Official release date for revised forms

As you have probably heard by now, the Standard Agreement of Sale (Form ASR) and three commercial forms have undergone some changes. Over the past few months, I have been visiting several local associations to discuss those changes with the members. If you have not been able to attend one of those meetings, here is some of what you missed.

It’s backless – Several notices have been incorporated into the body of the Agreement itself. Some notices are included exactly as you are used to seeing them, while others have been shortened. The notices that did not make the cut have been added to the Guidelines for Preparation and Use and the Consumer Guide.

Deposits – The ASR was revised to provide for an “initial deposit, within                days of Execution Date, if not provided with this Agreement.” (Yes, an Agreement presented without a deposit is a valid offer.) Why? Because with many agents submitting offers electronically, there isn’t actually a check accompanying the original offer. This change lets sellers know when they can expect to receive an initial deposit if it is not presented at the same time as the offer.

Return of Deposits – Where there is a disagreement over the entitlement to deposits, the default time period during which a buyer will have to wait before requesting the return of his money from the broker holding the deposit has been reduced to 180 days.

All of the revised documents have been posted to the Standard Forms page of our website for your review. You will see the new forms take effect on May 5, 2014. If you have questions about the changes, please contact me.