By Gary S. Mueller, Three Rivers Association of REALTORS® Attorney
I hope all enjoyed a blessed Thanksgiving.
Our office continues to enjoy a robust market. I hope that your business plan is providing you similar results.
The 7.0 Multi-Board Residential Contract is out of Committee and being presented to Associations, REALTOR® and Attorney. I will be presenting a learning lunch on Feb 14 discussing the contracts and the specific changes. I am also willing to come to your office to provide additional instruction, should that serve helpful.
The following are just a smattering of the more major changes:
- Closing can now also take place at the escrow office of the title company physically nearest the property. This is designed to avoid the situation where seller’s attorney orders title and the title company has few offices. Under this revision, if the title company is underwritten by First American, the parties can agree to close at a FAT office rather than the title company whose only office is in Lockport while the property is in Manhattan (for example);
- Concerning financing, there are only three options now, and all are in one paragraph. In paragraph 6, one either has a loan contingency, a cash deal, or a cash deal where the buyer may secure financing (but the deal is NOT contingent on financing);
- The attorney review paragraph now only allows three options---approve contract, disapprove contract and terminate deal, or propose modifications. Gone are the changes that are modifications versus the changes that are deal-breaker/counter-offers;
- Concerning inspections---the revised paragraph attempts to limit the repairs to be covered under the paragraph and provides a “penalty” against the buyer who requests unauthorized repairs; the seller can declare the contract null and void if the repairs requested are minor or are not covered by the inspection contingency. This will be a major learning/practice point for agents and attorneys;
- Real Estate Tax escrow---the revision is intended to address the attorney battle over prorations and exemptions. If there is an ongoing, unresolved dispute, the contract indicates that 3% of the sales price be held in escrow pending resolution. The goal is to resolve this issue early on to avoid the escrow;
- In the notice provision, the parties are encouraged to keep the agents informed concerning the ongoing issues concerning the transaction.
These are just some of the major changes. As stated, if you have any questions once you see the new 7.0 Contract, please feel free to call my office at 815)725-7300.
On behalf of our office, may you and those dear to you enjoy a blessed Christmas and a joyous and prosperous 2019.