiation skills leads to saving clients time and  money. It also allows agents to promote  themselves as strategic assets in the deal making  process. Negotiating Skills add value to an agent’s  Value Proposition because an agent can leverage  their Local Market Expertise strategically to the  benefit of their clients.  

Procedural Expertise: Streamlining Real Estate Transactions 

Another critical element of an agent’s Value  Proposition is the procedural expertise they bring  to each transaction. While it may not be the most  “fun” or exhilarating part of an agent’s practice,  the procedural expertise an experienced agent  possesses enables them to Guide the Process of a  sale. As any agent or purchaser knows, buying or  selling a property is complex and time-consuming.  It involves paperwork, inspections, legal  procedures, permits, etc.. Mastering these  procedural steps allows agents to bring value  because they can provide guidance and efficiency  to each transaction ensuring that clients  understand and complete all necessary steps.  

Expanding Your Professional Network: The  Untapped Resource 

So far, each element of the Value Proposition  discussed has identified how an individual agent’s  unique skills add value. There is another  perspective, however, by which agents bring value  to their clients: their Professional Network. Simply,  as an agent, you are not always going to have the  right answer, but most agents will know other  knowledgeable agents, inspectors, lenders, and  other professionals in their market who will. An  agent who has spent time cultivating relationships  in a market will know (and be able to utilize)  experienced mortgage brokers, home inspectors,  contractors, and real estate attorneys to serve their  clients. Depending on what a certain transaction or  client demands, or needs, an agent can provide  access to the right person at the right time for their  clients. Such connections expedite the  

sale/purchase process and provide clients with  trusted professionals to accomplish their goals. At  any point where a need arises that an agent is not  equipped nor able to handle, that agent can rely on  the other professionals in their Professional  Network to finalize the transaction.  

The Power of MLS Participation: Maximizing  Market Opportunities 

Another element worth considering adding to your  Value Proposition is: Participating in or Subscribing to the Multiple Listing Service (“MLS”). As most  people in the real estate industry know, the MLS is  a database used by brokers and agents to share  information concerning properties for sale. It  provides a “one-stop-shop” where subscribers and  participants can post and obtain detailed  information about properties for sale in a market  and search for properties that match their clients’  needs. Like the advantage a strong Professional  Network brings in helping an agent find the right  professional to help their client at the right time,  Participating and Subscribing to the MLS allows  agents and brokers to match their clients to the right property at the right time, and to do so  efficiently. It centralizes the information about  properties in a given market and allows for time  efficient searching. By utilizing the MLS, agents and  brokers can comprehensively search for properties  that are a good match for their clients while  maximizing their time through doing so efficiently.  

The Role of REALTOR® Associations in Shaping  Industry Standards 

While all of this is well and good for the Value  Proposition of individual agents, what is the Value  Proposition for real estate associations? When it  comes to real estate associations, much of the  value they add comes from the institutional  strengths and advantages of having a single  organization dedicated to supporting and seeking  the interests of its members as a whole.  

For instance, REALTOR® associations add value by  Educating its members. As any real estate agent  who has joined an association knows, associations  offer continuing education to its members that  helps them stay on top of (and ahead of) industry  developments and changes. Armed with this  education, REALTORS® can then take what was  learned and add it to their Legal Market Expertise to help their clients. Examples of this would be  continuing education classes or providing access to  literature, such as this article. Associations serve a  key role in providing tools and knowledge for  individual agents’ professional and personal  development.  

Associations also serve an important role in  Advocacy. Because associations are composed of  thousands of members and can pool the resources  and skills of those members, they are able to  influence policy and serve as advocates for  REALTORS® and consumers alike. This translates  into the association being able to help shape and  impact the law and policy making process. Many  

times, it is the associations who are speaking  directly with legislatures and lawmakers and  informing them of how changes to the law will  impact the day-to-day practice of REALTORS® and  consumers.  

Further, when it comes to the Advocacy Value  Proposition, associations often serve as  transmitters of real estate law and policy. For  example, the California Association of REALTORS®  (“C.A.R.”) regularly publishes and updates legal  forms and documents for its members to use. Each  form and document is updated on a regular basis  to match the most current iterations of California  real estate law as handed down by the Legislature.  Effectively, the associations “transmit” the legal  and policy changes taking place at the legislative  level to its members through maintaining forms  and then educating its members about the  practical significance of such changes. Here, the  Value Proposition for Advocacy is that when a  consumer uses an agent who is a member of an  association, they can be confident any transaction  they engage in will comply with the most recent  requirements of the law and ethical standards.  

Ethical Standards: Upholding Integrity in Real  Estate 

Further, membership in an association carries with  it another value building tool when it comes to  ethical responsibility. Namely, to be a member of  an association, most associations (such as C.A.R. or  the National Association of REALTORS® (“NAR”)),  the members are bound to Adhere to a Code of  Ethics that C.A.R. and NAR. propagate.  

Membership in these associations, is based on part,  on the real estate agent agreeing to be bound by  and comply with the respective Code of Ethics. In  terms of the Value Proposition, when a buyer or  seller uses an agent who is a member of an  association, they can be confident the agent will be  adhering to clearly defined ethical standards and  they will have an agent who prioritizes protecting  their clients as required under the respective  codes. For example, Article 1 of the NAR code  reads: “When representing a buyer, seller, tenant,  or other client as an agent, REALTORS® pledge  themselves to promote the interests of their  client.” (Code of Ethics and Standards of Practice of  the National Association of Realtors®, NAR, 2023- coe-standards-of-practice-2022-12-28.pdf  ( As a member of an association, your  Value Proposition is enhanced because you are  bound to seek the best interests of your client over  and above any of your own personal interests.  

While the industry faces many concerns related to  technology and competition, real estate agents  remain irreplaceable due to their Local Market  Expertise, Negotiation Skills, their ability to  smoothly Guide the Process, their Professional  Networks, and through Participating and  Subscribing to the MLS. Further, associations (and  REALTORS® who are members of them) bring value  to consumers because they help set industry  standards and influence real estate policy as  Advocates. Associations also serve an essential  function in increasing REALTORS®’ market  knowledge and expertise through continually  offering Education while also serving as an  important ethical anchor by providing and  enforcing a Code of Ethics all its members must  abide by. As transmitters of policy, associations  also ensure their members maintain and uphold  the highest legal and ethical standards by providing  them with the most up-to-date resources that  comply with the law.  

To bring value to your clients, you need to  understand what your value is. So, what is your  Value Proposition? What else would you add to this  article?  

Courtside Newsletter: New and Revised C.A.R. Forms in 2023


New and Revised C.A.R. Forms for December 2023
At the California Association of REALTORS® (C.A.R) business meetings in September 2023, the
Standard Forms Advisory Committee released the list of new and revised forms. This list includes one (1) new form, 38 revised forms, five (5) new and/or revised business forms, and three (3) new and/or revised short term (vacation) rental forms. Below is a summary of the forms and/or revisions you can expect to see released in December 2023.


This form highlights the significance of securing  property insurance, details the difficulty of  obtaining property insurance, the contract issues  that can impact insurance, and provides contact  information for the consumer’s questions on  insurance. C.A.R. strongly advises distributing the  form to a buyer promptly after establishing an  agency relationship.  

Property insurance is becoming increasingly  difficult to obtain due to California’s share of  natural disasters and the reality that some major  insurance companies have stopped or limited  writing new policies. This form allows agents to  address these issues up front.  



This is a new form that basically replaces the  previous version, HUD Notice to Purchase, with  substantive content equivalent to the previous  version. This form is required for FHA transactions  and addresses the importance of a home  inspection prior to purchase.  


This form was updated to address the responsible  payor, whether housing provider or tenant, for  periodic pest control service that is already in  place. However, it is only applicable if the subject  property is a house.  

Additionally, revisions were added to advise the  housing provider and tenant that city, county, or  other local requirements imposed may apply to the  Agreement.  



In this Agreement, revisions were made  throughout to conform to listing agreements.  These include updates regarding broker  compensation, agency relationships, dispute  resolution, management approval, and successors  and assigns to those in the listing agreement.  Additionally, the legally authorized signer and  signature paragraphs were updated to address  entity signers without need for the Representative  Capacity Signature Disclosure (RCSD).  


With Accessory Dwelling Units (ADU) on the rise,  question 8D was added to address whether any  structure on the property is, in fact, an ADU, and  whether that ADU received permits and has  separate utilities. Question 18C was added to  clarify whether the property was constructed as a  manufactured or mobile home.  


This addendum added language in 1A, 1C, and 4B  requiring the seller to give proof of having entered  into a contract to purchase or lease replacement  property if the seller removes the Finding  Replacement Property Contingency.  


This form was completely reformatted to include a  grid making it easier to see the questions in  General Terms and allowing for additional space  for the answers that are completed by the tenant.  


This form, used when selling tenant occupied 1–4- unit properties, added paragraph 2E(7) to address  the existing legal requirement of a seller to notify  

the buyer of the security deposit remaining and an  itemization of the use of the security deposit even  though paragraph 2A already requires the seller to  transfer the security deposit to the buyer.  



Per C.A.R., this updated Bill of Sale will provide  more flexibility regarding the condition of personal  property. The form added language to include  Joint Escrow Instructions and, if applicable, the sale  of the business operation described in the  Agreement. Paragraph 4A(D) was included to allow  for exceptions to seller representations. In  paragraph 4B(1) additional language was added to  include any express warranties.  

The form also removed the required notary  signature and made the notary signature optional.  Should a notary signature be required, the notary  will have to attach an appropriate  

acknowledgement form.  



In this form, language was added to clarify two  points: 1) the seller agreement is limited to the  items checked; and 2) the buyer agreement to

remove investigation contingencies requires the  buyer to either sign the RRRR or sign a CR form.  



The only change in this form was the added  language to clarify that the buyer has not and will  not receive compensation for the assignment.  


The only update to this form is the added language  to paragraph 14, which now includes both security  deposit and prepaid but unearned rent as possible  funds transferred to the buyer.  



Here, a notice to the tenant was added to inform  the tenant that once the Notice of Change has  been delivered, the change will take place with or  without the tenant’s signature.  


The only change to this form was the updated link  to the California Code of Ethics and Arbitration  Manual, which went live in July.  


This form changed the language in paragraph 6A to  make it clearer that some forms apply to clients  that are not California residents, or not qualified  entities, and some forms apply to those clients that  are California residents and qualified to do  business in California.  

Below is a list of revised transactional forms that  were reviewed by C.A.R. for accuracy and given a  new date:  

∙ Commercial Lease (CL)  

∙ Commercial Confidentiality and Non Disclosure Agreement (CML-CNDA)  

∙ Commercial – Environmental Issues  Addendum (CML-EIA)  

∙ Commercial – Landlord’s Environnemental  Consent (CML-LEC)  

∙ Commercial Release Agreement (CML-REL)  

∙ Delivery of or Failure to Deliver Short Sale  Lender Written Consent (DSSC)  

∙ Employee Estoppel Certificate (EEC)  ∙ Loan Broker-Sales Broker Disclosure (LBSB)  

∙ Mortgage Assistance Relief Services Offer of  Mortgage Relief Notice (MARSMRN)  

∙ Mortgage Assistance Relief Services Short  Sale Negotiation Notice (MARSSN)  

∙ Manufactured Home Dealer Addendum  (MHDA)  

∙ Mortgage Loan Disclosure Statement  Substitute (MSS)  

∙ Office Management Agreement (OMA)  ∙ Personal Assistant Contract (PAC)  

∙ REALTORS® Acknowledgement (RA)  

∙ REO Advisory (Listing) (REOL) – this was  reformatted to be consistent with Trust and  Probate Advisories  

∙ Radon Gas and old Notice and Release  Agreement (RGM)  

∙ Seller Owned Fictitious Business Name  Agreement (SOFBN) 

∙ Transaction Cover Sheet (TCS)  

∙ Broker/Associate-Licensee/Assistant Three Party Agreement (TPA)  

∙ Water-Conserving Plumbing Fixtures and  Carbon Monoxide Detector Notice (WCMD)  

∙ Water Heater Statement of Compliance  (WHS)  

∙ Water Heater and Smoke Alarm Statement  of Compliance (WHSD)  


This form applies to a business only and not to the  real property on which the business is located. The  seller is to complete and allow the broker to  provide a Business Disclosure Statement to the  buyer. The form accommodates over 30 optional  elements for consideration, which includes  inventory, furniture, fixtures, equipment, leases,  social media accounts, goodwill, fictitious business  names, customer deposits and gift certificates, and  financial statements. Additionally, there is an  optional provision that allows for the request for a  confidentiality agreement to be signed by the  buyer.  


This form was updated to conform to the  Residential Purchase Agreement as much as  possible, including the updated grid. The updates  include the option to purchase a business with a  filed fictitious business name and the option to  purchase the real property the business operates  on at close of escrow.  

The type of loan defaults to an SBA loan, allowing  for the loan to be secured by the assets of the  business – furniture, fixtures, and equipment (FFE)  – but not inventory. An option to secure seller  

financing by a lien on other real property was  added as well. Additional contingencies will now  include loan, investigation of business,  environmental investigation, seller document,  lease review, licenses and permits, and a franchise  agreement.  

Finally, the revised form now makes the seller  obligated to make disclosures on a Business  Disclosure Statement and includes a seller’s  minimum consulting period with an optional non compete agreement.  


The BDS allows the seller to document various  aspects of the business by using the same terms  specific in the BLA and BPA, such as inventory,  machinery, fictitious business names, logos, social  media, goodwill, financial statements, among  others. This form also allows for the identification  of approximate inventory value and lease terms,  facility description, notices of violation and  operational hours of business.  


This new, simple, one-page form was created in a  chart format to allow for the breakdown and  identification of the business for the purpose of  assigning value to each asset. C.A.R. recommends  that the buyer and the seller should each discuss  with appropriate professionals, such as a CPA or  tax attorney, to properly value the business assets.  


Another new, one-page form in chart format was  developed to identify the tangible assets of the 

business and assign an estimated value to each  item. 



The former vacation rental listing form was  renamed and overhauled to include many  important updates. This form is to be used when  intended occupancy is either 30 days or less, or a  seasonal rental between 31 and 90 days. While the  form default is that the broker will not manage the  property, it does offer the option of having the  broker manage the property if a management  agreement is provided.  

The Listing Terms now allocates for different rental  periods and rates, which can include different rates  for different days of the week, times of the year,  and holidays. This section also directs the broker  to use the appropriate additional forms based on  the days of occupancy. (C.A.R. does note that 30  days is the maximum occupancy allowed for the  collection of transient occupancy tax with some  cities more restrictive, and, therefore, traditional  landlord-tenant rules should not apply.)  Additionally, this section also breaks down items or  rooms that may be included or excluded from the  rental and any additional terms that may apply,  such as community amenities or utilities provided.  

Owner-reserved dates have been expanded to  allow the owner to reserve additional occupancy  dates by giving notice to the broker. Numerous  revisions were made to the compensation to  broker section, which now includes the option that  allows the broker to be compensated if an  occupant obtained during the listing period  subsequently purchases the property.  

The section on deposits was revised completely to  clarify the deposit depending on the duration of  the occupancy and who payments will be payable  to. New language was included in the sections  

regarding Multiple Listing Service and Security and  Insurance to include specifics. Additionally, new  language was added to include the owner’s  authority to lease or rent the property as a short term rental with provision of license or permit  number from the city or county, and, if the  property is located within an HOA, confirming that  the rental will be consistent with the HOA rules.  

New language was added to the sections on tax  withholding and broker and owner’s duties which  now includes that the owner will complete a Rental  Property Owner Disclosure for rentals that exceed  30 days. Attorneys’ fees were added and  substantial language to dispute resolutions was  included.  

Finally, C.A.R. included warnings in the title and  broker signature section cautioning that the form is  not binding unless it is signed by the broker or  office manager.  


This form, intended for occupancies of 30 days or  less only, has been revised to include an advisory  to use the Seasonal Addendum for occupancy not  

to exceed 90 days. The most common up-front  fees were addressed and identified to include  booking deposit, damage (not security) deposit,  and transient occupancy tax. Language was  updated to reflect that the return of a damage  deposit will follow the same process as the security  deposit in tenant rentals. Updates regarding  animals include the requirement for the form  Animals Terms and Condition Addendum (ATCA).  


This form, intended for occupancies of more than  30 days but not to exceed 90 days, was developed  to modify the STRA to address landlord-tenant laws that are likely to apply. The damage deposit is  limited to three (3) months’ rent for a furnished  unit and rental payments cannot exceed the first month’s rent in advance, so payments for fees such  as a booking deposit, cleaning deposit, or advance rent will automatically be treated as an additional  damage deposit. Statutory rental disclosures are  identified and may obligate the owner to complete a Rental Owner Property Questionnaire (RPOD) for additional disclosures.  


Should you have any questions or concerns regarding these forms, we encourage you to seek  qualified counsel through an attorney for answers.

Important Updates to California Association of REALTORS® Forms: June 2023 Edition


New & Revised C.A.R. Forms | June 2023

As some readers may recall from previous articles posted to the newsletter, California Real Estate Law is in a constant state of fluctuation. At the beginning of this year, we wrote about changes to forms promulgated by the California Association of REALTORS® (“C.A.R.”). Now, six months into 2023, this newsletter notes additional important changes to a number of forms that will impact professionals and clients alike. Much like our articles noting the changes in December 2022, the June changes range from minor organizational and formatting changes to more substantial adjustments. Additionally, there is some continuity the forms the C.A.R is revising. As the reader will see, many of the forms being updated in June were also updated at the end of 2022. We will indicate forms being changed again with an asterisk. Note: information about the changes noted in this newsletter comes directly from C.A.R.

Transactional Forms

RU-PA – Residential Units Purchase Addendum

This is an entirely new form being used with the Commercial Property Agreement form (or “CPA”) or the Vacant Land Purchase Agreement (or “VLPA”) forms. It is to be used in transactions involving a “mixed-use” property when the use of that property is primarily commercial in nature. Mixed-use property being property which functions as for both commercial and residential use.

Buyer Representation and Broker Compensation Agreement (or “BRBC”)*

This form was new and first implemented in December 2022 and was a combination and merging of previous forms. (See, Tyler Law LLP, (Dec. 20, 2022) [discussing the then new BRBC form].) For the June update to this relatively new form, the modification merely adds contact information for buyers on the signature page.

Cancellation of Contract, Disposition of Deposit and Cancellation of Escrow (or “CC”)*

Here, the form was updated in December 2022 which minor changes were made to time frames for a recipient to respond to an offer to mutually cancel the agreement. For the June updates, instructions were added concerning how to fill the form out if the cancellation is independent verses how to fill the form out if the cancellation is mutually agreed to. Additionally, new language was included addressing a partial release where no deposit had been made.

Cash for Keys (or “CFK”)

Changes to this form were actually made in April 2023. An important adjustment was made adding a warning that legal counsel needs to be sought to advise the housing provider to examine local laws concerning self-help evictions and advising the the housing provider not to use self-help remedies. Additionally, language was added to give notice the form is not just an offer of the housing provider to pay for relinquishment of the premises, but it is also an offer of the tenant to surrender possession according to the terms. These changes were based on a recent court decision.

New Construction Purchase Agreement (or “NCPA”)

Among some of the more substantial changes made to the C.A.R. forms, include the changes made to the NCPA. Stricter language was added to this form noting the seller must complete construction and provide the buyer with a certificate of occupancy by the date agreed for the closing of escrow. Further, if the property sale does not close, and the buyer is without fault, the buyer now has the explicit right to cancel the sale or elect to continue. Multiple paragraphs were also edited to include that statutory warranties under California Civil Code, section 895 et seq (also commonly referred to as “SB 800 Warranties”), are applicable to all sales.

Statewide Buyer and Seller Advisory

Language was added to this form to explain the purpose and nature of preliminary report and the importance of reading the documents contained therein. There were also notices added to inform parties that various State and local jurisdictions have/will be implementing laws which prioritize the use of appliances and fixtures that are fueled by the power grid as opposed to using carbon-based fossil fuels. In a similar vein, language was added to inform parties of the reduction or change in amount of credits and charges applied to properties related to their contributions to the solar grid. Language giving notice of the right to have discriminatory covenants removed from title was also added to this form.

Seller Counter Offer (or “SCO”)*

While the December 2022 revisions rendered use of older versions incompatible with the updated form, the June 2023 revisions are not as substantial. Here, an example is added to help explain the effect of a price change in a counteroffer has on an appraisal gap with the original offer.

Seller Multiple Counter Offer (or “SMCO”)*

Here, the June 2023 changes to the SMCO mirror in exact fashion the changes made to the SCO form (much like the December 2022 changes to both forms were mirrors of each other). Namely, an example is added to help explain the effect of a price change in a counteroffer has on an appraisal gap with the original offer.

Solar Advisory and Questionnaire (or “SOLAR”)*

This form, which was a new addition to C.A.R.’s stable of forms in December 2022, adds clarifying language to the information that sellers are required to provide buyers concerning any solar systems attached to the property. A new paragraph serves as a catch-all for any material fact the seller needs to disclose about the system to the buyer.

Seller Payment to Buyer’s Broker (or “SPBB”)*

Another change to a form which was not used prior to this year, instructions were added to clarify when the form is needed. Under the new language, the form only needs to be used if a buyer representation agreement has already been executed and the compensation through the Multiple Listing Service (“MLS”) will not cover the entire payment from the buyer to the buyer’s broker. Additionally, the first three paragraphs now have titles.

Tenant Occupied Property Addendum

Here, the June updates add language which creates an obligation for the seller of residential property to identify the names of any adult occupants on the property, regardless of if the adults on the property are paying rent.

Property Management Forms

Animal Terms and Conditions Addendum (or “ATCA”)

The substantially new ATCA form revises and replaces the C.A.R.’s previous Pet Addendum (or “PET”) form. This new version allows for use of the form for service or support animals (not deemed “pets” by law) and for other pets that are unrelated to any disability status of the tenant. The form includes rules which apply to all pets but also includes rules which are specific to non-disability related pets.

Lease Listing (or “LL”)*

In December 2022, the changes to this form rendered previous versions incompatible, with the new June 2023 changes, the January updated form can still be used. The new updates now require the owner to provide the agent both a Rental Property Disclosure (or “RPOD”) and Rental Property Owner Questionnaire (or “RPOQ”) (formerly the RPOD and RPOQ were one form) while only requiring the owner to provide the RPOD to the tenant.

Property Management Agreement (or “PMM”)*

Similar to the changes of the LL which were made in December 2022, changes to the PMM earlier this year rendered older versions incompatible with the updates earlier this year. These June 2023 updates are compatible with the December 2022 version. Here, similar to the June 2023 changes for the LL, the updated form requires the owner to provide the agent with both the RPOD and RPOQ forms (formerly the RPOD and RPOQ were one form) while only requiring the owner to provide the tenant with the RPOD form. Further, the new changes allow the broker or office manager to sign the form.

Residential Lease or Month-to-Month Rental Agreement (or “RLMM”)*

This form was brand new as of December 2022. Here, a minor change has been made to the disclosures language now only requiring disclosures applicable to the premises.

Rental Property Owner Disclosure (or “RPOD”)*

This form was also introduced in December 2022 as the rental equivalent of a Seller Property Questionnaire (or “SPQ”.) While the substance is similar to the December 2022 version, it has now been split into two separate forms, the RPOD and RPOQ.

Disclaimer: This article is intended as a general topical analysis of easements and the effects they can have on real property. Readers should consult a licensed and qualified attorney regarding any specific issues or scenarios they are facing regarding easements or other encumbrances of real property.

Thank you for registering for the Breakfast with the City Managers, presentations enclosed.

Thank you for attending SRCAR’s Breakfast with the City Managers event! We were very excited to see a sold-out crowd and hope you found the event informative and helpful for your business.  As promised, each of the city’s presentations can be accessed by the links below.  

Feel free to share this with anyone in your group that you think would benefit from this information. 

Save the date for next year’s event!  We will be back at Pechanga on Thursday, February 29, 2024, with the same great program and updates from our City Managers!

New California Real Estate Laws in 2023

Written By: Bradley Greenman, Attorney at Law & John V. Giardinelli, Attorney at Law | Of Counsel

With each new year comes new and revised evolutions to existing real estate laws. Similar to our article updating the new real estate forms, which have gone into use in December 2022, this article will examine some of the new laws the State of California has passed that affect membership. The changes noted are important for practitioners and consumers. This article intends to provide a brief overview of some of the changes taking place in the laws governing California Real Estate. Information on these new laws comes directly from the California Department of Real Estate. This is a small sample of the Bills signed into law.

Assembly Bill (“AB”) 1410 | Common Interest Developments

AB 1410 will modify California Civil Code section 4750, and add to sections 4739, 4754, 5101, 5870, 5875, 5880 to the Civil Code.  The changes to this law addresses some concerns brought about by social media. For example, governing documents for a homeowner’s association (“HOA”) can no longer prohibit members of the HOA from discussing their common interest development (“CID”) on social media, including critical discussion and speech of the association or its governance. Additionally, AB 1410 will render unenforceable any provisions of HOA documents that limit owners of an owner-occupied space from renting that space for more than 30 days. Finally, considering the COVID-19 pandemic, the new law also bans enforcement actions brought by the association against non-compliant members during a declared emergency, if that emergency makes it unsafe to comply. Importantly, this new law does not apply to the non-payment of assessments.

AB 1837 | Residential Real Property: Foreclosure

This new law changes parts of the process defined in Senate Bill (“SB”) 1079 in 2020. The older versions of the law allowed existing tenants, prospective owner-occupants, non-profit organizations, and local governments, to name a few, up to 45 days after a home foreclosure auction to make an offer that meets the winning bid. Specifically, the new law modifies the types of non-profit entities that qualify and excludes certain limited liability companies (“LLC”s) and all limited partnerships from bidding. There is also a provision that allows certain eligible bidders to create affordability covenants. The new law also creates a new enforcement mechanism for the SB 1079 process through the Attorney General, county counsels, city attorneys, or district attorneys, which enables the enforcement of the provisions of the AB 1087 through specific performance or any other remedies that law and equity provide. 

AB 2170 | Residential Real Property: Foreclosure Sales

Under AB 2170, there will be an initial 30-day window for eligible bidders to purchase properties acquired by lending institutions through foreclosure. The new law will require institutions that foreclose on 175 or more properties per year to accept offers from prospective owner-occupants, qualified non-profits, government entities, and other affordable housing providers for the first 30 days after a real estate owned (“REO”) property is listed for sale. REO meaning properties that are acquired by lending institutions through foreclosure auction sales. Further, under the law, lenders must respond to all offers in writing and they cannot bundle more than one foreclosure in single sale. Under AB 2170, a “bundle” is defined as, “the sale of two or more parcels of real property containing one to four residential dwelling units, inclusive, at least two of which have been acquired through foreclosure under a mortgage or deed of trust.” (Civ. Code, § 2924p(b)(1))

AB 2503 | Landlords and Tenants: California Law Revision Commission Study

This new law will charge the California Law Revision Commission with delivering a study to the California Legislature, which examines the establishment of consistent terms used in California law to describe parties to an agreement, lease, or contract for the rental of residential real property. This law will also apply to language and terminology used in contracts and agreements for lease or rental of mobile homes.

AB 2559 | Reusable Tenant Screening Reports

New AB 2559 defines the elements that reusable tenant screening reports must contain. Under the new law, “reusable screening report” is defined to mean a report that:

Was prepared within the previous 30 days by a consumer reporting agency at the request and expense of an applicant[;] [i]s made directly available to a landlord for use in the rental application process or is provided through a third-party website that regularly engages in the business of providing a reusable tenant screening report and complies with all state and federal laws pertaining to use and disclosure of information contained in a consumer report by a consumer reporting agency[; and] [i]s available to the landlord at no cost to access or use. (Civ. Code, 1950.1(e)(6)(A)-(C).)

Additionally, landlords will be prohibited from charging fees if they accept a reusable screening report; although, it does not require them to accept a reusable screening report. Further, any local rules that provide more protection to the applicant will prevail.

AB 2745 | Real Estate Broker’s License

This bill changes the experience requirement for sitting for the real estate broker’s exam. Under the new rule, any general, non-licensed real estate experience used by the candidate to qualify for the exam must occur within five years of the examination application date.

AB 2960 | Judiciary Omnibus

AB 2960 clarifies that any real estate disclosure statement requirements effective on the date the sales contract is entered into will control the contract through its completion. This is the case even when real estate disclosure requirements are changed by statute after the contract is entered into but before complete performance is rendered.        

Senate Bill (“SB”) 1005 | Conservatorship: Sale of Personal Residence

This Senate Bill clarifies the Probate code regarding how a conservator or guardian may bring a partition action when the property is the conservatee’s present or former personal residence.

SB 1017 | Leases: Termination of Tenancy for Abuse or Violence

SB 1017 clarifies tenancy protections for victims of domestic violence or abuse. Included in the protections is a provision, which allows tenant victims to terminate their tenancy without penalty, and protection from eviction based solely on the acts of violence or abuse against them. Further, it extends eviction protection to tenants whose family members are the victims and to victims of crimes involving bodily injury or guns. Additionally, under the new law, landlords can be liable in civil actions to the tenant for actual damages and a fine up to $5,000 for not allowing a victim, who followed proper notice requirements under the law, to terminate their tenancy without penalty. Finally, changes to evidence release dates concerning eviction proceedings by expanding the evidence, courts can properly consider as proof of abuse or violence in eviction proceedings. It also establishes new court procedures for granting a partial eviction when the perpetrator of the abuse or violence resides in the same unit as the victim.

SB 1495 (not effective until January 1, 2024) | Professions and Vocations

This law changes the substance of the real estate practice course, which is required for all applicants to the real estate salesperson or broker examinations. There are two new additions to the practice course. First, the practice course will now include specific training and education for implicit bias, including but not limited to training on: explicit bias; systemic bias; historical and social impacts of bias; and steps students can take to address their own biases. Second, the practice course will now include training on state and federal fair housing laws and their practical application to practice of real estate. This second component includes a section where there is a role-play in which the student acts as both consumer and real estate professional. Finally, one minor change included in SB 1495 is the extension of the deadline for a licensee to publish a statement in their local newspaper that they will be using a fictitious business name. The deadline is increased from 30 to 45 days under the new bill. Note: this law will not take effect until January 1, 2024