Commonly-Asked Legal Questions

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Member Legal Services
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April 21, 2008 (revised)

Copyright© 2008 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). Permission is granted to C.A.R. members only to reprint and use this material for non-commercial purposes provided credit is given to the C.A.R. Legal Department. Other reproduction or use is strictly prohibited without the express written permission of the C.A.R. Legal Department. All rights reserved.


Topic Question Click for Answer
Selling NOD Property to Investors What are the special requirements, if any, when selling an NOD Property to an investor? Answer
TDS Exemptions What are the TDS exemptions for 1-4 unit residential property? Answer
Lottery My seller wants me to sell her home using a lottery and selling tickets.  Is that legal? Answer
DRE License Number Is my DRE license number required on my business card or other advertising if I do real estate sales? Answer
Referral Fees I am a REALTOR® and I want to give a gift to a friend for referring a client to me.  Is that legal? Answer
California Law Online Where can I find California law online? Answer
Advertising Someone Else's Listing May a real estate licensee advertise a property that he/she does not have listed? Answer
Megan's Law Disclosure Requirements Does the new 2005 California legislative change to Megan's Law affect any of the disclosure obligations of REALTORS®? Answer
Changing Listing Agent's Offer of Commission If a cooperating broker wants to change (i.e., increase) the amount of commission offered by the listing agent in the MLS, what can he or she do? Answer
C.L.U.E. Report Does the C.A.R. purchase agreement, C.A.R. Form RPA-CA, require the Seller to obtain a C.L.U.E. report? Answer
"As Is" Clause  After presenting an offer written on the C.A.R. Form RPA-CA to my seller, must I prepare a counteroffer form stating that the sale is "as is" in order to protect my seller?  Answer
Workers' Compensation I'm a real estate broker and owner of a real estate office.  My wife is the only real estate salesperson who works for me and she only works part-time.  Must I carry workers' compensation insurance for her? Answer
Social Security Number On the Seller's Affidavit of Nonforeign Status must a seller provide his/her social security number to the buyer? Answer
Security Deposit Will the residential security deposit law change in 2004? Answer
Agency Does the buyer's agent need to have the seller sign a second agency disclosure form when the listing agent already had the seller sign one? Answer
Title Insurance Can the seller of residential one-to-four unit property require the buyer to use the seller's choice of a title insurer?  Answer