State Directors Conference Update

Alcy Garcia’s Update

June 2017 Release

Updated Forms

There are 16 revised forms that are slated for potential release in June:

CLA: Commercial and Residential Income Listing Agreement

The optional arbitration clause was removed and replaced by language advising of the need to use a separate arbitration agreement if both parties consent. (Paragraph 18C) The reasons the arbitration clause was removed from the listing agreements because some attorneys for Sellers were using it to draw listing agents into contract disputes between Buyers and Sellers. The listing agreement arbitration was intended to cover only disputes between Sellers and their agents over the listing compensation.

This same change to the arbitration clause was made to the following 8 forms.

  • Residential Listing Agreement – Exclusive (RLA)
  • Residential Listing Agreement – Agency (RLAA)
  • Residential Listing Agreement – Open (RLAN)
  • Vacant Land Listing Agreement (VLL)
  • Exclusive Authorization for Vacation Rental (VRL)
  • Single Party Compensation Agreement (SP)
  • Lease Listing Agreement (LL)
  • Property Management Agreement (PMA)

AS: Seller’s Affidavit of NonForeign Status

There are two primary conceptual changes to this document. The first change affects the federal withholding law. The seller’s information has been divided into two sections: Information that can be filled out in zipForm and given to all buyers will be paragraph 2. Information in paragraph 4 cannot be filled out in zipForm and will only be given to a qualified substitute if paragraph 3 is checked or given to buyer if paragraph 3 is not checked. New paragraph 3 is an optional paragraph that indicates the seller’s intention to use a Qualified Substitute to document federal withholding. If paragraph 3 is checked, the AS-B will be provided to the buyer without the information in paragraph 4. A copy of the form (AS-QS) will be made, the information in paragraph 4 completed and then provided to title or 2 escrow who has the obligation to provide its own affidavit to the buyer. The second change concerns State withholding law. Explicit language regarding California tax withholding was removed and replaced with a reference to escrow compliance.

New Forms

December 2017 Release