CA Association of Realtors Revises Forms Following DOJ Inquiry

Last week, the California Association of Realtors (C.A.R.) announced revised standard forms in light of the recent National Association of Realtors (NAR) settlement, and following an inquiry from the DOJ.

C.A.R. initially announced its intent to revise the forms as part of a “semi-annual standard forms update,” late last month.  The same day, the Consumer Federation of America released a statement criticizing a draft of one of the forms to be released, alleging C.A.R.’s changes to be anti-consumer.  The DOJ subsequently launched an inquiry into C.A.R.’s implementation of business practices outlined in the NAR settlement, alleging the original proposed revisions were insufficient to eliminate anticompetitive practices.

C.A.R. drew particular attention to the removal of the listing broker’s offer of compensation from the forms. In its statement, C.A.R. acknowledged that although disclosure of this information is “legal and valid,” it believes this change is in the best interests of its members and consumers. 

C.A.R. stated that the forms will be available for use on forms platforms by July 24, so that C.A.R. members can be ready to use them by August 17, when the NAR settlement requirements go into effect.