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C.A.R. responds to CFA Report on C.A.R. Residential Listing Agreement

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The Consumer Federation of America (CFA) today released a report on C.A.R.’s new residential listing agreement (RLA). Similar to the CFA’s report on C.A.R.’s buyer representation agreement, this commentary is on an earlier draft of the agreement that was still a work in progress, and spends an inordinate amount of time examining grammar, formatting, and design in an early draft of the form.

Moreover, the report contains wild speculations that brokers using C.A.R. forms will try to get around the NAR settlement. C.A.R. supports the goals of the settlement and is working to help members have clear conversations with their sellers around compensation options. The report also says that the draft form has too much information about what sellers can expect regarding marketing their home. Instead, we think information about the MLS and the offer process helps educate the seller and makes the form more consumer friendly.

The assertion that the agreement is overwhelming and unlikely to be read or understood by the average seller underestimates the capabilities and responsibilities of both sellers and their real estate agents. The complexity of the agreement reflects the complexity of California real estate transactions. The agreement is designed to cover various scenarios and provide clear guidelines, which ultimately benefit the seller by ensuring that all potential issues are addressed upfront. Sellers are not left to navigate these complexities alone; their real estate professional is there to guide them through each provision, ensuring they fully understand the terms before agreeing to them.

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.

July 2, 2024

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