The California Association of Realtors has been revising dozens of standard forms, addenda and contracts to comply with a national real estate commission settlement scheduled to take effect Aug. 17. Realtors use these forms and contracts for housing transactions. (Illustration by Jeff Goertzen, Orange County Register/SCNG)
The U.S. Justice Department has launched a “formal inquiry” into the California Association of Realtors’ contracts and forms after a national consumer group complained that 2024 documents contained “anti-consumer provisions.”
The association’s new buyer-agent representation agreement, for example, was “too disorganized and complex for the average homebuyer to understand,” the Consumer Federation of America said in one analysis.
In a response, the state’s 200,000-member trade group issued a statement online, arguing that the Consumer Federation had issued a “misguided critique” of draft forms “that was still a work in progress.” CAR said it released updated forms on July 10.
See also: How to make a buyer’s real estate contract consumer friendly
The industry group has been revising dozens of standard forms, addenda and contracts to comply with a national real estate commission settlement scheduled to take effect Aug. 17. Realtors use these forms and contracts for housing transactions.
The National Association of Realtors reached the proposed settlement in March with plaintiffs in a federal…
