Here’s a complete list of questions real estate agents might ask their broker about the Amendment to Prior Disclosure (APD form), along with explanations for each.
Amendment to Prior Disclosure (APD): Questions and Explanations
- What is the purpose of the Amendment to Prior Disclosure form?
The APD is used to correct, clarify, or update any information that was previously disclosed to the buyer or seller. It ensures the disclosure package remains accurate and complete if new facts arise. - When should the APD be used?
It is used whenever new information surfaces after the original disclosures were delivered—such as repairs, updated reports, or newly discovered conditions affecting the property. - Is the APD legally required?
Yes. California law requires sellers and agents to disclose all known material facts, even if they are discovered after initial disclosures are made. The APD fulfills this ongoing duty. - Who is responsible for filling out the APD?
The seller usually completes the APD when they need to amend information they originally disclosed. However, agents may also be involved if the update relates to their own disclosures (e.g., AVID corrections). - What types of information typically go on the APD?
Examples include:- Discovery of a roof leak after the initial TDS was delivered.
- A recent termite inspection report that shows new findings.
- A correction to square footage or lot size previously stated incorrectly.
- What happens if the seller refuses to provide an APD?
If a seller refuses to disclose updated material facts, the agent still has a duty to disclose known information directly to the buyer. Failure to do so can create liability. - Does the APD delay escrow closing?
Possibly. If the buyer receives new, material disclosures, they may have the right to rescind or extend timelines to review the updated information. - Does the buyer have to sign the APD?
Yes. The buyer acknowledges receipt of the amended disclosure. This provides proof that the buyer was informed of the new information. - What if the buyer refuses to sign the APD?
The agent should still document the delivery of the amended disclosure (e.g., proof of email or certified mail). This shows compliance with disclosure duties even if the buyer won’t sign. - Is the APD used only for seller disclosures, or also for agent disclosures?
It can apply to both. If an agent discovers they made an error or omission on their AVID or other disclosure, they should use the APD to correct it. - Can multiple APDs be issued during a transaction?
Yes. There is no limit. Each time new or corrected information arises, an additional APD should be delivered. - What is the liability if an APD is not delivered when required?
Failing to provide an APD could result in nondisclosure claims, lawsuits, rescission of the contract, or disciplinary action from the Department of Real Estate. - Does the APD protect the seller from future liability?
Yes. By updating disclosures, the seller demonstrates good faith and compliance with disclosure laws, reducing the risk of post-closing disputes. - Should the APD be included in the transaction file?
Absolutely. The completed and signed APD must be retained in the broker’s file as part of the disclosure package for compliance and risk management. - Is the APD required for all property types?
It is generally applicable to residential 1–4 unit properties but may also be advisable in other property transactions when disclosure updates are necessary.
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®.
Alliance Bay Realty & Alliance Bay Funding – The Best 100 Percent Commission Real Estate & Mortgage Company
At Alliance Bay Realty, we are a 100 percent commission real estate brokerage designed for agents who want to keep 100 percent of your commission. We’re a zero split real estate brokerage and a real estate broker with no splits, giving you the freedom to earn more and keep more. As a flat fee real estate broker, we offer the best support, training, and technology without taking your hard-earned income. Whether you’re looking to join a 100 percent commission real estate company or searching for the best brokerage for real estate agents, we are the clear choice.
For mortgage professionals, Alliance Bay Funding is a 100 percent commission mortgage broker that offers the mortgage broker 100 percent split model you’ve been looking for. We are a no split mortgage loan company with no desk fees, making us the best 100% commission mortgage company in the business. As a mortgage broker with no desk fees, we give you the tools, lender access, and support you need to close more loans while keeping more of your income.
Whether you’re a real estate agent searching for a no commission split real estate brokerage or a loan officer looking for a mortgage company with the highest splits, Alliance Bay Realty and Alliance Bay Funding are the best 100 percent commission companies to grow your business.