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Introduction
New real estate forms are coming into effect with the new year. Buyers and sellers of California real estate should be aware of updates to the mandatory C.A.R. forms having to do with consumer protection and transparency in digital imagery. This article explains changes in real estate practice arising from the new Realtor Acknowledgement and Disclosure, Digitally Altered Image Disclosure, and Thirdhand Smoke & Vaping Disclosure, and new Buyer Representation Limits.
📑 The New RAD Form (REALTOR® Acknowledgement and Disclosure)
The RAD form is a new, standalone document released in December 2025. It replaces the “REALTOR® Acknowledgement” section previously located at the end of the Residential Purchase Agreement (RPA) and other representation agreements.
- Standardization: It provides a uniform method for disclosing referral-related compensation (broker-to-broker referral fees).
- Ethical Disclosures: Consolidates disclosures required by the REALTOR® Code of Ethics, specifically regarding an agent’s relationship to a principal (e.g., if the agent is a relative of the seller or buyer).
- Transparency: Clearly communicates all sources of compensation involved in the transaction to the client, ensuring compliance with heightened transparency requirements following recent industry settlements.
- Succinct Value: Replaces dense legalese with a more concise explanation of the benefits of working with a REALTOR®.
📸 Digitally Altered Image Disclosure (AB 723)
Effective January 1, 2026, agents must disclose when marketing images have been significantly modified.
- Scope: Applies to images where elements are added, removed, or changed (e.g., virtual staging, changing wall colors, or removing power lines).
- Exemptions: Standard photography edits like lighting, white balance, and cropping do not require disclosure.
- Conspicuous Statement: The disclosure must be “reasonably conspicuous” on or next to the image.
- Mandatory Link: Licensees must provide a direct link (URL or QR code) to the original, unaltered image for consumer comparison.
🚭 Thirdhand Smoke & Vaping Disclosure (AB 455)
This law expands the seller’s disclosure obligations regarding environmental hazards for 1–4 unit residential properties.
- Actual Knowledge: Sellers must disclose in writing any actual knowledge of thirdhand smoke residue (nicotine/tobacco chemicals remaining on surfaces).
- Vaping Included: Disclosure requirements now explicitly cover residue and history from vaping and e-cigarettes.
- Updated Forms: The Transfer Disclosure Statement (TDS) and Seller Property Questionnaire (SPQ) now include specific checkboxes for smoking/vaping history and residue.
🤝 Buyer Representation Limits (AB 2992 Refinement)
While the 90-day limit for buyer representation agreements began in 2025, the December 2025 BRBC form (Buyer Representation and Broker Compensation) has been revised for stricter 2026 compliance.
- Automatic Expiration: Paragraph 2A(1) now includes a hard limit of 90 days (3 months) from the start date, or a specified end date, whichever is sooner.
- Enforceability: Any agreement exceeding this term without a written, signed extension is legally void and unenforceable.
Conclusion
The 2026 updates represent a significant shift toward high-tech transparency and stricter ethical accountability in California real estate. Whether it is providing a link to the “original” version of a virtually staged photo or using the new RAD form to clarify referral fees, these changes prioritize consumer trust and clarity, all for the benefit of real property buyers and sellers.
