January 1, 2017 Form Changes
January 1, 2017 NVAR Standard Forms Changes
1. Exclusive Agency Listing Agreement – K1337; Exclusive Right to Sell Listing Agreement – K 1336; and Exclusive Right to Sell Unimproved Land Listing Agreement – K1355.
a. Property. The committee added language which tracks the MLS fields associated with listings such as the number of levels, whether there is a basement etc.
b. Conveyances. The list of conveyances was amended to distinguish between the different types of fireplaces and their attending equipment.
c. Broker Duties. This paragraph was updated to include bolded language towards the end of the paragraph providing a blank to write out specific showing instructions for the property if applicable.
d. Marketing/MLS/Internet Advertising. This paragraph was updated to comport with the reality of the life cycle of a listing and continue to be in compliance with the DOJ-NAR settlement. To that end, we have separated the authorization for internet display from the rest of the VOW disclosures. That way, a seller will first choose whether or not they will allow their listing to be disseminated on the internet. If they choose yes, then there is a disclaimer which follows and the listing agent needs to complete section D. If they say no, then section D may remain blank.
e. Broker Compensation. The offer of compensation language which used to be in the marketing/MLS/Internet Advertising paragraph has been moved to this paragraph for consistency and clarity. In addition, a new section C was added to address whether there will be a variable rate commission entered in the listing.
f. Current Liens. This paragraph was updated to comport with the current practice. A reminder was inserted for the seller that the loans on the property will need to be paid off at settlement. The account numbers for the loans have been deleted as they were no longer necessary. Finally a paragraph was added to ensure that sellers agree to comply with requests from settlement agents for loan payoffs.
g. Seller Duties. The old miscellaneous information paragraph was divided into two paragraphs. One entitled Seller Duties and the other Miscellaneous Information. The Seller Duties paragraph was modified to provide for a disclosure of whether the seller has an audio recording system in the property followed by a warning and release of liability for real estate agents. This paragraph was further modified to allow access to the property by the Broker’s unlicensed assistant to perform their duties as outlined in the real estate regulations.
h. Utilities (Land Listing Agreement Only). This paragraph was updated to include additional descriptions of the utilities which may be available at the property such as cable or fiber optics.
2. Sales Contract for Unimproved Land– K1209
This form has been completely updated to match more closely our Residential Sales Contract. However, the following three paragraphs are specific to this contract: Fees and Expenses; Land Use Assessments/Rollback Taxes; and Study Period Contingency.
3. Rental Application – K1008
The rental application was modified to include two additional questions: Whether the tenant requires a visual smoke detector (to comply with new laws) and whether they are entitled to diplomatic immunity.
4. Lease – Common Law – K1333 and Lease – VRLTA – K1354
These forms were updated to comport with significant legal changes.
a. Lease Term. The two options for lease term have been reduced to one option whereby the tenant agrees to vacate at the end of the lease term unless the parties have provided at least 60 days notice their wish to extend the term.
b. Early Termination. The paragraph was moved to follow immediately after the lease term paragraph. No new language.
c. Late Payment. This paragraph was simplified. The language now outlines clearly the fees associated with any late payments by the tenants.
d. Fixtures and Appliances. This paragraph was modified to separate those fixtures and appliances which are part of the premises and those which are provided in as-is condition.
e. Smoke and Carbon Monoxide Detectors. This paragraph was updated to comply with recent changes in Virginia law. The tenant may not tamper with carbon monoxide detectors and must maintain them where installed.
f. Access to the Premises. This paragraph was clarified to state that the tenant allows the listing agent to place a sign, a lockbox and show the premises 90 days prior to the end of the lease term if the property is listed for sale and 60 days prior to the end of the lease term if the property is listed for rent. In addition, language was inserted to warn tenants about the damages they may incur if they fail to allow showings to potential tenants or buyers.
g. Notice Regarding Diplomats. This paragraph has been made into an informational paragraph for the benefit of the landlord explaining the possible consequences of renting their property to a diplomat.