As the seasons change, so does California real property law! As of September 2025, there are updates to existing landlord-tenant forms and residential purchase agreements, with two forms taking effect December 2025, and one new form to be included with purchase agreements. Thanks to the California Association of Realtors (“C.A.R.”), any changes to real property laws are reflected in updated or new forms. C.A.R. consistently keeps the forms updated so the consumer can be sure that the forms they use are accurate. The attorneys at Brewer Offord & Pedersen LLP are licensed brokers, which means we have access to ALL C.A.R. forms. Below is a description of the amended forms and new forms, and explanation for the changes themselves.
Amended Landlord-Tenant Forms (Beginning September 2025)
When a landlord is faced with a tenant who has violated a lease term or has failed to timely pay rent, as an example, the landlord may seek to have the tenant cure that violation. The means by which to have the tenant cure that violation is by serving a notice on the tenant. For example, if a tenant fails to timely pay rent, the landlord must serve on the tenant a “Three Day Notice to Pay Rent of Quit,” giving the tenant the opportunity to “cure” the violation before initiating legal action. The following “Notices” are updated to inform the landlord and tenant of changes, and have been implemented as of September 2025.
- Notice to Pay Rent or Quit: Aside from minimal grammatical changes, the largest update advises, “Do not use electronic signatures on this form,” apparently requiring wet signatures in its place. That is a vast deviation from what has been accepted and creates a large burden on landlords to have wet or non e-signatures on the Notice. The next update advises landlords of when and how to use this form. Specifically, the new form warns the landlord that the form cannot be used for past-due rent that are more than a year old. This is consistent with Code of Civil Procedure § 1161. Finally, the notice advises landlords that the form may not be accepted in certain California jurisdictions. That may be a result of individual city or county-specific tenant protections in place.
- Notice to Cure or Perform Covenant or Quit: Similar to the Three Day Notice to Pay or Quit, this Notices advised landlords that it cannot be used for past-due rent over one year and that the form cannot be signed electronically. It also advises the landlord that the form may not be used in certain jurisdictions due to individual protections.
- Notice to Quit: As with the Three Day Notices above, electronic signatures are not permitted and a similar warning regarding California jurisdictions is included. Within the notice itself, it provides the tenant (and landlord) more clarity as to how to calculate three days. Specifically, it states, “Within 3 days, starting the day after the date of service of this Notice, and excluding Saturdays, Sundays, and other judicial holidays, you are required to…” With this clarification there can be no ambiguity as to when the “three day clock” begins.
Amended Purchase Agreement Forms (Beginning September 2025)
- Multiple Listing Service Addendum: this form advises the seller of what the Multiple Listing Service (“MLS”) is and how it benefits the properties being listed on the MLS. Changes to the form include more basic information about the MLS, and the rules the MLS must follow under the National Association of Realtors.
- Included in the amended MLS Addendum are new sections:
- (3) “Public and Private Marketing of Property; ‘Clear Cooperation Policy;’”
- (4) “Property Listing Information on the Internet;”
- (5) “Marketing Options;” and;
- (6) “Photographs.”
- These four new sections advise the seller that the property will be listed on a public MLS and the marketing efforts to follow, such as flyers, yard signs, digital marketing, etc., with the option of opting out of said marketing or engaged in limited marketing options. The seller is also informed of the levels of marketing they can engage in such as “full exposure,” “coming soon” status, and days on the market. The MLS Addendum further warns sellers that prospective buyers may come through the property and take photographs, which the broker cannot control. Finally, the MLS Addendum now includes a “Seller Instructions to Broker” which puts the marketing control in the hands of the seller. The aforementioned sections advise seller of their options, and the Seller Instructions inform the broker what marketing efforts and levels seller wants to engage in. The purpose of this form is to create more transparency and communication between seller and their broker as to how the property will be marketed and advertised, ensuring the property receives the level of exposure the seller prefers.
Amended Purchase Agreement Forms (Beginning December 2025)
- Buyer Representation and Broker Compensation Agreement: this form in and of itself is a relatively new form due to the recent change in buyer’s agent compensation due to a NAR settlement with the Department of Justice last summer. The changes in this form are relatively brief.
- The first being the representation period for a buyer who is not a corporation, LLC, or partnership. If the buyer is none of the aforementioned, i.e. a natural person or trust, then representation will end on the date chosen between the buyer and their agent, or 90 days from the beginning date of representation- whichever is sooner.
- The second change is regarding the Continued Right to Payment for Broker Involved Properties, meaning if a buyer purchases a property that was shown to them by their broker, but perhaps the buyer did not make an offer until after the representation expired. The form ensures the broker will still be compensated for their time and effort. The continuation period for payment will be an agreed upon amount of days after the representation period expires (if the agreement is not cancelled) or on the specified cancellation date (if the agreement is cancelled). Again, the purpose of the changes to this form is to ensure full transparency between the agent and their buyer so there will (hopefully) be no ambiguity as to the terms of the representation.
- Seller Property Questionnaire: this form is used by the seller to advise the buyer of known material facts of the property that affect the value or desirability of the property. For example, if a seller knows of plumbing issues in the property, the seller will check the “yes” box for Section 8A. The latest inclusion of material facts to disclose is found under Section 17 “Governmental” which asks if the seller is aware of any state or local requirements or restrictions to the future replacement of existing gas-powered appliances that are transferred with the property. The purpose of this addition is consistent with SB 382, set to take effect January 2026, which is to advise prospective buyers of potential hazardous appliances.
- Residential Purchase Agreement: this form, of course, is used by the buyer to make an offer to purchase the property. Aside from clarifications on subsections for certain paragraphs, the largest changes can be found in section 11, 13, and 19.
- Section 11, titled “Statutory and Other Disclosures (including Lead-Based Paint Hazard Disclosures) and Cancellation Rights,” adds a new subsection, “E. Electrical System Inspection Advise Disclosure.” This new subsection includes an advisory to the buyer that it may be advisable to seek the opinion of a qualified professional to inspect the electrical systems of any building, including the main panel, subpanels and wiring. It’s not a requirement, but it puts further onus on the buyer to do their due diligence, especially if they intend to make upgrades to the electrical system, such as adding solar panels.
- Section 13, titled “Title and Vesting,” includes a new subsection, “D. Federal Reporting Requirement- Geographic Targeting Order.” This subsection correlates to a brand new form that is now included with all purchase agreements (more on that below). It states that if a buyer is a legal entity, purchasing real property containing 1-4 residential units or of vacant land for which residential units will be built, and the purchase price is at least $300,000 and made without a bank loan or other form of external financing, a Geographic Targeting Order (“GTO”) issued by the Financial Crimes Enforcement Network of the US Department of Treasury requires title companies to collect and report certain information about the Buyer, and the buyer must agree to cooperate.
- Additionally, subsection “E. Seller Delivery of Information” states that a seller must give escrow any necessary information to clear title within seven days after requested for the GTO.
- Finally, section 19, “Joint Escrow Instructions to Escrow Holder,” include a new subsection titled, “H. Federal Reporting Requirement- Anti-Money Laundering.” This new subsection expands on 13.D by explaining the situations in title and escrow may have to report to the Financial Crimes Enforcement Network of the US Department of Treasury. 19.I, “Delivery of Federal Reporting Information to Escrow; Consequences of Failure to Provide,” also expands on 13.E elaborates on the circumstances in which the seller must cooperate with escrow to provide information to the Financial Crimes Enforcement Network of the US Department of Treasury.
New Purchase Agreement Form (Beginning September 2025)
- Federal Reporting Requirement Purchase Addendum: this is an entirely new form that is now required for certain purchases by certain buyers. Consistent with the new subsections in the Residential Purchase Agreement discussed above, this form advises both buyer and seller that if the property being purchased is real property with 1-4 residential units, or is vacant land for which the buyer intends to build residential units, or shares in a cooperative housing corporation; the buyer is a legal entity; and the buyer is making an all-cash offer, then escrow may be required to report the transaction to the Financial Crimes Enforcement Network of the US Department of Treasury. Both buyer and seller must agree to the terms of this reporting addendum, and agree to fully cooperate if necessary.
If you are a landlord or tenant, or buyer or seller of residential real property, it is important that your realtor or property manager have the most up to date forms at their disposal. As is detailed above, there are certain changes that require cooperation that is non-negotiable. If you have any questions or concerns regarding the revised and new forms, we are ready to assist in any way we can.
