California Real Estate Transaction during COVID-19

It’s no surprise that we are in the midst of a global economic crisis as a result of the COVID-19 pandemic. We certainly hope that all of our readers are well and healthy and that they are not personally hacking health challenges as a result of the virus; we pray that everyone gets through this safely and smoothly.

Of course, we are not the only ones with those hopes and wishes. The California Association of Realtors® got right to it with respect to support and information for California Realtors®. If you are a California agent and have not already listened in on one of their recent webinars or checked out their support page, it is definitely worth a look, sooner rather than later. They include all sorts of timely information about Realtor® relief and transaction information among other topics.

With respect to any transactions that you have in escrow or any buyers and sellers that you are working with right now, the California Association of Realtors® has four new forms that they have added that are specific to COVID-19. We’ve summarized some information about those forms for you here; check your Zipforms platform to see those forms and print out samples for your review.

Forms to use for your California Real Estate Transaction during COVID-19:

  1. Listing Agreement Coronavirus Addendum or Amendment (RLA-CAA). Use this form with any new listings and or as an amendment to any listing agreement that you already have on an active listing on the MLS. It includes several categories including instructions from the Seller to the Broker regarding property showings, changes in contractual marketing activities, and even information about what to do if a seller wants to take the property off the market.
  2. Coronavirus Property Entry and Declaration (PEAD). This form should be completed by any buyers proper to enter into the property and by the seller at the time of the listing agreement. Listing agent tip: Use the showing instructions and remarks in order to remind the buyer’s agents to submit a signed version of the form to you prior to entering into the property.
  3. Notice of Unforeseen Coronavirus Circumstances (NUCC). In this form, a buyer and a seller advise one another regarding unforeseen circumstances that may have arisen due to the coronavirus. This could include a reason that one party must cancel or extend the contract. It is used in conjunction with the CVA (discussed below).
  4. Coronavirus Addendum or Amendment (CVA). Believe it or not, this one has already been revised and updated. This form can be used in order to cancel or extend the escrow period. It is best used in conjunction with the NUCC where the affected party advises the unaffected party of any changes to the contract as a result of the coronavirus.

I’m sure that we all look forward to a time where we will not need these forms. But, in the interim, the California Association of Realtors® and the team at Transaction 911 are available to help you with any of your transaction compliance needs.