formfactor BLAKE HEGEMAN
VAR Form 600: Residential Contract of Purchase VAR recently updated its purchase contract, changing the language in section 18 to reflect a largely administrative change in the law. (See highlighted area below.) Residential purchase contracts for four or fewer dwelling units must include the reworded disclosure below in at least a 10-point, boldface font. (This disclosure language is similar to the original CRESPA language.) Deposit shall be returned to Purchaser, and Purchaser and Seller shall have no further obligations hereunder, or (ii) waive the defect and proceed to settlement with no adjustments to the Purchase Price. 16. SELLER’S AND PURCHASER’S OPTION: In the event that the total cost of fulfilling Seller’s obligations set forth in paragraphs 13, 14 (c), and 15 above exceed $_____________________ in the aggregate (the “Remediation Limit”), Seller TORS® OF REALfully TION obligations shall have the option (i) fulfill at Seller’s expense, or (ii) to pay or credit the Remediation Limit CIASeller’s IA AStoSO RCHASE nt advice before signing.) GIN PUamount. VIRand OFthat to Purchaser refuse toLpay any over If Seller RACT pete elects option (ii), Purchaser shall have the right to either NTexcess CO seek com it, please of which SIDENinTIA part any accept theRE Property its present condition (in case the Seller shall pay or credit the Remediation nd __ Limit to Purchaser at ersta ____________ you do not und . Ifto _________ ing contractor is in the space in this settlement), terminate this Contract and receivebetw a refund the___ Deposit. If no amount is entered bind een ___of___ whose address _, (This is a legally 20_______ one or more),Limit ___,amount paragraph, the parties agree that shall be $1,000. The is___ independent of any obligations therRemediation ___the whe __,and ” ___ ller, ___ ___ “Se ___ ___ the of as __( _________ , to this Contract, or ASEtomad ______ agreed byeSeller in connection with an ___ inspection of the Property pursuant to a separate addendum ______ CT OF PURCH ________________________ (the “Purchaser” ____________ ___ of ___ ___right ___ ___ ___ This CONTRA _________ ___ : ___ ___ provision other than contained in paragraphs 13, 14 (c) and 15, dealing with the Purchaser to conduct an inspection of ___ ides ___ ___ ____________ _______, prov ____________ ___ ___ ___ ___ ___ ___ ___ ___ ___ ____________ the___ Property. ________ ____________ ____________ ____________ ____________ ____________ ____________ ____________ and the ____________ ____________ ____________ __ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ is ___ _________ ____________ __ PURCHASER’S INSPECTION: Purchaser may have ___ a professional home inspection at Purchaser’s se address ____________ ___performed whoHOME more),17. ____________ ____________ er) is _________ ts Sell ______ _________ whether one or represenby one or more qualified inspectors. Purchaser WAIVES _____ OR DESIRES _____ _____. a professional home _________ _________ ___ pany (whoexpense ____________ ____________ _________desires ______ The Listing Com _________ ser) is ___ _________ ______ inspection. If Purchaser contingency, see ___ attached home inspection addendum or separate provision of chainspection esent Puran ______ ___ repr ___ ___ __ ___ ___ not ___ s ___ ___ r doe ______ Contract. s __o in the y (who doethis ____________ thereon located Selling Compan ________________________ improvements tion): ___ the land and all as (legal descrip _ cribedSETTLEMENT ____________ and desAND er agrees to sell ___ 18. NOTICE TO PURCHASER REGARDING SETTLEMENT AGENT SERVICES: Choice of es to buy and Sell __________________, Virginia ________________________ agre ser cha _ the purchaser or Pur : of ___ Title 55___ of the Code of Virginia provides Settlement Agent: Chapter 27.3 (§ 55-525.16 et seq.)___ ___ ______that ___ PERTY ______ ______ ___ PRO ___ ___ ___ AL ___ ___ ___ RE ___ ___ ___ ___ 1. ___ _ settlement agent's ___ ___settlement ______ has the right borrower to select the agent to___ hand handle the closing of this transaction. The ______ ______ of ___ ______ ___ ___ City ___ ___ ___ or ___ ___ ___ nty ___ ___ Cou ___ ___ ______ _ ______ ___ ___functions _________ of ___ numerous administrative and clerical relating to role in___ closing this transaction involves the coordination ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ______ ______ _________ _________ _ the terms of the ______ the___ collection of documents and collection and disbursement of___ funds required to carry out ___the ______ _________ ______ _________ ____________ ____________ ______ ____________ ___ ___ ___ ___ ___ ___ _ will instruct the ___ ___ ___ ___ ___ the lender for the purchaser contract between the parties. If part of the purchase price is financed, ___ ______ ____________ ____________ ____________ ___ ___ ___ ____________ ___ ___ ___ ___ ___ ___ __loan proceeds. No ___ ______ and the disbursement ______ settlement agent as ___ to the signing and recording of loan ___ documents ______of ______ ___ ______ ____________ ____________ ___can ____________ ___any ______to tract),who is engaged in ___advice except a settlement agent agent provide___ legal party to the transaction ____________ ____________ ___settlement of this Con ____________ ____________ ____________ the of the date ______ r ______ doo ______and or as engaged by a party togethe transaction for the private practice___ of ___ law___ in ___ Virginia who has been retained (if present _________ located thereon dishwasher, door knockers, gara ures, ____________ purpose ______ legal ures as:providing fixt wn all kno The provisions of Chapter 27.3 (§ 55of services to that party. Variation by agreement: fixt ly t __, together with brackets, built-in d mirrors, ligh and more common525.16 alleagreement, ______ s and s ___seq.) rodof gs, instby dowconferred erin of Title 55fans of, the Code Virginia may varied and rights by this curtain m win _________et l covbe stor walnot s, ing and ctor ceil r dete ds, t floo ____________ chapter d blin hea n, not be waived. inse installe ofkea and particular settlement agent a condition of the seller may not require the use smo r withasthe out limitatiomay tters,us and Therts, rs (togethe including, with sales,ofgas en doo and trees, shu place logsEscrow, ts settlement rior plan ens and screThe and service Virginia State Bar issues guidelines to thefire property. closing, trol screguidelines: window es, shrubs, exte openers and con help nna(e), range, shad on antethe settlement agents avoid andvisi prevent unauthorized practice of law in connection with furnishing escrow, t, built-in ers, tele le cov ). ptac mailbox and pos settlement rty” rece ope : and “Pr sale or closing services. party to a real estate tran transaction, the purchaser dor borrower 2, athe rs, switch graphAs in this is entitled to receive a and storm doo copy of ribed in para descguidelines are include request, with the provisions from his settleme settlement agent, upon ______of_ Chapter 27.3 (§ l propertythese propertiny accordance ____________ items of persona of personal itemsof Virginia. ____ ____________ 55owi ofng the Code 55-525.16 et seq.) of Title ___ ___ ___ ___ ___ ___ foll _________ ____________ TY: The ____ ____________ AL PROPER ________________________ ____________ ____________ _________ 2. PERSON 19. ___ _ ___permits _________ ___Virginia _________ LIEN___ ______ law (Section 43-1___ et___ seq.) persons who performed labor or MECHANICS NOTICE: ___have _________(a) ____________ ____________ ____________ ___ _________ _________ ______material furnished for___ the___ construction, repair ___ or improvement any building or structure to ___ file _a lien against the ___ ______ _________of___ _________removal, ___ ___ ___ ___ ___ ___ ____________ ___ ___ ___ ______ _ later than the ______ ___not ______ ___time ______This ___ Property. lien may be filed at any after the work is commenced or the material is furnished, but ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ______ ______ ______ ___ _________ ___ ___ _ ___ ___ ___ ___ ___ ___ ___ ___ earlier of (i) 90 days from the last day of the month in which the lienor last performed work or furnished materials or (ii) 90 ___ ___ ___ ___ ___ ___ _________ _________ _________ ____________ ______ _________AN ______ is ___ terminated. EFFECTIVE LIEN FOR WORK days from the___ time the ___ construction, removal or im improvement ______ ____________ _________ ____________ _________ ____________ MAY BE FILED AFTER SETTLEMENT. ___SETTLEMENT ___ LEGAL COUNSEL PERFORMED TO___ THE ______OF ____________ PRIOR ___DATE _________ ___ ___ ___ ___ ___ ____________ ______ ______ an affidavit, ___ ___), acceptable to Purchaser at___ settlement on ___ a form SHOULD CONSULTED. (b) Seller shall deliver _________BE _________ ___to___ ____________ ____________ ___been is ______ ns within the Propert ($________ or materials have furnishedthe to pro theratio Property Purchaser’s lender, ifseapplicable, byy Seller that no labor rs thesigned cha Price of ________Dolla ck or wired funds subject to Purfor period the filing of mechanics’ or materialmens’ ____________ PRICE: The che against the Property. If labor or materials have been SE statutory certified liens or ____________ s ___ ier’ 3. PURCHA furnished ___ cash ___ statutory Seller shall deliver to Purchaser an affidavit signed by Seller and the person(s) ______ during the lem cash or by in period, ent ____________ sett at g ( ): a furnishing theerlabor or materials that : the costs thereof have been paid. paid to Sell ( ) or assumin which shall be following sources ser’s obtaining (describe) in and from the ent on Purcha ), or other described here is contingthat ( s sale represents of trust lien unit subject VHDA 20. VIRGINIA CONDOMINUM the),Property is _____ or isby nota _____ a dcondominium ACT: : ThiSeller first dee ( FIRST TRUST red VA TY secu ), PAR loan (the “Condominium ___% ofIfthe ( to IRD Virginia Condominium 55-79.39 et seq.___ of ___ the ___ Code the Property is ___of_)Virginia FHASection ), Act, ( ) (a) TH _____, or ___ Act”). ______from an ____________ Act requires ______ ___Condominium rate withassociation ___ ventiontoal the( Condominium subject Act, Seller to obtain the unit owner’s (the ___the con ____________ at an adjustable ____________ __% shall be $ ___it___ year, orcontained of per % unt ing ___ ____________ The information in the resale certificate “Association”) a resale certificate and provide to Purchaser. eed ___ amo (___ l exc ___ ing loan not the principa of the not exceed ya in and pert rate term rs, d Pro yea the fixe may cancel this Contract (i) within three (3) days after the current as of date specified on the resale certificate. Purchaser ser t the ng __ a on m rate duri interest at a term of ___ imu r ring max ove bea a e ion ed and Pric mpt rtiz r se this Contract, if ___ yea amo chaof on or before the date Purchaser executed date Purchaser received the resale of certificate an assu this Contract, (ii) Pur __% per settlement, ination fee, or eeding time orig excdays of asix (6) days not(3) at the restresale ng a loan is mption al rate resale hand delivered, or (iii) within within three after receiving the certificate if the inte ludicertificate assu initi of exc the ts, rate for poin s ket t vide oun disc t promail. to be or at the mar untcancellation r, postmark contrac ___ loan is Purchaser by United States Written notice shall afteryea the date if the lresale certificate sent to___ this l amoof per of ___ principa a tota the ___ ___. (If ___return and that me all the resale not more than ______ l assu iring delivered mail, receipt requested, toeSeller. Purchaser’s shal right to receive be hand or sent by United States approximat ______ requ forth above is $___________ (ii) Purchaser nce setconclusively eeding ent, and not excand certificate to cancel this Contract waived if not exercised before settlement. Purchaser shall have the settlem fee e that thearebala ledg date of the now on ack ies nce part principal bala loan: (i) the the outstanding .) by a will beREV. med 600 loan VAR assu FORM 5/11 6 of 9 g a loan secured Page of Seller under such chaser’s obtainin l amount obligations of tingent on Pur principa the s sale is also con perty in D TRUST: Thi Pro ON the SEC TY on IRD PAR lien Page 1 of 9 trust ( ) (b) TH of deed second
Section 18
600 VAR FORM
REV. 5/11
NOTICE TO PURCHASER REGARDING SETTLEMENT AGENT AND SETTLEMENT SERVICES: Choice of Settlement Agent: Chapter 27.3 (§ 55-525.16 et seq.) of Title 55 of the Code of Virginia provides that the purchaser or borrower has the right to select the settlement agent to handle the closing of this transaction. The settlement agent’s role in closing this transaction involves the coordination of numerous administrative and clerical functions relating to the collection of documents and the collection and disbursement of funds required to carry out the terms of the contract between the parties. If part of the purchase price is financed, the lender for the purchaser will instruct the settlement agent as to the signing and recording of loan documents and the disbursement of loan proceeds. No settlement agent can provide legal advice to any party to the transaction except a settlement agent who is engaged in the
private practice of law in Virginia and who has been retained or engaged by a party to the transaction for the purpose of providing legal services to that party. Variation by agreement: The provisions of Chapter 27.3 (§ 55-525.16 et seq.) of Title 55 of the Code of Virginia may not be varied by agreement, and rights conferred by this chapter may not be waived. The seller may not require the use of a particular settlement agent as a condition of the sale of the property. Escrow, closing, and settlement service guidelines: The Virginia State Bar issues guidelines to help settlement agents avoid and prevent the unauthorized practice of law in connection with furnishing escrow, settlement or closing services. As a party to a real estate transaction, the purchaser or borrower is entitled to receive a copy of these guidelines from his settlement agent, upon request, in accordance with the provisions of Chapter 27.3 (§ 55-525.16 et seq.) of Title 55 of the Code of Virginia.
Forms — they’re the bread and butter of a deal. They’re full of fine print and legalese, and not everyone “gets” the details. And that often ends up as a call to our Legal Hotline. (Shameless plug: (804) 622-7955.) So we asked our intrepid legal counsel (read: lawyer), Blake Hegeman, to take one of the forms the Hotline gets the most questions about and illuminate it for us. They’re all available, free for download, at www.VARealtor.com/standardforms. 16 JULY/AUGUST 2011
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