2021 GAR Contract Changes Part 3

​The 2021 GAR contract changes are now active.  In past weeks we covered 2021 changes to the Listing Agreement (Engagement) Agreement, the Buyer Brokerage (Engagement) Agreement and the Purchase and Sale Agreement.  This week we summarize important changes to Disclosures, Exhibits and Authorization. 
 

1. F301 Seller’s Property Disclosure

1. C(5) and C(6) added 2 additional Systems and Component HVAC questions and the age of the water heater.
2. C(10) modified P.(a) added “hazardous condition” from animal intrusion, insects, fungi or dry rot.

 

1. F302:  NEW FORM for Seller’s Disclosure of Latent Defects and Fixtures.  This form is to be used when the Seller has never occupied the property (investors, beneficiaries) or has not occupied the property long enough to know the information to complete F301.  THE SELLER MUST DISCLOSE KNOWN LATENT DEFECTS.

 

1. F316 The Lead Based Paint Exhibit continues to get tighter. Language has been added to mirror the EPA regulation. New language emphasizes that the Lead Based Paint Brochure must be provided to the Buyer prior to a binding agreement.  Further, the Seller must initial it’s disclosure and the Buyer must initial its Acknowledgement at (c) AND (d) and initial (e)(i) or (ii).  If the Buyer accepts a 10 day opportunity to inspect, the inspection must be completed BEFORE the offer is accepted by the Seller.  Please review the form to be certain the form is understood. EPA fines for omissions are up to $16,000 per omission.

 

1. F322 Community Association Disclosure. 

 

1. The Seller must pay for the Closing Letter within 2 days of receiving notice from the closing attorney of how to pay.  The Seller is responsible to pay for any amount over the Seller disclosure. If there is an N/A or a blank link, it is interpreted as $0.00.
2. Pre-paid annual dues or buyer move in fees are buyer costs.
3. New paragraph: The Buyer authorizes the Closing Attorney to reveal the Buyer’s identity and contact information.

 

1. F601 Sale or lease of Buyer’s Property Contingency
   1. New paragraph wherein the Buyer warrants the property is listed, under contract or other.
   2. P.3 updated to include the specifics of the Buyer’s Sale or Lease Terms.

 

1. F843 Referral Authorization. Updated Language to include referral to builders and real estate related services in addition to brokers and relocation companies.
2. SS 627. New Special Stipulation.  Expiration of Time Deadlines.  To be used if you don’t want time deadlines to end at 11:59 pm.  “All time deadlines set forth herein shall expire at ____am or pm on the day of the deadline.”

 
For additional detail, please see the RMAA Hub Resources Library for a Power Point of Missy Robinson’s class on the changes, as well as the Campbell and Brannon class presented by Christian Ross and Peter Babcock.  The new forms can also be found in the RMAA Hub in the Resources Library.  There will be additional classes on the changes to the forms.  We highly recommend that you register for one and attend!