Completing the Seller Forms
Contracts & Disclosures for a typical transaction
- Note: if a time period falls on a weekend or holiday, then it must be extended to the next business day. For example, if the standard buyer contingency removal time period of 17 days falls on Saturday or Sunday, then the date moves forward to Monday, the next business day. If Monday is a holiday, then the date moves forward to Tuesday, the next business day.
Steps to Listing
Step 1 – Always prior to the Residential Listing Agreement – complete the mandatory Agency Disclosure (form AD) and mandatory Possible Representation of More Than One Buyer or Seller disclosure and consent (form PRBS).
- As the listing agent, you must use the Listing Firm to Seller AD form. This form must be signed/dated by you, the listing agent, and the seller on page 1. The seller should sign in the box called Agency Disclosure Compliance.
Step 2 – Complete the mandatory Residential Listing Agreement (form RLA) including the Seller’s Advisory (form SA).
- You must submit all signed Residential Listing Agreements to the Broker within 72 Hours. Your broker is required by the DRE to have a copy of all listing agreements on file in the broker's business office. The broker has the responsibility to accept or reject each listing within 5 calendar days as necessary. The broker will review the document for completeness and accuracy. Any incomplete or incorrect items must be corrected and returned to the Broker within 24 hours after notification to the agent.
Steps to Offer
Step 3a. – If a Short Sale, complete the mandatory Short Sale Information and Advisory (form SSIA) – should be provided by the seller side - buyer side must counter-sign/date.
Step 3b. – If a Short Sale, complete the mandatory Short Sale Addendum (form SSA) – should be provided with the offer by the buyer side – seller side must counter-sign/date.
Step 3c. – If a Foreclosure Sale (bank-owned), complete the mandatory REO Advisory (form REO) – should be provided with the offer by the buyer side – seller side must counter-sign/date.
Step 3d. – If a Trust Sale, complete the mandatory Trust Advisory (form TA) – should be provided with the offer by the buyer side – seller side must counter-sign/date.
Step 3e. – If a Probate Sale, complete the mandatory Probate Advisory (form PAK) – should be provided with the offer by the buyer side – seller side must counter-sign/date.
Step 4a. – If applicable, complete the Seller Counter Offer (form SCO) – as many times as necessary. Or you may use the Seller Multiple Counter Offer (form SMCO) as desired.
Step 4b. – If applicable, complete the Addendum (form ADM) – as many times as necessary.
Step 5 – If applicable, complete the Seller's Purchase of Replacement Property (form SPRP) - any questions, please contact the business office.
Steps after Acceptance
Step 6 – Complete the mandatory Real Estate Transfer Disclosure Statement (form TDS) - the seller must fill out pages 1 & 2 in his/her own writing and also initial pages 1 & 2 and sign/date pages 2 & 3 – the listing agent must fill out the Agent’s Inspection Disclosure section III. (broker representing seller) on page 3.
- As the listing agent, you must fill out the Agent’s Inspection Disclosure section III. on page 3 of the TDS. You must check the box “See attached Agent Visual Inspection Disclosure (AVID Form)" and then fill out an AVID form. This is a mandatory broker requirement. Also, the TDS must always be signed-off by all parties (seller, buyer and agents) on page 3 before escrow closes.
- Please note that the seller is not required to sign if the transaction is a Foreclosure (REO), Probate or Trust sale. However, even though the seller is exempt, the listing agent is still required by the broker to complete the TDS without seller signature(s).
- Both agents (listing agent and selling agent) must sign twice on page 3 - see sections III. & IV. & V.
- Flip property sellers are not exempt from filling out and signing the TDS.
- The listing agent does not need to fill out a WHSD form regarding water heater and smoke detector disclosures, as the TDS already includes a section (section II.C.) that covers these disclosures that the seller must sign-off on. However, a WHSD is mandatory if the transaction is a Foreclosure (REO), Probate or Trust sale and the seller is exempt from signing the TDS.
Step 7 – Complete the mandatory Seller Property Questionnaire (form SPQ).
- If the transaction is a Foreclosure (REO), Probate or Trust sale, the seller is exempt from signing the SPQ. However, the listing agent must still provide the selling agent with the SPQ form indicating exempt status, and the selling agent should ensure that the buyer sign and date the form acknowledging that the form was not filled out and is seller exempt. This is a mandatory broker requirement.
Step 8 – Complete the mandatory Agent Visual Inspection Disclosure (form AVID).
- An AVID must be filled out by ALL Realty Benefit Agents (listing and selling agents) on ALL residential transactions. This is a mandatory broker requirement. You must list everything wrong with the property noticed through a reasonably competent, diligent agent visual inspection – everything you see, hear and/or smell. And remember, two signatures are required by the Agent on page 3 of their listing agent AVID (one following & affirming the agent's listed disclosures, and one at the bottom of the same page as the agent's overall acknowledgement).
- Both listing and selling agent AVIDs must always be signed-off by ALL parties (seller, buyer and agents) before escrow closes. If the transaction is a Foreclosure (REO), Probate or Trust sale, the seller may be exempt from signing the AVID.
- Flip property sellers are not exempt.
Step 9 – Complete the mandatory Water Heater and Smoke Detector Statement of Compliance (form WHSD) – use only when the TDS form is seller exempt.
- A WHSD is mandatory if the transaction is a Foreclosure (REO), Probate or Trust sale and the seller is exempt from signing the TDS (see note above regarding the TDS form).
Step 10 – Complete the mandatory Natural Hazard Disclosure Statement – located in the Natural Hazard Zone Disclosure report (see note below).
- Click here to view a sample NHD Statement (see page 2 of attachment – report version from a Disclosure Source NHZD report)
- This statement must include all signatures - Transferor (Seller), Transferee (Buyer), and both Agents.
- The NHD Statement is contained in the NHZD report. Please use this version only, rather than the C.A.R. version in zipForms. The agent may request that escrow order the zone disclosure report on behalf of the seller when escrow is opened. Seller typically pays for the cost of the NHZD report ordered through a service provider such as Disclosure Source, Property I.D., JCP-LGS, etc.
- If the transaction is a Foreclosure (REO), Probate or Trust sale, the seller is exempt from signing the NHD Statement.
- Flip property sellers are not exempt.
Step 11 – If applicable, complete the mandatory Lead-based Paint and Lead-based Paint Hazards Disclosure (form FLD) for residential real estate built prior to 1978.
Step 12 – If applicable, complete the mandatory Residential Earthquake Hazard Report for residential real estate built prior to 1960.
- Click here to view a sample Residential Earthquake Hazard Report (see page 2 of attachment)
- This is not a C.A.R. form and cannot be located in zipForms, but instead can be found in the Homeowner's Combined Info Guides booklet (see "Free Publication Download" section below).
Step 13 – Complete the Statewide Buyers and Sellers Advisory (form SBSA) – this form is strongly recommended by the broker.
Step 14 – Provide the mandatory Homeowner’s Combined Info Guides booklet to the Seller – and have the Seller complete the Consumer Acknowledges Receipt of Booklet “To Whom It May Concern:”
- Click here for Consumer Info Acknowledgement Receipt of Booklet form
- The receipt of booklet form is not a C.A.R. form and cannot be located in zipForms, but instead can be found in the Homeowner's Combined Info Guides booklet (see "Free Publication Download" section below).
- Please note that typically the provider of the Natural Hazard Zone Disclosure report will also include links to the Combined Info Guides booklet and receipt form in the email containing the report attachment. These links can be easily forwarded to your client. You may request that escrow forward the email from the disclosure provider directly to your seller.
Step 15 – Complete the mandatory Carbon Monoxide Detector Notice (form CMD).
Step 16 – If applicable, have escrow complete the HOA Information Request.
- You can request that Escrow make the HOA Information Request to the HOA management office. Contact information for the HOA should be provided by the seller.
- Escrow typically takes care of this requirement when an HOA is involved in the transaction - but make sure to double-check. Also, new regulations require the seller to pay for all required HOA docs upfront rather later as a debit when escrow closes. Please ask escrow for more details.
Step 17 – Complete the Risk Management Escrow Payment Request Form and ensure it is provided to Escrow - Click here
Step 18 – Request that Escrow order the mandatory Preliminary Title report.
Step 19 – Request that Escrow order the mandatory Natural Hazards Zone Disclosure report.
Step 20 – Once escrow instructions are created/received, the listing agent must ensure that the Commission Instructions/Authorization form is signed by the broker and provided to Escrow.
Step 21a. – If applicable, ensure that the seller complete a Termite (Structural Pest Control) Inspection and provide the inspection report to the buyer side for review within the allotted time period.
- The listing agent must ensure that Section I repairs are completed as per agreement - typically this is the responsibility of the seller.
- Please note that lenders typically require Section I work to be completed and certified before a loan will be approved and funded.
Step 21b. – The listing agent must ensure that the Termite (Structural Pest Control) Inspection & Report Clearance is delivered to and reviewed/approved by the buyer.
Step 22 – If applicable, complete the Seller Response and Buyer Reply to Request for Repair (form RRRR) – seller's response to buyer's Request for Repair. Please note that the seller does not have to respond to the RR, if desired.
Step 23 – If applicable, complete the Notice to Buyer to Perform (form NBP) – as many times as necessary.
- This form should be used when the buyer has not satisfied contingency requirements within the agreed upon time period; it's a notice to the buyer to complete required contractual actions asap. This notice also requires that the buyer provide a contingency removal declaration in response to the notice to perform.
- The NBP must occur prior to cancellation of any contract.
Step 24 – If applicable, complete and submit the Contingency Removal (form CR) to the buyer side – as dictated by the Notice to Buyer to Perform.
Step 25 – If applicable, complete the Cancellation of Contract (form CC).
Step 26 – If applicable, complete the Demand to Close Escrow (form DCE).
Any questions, please feel free to contact the business office!
Standard Seller Time Periods
Seller has 3-days after Acceptance to:
- If applicable, request copies of all required documents from the HOA for disclosure to the buyer. Again, the seller should request that escrow take care of this once escrow is opened.
Seller has 7-days after Acceptance to Deliver to the Buyer:
- Reports (i.e., Preliminary Title, Natural Hazards Zone Disclosure, Termite Inspection, etc.)
- Disclosures (i.e., TDS, AVID, SPQ, NHD Statement, WHSD, SBSA, FLD, CMD, etc.)
- Other Information (i.e., HOA information, etc.)
Free Publication Download
- Click here for Homeowner's Combined Info Guides (published by Disclosure Source - takes a few moments to render due to being a large file); or
- Go to https://www.disclosuresource.com/downloads.aspx
Offers to Purchase
Remember, with all contracts, you must obtain all parties' signatures. If a party signs on behalf of another, you must have evidence of that person's authority to do so in writing. If the Selling Agent must present an offer missing a signature, he/she must disclose this fact to the seller and Listing Agent. Be sure to condition the offer on obtaining any missing signature(s).
If your client receives a counter offer, be sure the terms are clear and complete. Be sure to review it against the offer to purchase. Remember, if there is no meeting of the minds, generally, there is no contract.
- You must adhere to all time requirements stated in the purchase agreement and escrow instructions unless all parties agree in writing to the contrary.
One of the most common areas of legal dispute relates to the seller's and agent's alleged nondisclosure of a material fact about the property.
This office takes seriously the disclosure requirements expected of the licensee. Any attempt to conceal a matter or material fact, or mislead a party in any way, will result in your immediate termination from this office.
You are expected to be familiar with disclosure requirements and comply with them at all times!
- As comprehensive as the printed forms are, they cannot possibly address every situation that may arise. Nothing can replace your good judgment and careful attention to detail. Remember, when in doubt, disclose in writing.
- Never fill out or sign a disclosure form for your client.
Agent(s) must list all previously known material facts, as well as all unknown material facts discovered during a reasonably competent, diligent visual inspection!
Can I Sell My Own Property
Most brokerages will not allow agents to list and sell their own properties or partial interest in properties. The reason for this is that in most cases the property owner/Agent, and therefore the Broker, will not be covered by E&O insurance if and when they are sued.
We have been informed by our insurance carrier that (for the same reason) Realty Benefit Agents will not be covered by E&O insurance when listing/selling their own property or partial property interest.
Therefore, it's required that ALL Agents use another Realty Benefit Agent to list their own property (residence or investment property). This designated Agent needs to be involved with and put signatures on the Purchase Agreement/Counter Offer(s) and all Disclosures, including filling out the Agent’s Inspection Disclosure section on the TDS and completing an AVID, as well as any other related documentation.
In other words, you can sell property for your own account subject to the following guidelines:
•You may not be the listing agent on any property that you hold any ownership interest in. You must use another Realty Benefit Agent to be the agent of record on all documentation.
•You may use office materials and staff as if marketing any other listing.
•Upon the sale of your property, you agree to pay to this office a transaction fee as specified in the Independent Contractors Agreement. Also, if buying a property for yourself, the transaction fee to the Broker is based on the commission offered and earned as per the MLS.
•You agree to indemnify and hold harmless the Broker from any and all claims against you and/or the Broker arising out of your personal transactions.
•You must disclose that you are a real estate licensee.
Again, you may contract with any of our agents. However, if you cannot find another agent to help, Tom Feldner x11 may be interested in helping for a nominal fee.