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