Coldwell Banker Elite | NVAR Forms Update January 2014

NVAR 2014 FormsUpdate

Matthew Rathbun

ABR, ABRM, AHWD, CIPS, CRB, CRS, ePRO, GREEN, GRI, SFR, SRS

EliteScoop.com | @MattRathbun

Post-SettlementOccupancy •

Changed to reflect Regional Sales Contract !

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Added “Except as otherwise agreed in writing” !

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Delete language conflicting with AS-IS condition of the Regional Sales Contract.

K1020 - Seller Post Settlement Occupancy

ContractRelease •

Removal of Broker Signature !

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Broker isn’t party to contract !

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Expedites release and disbursement !

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Requires internal policies for release !

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Broker still reserves right to pursue loss

K1116 - Release from Regional Sales Contract

ContractRelease

K1116 - Release from Regional Sales Contract

Pre-SettlementOccupancy •

Changed to reflect insurance needs !

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Delete sentence suggesting legal consultation !

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Change to say that Purchaser shall maintain adequate insurance !

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Add that Seller shall maintain Homeowner’s Insurance

K1225 - Purchaser Pre Settlement Occupancy

Pre-SettlementOccupancy

K1225 - Purchaser Pre Settlement Occupancy

Pre-SettlementOccupancy •

Equipment, Maintenance and Condition !

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Change to reflect changes to Regional Sales Contract !

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Added “substantially” before “same original condition” !

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Added “as of Date of Occupancy”

K1225 - Purchaser Pre Settlement Occupancy

Pre-SettlementOccupancy

K1225 - Purchaser Pre Settlement Occupancy

ContingenciesClauses

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Added check-boxes to allow or disallow assignment of funds in the Sale of Property and Kick-out section. !

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Removed Post-Settlement Occupancy Option, as there is a separate form for this.

K1344 - Contingencies and Clauses

ContingenciesClauses

K1344 - Contingencies and Clauses

VirginiaJurisdictional •

Added ‘Disclosure of Sales Price to Appraiser’ Section. Allows both brokers to disclose the sales price of a ratified contract, prior to closing, should a licensed Appraiser request the information. !

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Clarified Date of Ratification in a new Definitions clause. The date that the executed documents are delivered to the other party and not the date signed constitutes ratification.

K1345 - Virginia Jurisdictional Addendum

VirginiaJurisdictional

K1345 - Virginia Jurisdictional Addendum

Home&RadonInspection •

Mirroring language in both inspections, however neither are mandatory !

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First substantial rewrite in many years !

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Some minor changes to the Radon section forthcoming in July 2014 !

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Changes were necessary to resolve many known issues with the old form K1342 - Home Inspection and Radon Testing Contingency

Home&RadonInspection •

Reminder: Without the Home Inspection addendum the home is sold strictly AS-IS. !

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Three primary goals 1. Eliminate confusion about what Buyer or Seller may ask for and when 2. Simplify the exchange between principals during negotiations 3. Reduce number of contracts that unintentionally become void due to negotiations K1342 - Home Inspection and Radon Testing Contingency

Home&RadonInspection •

Full Report and requested repairs or remedies still required - or - notice voiding contract !

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Either party may initiate offer of a credit or counter offer at any point in the negotiations !

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Individual response times are eliminated.

Instead both parties are given fixed time frame to find a common resolution. !

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Either party can agree to the previous offer or counter-offer at any time. When acceptance is delivered, it terminates the negotiations K1342 - Home Inspection and Radon Testing Contingency

Home&RadonInspection •

Contract no longer becomes void at any point because of a missed deadline. If the agreed upon negotiation period expires, than the Buyer may accept the last negotiated response from the Seller, move forward with the contract AS-IS or Void the contract. !

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The Buyer’s ability to exercise their option to Void may be made at any point prior to expiration of negotiation period.

K1342 - Home Inspection and Radon Testing Contingency

Home&RadonInspection •

New language allows parties to negotiate extended inspection time during ratification in case utilities are not on at time of inspection.

K1342 - Home Inspection and Radon Testing Contingency

Home&RadonInspection •

Radon language provides guidance for Seller on inspection standards. !

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Remedies for re-inspection provided if Radon Inspector believes the test was tampered with !

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Establishes credentials for Radon Inspectors !

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Radon inspection is intentionally worded to allow for air quality of water tests as desired.

K1342 - Home Inspection and Radon Testing Contingency

Home&RadonInspection

K1342 - Home Inspection and Radon Testing Contingency

Home&RadonInspection

K1342 - Home Inspection and Radon Testing Contingency

Home&RadonInspection

K1342 - Home Inspection and Radon Testing Contingency

Home&RadonInspection

K1342 - Home Inspection and Radon Testing Contingency

Home&RadonInspection

K1342 - Home Inspection and Radon Testing Contingency

Questions?