Legal Blog

Risk Assessment & Mitigation Program (RAMP)

Written by Kyle Pietrzak, Vice President of Risk Management | Mar 28, 2018 7:48:16 PM

Updated Local Area Disclosures L.A.D. – Now Available

As part of its Risk Assessment and Management Program, RAMP, SDAR’s Risk Management Committee is dedicated to proactively creating cutting edge forms to address the local needs of our members.  To this end, SDAR is excited to announce the release of an updated Local Area Disclosure into your SDAR Risk Management Forms Library on Zipforms (RMF), a free benefit to members of SDAR. Use your C.A.R. username and password to log in to access the form via ZipFoms.  

Long heralded as a critical risk management tool, SDAR’s proprietary L.A.D., provides vital disclosures of known local issues, not adequately covered in C.A.R.’s Statewide Buyer and Seller Addendum (C.A.R. Form S.B.S.A.)  For example, these disclosures include: new/proposed developments, traffic, airport noise, environmental and public health concerns as well as other local issues that could potentially affect the value, suitability or enjoyment of the property for the buyer. 

Given its nature, the information in the L.A.D. is constantly changing, and therefore one should not rely on the information therein exclusively.  Likewise, the L.A.D. is not intended as an exhaustive list of all issues that should be disclosure.  For specific questions regarding use of the Local Area Disclosures you should always consult your Broker. 

Please take note that, the L.A.D. should never be used without the S.B.S.A.  Together, the L.A.D. and the S.B.S.A. contain information that may significantly influence your client’s decisions, so it is important to encourage your clients to carefully review both before signing. 

While the L.A.D. alone does not relieve a Realtor® of their ethical and legal obligations, a signed L.A.D. is a powerful defense against a potential claim.  Furthermore, even before an issue might arise, the L.A.D. can prompt discussion on potentially important topics and demonstrates your attention to detail and care and the overall professionalism of your practice. 

Should you know of any issues that should be included in the Local Area Disclosure, please submit the suggested information to Legal@SDAR.com for consideration by the Risk Management Committee’s Forms working group.