Here’s a detailed breakdown of questions real estate agents may ask their broker about the Representative Capacity Signature Disclosure (CAR Form RCSD in ZipForms), with explanations for each.

Representative Capacity Signature Disclosure (RCSD) – Questions & Explanations

1. What is the purpose of the RCSD form?
   The RCSD clarifies when a party to a transaction is signing on behalf of another individual or entity. It ensures all parties know whether the signer has authority to act as trustee, corporate officer, LLC manager, attorney-in-fact (POA), or other legal representative.
2. When is the RCSD required?
   It is required whenever a buyer or seller is not signing in their own individual capacity but instead is acting in a representative role (e.g., signing as trustee for a trust, or as CEO for a corporation).
3. Who needs to sign the RCSD?
   The person who is acting in the representative capacity must sign. For example, a trustee would sign both the RCSD and the purchase agreement on behalf of the trust.
4. Does the RCSD replace other legal documents such as a trust agreement or power of attorney?
   No. The RCSD only discloses the representative role. Supporting documents (such as trust documents, corporate resolutions, or a notarized POA) may still be required by escrow, title, or the lender.
5. What is the difference between RCSD-S and RCSD-B?
   • RCSD-S (for Sellers) is used when the seller is signing in a representative role.
   • RCSD-B (for Buyers) is used when the buyer is signing in a representative role.
6. Can one RCSD cover multiple representatives?
   Yes, if more than one person is authorized to sign on behalf of the entity, each must be listed on the RCSD.
7. How does escrow use the RCSD?
   Escrow relies on the RCSD to confirm the legal capacity of the signer, making sure the grant deed, title vesting, and other documents reflect the correct entity or trust name.
8. What happens if the RCSD is not completed?
   Failure to provide the RCSD can cause delays in escrow, as title and escrow cannot confirm who has authority to act. It could also lead to disputes if authority is questioned later.
9. If the signer is an LLC manager, what documentation must be provided along with the RCSD?
   Typically, a copy of the LLC Operating Agreement or a resolution showing that the manager has authority to sign for the LLC.
10. If the signer is a trustee, what additional documents are usually required?
    Escrow may require a Certification of Trust, excerpts from the trust agreement, or other proof that the trustee has authority to act.
11. Can a buyer’s agent or seller’s agent sign the RCSD on behalf of their client?
    No. Only the authorized legal representative of the entity or person (trustee, corporate officer, attorney-in-fact, etc.) can sign.
12. Does the RCSD affect how the purchase agreement is signed?
    Yes. On the RPA, the entity’s name (e.g., “ABC Trust” or “XYZ Corporation”) must appear as the buyer or seller, and the representative must sign both the RPA and the RCSD.
13. What is the broker’s liability if the RCSD is inaccurate?
    Brokers are not expected to verify the authority beyond ensuring the RCSD is completed. However, if the broker knows the signer lacks authority and allows it anyway, they could be liable for misrepresentation.
14. Does the RCSD need to be delivered to the other party?
    Yes. Like other disclosures, the RCSD must be delivered to the other party in the transaction for transparency and recordkeeping.
15. Can the RCSD be modified for unique situations?
    No. CAR forms are standardized. If the situation is unusual (e.g., court-appointed guardianship), legal counsel may need to draft supplemental documentation.

✅ This set of 15 numbered questions with explanations covers the purpose, timing, requirements, supporting documents, escrow use, risks, and compliance issues related to the Representative Capacity Signature Disclosure (CAR RCSD form in ZipForms).