July 1, 2019 Forms Changes

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July 1, 2019 Forms Changes

The following new forms and forms changes have been approved and will be active on July 1, 2019. To view the Educational Version of the form, please click on the form title.

1. K1321 – Residential Sales Contract

This form has been substantially modified in conjunction with revisions to the financing contingencies. The definition of Seller Subsidy can now be found in the Definitions Paragraph of the Contract and is removed from the financing contingencies. The Buyer Representations paragraph has been modified to remove authorization to the cooperating brokerage to provide buyer financial information since this is redundant with Paragraph 2. The most substantive change is to page 1, which has been modified for clarity. The necessary information to review the offer, including sales price, amount of loan and type of loan, remains on the first page of the contract, but Specified Financing, Alternative Financing, and Assumption terms are now contained in the relevant financing contingencies. The contract has been shortened by 1 page without significantly lengthening the financing contingencies!

2. K1359 – Conventional Financing and Appraisal Contingency Addendum

K1340 – FHA Financing Contingency Addendum

K1339 VA Financing Contingency Addendum

K1372 – USDA Financing Contingency Addendum 

These forms have been modified to more clearly define Specified Financing, how the contingency is satisfied/removed and the consequences for switching to Alternative Financing. The contingencies have also been modified to include 2 options for the Seller and Buyer to negotiate upfront, similar to the Home Inspection Contingency. The first option, called the Contingency with Automatic Extension, is essentially the current financing contingency. A second option, called the Contingency with Automatic Expiration, has been added for Sellers and Buyers to choose a contingency that automatically expires at the Financing Deadline. Reference to the Seller Subsidy has been removed since it is a defined term in the Contract. Assumption terms have been added to the FHA, VA and USDA Financing Contingencies.

3. K1336 – Exclusive Right to Sell Listing Agreement

K1337 – Exclusive Agency Listing Agreement

K1355 – Exclusive Right to Sell Unimproved Land

K1281 – Exclusive Right to Lease Listing Agreement

These brokerage agreements have all been modified to explicitly state that the Listing Broker is not obligated to continue to market and show the Property after a contract/lease has been ratified unless otherwise instructed in writing by the client. This creates a default option once the parties have gone under contract. If a NVAR Seller/Landlord wishes to continue to the market the property post-ratification, they can instruct the Listing Broker in writing. The Exclusive Right to Lease Listing Agreement has also been modified to inform landlords that the NVAR Common Law Lease is no longer available. If landlords are eligible to opt-out of the VRLTA and wish to do so, they may seek professional advice on drafting a lease.

4. K1369 – Pre-Marketing Addendum to Listing Agreement

This form has been updated to remove references to MRIS and reorganizes the selection options to emphasize the discussion regarding listing the property in the MLS.

5. K1282 – Exclusive Right to Represent Tenant Agreement

This form has been modified to include a warning to Tenant to not take videos or photos of other people’s property without authorization, similar to the warning in the Exclusive Right to Represent Buyer Agreement.

By | 2019-06-11T15:03:11-04:00 June 11th, 2019|Recent News, Standard Forms|0 Comments

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