Standard Forms Update: Commercial Forms

Upcoming changes to the commercial forms library were highlighted by PAR Associate Counsel Kacy Clouser, Esq., and Standard Forms Committee Vice Chair and Commercial Forms Task Force Chair Dominic Janidas, CCIM, on yesterday’s webinar. 

The following forms will be updated on Aug. 1: 

• Listing Contract Exclusive Right to Sell and/or Lease Commercial Property (Form XLSC) 
• Commercial Buyer/Tenant Agency Contract (Form CBAC) 
• Agreement for the Sale of Commercial Real Estate (Form ASC) 
• Commercial Property Information Sheet (Form CPI)

While each form includes several revisions, the webinar focused on a few key updates. Clouser and Janidas also gave special thanks to the members of the Commercial Forms Task Force, who worked diligently to develop and implement these updates. 

Form XLSC 

One notable change to the agency contracts is the addition of a new authority paragraph. Because commercial transactions often involve business entities rather than individuals, this provision is intended to prompt a conversation between the agent and the client to confirm that the individual signing the agreement has the legal authority to do so.  

Form CBAC 

An introductory paragraph has been added to Form CBAC to encourage agents to discuss the agreement with their clients and ensure they understand the purpose and terms of the contract before signing.  

Form ASC 

Form ASC has been revised to align the financing contingency more closely with the residential mortgage contingency. Buyers now have three financing options: 1) Stating that they will not be obtaining financing, 2) They have the option to obtain financing, but the contract will not be contingent upon securing such financing, or 3) The buyer is electing the financing contingency. The actual function of the financing contingency will not change if options two or three are selected. 

Form CPI 

Form CPI includes the most extensive revisions. Because the form had not been updated since 2004, it required an overhaul to modernize its content and improve usability. The form has been reorganized to create a more logical flow, making it easier for sellers to complete. Related topics have been grouped together for greater clarity. For example, rather than having electrical-related questions scattered throughout the form, the updated version includes a dedicated section for the electrical system. 

Learn More About Forms Updates 

All updated forms will be live on Saturday, Aug. 1. Until then, you can find the marked-up versions on PAR’s Standard Forms page. 

Watch the full webinar recording here, and thank you to Dominic Janidas for joining us!