This form is most often used when another broker or office becomes involved in a transaction after the original agency confirmation, or when the original broker information needs to be updated in the file.

đź“‹ Common Agent-to-Broker Questions About the ABA Form

  1. What is the Additional Broker Acknowledgement form used for?

Explanation:
It’s used to acknowledge and disclose the participation of an additional broker in a transaction after the original Residential Purchase Agreement (RPA) has been signed. This ensures all parties — buyer, seller, and both brokers — are aware of and consent to the new or updated broker involvement.

  1. When would I need to use the ABA form?

Explanation:
Typical scenarios include:

  • An agent changes brokerages during an active escrow
  • A broker is replaced or added after the contract was signed
  • A co-broker is brought in mid-transaction
  • Correction of incorrect broker information in the contract
  1. Does the ABA form replace the Agency Disclosure (AD) form?

Explanation:
No. The Agency Disclosure form explains the nature of representation, while the ABA form simply updates broker information and confirms agency roles. Both may be required in the same transaction.

  1. Who signs the ABA form?

Explanation:
Typically signed by:

  • The new broker being added or replacing the old one
  • The broker being replaced (if applicable)
  • The agent(s) involved
  • The buyer and seller to acknowledge the change
  1. Do I need the ABA form if I switch offices but keep the same broker license number?

Explanation:
If the responsible broker remains the same, an ABA form may not be necessary. However, many brokers still prefer to use it for clarity and full disclosure.

  1. How soon should the ABA form be completed after a broker change?

Explanation:
Immediately — delays can cause confusion in escrow, commission disbursement errors, and potential legal disputes.

  1. Does the ABA form affect commission agreements?

Explanation:
Yes, it can. It ensures the correct broker is identified for commission payment. Without it, escrow may not release funds to the right party.

  1. Do both brokers need to agree before the ABA form can be used?

Explanation:
Yes. Both the outgoing and incoming brokers should acknowledge and agree to the change, especially if there’s a commission split.

  1. If the listing broker changes during escrow, does the ABA form need to be sent to the MLS?

Explanation:
Yes, in most MLS systems, broker changes must be reflected to ensure accurate records and compliance with MLS rules.

  1. What happens if I don’t use the ABA form when required?

Explanation:
Possible issues include:

  • Payment delays from escrow
  • Commission disputes between brokers
  • Legal challenges from clients
  • Potential DRE compliance violations
  1. Does the ABA form need to be sent to escrow?

Explanation:
Yes. Escrow must have the updated broker information to correctly prepare the final settlement statement and disburse commission.

  1. Can the ABA form be used to add a referral broker?

Explanation:
Yes. If a referring broker wasn’t listed in the original agreement, the ABA form can document their involvement and ensure proper commission allocation.

  1. If I leave my brokerage mid-escrow, does the ABA form automatically transfer the deal to my new broker?

Explanation:
No. You need agreement from all parties (including the original broker) before the new broker can be added. Otherwise, the original broker may remain the broker of record until close.

  1. Is the ABA form part of the buyer or seller’s contract file?

Explanation:
Yes. It becomes part of the official transaction record and should be retained by both brokers for compliance and audit purposes.

  1. Does the ABA form change the agency representation?

Explanation:
Not necessarily. It updates broker information and reconfirms the agency relationships already in place. If agency roles change (e.g., from buyer’s agent to dual agent), additional disclosures may be required.

🗂 Summary Table – ABA Form Essentials

Question Key Point
Purpose Updates broker information mid-transaction
Triggers Broker change, agent switch, co-broker addition
Signatures Buyer, seller, outgoing broker, incoming broker
Timing As soon as the change occurs
Risk if not used Payment delays, disputes, DRE issues

 

Disclaimer:
The questions and answers provided are for general guidance only and may not cover all details or apply to every situation. If anything is unclear or you need further clarification, please visit car.org for official resources and the most up-to-date information from the California Association of REALTORS®.

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