NVAR Standard Forms Changes: Effective January 1, 2018
The following NVAR forms changes are effective as of January 1st, 2018:
1. K1338 Exclusive Right to Represent Buyer Agreement
a. Paragraph 4, Term and Termination: This paragraph was modified to clarify the Buyer’s responsibility for payment of the Termination Fee. This means that any Termination Fee paid by the Buyer to the Broker is in addition to any other fees paid by Buyer to Broker during the term of the Agreement.
b. Paragraph 5, Broker’s Duties: This paragraph was modified to clarify that any agreement between Buyer and Broker regarding the existence, terms, or conditions of offers must be in writing.
c. Paragraph 6, Buyer’s Duties: This paragraph was separated from Paragraph 5 for clarity, and to highlight the separation of the parties’ duties. This paragraph was modified to advise Buyer not to take, post, publish or display photos or video recordings of the property without Seller’s prior written consent. The term sub-agent was removed to make this paragraph consistent with the residential standard agency statute. The revisions to this paragraph also streamline the language regarding the existence of a recording system in the property and the possibility of video and/or audio recording.
d. Paragraph 8(B)(1): This paragraph was modified to clarify that the Broker’s Fee is owed to Broker after termination only if the Buyer later acquires real property of the same type as discussed in the Purpose Paragraph 7.
e. Paragraph 14: This paragraph was modified to include headings for each of the three disclaimers for purposes of clarity. This paragraph was also modified to include a new disclaimer with respect to wire fraud. Since wire fraud is a significant risk to Realtors® and consumers, the Buyer is being warned of its possibility and instructed about precautions to take in order to avoid becoming a victim of wire fraud. Buyers are being advised not to rely exclusively on electronic communications, and to orally verify any changes to wiring instructions with the Broker or with any third- party vendor before transmitting funds by wire transfer.
2. K1208 – New Home Sales Contract – K1208
This form was created to accommodate the needs of the membership, and should be used only in instances where the Buyers will buy a lot and then build a home. This contract is not intended to be used when:
▪ the owner already owns the lot;
▪ the builder owns the lot and will be building a house; or
▪ the builder owns the lot and has already begun building a house.
This contract was drafted to follow the Residential Sales Contract as closely as possible. However, some provisions, such as the inspection paragraph, differ significantly from the Residential Sales Contract.
3. K1382 – Construction Financing Contingency
This financing contingency was created to be used with the New Home Sales Contract. This contingency can be used for all types of financing.
4. K1373 Options Addendum (New Home Sales Contract)
This addendum ensures that the parties to the New Home Sales Contract reduce to writing the options which are included in the base price, as well as those the Buyer wishes to add.
5. K1020 Seller Post Settlement Occupancy and BK1225 Buyer’s Pre Settlement Occupancy Agreement
The changes to these two forms were administrative in nature to match the language which was recently updated in the Sales Contract, addressing the Property Maintenance and Condition.
6. K 1360 – Well and Septic Contingency
This change was administrative in nature. Paragraph 2B2 was amended to reflect a wrong reference to a previous paragraph. The old version incorrectly referred to paragraph A1. It has been amended to refer to paragraph B1.
7. K1336 Exclusive Right to Sell
This change was administrative in nature. The second paragraph 26 was renumbered to 27.