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RIAR Forms Update

Seller’s Suitable Housing, Personal Property, Sales Disclosure and More

On August 1st, the Rhode Island Association of REALTORS® Board of Directors approved three new forms and changes to two existing forms.  Depending on what Forms provider you use, watch for changes by the end of September or earlier.

    1. Release of Purchase and Sales Agreement and Escrowed Funds (amendment)
      As of September 1, 2017, a new law will require a real estate broker who is holding escrow funds to release them within ten days of receiving a written release that has been signed by both the buyer and seller.  The RIAR Forms Committee has updated the Release to comply with the new law.
    2. Sale of Personal Property Agreement – (new)
      More underwriters are insisting that purchase and sales agreements no longer include references to personal property, such as sheds and above-ground pools.  As a result, the Forms Committee has created a Sale of Personal Property Agreement, in which property like this can be listed separately from the purchase and sales agreement.
    3. Seller’s Suitable Housing Addendum- (new)
      As the market continues to improve, more sellers want to make sure that they can find housing for themselves before they transfer title to their own home to a buyer.  The Forms Committee has created a form that would make the purchase and sales agreement contingent on the seller obtaining replacement housing.
    4. Rhode Island Real Estate Sales Disclosure form – (amendments)
      The Forms Committee reorganized and updated the sales disclosure form to make it easier to use.  Changes include the following:

      • Reformatted the form and increased the font size to make it easier to read and understand.
      • Added checkboxes, where applicable, for yes/no/unknown responses from seller.
      • Added Solar Equipment/System to the Structure section.
      • Separated Property Tax into separate line items for Real Estate Property Tax and Municipal Fire District Tax in the Municipal Information section.
      • Added checkboxes for the type of deed to be conveyed in line item 16.
      • Replaced the reference to Megan’s Law with a General Disclaimer at the beginning of the form.
      • Moved the Statement paragraph to the beginning of the form.
      • Added checkboxes in paragraph #29 Radon, to indicate whether a Radon Mitigation System is in use.
      • Removed Mold from the Conditions section and added a new paragraph #30 for Mold.
      • Redesigned the Equipment/Systems/Appliances section of the form, with added checkboxes for those items included in the sale, as well as their age and condition.
    5.  Buyer’s Request for Extension/Notice of Termination Pursuant to the Mortgage Contingency – (new)

Buyers and cooperating brokers often do not know until the last minute whether a buyer will need more time to obtain a commitment letter.  If the buyer waits too long to request an extension, the buyer risks automatically waiving the mortgage contingency or forfeiting his/her deposit.

The Forms Committee created this form to protect a buyer’s deposit by allowing a buyer whose Mortgage Contingency Deadline is about to expire to request an extension from the seller.  If the seller refuses, this form also serves as a notice of termination.  This form would be used with an Extension.  This form is based on the Request for Repairs and/or Modifications Pursuant to Inspections Contingency form.

Questions?

Content:   Please contact the RIAR Legal Department at 401-432-6945 or email monica@riliving.com.
Technical:  Please contact Tech Support   401-432-6905

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Megan
Megan

Where can I find the mortgage contingent extension form?