Updates made to two often-used standard forms

At PAR’s Winter Business Meetings, the Standard Forms Committee approved some minor changes to two commonly-used forms: the Standard Agreement for the Sale of Real Estate (Form ASR) and the Seller’s Property Disclosure Statement (Form SPD).

After the ASR was heavily revised last May, certain other issues related to the new language emerged. To encourage best practices, the following “tweaks” were made:

• Explanations of the different agency relationships were added to page one to help licensees determine their status as agent and select the appropriate box;
• A default time period of five days was added to Paragraph 2 for delivery of the initial deposit;
• When a mortgage application is required to be submitted, Paragraph 8(E) now permits the broker for seller, if any, to contact the lender to determine the status of the application; and
• If the mortgage contingency is elected, the buyer is under a continuing obligation to obtain financing as stated in Paragraph 8(G).

The change to the SPD is a result of the PA Stormwater Management Act and its implementation at the local level. Municipalities may now have restrictions on the amount of impervious and semi-pervious surfaces permitted on a piece of property. Any additions or alterations done by a seller, such as installing a poured concrete patio, may affect plans the buyer has for the property, like adding a pool. To put buyers on notice of this change, a Note to Buyer has been added to Paragraph 8 recommending that they contact the municipality to determine what changes they may or may not be able to make in the future.

Expect to see these forms released in the next few months, with more information to follow once a release date is determined. For now, both of these forms are available on PAR’s website with the changes highlighted. If you have any questions, please contact Standard Forms Manager Desiree Brougher.