Explanation of Changes to REA - Nov. 2007

Explanation of Changes

Government Regulations, Easements and Assessments Disclosure
and Addendum (REA)
Form 900 — Formerly 900 and 901
November 2007

 

In an attempt to shorten and simplify the REA, as well as to incorporate additional disclosures mandated by legislative changes, GCAAR Contracts and Clause Committee has made and recommends the following:

  1. The REA Disclosure Form was previously comprised of two separate documents, totaling 10 pages, a) the actual Disclosure and b) an accompanying Reference Guide. The REA is now one document totaling 7 pages. Pertinent components of the two documents are contained in the revised REA.

  2. All web references, e-mail addresses and telephone numbers have been updated and confirmed.

  3. Paragraph 1 formerly Paragraph 3 - Combination of verbiage from Guide and Disclosure Form.

  4. Paragraph 2 formerly Paragraph 9 - Contains an added disclosure regarding the potential for applicable but unrecorded obligation relative to Private Utility Assessments.

  5. Paragraph 3 formerly Paragraph 14 - Title expanded and N/A option added.

  6. Paragraph 4 formerly Paragraph 1.

  7. Paragraph 5 - Property Taxes - Contains the most significant change to the REA. First, in order to address any Buyer questions, links to the County and State Tax Departments are included. Second, rather than requiring the Seller to answer several questions relative to the many components of a tax bill, the new form merely requires that a current copy of the County Tax Bill be printed and attached to the Disclosure. Reiterates that taxes are likely to increase after sale.

  8. Paragraph 6 was formerly Paragraph 19.

  9. Paragraph 7 has been added to address fees assessed directly by the City of Takoma Park for Storm Water Management.

  10. Paragraph 8 formerly Paragraph 2 has been reorganized for clarity. Additionally, links, along with user id's and passwords, have been added to direct parties to obtain Subdivision Plats.

  11. Paragraph 9 formerly Paragraph 4.

  12. Paragraph 10 formerly Paragraph 5.

  13. Paragraph 11 formerly Paragraph 6 - Language added reflecting that additional requirements may apply in certain municipalities.

  14. Paragraph 12 formerly Paragraph 7 - Language added to allow user to determine status of property. Additional Disclosure regarding City of Rockville review added.

  15. Paragraph 13 formerly Paragraph 17 & 18 - Updated and expanded by Board's Counsel to comply with current status of law.

  16. Paragraph 14 formerly Paragraph 20.

  17. Paragraph 15 formerly Paragraph 21 - Link to MD Department of the Environment added.

  18. Paragraph 16 - New - Added to address City of Takoma Park Law regarding the sale of rental properties.

  19. Paragraph 17 - New - Added to address MD law effective 10/1/07 regarding disclosure of certain Conservation Easements.

  20. Paragraph 18 - New - Added to address MD law effective 10/1/07 regarding disclosure of property subject to Ground Rent.

  21. Paragraph 19 - Airports and Heliports - The list has been confirmed and updated with the FAA.