Explanation of Updated Forms, Oct. 2004

 

Critical Areas Disclosure Addendum - New 

The new Critical Areas Disclosure Addendum should be included in contract packets when using the Regional Contract for a sale in Maryland. The form includes a required notice that went into effect October 1, 2004. The same required disclosure is included in the MAR Residential Contract of Sale, so a separate addendum is not required when using the MAR Contract.

Form #113 - Changes to the Washington, DC Lease Agreement  

  • Paragraphs have been more clearly marked to make the form more user-friendly.
  • The instructions which previously appeared have been deleted. A Rent Control Exemption text box has been inserted.
  • The beginning Paragraphs 1 through 5 have been combined into a Preamble. The Rent Control paragraph and check-off list was moved to a text box on page 1. Paragraph 5, Payment, was altered by deleting the check boxes about managing by Agent or Landlord. Wording more closely resembles the Montgomery County lease now.
  • Paragraph 7, Sublet/Assignment, was re-worded to add more language about the subtenant meeting rental standards.
  • Paragraph 8, Credit Clause was moved to the rear and a Condo Approval text box was added.
  • Paragraph 10, Usage was changed by adding a Condo text box.
  • Paragraph 13, Pets, was changed to clarify type, weight, and number.
  • Paragraph 15, Maintenance, two paragraphs were added, about installing carpets over 80% of the floor and tenant lock-outs.
  • Paragraph 16, Vehicle Parking, a text box for Condos was added.
  • Paragraph 18, Tenant Self-Service, was deleted.
  • Paragraph 19, Trash Removal, text box for Condos was added.
  • Paragraph 20, Utilities, Condo language was added.
  • Paragraph 22, Inspection, heading was changed to Access.
  • Paragraph 24, Insurance, the bold type sentence was moved to paragraph 26, Personal Property.
  • Paragraph 25, Smoke Detector, language was changed to reflect the applicable DC Code.
  • Paragraph 26, Personal Property, a save harmless for Condos text box was inserted.
  • Paragraph 28, Security Deposit, was changed to reflect the actual timeframes via the DC Code.
  • Paragraph 29, Termination, was rearranged for clarity. The Notice to Quit, Attorney's Fees and Hold Over provisions were broken out into their own paragraphs. Permission to Show number of days was left blank.
  • Paragraph 31, Surrender, was rearranged, bulleted, and edited for clarity.
  • Paragraph 32, Subordination, a paragraph was added to require tenant execution of documents. A text box was added for Condo document execution.
  • Paragraph 36, Agency was changed by adding an Agent procuring cause sentence.
  • A Guarantors paragraph was added after the signature lines.

Form #115 - Condominium Lease Agreement - Form has been deleted and replaced by the revised Form #113.

Form #1300 - Changes to the MAR Residential Contract of Sale - Revisions from Revision #8 dated 10/03 to NEW Revision #9 dated 10/04

  • Form changes from “revision #8” to “revision #9” noted on all pages
  • The date changes from “10/03” to “10/04” noted on all pages
  • The Contract is now 10 pages in length
  • On pages 2 through 10, a header has been added stating the name of the form at the flush upper right.
  • Paragraph Changes:
    Paragraph #11 - Termite Inspection - The second sentence now reads “The provisions of this paragraph also shall apply to (1) the garage or within three (3) feet of the garage (whether attached or detached), (2) any... Last sentence changed for consistency. It now reads - “In the event this Contract is terminated under the terms of this paragraph, the Deposit(s) shall be disbursed in accordance with the Deposit(s) paragraph of this Contract.”

    Paragraph #17 - Mediation of Disputes - The very first BOLD sentence in the paragraph has been modified to read - “BUYER AND SELLER FURTHER AGREE THAT THE OBLIGATION OF BUYER AND SELLER TO MEDIATE AS HEREIN PROVIDED SHALL APPLY TO ALL DISPUTES AND CLAIMS ARISING WHETHER PRIOR TO, DURING OR WITHIN ONE(1) YEAR FOLLOWING THE ACTUAL CONTRACT SETTLEMENT DATE OF WHEN SETTLEMENT SHOULD HAVE OCCURRED.”

    Paragraph #31 - Property Insurance - This paragraph now has 2 areas. A-Risk of Loss; and, B-Insurability. In “B” it makes reference to MAR's insurance brochure entitled “The New Reality of Property Insurance - What You Should Know”. This brochure is available currently on NAR's Web site directly listed under the Addenda. It can be downloaded and reprinted as needed.

    NEW Paragraph #34 - Notice to Buyer Concerning the Chesapeake and Atlantic Coastal Bays Critical Area - This is a new required legislated paragraph. It should remain bold and prominent within the Contract.

    Old Paragraphs # 34 through 49 - NOW BECOME paragraphs #35 through 50 due to the inclusion of the new paragraph #34.

    Old Paragraph #43 - Lead-Based Paint Hazards - Now new paragraph #44. This paragraph has been broken down into three separate sections to address the Buyer intending to rent property built before 1950 and between 1950 and 1978. Please note paragraph #44 A is virtually the same. Paragraphs #44 B and #44 C are NEW in their entirety.

    Old Paragraph #46 - Addenda - Now new paragraph #47. A new addendum has been added. It is entitled “Cash/Conventional Financing Appraisal Contingency Addendum”. Also, the “Sale, Settlement or Lease of Other Real Estate Addendum” has been re-titled to reflect changes made to the addendum. It now reads “Sales, Financing, Settlement or Lease of Other Real Estate Addendum”. In addition, the “Water Test(s) Addendum” has been replaced with a “Water Quality Addendum”.

  • The signature lines have been revised to allow Buyers signatures on the left and Sellers signatures on the right.
  • A new copyright has been created which now reads - “For use by REALTOR® members of the Maryland Association of REALTORS® only.”

Form #1318 - Some Information Relative to the Purchase of Real Estate  

  1. Added a paragraph to address the issue of mold.

Form #1502 - Buyer's Estimated Settlement Costs  

  1. Updated with revised Washington, DC Recordation Tax that goes in to effect October 1, 2004.
  2. Updated estimated Appraisal Fee amount.

Form #1503 - Seller's Estimated Settlement Costs  

  1. Combined the Montgomery County and Washington, DC Seller's Estimate sheets. (Form #153 has been eliminated.)
  2. Added a line for Foreign Investment Real Property Tax Act (FIRPTA).