Standard Forms Committee updates, new forms for residential addenda

Twelve new and revised forms were approved by the Standard Forms Committee at the Business Meetings in January. Yesterday, I discussed updates and new forms for vacant land and manufactured housing. Today, I will cover the revised and new forms for residential addenda.

While you can see all of the changes for yourself on the individual forms’ pages, here are some highlights of what will be hitting the market on Wednesday, March 7, for residential transactions:

Residential Addenda

• Though recently revised, the Buyer’s Financial Information Sheet (Form BFI) has been amended again to ask buyers questions about whether another property will have to be sold in order to purchase the seller’s property. Language that permitted the broker to provide Form BFI to a lender was removed from the last paragraph due to a concern over whether doing so would make the agent a mortgage broker.
• The Buyer’s Reply to Inspections/Reports or Written Corrective Proposal (Form BRI) is new, but should look very familiar. Form BRI is intended to replace Form RR and will work as a negotiation sheet rather than as an addendum to the Agreement. Rather than being signed by both parties and attached to the Agreement, it will be signed by the buyer only and provided to the seller in response to inspection reports.
• The Change in Terms Addendum (Form CTA) has been revised slightly as well, in order to work in conjunction with the new Form BRI. Its use, however, will remain the same; any changes to the Agreement that the parties agree to – whether as a result of inspection reports or otherwise – will be recorded on this form, signed by both parties, and attached as an addendum to the Agreement.
• Specifically for negotiating certain repairs, the Repairs/Corrections Required by Third Parties Addendum to Agreement of Sale (Form RRT) has been created. This form can be used when the buyer will, at the outset, agree to take responsibility for additional repairs that may be required by a lender, insurer or municipality. It can also be used as part of the seller’s counteroffer when the seller does not want to be held responsible for those costs.
• The Short Sale Addendum to Agreement of Sale (Form SHS) now contains a paragraph that will permit the parties to start the timelines for making a mortgage application and performing inspections on the receipt of approval from the creditor.

Guidelines for preparation and use for each of these forms are being drafted and revised as necessary. The guidelines are accessible only by PAR members, and will walk you through the use of the form step-by-step and contain many helpful notes and practice tips. It is recommended that you review the guidelines prior to using the forms for the first time (especially the new forms), either with your office or alone. I am happy to answer any questions you have about these forms or any others.

Editor’s Note: This is the second in a two-part series on changes to PAR Standard Forms coming Wednesday, March 7. Read “Standard Forms Committee updates, new forms for vacant land and manufactured housing.”