Completing Seller Forms
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.
Step 1 – Always prior to the Residential Listing Agreement – complete the mandatory Agency Disclosure (form AD) and Possible Representation of More Than One Buyer or Seller disclosure and consent (form PRBS).
- As the listing agent, you must use the Seller's Brokerage 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 also sign in the box called Agency Disclosure Compliance.
Step 2 – Complete the mandatory Residential Listing Agreement (form RLA) and 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.
Step 3 – Complete the mandatory Disclosure Information Advisory (form DIA).
Step 4 – If applicable, complete the Representative Capacity Signature Disclosure – Seller Representatives (form RCSD-S).
Step 5 – If a Trust Sale, complete the Trust Advisory (form TA).
Step 6 – If a Foreclosure Sale (bank-owned), complete the REO Advisory Listing (form REOL).
Step 7 – If a Probate Sale, complete the Probate Listing Addendum and Advisory (form PLA).
Step 8 – Complete the mandatory California Consumer Privacy Act Advisory (form CCPA).
Step 9 – Complete the mandatory Wire Fraud and Electronic Funds Transfer Advisory (form WFA).
Step 10 – Complete the mandatory Statewide Buyers and Sellers Advisory (form SBSA).
Step 11 – 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 appropriate.
Step 12 – If applicable, complete the Addendum (form ADM) – as many times as necessary.
Step 13 – Complete the mandatory Real Estate Transfer Disclosure Statement (form TDS) - the seller must fill out pages 1 & 2 in his/her own writing as well as 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 may not be required to sign if the transaction is a Foreclosure (REO), Probate or Trust sale. If the seller is exempt, the listing agent is still required by the Broker to complete the TDS without seller signature(s), writing "Seller Exempt" in all sections on all pages. Please review each respective advisory for more details.
- 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 14 – Complete the mandatory Seller Property Questionnaire (form SPQ).
- If the transaction is a Foreclosure (REO), Probate or Trust sale, the seller may be 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. Again, the listing agent must write "Seller Exempt" in all sections on all pages. This is a mandatory broker requirement. Please review each respective advisory for more details.
Step 15 – 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 even 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. However, if the transaction is a Foreclosure (REO), Probate or Trust sale, the seller may be exempt from signing the AVID. Please review each respective advisory for more details.
- Flip property sellers are not exempt.
Step 16 – Complete the mandatory Seller's Affidavit of Non-foreign Status (form AS).
Step 17 – Complete the mandatory Natural Hazard Disclosure Statement (aka NHD) – located in the Natural Hazard Zone Disclosure report (see note below).
- 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 zipForm. The agent should 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, First American, etc.
- If the transaction is a Foreclosure (REO), Probate or Trust sale, the seller may be exempt from signing the NHD Statement. Please review each respective sales advisory for more details.
- Flip property sellers are not exempt.
Step 18 – 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” form:
- The receipt of booklet form is not a C.A.R. form and cannot be located in zipForm, but instead can be found in the Homeowner's Combined Info Guides booklet.
- Please note: 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 by escrow as requested.
Step 19 – Complete the mandatory Water-Conserving Plumbing Fixtures and Carbon Monoxide Detector Notice (form WCMD).
Step 20 – Complete the Water Heater and Smoke Detector Statement of Compliance (form WHSD).
- 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 21 – If applicable, complete the Lead-based Paint and Lead-based Paint Hazards Disclosure (form FLD) for residential real estate built prior to 1978.
Step 22 – If applicable, complete the Residential Earthquake Hazard Report for residential real estate built prior to 1960.
- This is not a C.A.R. form and cannot be located in zipForm, but instead can be found in the Homeowner's Combined Info Guides booklet.
Step 23 – If applicable, complete the Tenant Estoppel Certificate (form TEC) – for rental property only.
Step 24 – If applicable, have escrow complete the HOA Information Request.
- Escrow will typically make the HOA Information Request to the HOA management office. Contact information for the HOA should be provided by the seller as soon as possible.
- 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 than later as a debit when escrow closes. Please ask escrow for more details.
Step 25 – Once escrow instructions are created/received, the listing agent must ensure that the Commission Instructions (aka Commission Authorization form) is signed by the broker and returned to Escrow as soon as possible.
Step 26 – Request that Escrow order the mandatory Preliminary Title report.
Step 27 – If applicable, ensure that the seller completes a Termite (aka Structural Pest Control) Inspection and provide the inspection report to the buyer side for review within the agreed to contingency time period.
- The listing agent must ensure that Section I repairs are completed as per agreement - typically, agreed to repairs are the responsibility of the seller.
- Please note: lenders typically require Section I work to be completed and certified before a loan will be approved and funded. Before the seller and buyer agree not to have a termite inspection completed, please consult with the Broker.
Step 28 – The listing agent must ensure that the Termite Inspection report and Section I - Clearance (work completed and certified) is delivered to and reviewed/approved by the buyer.
Step 29 – If applicable, complete the Seller Response and Buyer Reply to Request for Repair (form RRRR) – aka the seller's response to buyer's Request for Repair (RR). Please note: that the seller does not have to agree to the buyer's RR, if desired, as the sale is considered "as-is" unless agreed to otherwise.
Step 30 – 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 to 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 (form CR) declaration in response to the notice to perform.
- The NBP must occur prior to cancellation of any contract.
Step 31 – If applicable, complete and submit the Contingency Removal (form CR) to the buyer side – as dictated by the Notice to Buyer to Perform.
Step 32 – If applicable, complete the Demand to Close Escrow (form DCE).
Step 33 – If applicable, complete the Cancellation of Contract (form CC).
Any questions, please feel free to contact the business office!
One of the most common areas of legal dispute relates to the seller's and listing 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 as well as may have legal consequences.
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.
- You may be required to compensate your fellow listing agent. The Broker remains neutral to this arrangement. However, you must ensure the Broker transaction fee is covered and paid for when the transaction closes.
Again, you may contract with any of our agents. However, if you cannot find a fellow agent to help, the Broker may be interested in helping for a flat fee. Contact the Broker for more details.