C.A.R. INDEPENDENT CONTRACTOR AGREEMENT REVISED DUE TO RECENT COURT DECISION
C.A.R. will release a revised standard form Independent Contractor Agreement (Form ICA) through zipForm® on or about June 15, 2011. As between brokers and their salespersons and broker associates, the ICA will now mandate mediation for any disputes that may arise and, if mediation fails, the ICA recommends, but does not require, arbitration at the local Association of REALTORS® (AOR). C.A.R. revised the ICA because a previous version requiring arbitration of disputes at the AOR, absent more, was recently deemed unenforceable in the Fourth District as discussed below (Wherry v. Award, Inc. (2011) 192 Cal.App.4th 1242, 123 Cal. Rptr.3d 1, review denied (April 27, 2011)). This case does not impact the overwhelming majority of arbitrations which are those between REALTORS® of different firms. It also does not impact the arbitration clause in the C.A.R. Residential Purchase Agreement, Residential Listing Agreement, and other C.A.R. forms.