The RIAR Board of Directors approved the following changes that were recommended by the RIAR Forms Committee. RIAR has sent these changes to dotloop, Instanet, and zipLogix.
Release of Purchase and Sales Agreement and Escrowed Funds:
- Added a new sentence: “The funds will be disbursed by mailing them to the address(es) as indicated below unless otherwise (agreed) identified in this Release.”
- Added mailing addresses.
- Provided the option of mailing or picking up the funds.
- Provided space to list the name of a person who is authorized to pick up the funds.
- Replaced “released” with “paid from escrow account.”
Rationale: Adding mailing addresses for all parties to the purchase and sales agreement and a sentence about where the funds should be delivered creates a clearer procedure for all parties and the escrow agent to follow.
Buyer’s Request for Repairs and/or Modifications:
- Removed “Buyer’s Notice of Termination” from the title of this form.
- Reversed paragraph 1, Buyers Notice of Termination, and paragraph 2, Buyer’s Request(s) for Repairs and/or Modification.
- Re-ordered paragraphs 1 and 2.
- Removed “or other written response.”
- Gives the buyer an option to accept a repair addendum that does not include all of the requests that the buyer made to the seller.
Rationale: Members are reluctant to utilize the current form due to the strong language in the title of the document. These changes place the focus on requesting repairs rather than termination if the negotiations are not successful.
The current form automatically terminates the purchase and sales agreement if the seller does not agree to all of the buyer’s requests. The changes to the form allow the seller to make a counterproposal to the buyer’s requests for repairs that the buyer could accept or reject.
- Added “Buyer and Seller shall initial all that apply.”
- Added separate lines for both Buyer and Seller to initial.
- Moved language from the “Legal Notice” box to the paragraph addressing the repairs that the Seller agrees to complete.
- Added more space to the first box that refers to the repairs the Seller agrees to complete.
- Eliminated extra space from the “Other” box.
Rationale: The changes provide more room to list the details of how repairs will be completed. Also, new initial lines for both the buyer and seller will end confusion about who is supposed to sign.
“Sales Price” removed from the heading of most RIAR Forms.
Change: Removed “Sales Prices” from RIAR forms, including the Amendment to Purchase and Sales Agreement, Back Up Addendum to Purchase and Sales Agreement, Condominium Documents Addendum, Extension to Purchase and Sales Agreement, Flood Insurance Addendum to Purchase and Sales Agreement and others.
Rationale: This eliminates an unnecessary step for members to remember while helping to standardize RIAR forms, the forms would continue to provide spaces to list the Seller, Buyer, and Property Address at the top of the form.
Questions? Please contact the RIAR Legal Department at 401-432-6945 or 401-432-6941.