Seller’s Advisory form (CAR Form SA)

🔹 GENERAL PURPOSE & UNDERSTANDING

  1. What is the Seller’s Advisory (Form SA) used for?

Explanation:
The Seller’s Advisory is a California Association of REALTORS® (C.A.R.) disclosure form that provides guidance, disclosures, and warnings to sellers during the listing and sale of a property. It outlines:

  • The seller’s legal duties
  • Importance of disclosures and inspections
  • Broker’s role and limitations
  • Common risks in real estate transactions
  1. Is the Seller’s Advisory mandatory?

Explanation:
Not legally required by law, but highly recommended and strongly encouraged by most brokers to protect both the seller and brokerage from liability.

  1. Who signs the Seller’s Advisory?

Explanation:
The seller(s) must sign it, and the listing agent/broker also signs to confirm the form was presented and explained.

  1. When should the Seller’s Advisory be signed?

Explanation:
Ideally, it should be signed at the time of listing or shortly thereafter, before any offers are accepted, and included in the disclosure packet.

🔹 ZIPFORMS-SPECIFIC QUESTIONS

  1. Where do I find the Seller’s Advisory in ZipForms?

Explanation:
Go to “Add Forms” > Search “SA” or “Seller’s Advisory” in your CAR forms library. The form is listed as SA.

  1. Can I add the Seller’s Advisory to my ZipForms listing templates?

Explanation:
Yes. You should include it in your transaction templates so it’s automatically included in every new listing package.

  1. Can I use DocuSign/DigiSign to get the Seller’s Advisory signed electronically?

Explanation:
Yes. ZipForms integrates with DigiSign. Once added to a transaction, click “Sign” and select SA for electronic signatures.

  1. What if I forget to include the SA in the listing packet?

Explanation:
You can send it separately later, but document the delay. Always better to include it before showings begin or before accepting an offer.

🔹 LEGAL, DISCLOSURE & LIABILITY QUESTIONS

  1. What are the seller’s key responsibilities outlined in the SA?

Explanation:

  • Disclose known material facts (via TDS, SPQ, AVID, etc.)
  • Cooperate with inspections
  • Provide access
  • Review reports carefully
  • Not to rely solely on broker’s advice regarding legal/tax issues
  1. What does the SA say about the broker’s role?

Explanation:
It clarifies that:

  • Brokers are not inspectors, lawyers, or tax advisors
  • Brokers will visually inspect the property but won’t discover hidden defects
  • Brokers provide access to resources, but decisions rest with the seller
  1. What legal risks does the SA warn the seller about?

Explanation:

  • Failure to disclose known issues
  • Lawsuits for misrepresentation or concealment
  • Relying solely on broker statements
  • Skipping inspections or ignoring buyer requests
  1. Does the SA cover tax issues like capital gains or 1031 exchanges?

Explanation:
Yes. It reminds the seller to consult a tax professional or CPA, especially regarding:

  • Capital gains taxes
  • FIRPTA withholding
  • 1031 exchanges
  1. What happens if the seller refuses to sign the SA?

Explanation:
It’s not mandatory by law, but the broker should document that the form was:

  • Offered
  • Explained
  • Declined by seller
    This protects the brokerage from liability.
  1. Does the SA replace other disclosures like TDS or SPQ?

Explanation:
No. The SA is an advisory, not a statutory disclosure. It complements TDS, SPQ, NHD, AVID, etc., and provides a framework for the seller’s legal duties.

🔹 PRACTICAL & BROKER POLICY QUESTIONS

  1. Can I customize or edit the Seller’s Advisory?

Explanation:
No. The CAR form must be used as is. You can include broker-specific policies in a separate addendum or brokerage disclosure.

  1. Is the Seller’s Advisory used in commercial or vacant land transactions?

Explanation:
Primarily designed for residential transactions. For commercial or land, brokers may provide similar advisory language in a separate addendum.

  1. Is this form given to the buyer too?

Explanation:
No. The SA is intended only for the seller. Buyers receive a separate Buyer’s Inspection Advisory (BIA) and Buyer’s Investigation Waiver (BIW) if applicable.

  1. Should we attach the SA to the MLS?

Explanation:
No, it’s not typically shared publicly. It is retained in the file for broker protection and legal compliance.

  1. Can this form be used in probate or trust sales?

Explanation:
Yes. Trustees and executors should still sign the SA, even if exempt from some statutory disclosures, to acknowledge advisory responsibilities.

✅ BROKER CHECKLIST FOR SA FORM

Task Required? Notes
Add SA to ZipForms transaction ✅ Use templates
Have seller sign early in process ✅ Preferably at listing appointment
Broker/agent to sign as well ✅ Confirms delivery
Save signed copy in compliance file ✅ DRE audit ready
Do not share with buyer ❌ Seller-only document

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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