July 1, 2020 NVAR Forms Changes

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July 1, 2020 NVAR Forms Changes

July 1, 2020 Standard Forms Changes The NVAR Board of Directors has approved the following new forms and forms changes, as proposed by the NVAR Standard Forms Committee, effective July 1, 2020:

K1389 – Extension Of Review Period For Condominium Resale Certificate/ Property Owners’ Association Disclosure Packet Addendum. This is a new form consistent with revisions to the Virginia POA Act, Virginia Condominium Act and the Residential Sales Contracts. This form allows parties to extend the 3 day right of cancellation under the POA Act and/or Condominium Act by up to an additional four (4) days. The form may be used at or after ratification and may be used multiple times, as needed.

K1390 – Understanding Your Rights Under The Virginia Condominium Act/Property Owners’ Association Act. This new form is an optional resource provided by brokers to buyers to inform the client of the statutory requirements for association resale disclosure packets and certificates. Inclusion of this form enables the education of parties while removing unnecessary language from the Sales Contracts. Relevant provisions from deleted forms K1025 – Purchaser’s Acknowledgment Of Receipt Of Condominium Disclosure; K1126 – Purchaser’s Acknowledgement of Receipt of Property Owners’ Association Disclosure Packet are incorporated into the new form.

K1321 – Residential Sales Contract. This form has been modified consistent with recent revisions to the Virginia Property Owners Association Act and Virginia Condominium Acts and to remove unnecessary provisions. The Residential Sales Contract is now only 13 pages. The form has also been modified to remove confusing language regarding buyer Default if they fail to settle on time as part of financing contingencies. Additional formatting changes were made to improve clarity and consistency across the NVAR forms library.

K1209 – Sales Contract for Unimproved Land. This form has been modified consistent with revisions to the Residential Sales Contract.

K1208 – New Home Construction Contract. This form has been modified consistent with revisions to the Residential Sales Contract.

K1354 – Lease VRLTA. This form has been modified consistent with revisions to the Virginia Residential Landlord Tenant Act. Provisions regarding late fees were revised to clarify that the 10% late fee for nonpayment of rent may not exceed the lesser of 10% of the total monthly Rent or 10% of the reaming balance owed under the Tenancy. An acknowledgment of receipt was added to address the new Department of Housing and Community Development form “Statement of Tenant Rights and Responsibilities”. Paragraph 2 (Lease Term) has also been revised to clarify the term of the tenancy and end-of-lease procedures. Paragraph 19 (Security Deposit) has been updated to clarify that he 45-day period for return of the itemized statement and Security Deposit begins at the later of Termination of the tenancy or Tenant’s vacating Premises. Other formatting changes were made to improve clarity and consistency across the NVAR forms library.

K1281 – Exclusive Right to Lease. This form has been modified consistent with recent changes to the Virginia Fair Housing Act, which add “source of funds” as a protected class.

K1359 – Conventional Financing and Appraisal Contingency Addendum. The Appraisal Contingency portion of this form has been modified consistent with revisions to the Home Inspection Contingency Addendum to establish a Negotiation Period and Buyer’s Election Period. This change will simplify the Appraisal Contingency and ensure consistent procedures across NVAR’s most frequently used forms. Language regarding Default and exercising the financing contingency has been removed for clarity and consistency with changes to the Residential Sales Contract.

K1353 – Appraisal Contingency No Financing Addendum. This form has been updated consistent with the changes to the Conventional Financing and Appraisal Contingency.

K1349 – Appraisal Contingency Notice. This form has been updated consistent with the changes to the Conventional Financing and Appraisal Contingency, FHA/VA/USDA Financing Contingencies, and Appraisal Contingency No Financing Addenda. VA/FHA/USDA Appraisal Contingency Addenda.

These forms have been updated consistent with the changes to the Conventional Financing and Appraisal Contingency but taking into account the unique federal guidelines pertaining to federally supported mortgage loan programs.

The followings forms have been removed from the Forms Library:

K1346 – Understanding Virginia Residential Disclosure Act. The form is no longer necessary due to upcoming revisions to the Virginia Residential Disclosure Act. Effective July 1, 2020, buyers must sign an acknowledgment that they are aware of the buyer-beware disclosures in the Residential Property Disclosure Statement, removing the need for this form.

K1299 – Request for Property Owners’ Association Disclosure Packet & K1024 – Request For Condominium Disclosure. These forms are unnecessary, as most associations have their own procedures for requesting resale disclosure packets and the contents of such disclosures.

K1025 – Purchaser’s Acknowledgment Of Receipt Of Condominium Disclosure; K1126 – Purchaser’s Acknowledgement of Receipt of Property Owners’ Association Disclosure Packet. This form is no longer necessary due to recent statutory updates. Buyer’s 3 day right of cancellation begins upon delivery of the disclosure, regardless of whether Buyer acknowledges receipt. Relevant provisions have been incorporated into the new form K1390 – Understanding Your Rights Under the Virginia Condominium Act/Property Owners’ Association Act.

By | 2020-07-15T14:06:59-04:00 June 19th, 2020|Recent News, Standard Forms|0 Comments

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