Recap of Aaron Green’s Presentation on AAR Legal and Form Updates

Summary: At our September 3rd CAAR Business Breakfast, Arizona REALTORS® General Counsel Aaron Green provided an in-depth look at upcoming changes to standard forms and policies. Highlights include a decision not to create a new “delayed marketing” listing status (opting instead to use our existing IDX opt-out), an overhaul of the Solar Addendum (effective November 2025) to address solar lease assumptions, new contract clauses to facilitate seller-initiated offers with unrepresented buyers, and revisions to the Residential Purchase Contract to clarify seller concessions and broker compensation. Below is a recap of the verified changes, member questions, and Aaron’s insights.

Clear Cooperation Policy: No New “Investment Delay” Status (Use IDX Opt-Out)

Aaron first addressed the MLS Clear Cooperation Policy update from NAR. In March 2025, NAR added a “Delayed Marketing Exempt Listing” option to give sellers flexibility while keeping Clear Cooperation in place. This new policy allows a seller (with broker’s consent) to delay syndicating a listing to public sites (IDX feeds, Realtor.com, Zillow, etc.) for a set period, even though the listing must still be entered in the MLS and visible to other REALTORS®. In practice, the property would be Active in the MLS for agents to show, but withheld from Internet advertising for the specified delay period. NAR left the length of any delay up to each MLS, and local associations had until Sept. 30, 2025 to decide if or how to implement this option.

CAAR’s Decision: After consulting our brokers, the CAAR Board voted not to adopt a new “delayed marketing” section in MLS at this time. The consensus was that our MLS already offers a similar choice – when inputting a listing, agents can simply elect to opt out of IDX syndication if a seller desires limited public exposure. In other words, our members already control online distribution via existing MLS settings. A separate “delayed” status was deemed unnecessary, and could cause confusion. For now, if a seller wants to withhold their listing from Internet feeds, you should use the established IDX opt-out feature (with the seller’s written instruction). Those listings will remain in MLS for cooperation but just won’t display on public sites. We will not create a new MLS category for these; they’ll appear as normal active listings to subscribers, with no special section in Flexmls.

Aaron noted that this approach keeps things simple and compliant. Importantly, Clear Cooperation’s 1-day MLS filing rule still applies – you must submit any publicly marketed listing to MLS within one business day. The only difference is that, if the seller opts out of Internet advertising, the listing will only be visible to agents (not on IDX portals) until the seller decides otherwise. Members were reminded that if the seller later wants full exposure, you can toggle the IDX setting back on. (Side note: Other MLSs are handling the NAR policy similarly – for example, West Michigan’s MLS reported that agents “already control syndication settings” and plan to update forms to include the seller’s delayed marketing disclosure.)

Takeaway: Use the IDX syndication opt-out as needed, and obtain the seller’s signed acknowledgment if they choose to waive full immediate exposure. We will continue to monitor this policy; if demand grows for a formal delayed-publication option, the Board can revisit it. But for now, business as usual, all listings go into MLS for other REALTORS®, and you manage public advertising per your seller’s instructions.

Solar Addendum Overhaul – Lease Assumptions & Transfer Fees

One of the biggest form updates coming November 2025 is a complete overhaul of the AAR Solar Addendum. This is in response to the growing complexity of solar panel leases/loans in transactions and lessons learned from agents’ feedback. Key changes in the revised Solar Addendum include:

• Buyer Caution to Review Assumption Terms: A new clause will advise buyers to carefully review the solar lease/loan assumption approval documents they receive from the solar company (typically a few weeks into escrow) to verify that the terms match what was agreed. In practice, when a home has leased solar panels, the seller must disclose the system details (owned vs. leased, payment amount, etc.) and the buyer usually must assume the lease (or the seller must pay it off). Under current procedure, the buyer gets the solar contract and applies for assumption during escrow, and they have the inspection period to investigate the lease terms. However, issues were arising late in escrow, for example, the final assumption approval coming 3 days before closing could show a higher monthly payment or new conditions that differ from what was disclosed. To protect against this, the updated addendum explicitly reminds the buyer to re-check the final assumption documents (usually provided about 3 days prior to close) and ensure the terms (payment amount, remaining years, interest, etc.) are the same as originally agreed. If anything has changed, the buyer needs to know before closing so it can be addressed. This reminder aims to make buyers aware that their last chance to object or negotiate is when those final docs come in – not after closing when it’s too late.
• Clarified Responsibility for Solar Transfer Fees: The revised form addresses fees charged by solar companies (or utilities) to process a lease transfer or assumption. In prior versions, there was some confusion about these “assumption/transfer fees” , they might have been mentioned in the loan assumption addendum fine print. The new Solar Addendum makes it clear that if the solar provider charges any transfer or assumption fee, the parties must agree who will pay that fee (buyer or seller). The form will likely include a dedicated checkbox or blank to designate which party covers any solar transfer fee. This prevents surprises like an unexpected $250 fee being discovered at closing with no prior agreement on payment. By negotiating it upfront in the addendum, we avoid last-minute disputes.
• Requiring Prompt Solar Documentation: The seller’s obligation to provide all solar lease/loan documents to the buyer immediately after contract acceptance is reinforced. While this was always the intent, the updated language underscores that sellers need to hand over the solar agreement, payment schedule, warranty info, etc., right away so the buyer can begin the assumption process and review terms early. Early disclosure allows the buyer and their lender to evaluate the solar payments’ impact on loan approval and ensures the 10-day inspection window can be used to research the solar contract thoroughly.

These changes were well received, as they add transparency and guidance to a traditionally tricky part of transactions. Member Concerns and Suggestions: One member asked why we couldn’t disclose more solar details upfront in the Seller’s Property Disclosure Statement (SPDS), rather than relying on buyers sifting through solar contracts after going under contract. For example, could the SPDS include a clear summary of the solar lease terms (payment amount, escalators, years remaining)? Aaron acknowledged this suggestion is very practical. He shared that AAR’s forms committee has noted the idea, and they may consider adding a solar-specific question or attachment to the SPDS in a future cycle. (This wouldn’t be in the November 2025 release, but possibly next year.) In the meantime, it’s good practice for listing agents to collect solar info in advance – many savvy agents already obtain the solar lease details and even the Solar Addendum prior to listing or offer, so buyers can review terms before making an offer. As one attendee put it, “What’s the point of going under contract and then discovering the solar terms you may not like?” – ideally, buyers should know early.

Aaron agreed and stressed that communication is key: both the listing and buyer’s agent should collaborate early to get all relevant solar information on the table. If a seller has solar panels, don’t wait – ask the solar company about transfer procedures, whether the account is current, and how long approval takes. One scenario discussed was if a seller is delinquent on solar payments or the solar company refuses transfer. In such cases, the buyer might not be allowed to assume the agreement at all, meaning the seller would need to pay off the system or risk derailing the sale. These pitfalls reinforce why early discovery is crucial. The new Solar Addendum can’t solve every solar headache, but it does put everyone on notice of their duties: seller provides documents promptly; buyer must diligently review and confirm terms; and any fees or changes should be addressed by or before closing.

Bottom line: The Solar Addendum coming in November 2025 will give agents and clients a clearer roadmap for handling solar leases. Make sure to use the new form on any transaction involving solar panels. And as a best practice, guide your clients through the “solar journey” proactively – set expectations that assuming a solar lease can be a complex process with extra steps and potential delays. As Aaron humorously remarked, if your buyer loves a house with solar, you might say: “This is the journey we’re embarking on, I’ll hold your hand through it, but buckle up!” Setting that expectation upfront can save a lot of frustration later.

New AAR Forms for Working with Unrepresented Buyers (“Seller-Initiated Offer”)

Another major topic was how to handle transactions when the buyer is unrepresented (no buyer’s agent). With recent industry changes, we may occasionally see more unrepresented buyers (though Aaron noted it’s still relatively rare in our market). Historically, if a buyer came directly to a listing agent without their own agent, using AAR’s standard purchase contract became tricky, AAR forms are copyrighted and provided as a member benefit for use by REALTORS® representing a party. An unrepresented buyer (who is not working with a REALTOR®) is not authorized to draft an offer on our forms. In fact, if a buyer with no agent tries to write up an offer on the AAR contract, technically that’s a violation of the forms’ use restrictions. The usual guidance was that an unrepresented buyer should write their offer on some other document (a generic contract from the internet, a title company form, or even hire an attorney). The listing agent must still present that offer to the seller by law, but the seller may not be comfortable with unfamiliar forms. Many agents understandably prefer the familiarity and balance of the AAR contract (since it’s designed to protect both parties).

New “Seller-Counter Offer” Approach: To solve this, AAR is introducing a new Additional Clause (to be used via the Additional Clauses Addendum) that essentially creates a “Seller-initiated Purchase Offer”. In practice, this lets the listing agent generate an offer on the AAR Residential Purchase Contract on behalf of the seller to present to an unrepresented buyeraaronline.com. It’s like doing a reverse offer or counteroffer that originates from the seller’s side, using our standard contract as the vehicle. Here’s how it works:

• The seller (through their listing agent) fills out the AAR purchase contract with all the terms they are willing to offer the buyer – price, closing date, contingencies, etc. The seller signs this contract first, as the “offeror.” Normally, Section 8 of the contract is where the buyer would sign if they were the one initiating; in this scenario, Section 8 serves as the buyer’s acceptance area.
• The Additional Clauses Addendum is attached with a special clause stating that “This offer is initiated by Seller.” It declares that all prior offers or counteroffers are null/rejected and that the attached contract (dated on that day) constitutes the seller’s offer to the buyer. It also specifies that the contract will become binding only if and when the buyer signs the acceptance area (Section 8) by a certain deadline. Essentially, it’s a clean new offer from the seller to the buyer, inviting the buyer to accept.
• To avoid confusion, the clause also removes Section 8’s pre-filled language about buyer offering the purchase. In the standard form, lines at the top of Section 8 indicate the buyer is making the offer; those are inapplicable here, so the addendum overrides them with the custom language. The buyer will still initial and sign the contract (all pages, plus Section 8) to indicate acceptance, but now those signatures mean “I accept the seller’s offer” rather than “I propose this offer.”

By using this method, the entire agreement ends up on the official AAR contract, signed by both parties, which is ideal for clarity and enforcement. It avoids the “hot mess” of letters, emails, or non-standard forms cobbled together. As Aaron said, we want a “nice clean contract at the end of the day,” rather than trying to merge a bunch of informal writings into a contract. This clause helps achieve that when dealing with an unrepresented buyer scenario. Importantly, this procedure is only initiated if the buyer did not already submit a valid offer on their own. If an unrepresented buyer does give you an offer on a non-AAR form, you can certainly counter back on the AAR contract (that’s essentially what this is). The new clause just formalizes the practice so it’s legally tidy.

A few notes and FAQs:

• Can this be used if the buyer does have an agent (i.e. a “reverse offer”)? Yes, theoretically the seller-initiated offer clause doesn’t prohibit use with a represented buyer. In a case where a buyer’s agent hasn’t written an offer and the seller wants to entice a hesitant buyer with an offer, the listing agent could send one. However, it’s unusual, typically if a buyer is interested and has an agent, that agent would prepare an offer from the buyer’s side. This clause is primarily intended for situations where the buyer is unrepresented or unable to write an offer themselves. There was a question about this in the meeting; Aaron agreed it could be used with a represented buyer (nothing stops the seller from making an unsolicited offer), but the most common use case is indeed when the only REALTOR® in the deal is on the seller’s side.
• Delivery and Communication: When using this clause, the offer will often be delivered directly to the buyer (since they have no agent). The second new clause AAR created addresses how notices and responses are delivered in such cases. It basically allows the contract to specify that delivery of the offer or any notice to the buyer can be done via a certain method (e.g. email). In a normal transaction, the contract’s default is that notice to a party can be given to their agent. But if the buyer has no agent, you’ll want to ensure you have the buyer’s email or mailing address on the contract for delivering any notices (acceptance, inspection notices, etc.). The new optional clause lets you fill in the buyer’s email address for official notice and states that an email to that address counts as delivery to the buyer. This provides clarity so you’re not scrambling over how to send, say, a BINSR or other notice to an unrepresented party.
• Unrepresented Buyer Disclosure: Whenever you find yourself dealing directly with a buyer who doesn’t have their own agent, remember your agency law obligations. As the listing agent, you exclusively represent the seller’s interests. To avoid any implied agency or confusion, always use the Unrepresented Buyer Disclosure form (which AAR introduced last year). This one-page form (often called the “Consent to Unrepresented Buyer” form) makes the buyer acknowledge that you are the seller’s agent, not theirs, and that you will not be advising them or protecting their interests. It warns them not to divulge confidential info to you and to consider seeking professional advice on their own. Aaron strongly emphasized the importance of setting this expectation in writing before too much interaction with the buyer. Even an email stating “Just to confirm, I represent the seller only in this transaction” is wise. The goal is to prevent the buyer from later claiming you somehow also acted as their broker without consent (an undisclosed dual agency risk). So, have them sign that disclosure form early, ideally prior to or at the time of presenting them with the seller-initiated offer.
• Electronic Signatures for Unrepresented Parties: A question arose: can an unrepresented buyer e-sign our forms (like via Authentisign/Docusign) if they’re not a member? Yes, the signing itself is fine (signing doesn’t require membership; it’s the form preparation that is limited to members). However, Aaron cautioned against simply firing off a DocuSign without any explanation. There’s a concern that an unrepresented consumer might just click through signatures on a legal contract without fully understanding it. Best practice is to personally go over the offer with the buyer (in person or by phone/Zoom) before or while they sign, or provide a summary sheet of key terms, so they know what they’re agreeing to. AAR will likely issue guidance suggesting that brokers do not auto-populate e-signatures for unrepresented buyers by default. Instead, offer to walk them through the document. It protects everyone and ensures the buyer can’t later claim they “just signed electronically and didn’t realize something.” Keep an eye out for an upcoming “Arizona REALTOR® Voice” article in early November where AAR will address best practices for electronic signatures in these scenarios.

Overall, these new clauses and procedures give us a solid framework for handling offers with unrepresented buyers in a professional and compliant way. As Dennis (our CAAR President) joked, we hope you don’t need to use the seller-initiated offer clause often – but it’s great to have “in the toolbox” for those special cases. Always loop in your broker if you’re unsure about working with an unrepresented buyer, and make sure all your i’s are dotted (disclosures, etc.). When used, the outcome should be a clean, fully executed AAR contract that both parties can rely on, with no mystery terms lurking outside the contract.

Purchase Contract Updates: Seller Concessions & Commission Transparency

Aaron also reviewed some important changes to the Residential Resale Purchase Contract itself, slated for the November 2025 forms release. These changes are largely driven by the industry’s push for greater transparency in how brokers are compensated (in light of recent legal developments) and to clarify how seller concessions can be used. Here’s what to know:

• Seller Concessions Can Cover Buyer’s Broker Fees – The Arizona purchase contract has long allowed a seller to offer a concession (a credit at closing) to help the buyer with closing costs, prepaid items, etc. With the evolving practices, some transactions have started applying those concessions toward the buyer’s agent’s commission (essentially using the credit to cover some or all of the fee that the buyer agreed to pay their broker). To eliminate any gray area, the updated contract language will explicitly state that “Seller Concessions may be applied to any of Buyer’s costs as allowed by Buyer’s lender – including fees for buyer broker services.” This mirrors NAR’s official guidance that seller concessions are indeed a permissible way to fund buyer broker compensation. In other words, it’s now clearly acknowledged that a seller’s credit can go toward the buyer’s agent’s fee, just as it could go toward a rate buydown, HOA dues, home warranty, or other buyer expenses. Crucially, the contract will note that such concessions cannot be contingent on or tied to a specific outcome (for example, a concession can’t be only given on the condition that it pays a broker’s commission). It must be a general credit that the buyer can allocate, which keeps us compliant with NAR policy. The key point is transparency – all parties know up front that $X of seller credit is being provided and may be used for broker fees among other things.
• Disclosure and Agreement of Both Parties: Along with the above, the contract will likely include an area (or an addendum) for the buyer and seller to affirm their consent if seller money is being used toward broker compensation. Arizona law and ethics require that if a broker is being paid by both the buyer and seller (directly or indirectly), both parties must consent in writing. In practice, if a seller concession is used for buyer’s broker fees, the seller is effectively contributing to the buyer’s agent’s pay. The updated contract ensures this is documented and agreed to, protecting against any later claims of hidden commissions. (In fact, AAR rolled out a separate Seller Compensation Addendum in August 2024 to handle scenarios where a seller pays the buyer’s broker outside of escrow. That addendum provides written consent for a buyer broker to get paid from multiple sources. The November 2025 contract changes integrate this transparency directly into the standard contract when using concessions, so an extra addendum may not be needed if the concession covers it and everyone signs off.)
• Emphasis on Best Practices: Aaron shared that while it’s now permissible and clear to use concessions for commissions, brokers should handle this carefully. The preferred practice is still to negotiate compensation openly and not to obscure it. In an ideal world, buyer broker fees are dealt with either via a direct agreement (buyer pays or seller agrees to pay in advance) or at least plainly noted. Using a seller concession to pay the fee is often a tool to help a cash-strapped buyer, and it can be win-win , the buyer can finance the commission in their loan, and the seller gets a deal done with a qualified buyer. Just remember: be transparent with your clients. For listing agents, if your seller is offering, say, 3% back in concessions and you know the buyer’s agent will be paid from that, make sure your seller understands that dynamic. For buyer’s agents, make sure your buyer understands any trade-offs (for instance, a higher sale price to cover a large concession). The contract’s new language makes it part of the contract, so nothing should be a surprise.

In summary, the purchase contract is being modernized to reflect the reality of today’s transactions and the NAR settlement guidelines that took effect in 2024. All compensation is negotiable and now it must be documented in writing. We, as REALTORS®, should expect more conversations with clients about “who pays your fee” and have tools to facilitate whichever structure they choose – whether it’s a direct payment, a seller credit, or a traditional offer of compensation. The November 2025 form changes give us clarity and keep us compliant: seller concessions can be used for any buyer costs (loan costs, repairs, or broker fees), as permitted by the lender, and everyone will sign off on the arrangement.

One member asked about an unusual scenario: “What if it’s an all-cash deal and a buyer asks for seller concessions?” In a cash transaction, there’s obviously no lender to approve how funds are used, but a seller could still agree to a credit (perhaps for repairs or as an incentive). In such cases, if the credit is meant to cover a broker fee, the same disclosure and agreement principles apply. It’s less common to see concessions in cash sales, but the form doesn’t prohibit it. Just treat it as any other concession – clearly stated in the contract and mutually agreed.

Lastly, Aaron reminded everyone that written buyer-broker agreements are now effectively required before showing property (per the NAR settlement changes). Ensure you have your buyers sign an employment agreement upfront, which includes how you will be paid (commission amount or formula). Whether that comes from the seller (via MLS offer or concession) or the buyer out-of-pocket, it must be spelled out in your agreement with the buyer. The days of “figure it out later” are over – we need to have those conversations at the start of the relationship. The updated forms ecosystem (listing agreements, buyer agreements, purchase contract, addenda) is being aligned so that whatever method of compensation is chosen, it’s documented and agreed by all parties. This reduces legal risk and builds trust through transparency.

Additional Member Q&A and Next Steps

Q: Will AAR provide training on all these changes? – Yes. AAR will publish articles in the coming weeks (look for pieces in the “Arizona REALTOR® Voice” newsletter and on AAROnline) covering the Listing Agreement updates (early November) and the Purchase Contract/Forms updates (mid-November). They will likely include FAQs and examples on using the new forms. Additionally, Aaron mentioned the popular “Contract Conversations” video series on the AAR website is being updated. These are panel-style video discussions on various contract topics (HOA issues, inspections, etc.). Expect refreshed episodes that incorporate the 2025 form changes. We at CAAR will also continue to host informational sessions. Stay tuned for a forms release class once the November changes go live, it’s crucial for all of us to familiarize ourselves with the new forms before using them in transactions.

Q: Any other notable form revisions not covered yet? – There are a few minor tweaks in various forms (for example, clarifying language in the Updated Listing Agreements about marketing options, and a new Referral Fee Agreement form update). Aaron concentrated on the big-ticket items in this recap. For a comprehensive list, refer to the official AAR Forms Revision Summary that will accompany the release. We’ll circulate that to all members when available.

Q: How can we best protect ourselves when dealing with these new scenarios? – Aaron’s parting advice was to embrace transparency and documentation. If you’re using the new seller-initiated offer clause, document everything and don’t blur agency lines, get that Unrepresented Buyer form signed. If you’re arranging for a commission to be paid via seller concession, disclose it clearly and use the provided forms. These changes actually give us more safe harbors because they spell out previously gray areas. Utilize them as intended. And of course, when in doubt, call the Legal Hotline or your broker. The Association is here to help ensure these transitions are smooth.

In Closing: Thank you to Aaron Green for the informative session and to all our members who asked great questions. As your 2025 President, I (Dennis Riccio) encourage everyone to review these upcoming forms changes and be prepared for the November rollout. Change can be daunting, but these updates are designed to protect consumers and streamline our transactions in a changing market. By staying educated and adaptable, CAAR members will continue to lead in professionalism. Please keep an eye on your email for the official AAR forms release announcement and plan to download the new forms on your platforms by November 30, 2025. We will discuss any further questions at our next meeting and help each other navigate the new landscape. As always, don’t hesitate to reach out to me or any Board member with your concerns.

Thank you for reading this recap. Here’s to finishing 2025 strong with better tools at our disposal!