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As our industry undergoes major shifts, C.A.R. has prepared several resources designed to provide you with answers to some commonly asked questions and guidance on the latest updates to how you do business.
 

Updated Business Practices

REALTOR® Value

C.A.R Responds to CFA Report on C.A.R. Buyer Representation Agreement (Updated June 25, 2024)

The Consumer Federation of America (CFA) yesterday released a report on C.A.R.’s new buyer representation agreement. While C.A.R. welcomes valid feedback, this report is, for the most part, a misguided critique of the forms.

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Amid the significant changes facing the industry as a result of the NAR settlement and the recent inquiry from the Department of Justice (DOJ), C.A.R. continues to revise its forms in order to produce the best possible documents for buyers, sellers, and C.A.R. members. Prior to the release of any revised or new forms, C.A.R. solicits broad input and takes all feedback into consideration. This CFA commentary is on an earlier draft of our agreement that was still a work in progress. In fact, C.A.R. has already made changes that address many of the concerns from the CFA.

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For example, the CFA piece says the form doesn’t comply with the NAR settlement. That is wrong. Both the draft reviewed and the latest draft of the form comply with all practice changes required by the NAR settlement, as well as with California law. The CFA also suggests that buyers might expect their agents to represent them even if the buyer says they don’t have enough funds to pay the broker. They suggest that offers of compensation outside the MLS are attempts to circumvent the NAR settlement, even though the settlement explicitly makes clear this is permitted. The CFA’s suggestions are absurd. Hardworking buyers’ agents are entitled to be compensated by their clients according to the terms of their agreements. Indeed, that clarity around compensation is the very substance of the NAR settlement. Nearly half the report consists of commentary on punctuation, capitalization, and the author’s opinions on design, rather than substantive legal issues.

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C.A.R. forms are drafted to comply with California law and facilitate California real estate transactions. The report demonstrates the author’s lack of familiarity with California-specific statutory language required for our real estate contracts. Moreover, consistent forms that cover myriad situations are important so that buyers, sellers and their agents can efficiently manage complex transactions.

 

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.

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An Important Message on Forms Release (Updated June 24, 2024)

Every June, C.A.R. updates its standard forms to reflect the latest legal requirements and best practices in real estate transactions. This week, we released 48 new and revised forms to help you work with your clients and transactions. Originally, 67 forms were scheduled for release, but 19 of them related to the changes in business practices required by the NAR settlement have been postponed. C.A.R. will make those additional forms and relevant education available prior to August 17.

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C.A.R. is continuing to review not just the NAR settlement but also Dept. of Justice (DOJ) statements to the industry, as well as feedback from our members. C.A.R. has received a formal inquiry about these forms from the DOJ, and the organization requires additional time to consider the DOJ’s concerns.

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We understand that some MLSs may already be implementing certain practice changes, and that members must conform their client agreements accordingly. To help members comply with the MLS rule changes, C.A.R. has released the necessary forms to modify listing and buyer representation agreements ― the DM-LA and DM-BR forms ― along with the other forms released this week. 

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C.A.R. forms have set the gold standard for conducting California real estate transactions in a systematized, ethical, and transparent way for decades, and we are working diligently to create the next set of forms that will continue to protect our members and serve consumers.

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We are in the midst of significant changes within our industry and, as such, there will be times when we have to adjust our plans, our timeframes, and even our expectations. As we’ve done, we will continue to keep you, our valued members, informed every step of the way.

 

Melanie Barker
C.A.R. President



Legal Resources ​​​

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Webinars

Legal Live Webinars​​

  • C.A.R.’s Legal Live Webinars are online presentations conducted by C.A.R. attorneys typically on the second Tuesday of every month. Hear about legal developments and answers to common questions. Watch live or from a recorded post. Legal Live Webinars are offered as a free member benefit. (Continually updated) - (must be signed in to access)

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Training

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Additional Updates 

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May 10, 2024

In anticipation of the upcoming practice changes resulting from the NAR settlement, C.A.R. is releasing a series of short articles about C.A.R.’s Buyer Representation and Broker Compensation Agreement (C.A.R. Form BRBC). In this article, we discuss the differences between exclusivity and non-exclusivity when using the BRBC. See The BRBC: Exclusive or Non-exclusive article.

 

May 3, 2024

NAR today shared key details of the required practice changes under the industry Settlement Agreement. These practice changes result in revisions to the MLS policy handbook which are summarized below. The revised policies will go into effect on August 17, 2024. A more detailed explanation of each practice change is available on facts.realtor. 

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The settlement requires NAR to implement the practice changes no later than the date of class notice. Through the preliminary settlement approval process, it’s been determined the earliest date of class notice is August 17, 2024. NAR is announcing these important changes now to ensure NAR members and MLSs have ample time to prepare.

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MLSs that have opted into the settlement agreement have until September 16, 2024 to implement the necessary policy changes and to be considered released parties, as provided in the relevant appendices they executed. However, NAR’s accelerated rule change process gives MLSs three months to adapt. In accordance with mandatory NAR policy, REALTOR® MLSs must implement the practice changes by August 17, 2024. NAR recommends all opting-in MLSs implement the practice changes by this date.

 

Over the coming days, NAR will discuss these changes in more detail and look for members’ questions and feedback. In the interim, NAR’s FAQ has been updated to reflect the effective date and provide additional detail on implementation. NAR is committed to working together to navigate these adjustments and providing as much guidance to its members as possible. As further details emerge, additional materials will be shared and posted to facts.realtor.

 

May 1, 2024

4 Things to Know About the New Broker Compensation Advisory Form

 

In mid-May, C.A.R. will release a new form, the Broker Compensation Advisory (C.A.R. Form BCA). This form was created to help agents have transparent discussions with their clients about broker compensation. See the form below under Resources.

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Additional Support 

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Buyer's Agent Resources

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As real estate brokerage models change, there is more reason now than ever before for a real estate licensee working with a buyer to document that relationship, including the possibility of payment. Learn about buyer representation agreements including the Buyer Representation and Broker Compensation Agreement (C.A.R. Form BRBC) and their use in real estate transactions.

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Visit the Buyer's Agent Resources page for more.

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National Association of REALTORS® Competition.Realtor Website

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For a comprehensive overview of and many resources for how REALTORS® and local MLS broker marketplaces benefit consumers, NAR prepared a collection of FAQs, videos, and other guidance as well as updates on the Burnett v. NAR et al verdict and ongoing lawsuits.

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Please visit Competiton.Realtor to access these resources.  

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