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March 2014: California Court of Appeal Further Decide on Extent of Brokers’ Fiduciary Duties


Recently, in Saffie v. Schmeling, the California Court of Appeal considered what the selling broker’s fiduciary duty to his buyer is regarding further investigating an earthquake report provided by the listing broker, and the extent of the duty of the listing broker and seller to the buyer. The Court clarified that the selling broker has a duty to further investigate an old report and that the duties of the listing broker and the seller do not include performing research for the buyer. Read more by clicking HERE.

February 2014: New Laws in 2014 that May Affect Real Estate Practitioners: Part 2


In the second half of this two-part series, we go over some additional laws that may affect real estate practitioners in 2014. You can also check out John Giardinelli’s schedule of upcoming classes. For the full article, please click on the following link:  http://srcar.org/assets/2014/02/February2014_Newsletter_New_Laws_Part_2.pdf

January 2014: New Laws in 2014 that May Affect Real Estate Practitioners: Part 1


This month’s Newsletter focuses on the newly enacted laws that may affect how real estate practitioners conduct their business.  Part 1 of a two-part series.  We also reference the forms released and discontinued by the C.A.R. in December 2013. For the full article, please click on the following link: http://srcar.org/assets/2014/01/January2014-Newsletter_New-Laws.pdf

Dec. 2013: C.A.R. November 2013 Forms Release


The California Association of REALTORS(R) recently released three new and 23 revised forms for use in real estate transactions. To read John Giardinelli’s summary of those forms, please click on the following link: http://srcar.org/assets/2013/12/December2013_Newsletter_New_Forms.pdf

July 2013: C.A.R. JULY 2013 FORM RELEASE


BY: SYLVIA J. SIMMONS, ATTORNEY AT LAWCASEY MCINTOSH, PARALEGAL

The California Association of REALTORS® (C.A.R.) released several new and revised forms on July 29th. The following is a brief summary of those forms and what their  changes mean to real estate practitioners.

New Forms
Two new forms replace the Seller Instruction to Exclude Listing (SEL). REALTORS® should take note that C.A.R. does not monitor the legal validity of any prior form version and the C.A.R. User Protection Agreement only applies to the most current version of a form.

Seller Instruction to Exclude Listing from the Multiple Listing Service (SELM)
The SELM provides a request by the seller to the broker to advise the MLS that the seller wants to completely exclude the property from the MLS. Paragraph 6, “Impact/Reduction of Exposure,” has been added to expound on the fact that any reduction in exposure may lead to a reduction in the number of offers made and may negatively impact the sales price. Paragraph 7, “Seller Opt-Out,” has been reformatted to make it easier to identify the time limitation on the exclusion.

Seller Instruction to Exclude Listing from Internet (SELI)
The SELI provides a request by the seller to the broker to advise the MLS that the seller wants to (1) opt-out of Internet display of the property or its address and/or (2) try to prevent comment features or value estimate features on MLS-related internet sites.

Revised Forms – 8 Listing Agreements
According to C.A.R., it is okay to use prior revisions for each of the following forms.

Commercial and Residential Income Listing Agreement (CLA)
The CLA now includes the following new provisions:

 

  1. A checkbox to indicate whether the listing will or will not be provided to the MLS.
  2. A blank to fill in the name of the MLS of which the broker is a participant or subscriber.
  3. A checkbox to indicate whether the MLS is or is not the primary MLS for the geographic area of the property.
  4. Boxed language (from the RLA with revisions) to be initialed by the seller and broker that explains to the seller the purpose and benefits of using the MLS, the impact of opting out of the MLS, the difference between the MLS and closed/private listing clubs or groups, and the requirement that a broker must present all offers to the seller.
  5. A section explaining the MLS rule that a listing must be submitted to the MLS within a certain amount of time, but that certain MLS data can be opted out of if the seller executes a Form SELM or the local equivalent form.
  6. A section with the dispute resolution language found in the Residential Purchase Agreement form requiring mediation and agreeing to arbitration if the seller and broker initial the provision.

Manufactured Home Listing Agreement for Real and Personal Property (MHL)

The MHL contains all the same additions as added to the CLA.

Probate Listing Agreement (PL)
The PL contains the same additions as added to the CLA regarding the MLS (1 through 5 above), but not the dispute resolution language.

Residential Listing Agreement (RLA)
The RLA boxed language regarding the MLS is revised to be the same as in the CLA (now includes “presenting all offers,” “clubs or groups,” “excluding it from the MLS”, and “reduction in exposure”). Also, “DRE” is changed to “BRE.”

Residential Listing Agreement-Agency (RLAA)
Residential Listing Agreement-“Open” (RLAN)
Trust Listing Agreement (TLA)
Vacant Land Listing Agreement (VLL)
Each of these forms contains the same additions as made to the CLA regarding the MLS (1 through 5 above). Also added to each form is a warranty by seller that seller is the owner, no other persons or entities have title to the property, and seller has authority to execute the form and sell the property.

* * *

The new forms released on July 29th emphasize the benefits the MLS offers to sellers and brokers, including the exposure that listing a property in the MLS offers. This implies that the property will sell more quickly and with less stress (and legwork) for both the seller and the broker.

As always, real estate practitioners should thoroughly understand the forms presented to their clients for signature. If a REALTOR® has any questions or concerns about which form is appropriate or how to complete a form, the broker, brokerage attorney, or other qualified legal counsel should be consulted.

Newsletter July 2013