New Year - New CAR Forms

Team MeetingEDUCATIONLegal

Jan 7

Written By KW PASADENA MARKETING

For internal use only

Video from New! Year New Car Forms 01/07/25

from Vince MacIsaac 12/2024

Law Offices of Vincent MacIsaac

502 West Route 66, Suite 21, Glendora, California 91740

LEGAL SERVICES PROGRAM

2025 New Legislation

1. Buyer Representation Agreements

Effective January 1, 2025, pursuant to AB 2992, a Real Estate Agent must have a signed Buyer Representation Agreement for the sale of any type of property and it must be signed “as soon as practicable”, but no later than Buyer’s execution of the Purchase Agreement. It must contain the compensation that the Buyer will pay to Buyer’s agent, what services will be rendered, when the compensation is due, and when the contract terminates.

Except for Buyers who are a corporation, LLC, or partnership, the representation period cannot exceed three months, and cannot be renewed for more than three months from the date the renewal was made. No automatic renewals. A renewal must be in writing, dated and signed by Buyer and Agent.

The NAR Settlement Agreement still applies to all Realtors. One main difference between the NAR Settlement and the new legislation, is the timing of when Agent must have Buyer sign the Buyer Representation Agreement. Realtors must have the agreement signed for Buyers of Single Family Dwellings of up to four units before touring the property, as opposed to the legislation that requires the execution of the agreement “as soon as practicable” but no later than Buyer’s execution of the Purchase Agreement.

Another main difference between the legislation and the NAR Settlement, is that the NAR Settlement only applies to Single Family Dwellings of up to four units, whereas the legislation requires Buyer Representation Agreements for the sale of any kind of property, including commercial, vacant land, more than four dwelling units, manufactured/ mobile home, etc. Therefore, technically, a Realtor representing a Buyer in the purchase of property other than Single Family Dwelling up to four units, has until “as soon as practicable” but no later than Buyer’s execution of a Purchase Agreement.

2. Residential Landlord/Tenant Screening/Application Fees

Effective January 1, 2025 Landlords must return the fee to any applicant who isdenied a tenancy, unless Landlord adopts an Application Screening Process, which is detailed in writing and provided to Tenants as part of the Application Process. This document must included clear screening criteria and the first applicant who meets the criteria must be accepted for the tenancy. Screening Criteria would include such things as minimum income, minimum credit score, etc. CAR has not prepared a format for this and it is recommended that if Landlord chooses to adopt an Application Screening Process that it be prepared by an Attorney who concentrates on Landlord/ Tenant laws.

3. Residential Landlord/Tenant Move In, Move Out and Repair/Cleaning Photos

Effective April 1, 2025 Landlord must take photographs of the Unit within a reasonable time after Tenant returns possession of the Unit to the Landlord, but prior to any “reasonably necessary” repairs or cleaning. Then the Landlord is to take photographs of the Unit once the “reasonably necessary” repairs or cleaning. These photos must be provided to the Tenant along with the explanation fo the deductions from the security deposit, and of course receipts for the same.

Effective July 1, 2025, Landlords must also take photos of the Unit immediately before the beginning of the Tenancy. These photos, along with the above mentioned photos, must be provided to Tenant in order for Landlord to charge anything off the Security Deposit.

Furthermore, Landlord cannot charge a tenant for any repairs or professional cleaning services unless the cleaning, such as carpet cleaning or repair was “reasonably necessary” to return the premises to the condition it was in at the beginning of the Tenancy, exclusive of ordinary wear and tear.

4. Landlord/Tenant Positive Credit Reporting To At Least One

Nationwide Consumer Reporting Agencies Effective for Leases entered into on or after April 1, 2025, Landlord must make an Offer to the Tenant of positive rental payment information. Landlord must make this offer at least annually thereafter.

For Leases existing as of April 1, 2025, Landlord’s offer of positive rental payment Information reporting must be made no later than April 1, 2025, and at least once annually thereafter.

5. Foreclosure Sale Date Extensions

Effective January 1, 2025, on Residential 1-4 Properties, the Foreclosing Lender must extend the scheduled sale date for an additional 45 days, if the Lender’s Trustee receives an executed Listing Agreement from the Borrower, at least five business days before the scheduled date of sale. The Property must be offered in a publically available marketing platform, i.e. such as the MLS. The Listing Agreement must be with a California Licensed Real Estate Brokerage. There are some other technical requirements I have not listed here.

In addition, once listed, the Lender must extend for another 45 days upon receipt of an executed Purchase Agreement, at least five days before the scheduled date of Foreclosure Sale. The Purchase Price must be equal to or greater than the amount of the unpaid balance of the foreclosing loan. There are some other technical requirements I have not listed here.

Well at least this last new law is something positive for the Real Estate Industry.

- Vince MacIsaac -

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