January 1, 2012 Forms Changes

One dozen forms or contracts have been revised, all to be effective January 1, 2012. This includes the Regional Sales Contract, the Virginia Jurisdictional Addendum, and others.

K1118 – Limited Access Agreement

K1210 – Walk Through Inspection

K1225 – Pre-Settlement Occupancy Agreement

K1306 – Escalation Addendum

K1321 – Regional Sales Contract

K1331 – Notice Removing the Financing Contingency (Form 100)

K1342 – Home Inspection and Radon Testing Addendum

K1344 – Contingencies and Clauses Addendum

K1345 – Virginia Jurisdictional Addendum

K1349 – Appraisal Contingency Notice

They have been revised and published.

K1321 – Regional Sales Contract

The Regional Sales Contract has been updated to streamline practice in all three jurisdictions and to comport with the current state of the marketplace.

Review the summary document:
Regional Sales Contract and  Conv. Finan. Add - Summary (01-12)

Review the document:
K1321 - Regional Sales Contract (01-12)

Video Link:
Alan Simon explains the new Regional Sales Contract.

K1345 – Virginia Jurisdictional Addendum

The Virginia Jurisdictional Addendum was updated to take into consideration the recent changes that were made to the Regional Sales Contract. Those changes are summarized here:

A. FINANCING (Paragraph 3): The conventional financing contingency was removed from the Regional Sales Contract and placed in a separate addendum, thus this paragraph was modified to account for that change. Previously “FHA/VA FINANCING,” it now references the Financing addenda for all types of financing.

B. APPRAISAL CONTINGENCY FOR CONVENTIONAL FINANCING (Former Paragraph 4): The language was deleted and added to the new Conventional Financing Contingency Addendum.

C. Virginia Residential Property Disclosure Act (Paragraph 4): The language was changed to reflect recent changes in the law.  When a Buyer receives the Residential Property Disclosure Form after ratification of the contract, then the Buyer has a right to cancel the contract.  The law changed to allow multiple methods of delivery of the notice of cancellation of the contract after receipt of the Residential Property Disclosure Form:

“Written Notice of termination may be (i) hand delivered; (ii) sent by United States mail, postage prepaid, provided that Purchaser retains sufficient proof of mailing, which may be either a United States postal certificate of mailing or a certificate of service confirming that such mailing was prepared by Purchaser; (iii) sent by electronic means to the facsimile number or electronic mailing address provided by Seller in the “Delivery” paragraph of this Addendum, provided that Purchaser retains sufficient proof of the electronic delivery, which may be an electronic receipt of delivery, a confirmation that the notice was sent by facsimile, or a certificate of service; (iv) overnight delivery using a commercial service or the United States Postal Service.

Any such termination shall be without penalty to the Purchaser, and any deposit shall be promptly returned to the Purchaser.”

D. Smoke Detectors (Paragraph 5): This is a new paragraph in the Virginia Jurisdictional Addendum.   However, the language used to be found in Paragraph 7 of the Regional Sales Contract.  As a result of its modification, this language had to be added to the Virginia Jurisdictional Addendum.

E. Well and Septic (Former Paragraph 7): The well and septic provisions were moved to a separate addendum.

F. Additions (Paragraph 14): This is a new paragraph which lists the most commonly used NVAR addenda.  This list used to be at the end of the Regional Sales Contract mixed with addenda for other jurisdictions.

G. ELECTRONIC SIGNATURES (Former Paragraph 16): Deleted—this language is contained in the revised Regional Sales Contract.

H. OTHER (Paragraph 15): The Regional Sales Contract no longer has a place to write in additional terms. This section is now located in each Jurisdictional Addendum.

NVAR K1210 – Walk-Through Inspection

The form was modified to comply with the new Paragraph 7 of the Regional Sales Contract.  Additional blanks were added to ensure that the parties had sufficient places to add additional items to the list.  Plumbing, lighting fixtures and TV Antenna were also added to the list.  The Remark Section now allows for more text to be added.

NVAR K1225 – Pre-Settlement Occupancy Agreement:

Paragraph 3: “warranty provisions” was changed to “terms” to reflect the removal of paragraph 7 warranties.

NVAR K1306 – Escalation Addendum

Option #2: the parenthetical was removed so that there were no references to paragraph numbers.  This allows for paragraphs to be moved within a document without having to update all attending forms.

Boxed Paragraph: the definition of net was clarified by changing the last sentence to “In this addendum the term “Net” is defined as the Sales Price less all Seller concessions.”

NVAR K1331 –Notice Removing the Financing Contingency (Form 100)

This form was modified to reflect the changes in the new Conventional Financing Addendum.  The numbered list was amended to delete: “2. Purchaser acknowledges that the Deposit is now at risk”

The form now creates a two track approach.  One for VA and FHA financing in which the Purchaser has to indicate whether the lender letter is attached to the Notice or not; and one for Conventional Financing, where the Purchaser must indicate whether the Lender’s written commitment is attached or whether evidence of availability of funds to settle without such financing is attached.

Finally, the bolded language was amended to include the deleted language and now explains that the provisions of the Default paragraph apply including the provisions of loss of Earnest Money Deposit.

NVAR K1342 – Home Inspection and Radon Testing Addendum

Paragraph 1: the box located under 1(i) which reminded the seller that unless the property was sold As-Is, they may be responsible for fixing Paragraph 7 items was deleted.

NVAR K1344 – Contingencies and Clauses Addendum

Paragraph 2B(“As Is” Property Condition): the first checkbox was changed to follow the format of the other options.  The language in the fifth check box was changed to mirror the language from the Title paragraph of the Regional Sales Contract regarding compliance with notices of regulations.

NVAR K1349 – Appraisal Contingency Notice

Reference to paragraph numbers were removed and substituted for the title of the paragraphs.  This allows for paragraphs to be moved within the Regional Sales Contract and Virginia Jurisdictional Addendum without having to republish this form.

Other:

NVAR K1020 – Seller’s Post Settlement Occupancy Agreement

Paragraph 3: language that mirrored Paragraph 7 was removed.  No substantive changes were made.

NVAR K1118 – Limited Access Agreement

Formatting changes were made, no substantive changes were made.

Review the documents:

K1345 - Virginia Jurisdictional Addendum (01-12)

K1359 - Financing Contingency (01-12) 

Summary of Additional Forms Changes

There is a course for these changes:
Read Course Details Here  - Review and print the course PDF flyer