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By: Brougher, Desiree on in

Revised Agreement of Sale debuting July 1

A revised Agreement of Sale (Form ASR) will be available for use as of July 1, 2019.

The only substantive change to its content is in Paragraph 8(I), which relates to FHA and VA financing. For an application for 203(k) financing to be approved, the lender must make sure that the contract for the sale of the property contains a statement indicating that the buyer is willing to make any and all repairs to the property that the lender requires. Since that statement was missing, a lender would have to provide an addendum in order to comply with underwriters’ guidelines; now it will be possible for the transaction to proceed without needing an additional form (but that’s not a guarantee). The guidelines for consumers and members have been updated accordingly.

What you will not see is a change to Paragraphs 13 or 14 of the agreement from the additions made in January. The revisions to those paragraphs were not done on a whim and, after a year or so of debate between members at the task force, feedback panel and committee levels, it was decided that adoption of the new language would be in the best interest of our members. Understanding the frustration that comes with a change of practice, in January, the committee promised to revisit the issue at their next meeting. Members and staff actively solicited feedback between meetings, but all indications were that business continued as usual.

3 Responses
  • June 21, 2019 at 7:59 am Greg Smathers says

    Thanks for update

    Reply
  • June 22, 2019 at 8:20 am Craig Melichar says

    Please tell me there will be a change or removal of paragraph 8 of the PAR form OGM with check boxes obligating either the buyer’s agent or seller’s agent (or both) to an obligation “This paragraph will survive settlement.” without requiring the agent’s initials or signature anywhere on the form.
    My Broker requires that all transactions include the OGM with the agreement of sale no matter where the property is located or the type of property. As a listing agent I provide the OGM along with the OGMD as attachments to my listing on the multi-list to help to make sure all documents are included and signed with the offer to avoid too much back and forth between the parties before we have a fully executed contract.
    On a recent deal I left both paragraph 8 obligations unchecked since the sellers had no knowledge of any items within the OGM. When I received the completely executed agreement from the buyer’s agent, the completely executed OGM came back with the Seller’s Agent box checked obligating me beyond the agreement. I was told by my broker not to worry about it since it would be highly unlikely due to the location of the property. I do worry about any completely executed legal document in existence that obligates me to something that I did not sign off on. I believe that this paragraph presents that personal liability. I had a conversation with the buyer’s agent after closing that I felt that it was inappropriate to check a box on a form that fully executes the form adding an obligation for the other agent without that agent’s consent.

    Reply
  • June 29, 2019 at 7:13 pm Hope Bassichis says

    The OGM OR THE OGMD ARE A WASTE OF TIME COMPLETING AND WASTING TREES TO PRINT OUT YET ANOTHER ADDENDUM NOT NEEDED IN A RESIDENTIAL NEIGHBORHOOD.
    IF THERE A FARM OR PROPERTY WITH MANY ACRES, I can understand using it.

    Reply

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