Radius Cheat Sheet: California CAR Forms Updates

This cheat sheet is your guide to effortlessly navigating the vital California Buyer Representation Forms and beyond. Our goal is to make understanding these new forms a breeze by providing clear summaries of their importance and purpose. With this knowledge, you can confidently ensure that you receive well-deserved compensation for your hard work!

Please note: We will continue to update this form as additional forms become available.

CAR Forms Updates

2024

July Form Updates

New Releases ~ Radius Requirements (Required By Radius Aug 7th)

BRBC: Buyer Representation Agreement - Exclusive
- Radius Requirement Status: The BRBC will be a required document on all Radius purchase checklists starting June 1st
- When to use: The BRBC form is used when a buyer wants to engage a real estate agent exclusively to represent them in their property search and purchase process.
- Why it's important: Similar to the CAA form, the BRBC establishes the exclusive relationship between the buyer and their agent, outlining the agent's duties, compensation, and the duration of the agreement. It provides clarity and protection for both parties.
BCA: Broker Compensation Advisory:
- Radius Requirement Status: The BCA will be a required document on all Radius purchase checklists. Effective July 1st 2024.
- When to use: The BCC form is used to formalize the commission agreement between the buyer and their agent.
- Why it's important: The BCA form specifies the commission amount or percentage that the buyer agrees to pay their agent upon successful completion of a transaction. It helps prevent disputes over compensation and ensures that the agent is fairly compensated for their services.
MLSA: Multiple Listing Service Addendum:
- Radius Requirement Status: The MLSA is currently a required document on all Radius listing checklists
- When to use: This form should be signed along with the listing agreement.
- Why it's important: This addendum incorporates language previously in listing agreement about advantages of MLS, and risks of opting out of MLS. Paragraph 5 addresses seller concessions with an explanation and a default that seller does not authorize broker to advertise in MLS that seller will consider concessions.
TRBC: Tenant Representation and Broker Compensation Agreement
- Radius Requirement Status: The TRBS is a required document on all Radius lease checklists (tenant rep)
- When to use: This form is used when a tenant wants to engage a real estate agent exclusively to represent them in their rental search.
- Why it's important: Establishes a contractual agreement for a tenant to pay a broker for finding a property for the tenant to lease or rent.

Misc New Releases

BFPI: Buyer Financial and Personal Information
BIPP: Buyer Identification of Preferences and PrioritiesRevised Forms
BMI-SP: Buyer Material Issues for a Specific Property
DM-BR : Disclosure and Modification to Buyer Representation Agreement
DM-LA: Disclosure and Modification to Listing Agreement
MT-BR: Modification of Terms – Buyer Representation Agreement
MT-LA: Modification of Terms - Listing Agreement
OHNA-SI: Open House Visitor Non-Agency Disclosure and Sign-In
PSRA: Property Showing and Representation Agreement

Revised Forms

SPBB: Seller Payment to Buyer’s Broker
ABSPA: Already-Built Subdivision Purchase Agreement and Joint Escrow Instruction
CCSPA: Condominium Conversion Subdivision Purchase Agreement and Joint Escrow Instructions
CLA: Commercial and Residential Income Listing Agreement
COBR: Cancellation of Buyer Representation
CPA: Commercial Purchase Agreement and Joint Escrow Instructions
LL: Lease Listing Agreement
NCPA: New Construction Purchase Agreement and Joint Escrow Instructions
RIPA: Residential Income Purchase Agreement and Joint Escrow Instructions
RLA: Residential Listing Agreement
RPA: Residential Purchase Agreement
SPBB: Seller Payment to Buyer’s Broker
VLL: Vacant Land Listing Agreement
VLPA: Vacant Land Purchase Agreement

Discontinued Forms

CBC: Cooperating Broker Compensation Agreement
ABCD: Anticipated Broker Compensation Disclosure Form
FAAA: Fair Appraisal Act Addendum
BTA: Buyer's Transaction Advisory

June 4th Updates:

Radius Requirement Status Change: Effective July 1st 2024.
BCA Broker Compensation Advisory, will be updated from if applicable to required on purchase checklists.

Buyer Representation & Broker Compensation Forms

Overview On Radius Compensation Form Requirements Based On Representation Type

Purchase Transactions

If You Represent the Buyer Only: You will need the BRBC and BCA. The SPBB will be required as well if Seller is contributing towards the Selling Agent’s compensation.
If You Represent the Seller Only: You will need the RLA. The SPBB will be required as well if Seller is contributing towards the Selling Agent’s compensation.
If You Represent the Seller and the Buyer: You will need the RLA as well as the PSRA Property Showing and Representation Agreement OR BRBC.

Lease Transactions

If You Represent the Tenant Only: You will need the TRBC Tenant Representation and Broker Compensation Agreement and BCA. The SPBB will be required as well if Landlord is contributing towards the Tenant Agent’s compensation.
If You Represent the Landlord Only: You will need the LL Lease Listing Agreement. The SPBB will be required as well if Landlord is contributing towards the Tenant Agent’s compensation.
If You Represent the Landlord and the Tenant: You will need the LL Lease Listing Agreement as well as the PSRA Property Showing and Representation Agreement OR TRBC Tenant Representation and Broker Compensation Agreement .

Here are some BRBC practice highlights to consider when representing a Buyer....

Step One: BRBC (Required)

Must be signed & dated before the offer is generated (Backdating a BRBC can lead to major fines)

Step Two: SPBB (Optional)

If requesting Seller contribute towards Buyer's Agent compensation, complete section 3.G.3 in the RPA and include SPBB with offer
Requested concession in SPBB cannot be more than the agreed upon compensation in the BRBC
BRBC Page 5 to be presented with SPBB for verification of Buyer/Broker agreed upon commission amount

Forms

BRBC: Buyer Representation Agreement - Exclusive
- Radius Requirement Status: The BRBC will be a required document on all Radius purchase checklists starting June 1st
- When to use: The BRBC form is used when a buyer wants to engage a real estate agent exclusively to represent them in their property search and purchase process.
- Why it's important: Similar to the CAA form, the BRBC establishes the exclusive relationship between the buyer and their agent, outlining the agent's duties, compensation, and the duration of the agreement. It provides clarity and protection for both parties.
- BRBC Pro Tip: Here are you can learn how to quickly access the BRBC DocuSign template....
  BRBC Quick Access
BCA: Broker Compensation Advisory:
- Radius Requirement Status: The BCA will be a required document on all Radius purchase checklists. Effective July 1st 2024.
- When to use: The BCC form is used to formalize the commission agreement between the buyer and their agent.
- Why it's important: The BCA form specifies the commission amount or percentage that the buyer agrees to pay their agent upon successful completion of a transaction. It helps prevent disputes over compensation and ensures that the agent is fairly compensated for their services.
SP: Single Party Compensation Agreement:
- Radius Requirement Status: The SP will be an if applicable document on all Radius purchase and listing checklists
- When to use: The SP is used when a buyer agrees to compensate their agent directly, rather than relying on compensation from the seller or another party. This situation may arise when the buyer is purchasing a property that is not listed on the market or when the buyer is responsible for paying their agent's commission.
- Why it's important: The SP clarifies the compensation arrangement between the buyer and their agent, ensuring that both parties understand their financial obligations. It helps prevent misunderstandings and disputes over compensation, especially in situations where the buyer is responsible for paying their agent's commission.
SPBB: Seller Payment to Buyer’s Broker:
- Sellers may choose to compensate the buyer's agent as a way of acknowledging and respecting the role that the agent plays in representing the buyer's interests throughout the transaction process.
- Radius Requirement Status: The SPBB will be an if applicable document on all Radius purchase checklists until further notice
- When to use: The SPBB is used in situations where the seller acknowledges the value of the buyer's agent's services.
- Why it’s important: By offering compensation to the buyer's agent, sellers can attract more potential buyers to their property.
COBR: Cancellation of Buyer Representation
- Used to cancel a Buyer Representation Agreement form
DM-BR: Disclosure and Modification to Buyer Representation Agreement:
- This form is used to modify a BRBC in effect before July 24, 2024. It informs the buyer that the broker can no longer accept compensation that exceeds the amount specified in the BRBC. Brokers who entered a BRBC with the expectation of collecting any overage from the listing broker will have to either modify the compensation term using an MT-BR plus an addendum, get a new BRBC form signed, or work for less than previously anticipated.
MT-BR: Modification of Terms – Buyer Representation Agreement
- This form should be used to document a change in the buyer representation agreement. Preprinted language allows for changes to expiration date and compensation. This form could be used in addition to the DM-BR if the broker
  believes that a previous BRBC was entered into at too low of a compensation rate.
PSRA: Property Showing and Representation Agreement
- This form creates a written representation agreement with a buyer. It is valid for only 3 properties, it creates a non-exclusive relationship, and has a representation period not exceeding 30 days.
TRBC: Tenant Representation and Broker Compensation Agreement
- Establishes a contractual agreement for a tenant to pay a broker for finding a property for the tenant to lease or rent.

2024 Update Announcements

August 19th Updates:

Revised and New Forms for California REALTORS®
To comply with the new requirements, the California Association of REALTORS® (CAR) has revised and introduced several key forms:

Residential Listing Agreement (RLA):
The RLA has been updated to reflect the changes required by the settlement. Key sections related to compensation have been removed, and agents may need to use addenda to specify any additional compensation arrangements. This form is essential for listing properties and must be completed correctly to avoid compliance issues.
Buyer Representation and Broker Compensation Agreement (BRBC)
This form is now mandatory and must be signed by buyers before any property tours. It outlines the compensation terms for the buyer’s agent, ensuring that both parties have a clear understanding of payment responsibilities before engaging in any real estate activities.
MLS Advisory Form:
Previously part of the RLA, the MLS Advisory Form is now a separate document. This form is important for discussing concessions with clients and signaling potential buyer concessions, such as closing cost credits. Agents must ensure that this form is reviewed and signed by their clients to document any concessions or adjustments to the offer.
Addenda and Amendments:
With the elimination of automatic compensation fields in the RLA, agents may need to use additional forms, such as the CAR Form SPBB (Seller Payment {Concession} to Buyer’s Broker Compensation), to outline any compensation details. This ensures that all financial agreements are fully documented and comply with the new regulations.