The new GAR Contract forms will drop on January 1, 2023. The new year also comes
with a few changes to the Listing Agreement.
Lead Based Paint Exhibit To Be Attached to the Listing Agreement.
The Lead Based Paint Exhibit should now be added to the Exclusive Seller Brokerage. Engagement Agreement (Listing Agreement) if the property or any portion of it was built prior to 1978. The new language gives the seller a place to disclose whether the dwelling or any portion thereof was built prior to 1978. It also alerts the seller that federal law requires the disclosure of lead-based paint in homes constructed prior to 1978. Language Added Regarding Brokers Who are Not Members of an MLS.
This language was also added to the brokerage engagement:
“Seller’s broker shall have no obligation to pay any cooperating broker who is not a participant of the Multiple Listing Service(s) in which the Property is listed a commission unless cooperating broker has negotiated and executed with the seller’s broker a Co-op Commission Agreement.” Offers of compensation set forth in a multiple listing service have always been limited to other members of the Multiple Listing Service. However, this new language was added since many REALTORS® are unaware of the fact. In order to be protected, non-participants of a multiple listing service should negotiate their commission with the seller’s broker prior to showing the property.
Obligation of Sellers to Disclose Known Latent Defects Clarified.
This section of the brokerage engagement agreement explains to sellers that they have a duty to disclose latent defects. For 2023, clarifying language was added that the disclosure obligation only requires the disclosure of “known” latent defects. The clarifying language was added to both the exclusive and non-exclusive forms.
Real Estate News, Brokers Blog & More