To fill out C.A.R. Form AD, complete the property address, buyer and seller names, and brokerage and agent information with DRE license numbers on page one, obtain the client’s signed acknowledgment of receipt, then on page two check the boxes that confirm whether each brokerage and each individual licensee is acting as the seller’s agent, the buyer’s agent, or a dual agent. The form is two pages and every blank has a purpose, so working through it in order is the cleanest approach.
Page One: The Disclosure and Acknowledgment
Page one carries the statutory text describing seller’s agent, buyer’s agent, and dual agent duties straight from California Civil Code Section 2079.16.1California Legislative Information. California Code CIV 2079.16 – Disclosure Regarding Real Estate Agency Relationship That block of text is pre-printed. You don’t write anything in the middle of the page; it’s there so the consumer can read the legal duties before signing. The fill-in fields sit at the top and bottom.
Work through the blanks in this order:
- Property address. Use the full street address of the property being bought, sold, or leased.
- Leasehold checkbox. If the transaction is a lease longer than one year, check the box at the top of the form.2California Association of REALTORS. Disclosure Regarding Real Estate Agency Relationship
- Buyer and seller names. Print the full legal names that will appear on the purchase agreement.
- Brokerage and agent information. Enter the brokerage firm name, the individual agent’s name, and both DRE license numbers. Verify the license numbers against the DRE’s online license lookup; a wrong number can raise questions about whether the disclosure is valid.
- Signatures and dates. The buyer or seller signs and dates the acknowledgment of receipt. The agent (or broker-associate) also signs, dates, and provides the license number.
If the same consumer is being represented in a transaction involving more than one brokerage, each agent with more than a casual relationship to that party has an independent duty to present their own Form AD. One client can end up signing two of them.
Page Two: The Agency Confirmation
Page two is a separate legal step under Civil Code Section 2079.17. It confirms the specific agency role in this transaction, not just the general concept.3California Legislative Information. California Code, Civil Code – CIV 2079.17 The confirmation must be completed before or at the same time the buyer and seller sign the purchase contract. Section 2079.17(d) states the confirmation is in addition to the disclosure required by Section 2079.14, so completing one does not satisfy the other even though both live on the same form.
There are four sets of checkboxes to fill in:
- Seller’s brokerage firm. Check whether the firm represents the seller only or both parties as a dual agent. Enter the firm name and license number.
- Seller’s agent. Check whether the individual salesperson or broker-associate is the seller’s agent or a dual agent. Enter name and license number.
- Buyer’s brokerage firm. Same format: buyer only or dual agent, with firm name and license number.
- Buyer’s agent. Same format: buyer’s agent or dual agent, with name and license number.
One point to watch when checking these boxes: if two different agents who work under the same brokerage each represent one side of the transaction, both are considered dual agents, and the confirmation needs to reflect that.1California Legislative Information. California Code CIV 2079.16 – Disclosure Regarding Real Estate Agency Relationship Dual agency is lawful in California, but only with the written knowledge and consent of both parties, and an undisclosed dual agency gives either side grounds to rescind the purchase agreement without having to prove fraud or harm.
A dual agent also faces tighter confidentiality rules under Civil Code Section 2079.21. Price-sensitive information, such as a seller’s willingness to accept less than list or a buyer’s willingness to pay more than offered, cannot be shared with the other side without express permission.4California Legislative Information. California Civil Code Section 2079.21 Checking the dual agent box is a signal to handle those conversations carefully from that point forward.
When to Deliver the Form
Civil Code Section 2079.14 sets different deadlines depending on which side you represent.5California Legislative Information. California Code 2079.14 – Duty to Prospective Purchaser of Real Property
If you represent the seller, deliver Form AD to the seller before entering into the listing agreement. The seller needs to understand how agency works before signing the listing.
If you represent the buyer, deliver Form AD as soon as practicable before the buyer signs a buyer-broker representation agreement and before the buyer signs an offer to purchase. If you did not prepare the offer yourself, present the form no later than the next business day after you receive the offer from the buyer.
Delivery can be electronic or in person. Platforms like DocuSign and the ZipForms integration most C.A.R. members already use create a timestamped record showing when the form went out and when it came back signed. Hand-delivery works too, as long as you leave with a signed acknowledgment.
If the Buyer or Seller Won’t Sign
A client who reads the form and refuses to sign the acknowledgment does not stop the transaction. Civil Code Section 2079.15 requires the agent to write and sign a dated declaration describing the refusal: the form was presented, the party declined to sign, and the circumstances of that refusal.6Justia. California Civil Code Section 2079.15 That declaration goes in the file in place of the signed acknowledgment. A note saying “wouldn’t sign” is not enough; the statute wants a dated, signed written account.
Why Getting It Right Matters
Civil Code Section 2079.24 states that the agency disclosure statutes do not reduce an agent’s duty of disclosure or shield an agent from liability for breaching a fiduciary duty.7California Legislative Information. California Civil Code Section 2079.24 A missed or sloppy Form AD creates exposure on more than one front. The client may have a rescission right, particularly when a dual agency went unconfirmed, and the Department of Real Estate has authority to discipline licensees for falling below professional standards. Delivering the form on time, filling in every blank accurately, getting the signature or documenting the refusal, and keeping the signed copy in the transaction file is the straightforward way to stay clear of all of it.