Minor changes made to popular forms

Two of the many forms available in the PAR library of forms – the Standard Agreement for the Sale of Real Estate (Form ASR) and the Seller’s Property Disclosure Statement (Form SPD) – have recently undergone some minor changes.

Form ASR has added a bit of text in Paragraph 12, dealing with Inspections.  The Property Insurance inspection on page six has been renamed “Property and Flood Insurance” and language has been added to inform buyers of the impact the Flood Insurance Reform Act of 2012 may have on the property.   The language in the Agreement is intended to inform prospective buyers that the property they are looking to purchase may be subject to higher premiums for flood insurance due to the removal of Federal subsidies, or that the remapping of high-risk areas may result in a need to purchase flood insurance for properties that were not previously in the flood plain.  Buyers should be advised to seek the advice of an insurance professional in determining the property’s insurability – and the cost of that insurance – and not rely on assurances from sellers regarding their previous need for or cost of flood insurance.

The second change is to Paragraph 4 of the SPD, which specifically reminds sellers that the attic area is to be included when property owners are completing the form.  While most sellers should understand that issues affecting the attic should be disclosed just as issues affecting any other areas of the house, Subparagraph C now asks whether the owner is aware of any current or past problems with the “roof, attic, gutters, flashing or downspouts.”

The PAR Standard Forms Oversight Committee is working on more comprehensive revisions to the Standard Agreement and our library of commercial forms.  If you have any comments or suggestions on those forms, please use the feedback form on the PAR website to send them in for review.