We stay up-to-speed on all the latest information in the real estate world. As of July 1, 2019, there have been changes to several different forms you will encounter as you write contracts. Here is a rundown of the changes.
K1321 Residential Sales Contract
There have been substantial changes to this form in conjunction with the revision to the financing contingencies. You can now find the definition of seller subsidy in the definitions paragraph of the contract. It has been removed from the financing contingencies.
The buyer representations paragraph has been modified to remove redundancies with paragraph two. The authorization to the cooperating brokerage to find buyer financial information has been removed from the buyer representations paragraph.
You’ll find that page one has been modified for clarity. The specified financing, alternative financing and assumption terms have been moved from this page and are now in the relevant financing contingencies. The first page now contains the information necessary to review the offer, including sales price, amount of loan and type of loan.
K1359 Conventional Financing and Appraisal Contingency Addendum, K1340 FHA Financing Contingency Addendum, K1339 VA Financing Contingency Addendum, and K1372 USDA Financing Contingency Addendum
These forms more clearly define specified financing, how the contingency is satisfied/removed and the consequences for switching to alternative financing. The contingencies now included two options for the seller and buyer to negotiate upfront similar to the home inspection contingency. The first option is called the contingency with automatic extension, which is essentially the same as the current financing contingency.
The second option is called the contingency with automatic expiration. It has been added so that sellers and buyers can choose a contingency that automatically expires at the financing deadline.
The reference to the seller subsidy is gone since the term is defined in the contract. The FHA, VA and USDA financing contingencies now have assumption terms added.
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
All these agreements now explicitly state that the listing broker is not obligated to continue to market and show the property after a contract or lease has been ratified, unless otherwise instructed in writing by the client.
If the NVAR seller or landlord wants to continue to market the property after ratification, they must instruct the listing broker in writing. The NVAR Common Law Lease is no longer available, so the exclusive right to lease listing agreement has been modified to inform landlords of this change. Landlords may seek professional advice if they are eligible and want to opt out of the VRLTA.
K1369 Pre-Marketing Addendum to Listing Agreement
The selection options on this form have been reorganized to emphasize the discussion regarding listing the property in MLS. References to MRIS have been removed from this form.
K1282 Exclusive Right to Represent Tenant Agreement
This form now includes a warning to tenants not to take photos or videos of other people’s property without authorization.