Non-Contingent Offer Advisory (C.A.R. Form NCOA), with clear explanations. This form is one of the most high-risk disclosures in California transactions because it deals with waiving contingencies.

🔹 GENERAL PURPOSE & UNDERSTANDING

  1. What is the Non-Contingent Offer Advisory (NCOA)?

Explanation:
The NCOA is a C.A.R. form that warns buyers of the serious risks of submitting an offer without contingencies(e.g., inspection, loan, appraisal). It documents that the buyer understands they may be unable to cancel or recover their deposit if issues arise.

  1. When should the NCOA be used?

Explanation:

  • When a buyer writes an all-cash, no-contingency offer
  • When contingencies are waived or removed early in the RPA
  • In competitive multiple-offer situations where buyers often waive protections
  1. Is NCOA required by law?

Explanation:
No, but it is best practice and often required by brokers anytime a buyer submits an offer with reduced or no contingencies.

  1. Who signs the NCOA?

Explanation:
The buyer signs to acknowledge the risks.
The broker/agent signs to confirm delivery and explanation.
The seller does not sign this advisory.

  1. Does signing the NCOA mean the buyer can’t ever cancel?

Explanation:
No. Buyers may still have statutory cancellation rights (e.g., TDS, NHD, HOA docs, lead-based paint). But without contingencies, they cannot cancel based on loan, appraisal, or inspections.

🔹 ZIPFORMS-SPECIFIC QUESTIONS

  1. Where is the NCOA in ZipForms?

Explanation:
In ZipForms:

  • Click “Add Forms”
  • Search for “NCOA” or “Non-Contingent Offer Advisory”
  • Select C.A.R. Form NCOA
  1. Should I include NCOA in my buyer templates?

Explanation:
Yes—especially if you often write offers in competitive markets. Add it to your buyer-side templates in ZipForms so it’s ready when contingencies are waived.

  1. Can NCOA be e-signed?

Explanation:
Yes. You can route it for signature via DigiSign, DocuSign, or Digital Ink in ZipForms.

  1. Do I need a new NCOA for each offer?

Explanation:
Yes. Each transaction is different. A buyer should sign a new NCOA for each non-contingent offer they submit.

🔹 RISK & LIABILITY QUESTIONS

  1. Why is waiving contingencies risky?

Explanation:
Because the buyer:

  • Waives inspection rights → may inherit costly undiscovered defects
  • Waives loan contingency → may lose deposit if financing fails
  • Waives appraisal contingency → may have to bring in extra cash if appraisal comes in low
  1. Does the NCOA protect the broker from lawsuits?

Explanation:
Yes. It documents that the broker advised against waiving protections and that the buyer knowingly accepted the risk.

  1. What if the buyer later regrets waiving contingencies?

Explanation:
If they signed the NCOA, it is much harder for them to claim that the agent pressured them or failed to warn them.

  1. Does NCOA apply to cash offers only?

Explanation:
No. It applies to any offer where the buyer waives or shortens contingencies, whether cash or financed.

  1. What if the seller requests a non-contingent offer?

Explanation:
The NCOA reminds the buyer that it is their choice, and they should not rely solely on the seller’s request. They should consult with legal and financial professionals before removing protections.

  1. What about statutory disclosures?

Explanation:
Even if contingencies are waived, buyers still have cancellation rights tied to:

  • TDS (Transfer Disclosure Statement)
  • NHD (Natural Hazard Disclosure)
  • HOA documents
  • Lead-based paint disclosure (if pre-1978)

🔹 PRACTICAL BUYER QUESTIONS

  1. Should buyers still get an inspection if they waive the inspection contingency?

Explanation:
Yes. Buyers can conduct pre-offer inspections or order inspections for information only (without cancellation rights).

  1. Can a buyer lose their deposit if financing falls through?

Explanation:
Yes. If they waived the loan contingency and can’t close, the seller may claim the earnest money deposit as liquidated damages.

  1. What happens if the appraisal comes in low?

Explanation:
If the appraisal contingency was waived, the buyer must either:

  • Pay the difference in cash
  • Or risk losing their deposit if they fail to close
  1. Should a buyer consult an attorney before signing NCOA?

Explanation:
Yes. The form explicitly advises buyers to consult a real estate attorney or financial professional before waiving protections.

  1. Can a broker refuse to write a non-contingent offer?

Explanation:
Yes. A broker has a duty to protect the brokerage from liability. Many will allow it only if the buyer signs the NCOAfirst.

✅ BROKER COMPLIANCE CHECKLIST FOR NCOA

Task Required? Notes
Add NCOA to buyer’s ZipForms package ✅ Required if contingencies waived
Buyer signs NCOA ✅ Acknowledges risk
Broker/agent signs ✅ Confirms delivery
Advise buyer about risks of waiver ✅ Document conversations
Buyer consults legal/financial professionals ✅ Strongly recommended
File NCOA in compliance records ✅ DRE audit protection
If buyer refuses, broker may decline representation ✅ Risk management decision

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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