Summary of Form Revisions - June 2006

Form #910 — Listing Agreement
Summary of Changes
June, 2006

Header

  • Deleted Date from Header

Paragraph 5

  • Change wording regarding start and end date to mirror Buyer Agency form 
  • Reworded language regarding availability of property to clearly state MRIS policy
  • Moved termination sentence to separate paragraph #23

Paragraph 6

  • Deleted language in (A) (1) & (A) (2) referencing a commission is due when a ready, willing and able buyer is produced
  • Reworded (A) (1) to include language stating that a commission is due when a seller enters into a contract and settles on said contact
  • (A) (3)
    • Added “expiration of the Listing Period or termination”
    • Replaced “this Agreement” with “the Listing Period”
  • (C) – Added Broker’s Fee paragraph
  • (D) – Reworded Forfeiture of Deposit paragraph to allow broker to collect ½ of deposit if forfeited or ½ of any monies distributed to Seller from Buyer in the case of default
  • (E) – Default by Buyer – Added language
  • Deleted Failure to Perform paragraph

Paragraph 7

  • Updated paragraph to mirror Buyer Agency form (including removing the Disclosure of Brokerage Relationship form and renaming the Dual Representation and Designated Representative form to properly reflect the form name)

Paragraph 20 (C)

  • In order to comply with the NAR Code of Ethics, Standard of Practice 1-7, and state laws, deleted language which waived a licensee’s obligation to present offers after a contract has been ratified

Paragraph 21

  • Per the revised NAR Code of Ethics, Standard of Practice 1-15, added language indicating that the source of offers must be disclosed if Seller authorizes the disclosure of the existence of offers

Paragraph 23

  • Created a separated paragraph for the Termination sentence which previously appeared in paragraph 5

Form #1318 — Some Information Relative to the Purchase of Real Estate
Summary of Changes
June 2006

  • Added Paragraph 16 – Domestic Partnership Equality Amendment of 2006 – Provides information on new law in Washington, DC regarding the rights and responsibilities of domestic partners.

Form #1333 — Appraisal Notices and/or Addendum
Summary of Changes
June 2006

(To Be Used Only When the Appraisal Contingency Contained in GCAAR Form #1332 Addendum of Clauses dated 10/2005 or later is included as part of the Contract)

 
This form serves three purposes:

  1. Section 1 gives a Seller language to notify the Buyer that their timeframe to request a reduction of the Sales Price due to a low appraisal has passed and the resulting ramifications.

  2. Section 2 provides a form for the Buyer to unilaterally remove the Appraisal Contingency. This would typically be used as a courtesy to the Seller and Listing Agent, after the Buyer had received a satisfactory appraisal.

  3. Section 3 performs two functions:
    1. It serves as a Notice from the Buyer to the Seller requesting a price reduction after receiving a low appraisal.

    2. It provides a format for the Buyer and the Seller to continue negotiations to hopefully agree on a new sales price after delivery of the Notice in (A). If this section is only signed by the Buyer it serves as a Notice. If it is signed by both Buyer and Seller, it becomes an addendum to the contract modifying the sales price.

Form #1341 — Buyer Agency Agreement
Summary of Changes
June, 2006

Paragraph 1

  • Added "at midnight" to termination period and defined “Expiration Date”

Paragraph 5

  • Updated paragraph removing the Disclosure of Brokerage Relationship form and renaming the Dual Representation and Designated Representative form to properly reflect the form name

Paragraph 7

  • (B) Changed language to mirror listing agreement language with regards to a protection period. The added language states that the protection period is not valid if buyer enters into a buyer agency agreement with another broker
  • (E) – Receipt of Brokerage Fee Deferred - Deleted paragraph which indicated fee was earned when “a property is located that is owned by a Seller . . . ready, willing and able to sell . . .”
  • New Paragraph (E) – Payment of Broker’s Fee – added language indicating that brokerage fee is earned when settlement occurs
  • (F) Added language for Default by Seller

Paragraph 9 (E)

  • Per the revised NAR Code of Ethics, Standard of Practice 1-13, added language which advises the Buyer of the possibility that Sellers and Sellers’ representatives may not treat the existence, terms or conditions of offers as confidential