NVAR Standard Forms Changes Effective January 1, 2019; Attend Class on 1/7
You’re invited to learn about updates to NVAR Standard Forms on Monday, January 7, 2019, 10AM-12PM, DAAR, Ashburn. Featured speaker Keith Barrett, Esq, Vesta Settlements, will review and answer key questions regarding the changes below effective January 1st, 2019: Free for DAAR Members. Register online here. For more information, view the flyer.
NVAR forms changes effective January 1st, 2019:
1. K1343 – Inspection Contingency Removal Addendum This form is currently known as the Home Inspection Contingency Removal Addendum. Recognizing that there are many different inspection contingencies that may require the parties to negotiate removal terms, the revised form allows the parties to select which contingencies will be removed at any given time. The revised form is flexible for removing one or more contingencies simultaneously and can be used more than once per transaction depending on the inspection contingency deadlines.
2. K1020 – Seller Post Settlement Occupancy Addendum This form was revised to present clearer choices for selecting and calculating the Occupancy Charge to remove ambiguity for both the buyer and seller in what the Occupancy Charge will be at closing.
3. K 1342 Home Inspection and Radon Testing Contingency Addendum This form was revised to clarify that any offers or counteroffers that have not been accepted or ratified during the Negotiation Period of both contingencies will automatically expire at the end of the Negotiation Period. The term “Period” was added to the sub-heading “Buyer’s Election.”
4. K 1384 – Addendum – Lease This NEW form was created in order to allow the parties to execute an addendum to modify terms to a residential lease. This was based on the existing Addendum to Sales Contract, but the language was modified to reference Lease instead of Contract, Tenant instead of Buyer, Landlord instead of Seller, and Premises instead of Property.
5. K 1117 Addendum – Sale This form was previously known as an Addendum to Sales Contract. The content remains the same, but the form name has been updated to distinguish it from the new Addendum – Lease form.
6. K 1321 Residential Sales Contract This form was updated in three areas:
a) Paragraph 2 – This section was modified to include the Seller Subsidy on the first page of the contract to make it easier for Members and their clients to compare the net sales price between respective offers.
b) Paragraph 15 & 16 – The former Paragraphs 15 and 16, Financing Application and Alternative Financing, were move to Paragraph 2G and 2H for clarity in organization.
c) For Informational Purposes Only – These changes were administrative in nature. The Team Name and Team Business Entity License Number was included to comply with the January 1, 2019 Virginia law changes.
7. K1339 – VA Financing Contingency Addendum
K1340 FHA Financing Contingency Addendum
K1359 Conventional Financing and Appraisal Contingency Addendum
K1372 – USDA Financing and Appraisal Contingency Addendum
The Seller Subsidy is now a defined term on the first page of the Residential Sales Contract. Therefore, the various financing contingencies no longer need to provide a space to include the amount of the Seller Subsidy. In order to avoid any confusion or inconsistency, the financing contingencies have been modified to reference the Seller Subsidy as defined in the Residential Sales Contract and no longer provide a separate section for including the specific dollar amount.
The following forms were updated to comply with changes to the law that go into effect on January 1, 2019.
1. K1281 – Exclusive Right to Lease Listing Agreement
K1282 – Exclusive Right to Represent Tenant Agreement
K1336 – Exclusive Right to Sell Listing Agreement
K1337 – Exclusive Agency Listing Agreement
K1338 – Exclusive Right to Represent Buyer Agreement
K1355 – Exclusive Right to Sell Unimproved Land Listing Agreement
Each form has been updated at the end to include the Team Name (if applicable) and Broker Contact Information as required by Virginia law effective Jan 1, 2019.
2. K1354 – VRLTA Lease
The VRLTA Lease has been updated to include the Team Name and Team Business Entity License Number in the “For Information Purposes Only” section to comply with the January 1, 2019 Virginia law changes.
3. Suggested Procedures Manual – Section V of the Manual has been updated to reflect the new statutory definition of a “Team” and the requirement to register the Team with DPOR as a business entity.
4. K1307 – Seller’s Estimated Cost of Settlement – This form was updated to ensure that the formulas for calculated closing costs reflect current tax rates and the current range of charges in the industry.
The following forms have been removed from the current forms library:
1. Buyer Estimated Costs of Settlement – This form is out of date, infrequently used, and changes in the law require that better estimates of closing costs be provided to buyers and borrowers by the lender and/or settlement agent.
2. K1333 – Common Law Lease – As of January 1, 2019, there will no longer be any substantive difference between the common law landlord/tenant provisions and the Virginia Residential Landlord Tenant Act (VRLTA). In order to avoid confusion or duplication of efforts, the Common Law Lease has been retired since the law now requires common law leases to be virtually identical to the VRLTA Lease.