New 2017 Real Estate Forms At A Glance

The most significant form changes for 2017 relate to objections based on title-related and appraised value matters. The Commission has promulgated two new objection forms to accommodate title and appraisal objections.

Title-Related Objection Notice (TON45): This form should be used if the buyer objects to title related issues including Record Title, Off Record Title, New ILC, New Survey or Due Diligence. The primary concern behind this form is brokers crafting resolution language in the event of a title related objection. It is clearly stated in the form that brokers should not give legal advice concerning title matters and the buyer should seek legal counsel for resolution. The broker may act as a scrivener by copying the buyer’s attorney resolution language when completing any Title-Related resolution proposal.

Appraised Value Objection Notice (AVN44): This form should be used if the buyer objects to the appraised value of the property. The form identifies the supporting attachment, copy of the appraisal or lender verification of the appraised value.

Each of these forms includes a Buyer’s Withdrawal of objection. Any resolution for Title-Related or Appraised Value objections should be memorialized on the Agreement to Amend/Extend Contract (AE41).

Earnest Money Release (EMR83): Language was added to allow the parties to release each other from any further claims, demands, obligations or damages pertaining to the contract, outside of Section 10.4 Damages, Liens and Indemnity which survives termination of the contract.

Exclusive Right To Sell Listing Agreement (LC50): The only change to the LC50 is Section 20, Forfeiture of Payments. The seller and broker now have a decision to make in the event of the buyer forfeiting earnest money. The earnest monies can be split 50/50 as we are used to, the full earnest money can be retained by the seller or another arrangement can be stipulated.

Brokerage Disclosure to Landlord (LD17): The Brokerage Disclosure to Landlord segregates the previous form Brokerage Disclosure to Seller/Landlord(SD16) into two separate forms for clarity. We now have unique and separate brokerage relationship disclosure forms for all parties, buyers, sellers, landlords, and tenants!

Post-Closing Occupancy Agreement (PCO70): The existing form language has been modified and expanded for clarity and protection of the parties. The mandate that this form is used in all instances whereby possession will be delayed up to 60 days remains. Beyond a 60-day seller possession, the parties should be advised to enter into a lease agreement, and the Post-Closing Occupancy Agreement should NOT be used. Legal counsel must be encouraged if a lease is desired.

Additional minor modifications, mostly clean up language, was added to the Inspection Resolution (NTC43) and Inspection Objection Notice (NTC34R) forms. Minor modifications were made to the Closing Statement (SS60), primarily to conform with the revisions effective October of 2015 related to the Integrated Disclosures.