The Agreement to Reinstate Contract is a new GAR form. It can be used if there is a situation in which the original contract was terminated, but the parties wish to continue the relationship. A common situation involves the Amendment to Address Concerns (ATAC). Agents often add language to the ATAC that is intended to protect their buyers, but can result in an unintended termination: If the ATAC is not accepted, then the Seller is served Notice of Buyer’s decision to terminate the contract. If the Seller does not accept the ATAC as written, the contract is thereby terminated. But hold on! The Buyer didn’t really want to Terminate, just to protect its earnest money.
So long as both parties agree, this is a perfect situation for the new form. The Buyer and Seller can resurrect the contract using Form 290. Note that there is space on the form to include any changes to the contract to which both parties agree.
For those of you that are thinking that this breaks the rule that you cannot resurrect a dead contract, yes, you are right. This is a change, blessed by the GAR.
This is the operative language in the Agreement to Reinstate Contract:
“By signing this Agreement to Reinstate Contract, Buyer and Seller acknowledge that they have each read and understood this Agreement to Reinstate Contract and agree to its terms.”
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