Changes to existing RIAR forms are set to take effect in November 2022. Here's what to watch for:
Escalation Addendum
- This form has been streamlined to eliminate some of the legalese but nothing substantive has changed. Continue to use the form in the same way.
Notice of Termination of Purchase and Sales Agreement and Release of Purchase and Sales Agreement and Escrowed Funds
- The Notice of Termination of Purchase and Sales Agreement and Release of Purchase and Sales Agreement and Escrowed Funds will continue to be available as a combined pdf/document that prints both forms together. The individual forms will be removed from forms vendor sites to avoid confusion. RIAR encourages REALTORS® to use both forms to terminate a transaction. Sending a release by itself does not explain why a buyer or seller wishes to terminate nor does it necessarily terminate a purchase and sales agreement.
How to Terminate a Transaction A buyer or seller wants to terminate a transaction.
If the transaction can’t be saved, what forms should you use?
Notice of Termination of Purchase and Sales Agreement form
Have your client complete this form and include the reason for termination. A buyer’s reason could be an unsatisfactory home inspection while a seller’s reason may be that the buyer did not close on time. This makes it clear that your client definitely wants to end the transaction and avoids sending mixed messages. Your clients will sign the notice but the other party does not
Release of Purchase and Sales Agreement and Escrowed Funds
Your client should also complete a release to make clear how your client wants the deposit to be paid. Both your client and the other party will need to sign the release before the deposit funds can be paid. These forms can be sent separately or as a combined form.
For more information, please contact the RIAR Legal Department at 401-432-6945 or email [email protected].