The following 10 new and revised forms are scheduled for release on November 1, 2010 in advance of the much-advertised January 1, 2011 roll-out of the revised Offer to Purchase and Contract (form 2-T), Offer to Purchase and Contract—Vacant Lot/Land (form 12-T) and the various addenda to the contract forms. (Click the links below to view a sample of the new form.) Releasing the following 10 forms in advance of the updated versions of the Offer to Purchase will help facilitate completion of the Offer to Purchase after January 1, 2011. For example, in the “Seller Representations” paragraph of the updated Offer to Purchase, the seller makes representations regarding the length of time the seller has owned the property and whether the property is the seller’s primary residence. The updated Exclusive Right to Sell Listing Agreement forms (forms 101 and 103) address these issues. Having this information “up front” will enable the listing agent to provide it to buyer agents (either directly or through an MLS which chooses to create fields for this information) who want to submit offers on the property on or after January 1 on the new Offer to Purchase. Also, it is important to note that if the property is subject to regulation and assessment by an owners’ association, the seller MUST attach an Owners’ Association Disclosure and Addendum (form 2A12-T) to the updated Offer to Purchase (see paragraphs 7(e) and 8(k) of the Offer to Purchase and Contract and paragraphs 5(c) and 6(k) of the Offer to Purchase and Contract—Vacant Lot/Land).
PDF versions of the updated sample forms will be available at http://www.ncrealtors.org/sampleforms.cfm on the NCAR web site on or before November 1. The forms have been delivered to each of NCAR’s 3 approved forms software vendors. Contact your vendor for more information on when the forms will be available in your forms software package.
According to NCAR’s forms policy, there will be a 60-day grace period (November 1 through December 31) during which either the current or revised version of any of the 10 forms listed below may be used. After December 31, only the new version of the form may be used. However, firms will not be required to replace forms that are already in place as of January 1, 2011. Thus, for example, agents taking listings on the current version of the listing agreement forms anytime prior to January 1 will not be required to replace those listings with new listing agreements (although they may choose to do so). NOTE: The 60-day grace period for the 10 forms that are rolling out on November 1st will NOT apply to the Offer to Purchase and Contract and other forms that are being released on January 1, 2011.
Following is a list of the 10 new and revised forms that will be released November 1st: A brief summary highlighting the most significant changes to these forms follows the list. Additionally, a “Forms Guy” Q & A on the changes to the Exclusive Right to Sell Listing Agreement appeared in the October—December issue of NCAR’s Insight Magazine.
- Exclusive Right to Sell Listing Agreement (101)
- Guidelines for Completing the Exclusive Right to Sell Listing Agreement (101G) (NEW)
- Exclusive Right to Sell Listing Agreement (Vacant Land) (103)
- Guidelines for Completing the Exclusive Right to Sell Listing Agreement (103G) (NEW)
- Short Sale Addendum to Exclusive Right to Sell Listing Agreement (104)
- Internet Advertising Addendum (105)
- Buyer Agency Agreement (201)
- Guidelines for Completing the Buyer Agency Agreement (201G)
- Non-Exclusive Buyer Agency Agreement (203)
- Owners’ Association Addendum (2A12-T)
1. Exclusive Right to Sell Listing Agreement (101)
- Paragraphs 1-3 modified to conform to changes made to same paragraphs in updated Offer to Purchase and Contract
- Paragraph 10
- Added authorization from seller to disclose expiration date of due diligence period in “Listing Service” section of marketing menu
- Modified “Internet Advertising” section to authorize display of the address of the Property, automated estimates of the market value of the Property and third-party comments about the Property unless seller indicates otherwise on Internet Advertising Addendum (105)
- Paragraph 12—created new “Seller Representations” and added new representations pertaining to:
- seller’s ownership of property and length of ownership (to address potential lender “seasoning” requirements)
- whether property is seller’s primary residence (now required by law in deeds)
- current or contemplated liens affecting property
- existing or contemplated seller bankruptcy
- existing leases
- existence of recent VA/FHA appraisal
- Paragraph 13—modified to expand documents that seller will provide to firm to include title insurance policies, attorney’s opinions on title, surveys, covenants, deeds, notes and deeds of trust and easements relating to the Property, and authorization to attorney, title insurer and property to release documents to firm
- Paragraph 14—added advisory to seller to obtain home inspection
- Paragraph 18—added wording explaining that although seller has right to withdraw from agency relationship at any time, seller does not have right to terminate the listing agreement without legal cause or upon mutual agreement with firm
- Paragraph order modified to improve “flow”
2. Guidelines for Completing the Exclusive Right to Sell Listing Agreement (101G)
- New form
3. Exclusive Right to Sell Listing Agreement (Vacant Land) (103)
- Changes made to correspond to those made to form 101, where applicable
4. Guidelines for Completing the Exclusive Right to Sell Listing Agreement (Vacant Lot/Land) (103) (form 103G)
- New form
5. Short Sale Addendum to Exclusive Right to Sell Listing Agreement (form 104)
- Technical change to conform form to revised Exclusive Right to Sell Listing Agreement forms
6. Internet Advertising Addendum (105)
- This addendum to the listing agreement forms has been completely rewritten, including the addition of a new definition section. It should be used only in cases where the seller wishes to limit or prohibit Internet advertising.
7. Exclusive Right to Represent Buyer / Exclusive Buyer Agency Agreement (201)
- Name of form changed
- Paragraph 14—new subsection (f) added to facilitate compliance with NC Real Estate Commission Rule 58A.0109 which requires firms to disclose total firm fee in situations where firm is acting as dual agent
- Paragraph 16—added wording explaining that although buyer has right to withdraw from agency relationship at any time, buyer does not have right to terminate the buyer agency agreement without legal cause or mutual agreement with firm
- Paragraph order modified to improve “flow”
8. Guidelines for Completing the Exclusive Right to Represent Buyer (form 201G)
- Technical change to conform form to revised Exclusive Buyer Agency Agreement
9. Non-Exclusive Buyer Agency Agreement (203)
- Technical changes to conform to changes made in exclusive buyer agency agreement
- Paragraph 7—Addition of new subsection (f) to address disclosure of dual agency compensation
10. Owners’ Association Addendum (2A12-T)
- Paragraph 1 expanded to take into account potential that property may be subject to multiple owner associations
- Paragraph 2 list of services and amenities expanded
- Paragraph 5 added to disclose fees charged by owners’ association or management company in connection with transfer of property
- Paragraph 6 expanded to include additional documents that seller agrees to deliver to buyer
SOURCE: NCREALTORS.ORG WEBSITE NEWS RELEASE
