Standard Forms Committee in Action
By Desiree Brougher, Esq. | Aug. 26, 2022 | 2 min. read
You objected. We listened.
The sales agreements have been revised again, but before you get concerned, know two things. First, this change is a direct result of feedback that we heard from you, the member. Second, it’s just another reorganization, so there is no new language to learn.
When the updated forms were released last month, members pointed out that the reorganization created an unfair advantage for buyers who had waived the mortgage contingency. Even if the contingency were waived, a paragraph about lender-required repairs that would allow the buyer to terminate the agreement was still applicable to all transactions where the buyer was getting financing. Essentially, the buyer could waive the mortgage contingency, but still eventually terminate the agreement and have their deposit money refunded if the lender required repairs to the property that the seller was not willing to perform.
The committee listened to this feedback and agreed with the argument that this created an extra contingency when other financing-related contingencies had been waived. They held a meeting on Aug. 4 to approve the relocation of the objectionable language to “under the contingency.” Now, if the buyer’s lender requires repairs to the property, and the seller won’t do them, the buyer will only be permitted to terminate the agreement if the mortgage contingency has been elected.
These changes affect the residential, manufactured housing, new construction and vacant land agreements. You can expect to see the updated forms in your PAR libraries on Aug. 31.
TopicsPAR Standard Forms
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