The Coronavirus pandemic has caused changes across our country. This is especially prevalent in Real Estate. In an effort to protect all parties involved C.A.R. has introduced many new forms and has been frequently updating them. There have been four new forms introduced for the Sale of Real Estate along with others for rentals and leases.
These forms are all optional and recommended but are NOT Mandatory unless required by your broker. They are meant as another layer of protection for the agent, brokerage, and to hopefully save the Buyers deposit.
What are the 4 Forms?
Listing Coronavirus Addendum/Amendment
Property Entry Advisory Declaration
Coronavirus Addendum/Amendment
Notice of Unforeseen Circumstances
Use of each form
Listing Coronavirus Addendum/Amendment (LCVA)
This form sets guidelines for the marketing and showing of a Listing while giving the seller the option to prohibit what activities the broker may perform during this Pandemic.
States What guidelines must be met by prospective buyers before they can view the property if the Seller agrees to in person showings.
States what Marketing strategies the Seller is accepting of.
Explains what other activities person(s) may need to enter the premises for.
Explains to Seller that if they prohibit activities that they will be limiting the ability of the broker to perform their duties.
Property Entry Advisory and Disclosure (PEAD)
Informs the person entering the property of the risks of coronavirus, the Stay at Home Order, and requirements for entering the property.
Requirements to enter Property
Gloves, Mask, Booties, Wash hands or use Hand Sanitizer before entering the property
Affirm that the person entering the property has not had any signs of respiratory infection or come in contact with anyone with a possible infection withing the last 14 days.
Due to the last statement this form should be signed each time a person enters the property not just 1 time for the entire transaction.
The new updated form also requires selling and listing agents initials and sellers’ initials before it is officially executed.
Notice of Unforeseen Coronavirus Circumstance (NUCC)
This form is used in combination with the CVA to notify the opposite party of Unforeseen Circumstances to the transaction. This can be used to extend time or cancel a contract. Check the appropriate box that applies and send to the other side with the CVA for acceptance.
Coronavirus Addendum or Amendment (CVA)
This form is used to specify what is being requested from one party to the other. Whether it be an Extension of Time for Contingencies or Close of Escrow Or a mutual cancellation of the Contract.
If there is an agreed upon extension of time it is important to note that if the party fails to perform by the new timeline the contract can be cancelled by either party without any notification or notice to perform and even if the Loan Contingency has been removed.
Another important item is that Paragraph 6 allows additional provisions to be added to the contract.
Lastly both parties must agree to the CVA for it to be valid but they are not required to. Therefore, if one party does not agree then it is VOID.
I hope that you find this information useful. Please like and Share so others may also find use of it.
As a Transaction Coordinator (TC) I strive to stay informed of all the latest changes and to be as prepared as possible so that I can assist my agents at any given time. Be sure to check out My Services and Pricing to see how I can help you too even in these current times.