Standard Forms Changes – July 1, 2024

 

 

The NVAR Board of Directors has approved the below new forms changes, as proposed by the NVAR Standard Forms Committee and drafted after months of outreach to and feedback from NVAR members, affiliates, attorneys, brokers, and Strategic Partners. The changes will be effective July 1, 2024. 

As a reminder, the practice changes from the NAR Settlement Agreement go into effect by August 17, 2024. The Standard Forms updates reflect not only requirements pursuant to the Settlement, but also anticipate how the real estate industry is likely to evolve. Although certain compensation models, such as cooperative compensation, may still be available for Realtors® after August 2024, the updates outlined below provide the most transparency to Realtors® and consumers alike and pave the way for the most efficient transactions in our competitive marketplace. For more information about the NAR Settlement, please visit The Facts for REALTORS® (nar.realtor) and view  Top 10 Highlights from the NAR Proposed Settlement – Practice Changes (nvar.com).

Note: Across all forms, any references to “Cooperating Broker” have been changed to “Buyer’s Broker” or “Tenant’s Broker.” Additionally, the legal boilerplate language has been updated throughout the forms to add important provisions regarding the conflict of laws and severability, which address litigation procedure. The changes are as follows:

1. K1336 – Exclusive Right to Sell Listing Agreement,  K1337 – Exclusive Agency Listing Agreement, &  K1355 – Exclusive Right to Sell Unimproved Land Listing Agreement. These forms were updated as follows:

• Par 4 – We clarified the two types of time periods that run during the course of a listing agreement: (1) Agreement Term: the period of the agreement itself; and (2) Listing Term: the period when a Seller is ready for prospective buyers to learn about the property.
• Beginning in August, Bright MLS will require listings to be entered into the MLS within two (2) days of Listing Term, regardless of whether the property is available for showing. For more information, please see:  Bright Policy Updates: What to Expect This Summer.
• Moved the Broker Compensation paragraph to earlier in the document for transparency.
• Par 6 - Relocated disclaimer to the top of the Listing Broker Compensation paragraph.
• Par 6 – The entire paragraph has been renamed to “Listing Broker Compensation” to clarify that this section should ONLY address payment to the listing broker.
• Par 6 – Listing Broker Compensation – We removed subsection C for “Buyer Agency Compensation,” as the amount is no longer taken from Listing Broker Compensation and paid to a broker representing buyer. Thus, our forms will no longer have a space to allow for commission splits or cooperative compensation.
• Par 6 - Additional Listing Broker Compensation for Unrepresented Buyer – added a new (optional) subparagraph for different compensation earned by Listing Broker if Buyer is unrepresented.
• You may continue to use the “Variable Rate Compensation” subparagraph for other types of fee structures.
• Reminder: Listing Broker Compensation is earned upon bringing a ready, willing, and able Buyer, meaning that a sales contract has been ratified and all contingencies have been satisfied (i.e., Buyer no longer has a right to void). This means that if either party defaults, Broker Compensation is still earned.
• Par 7 – Seller-Paid Buyer’s Broker Compensation – This is a NEW PARAGRAPH  which includes similar language as the previous version of the “Buyer Agency Compensation” subsection, for familiarity to the agent and simplicity/transparency to the consumer.  At Seller’s discretion, Seller can pay the Buyer’s Broker directly . We believe this type of payment will avoid lender limits on IPCs, based on their latest guidance. For more information, see:  NAR Settlement Financing FAQs.
• Par 7 – Seller-Paid Buyer’s Broker Compensation – Clarifies that this amount will ultimately be negotiated in and determined by the sales contract between the Seller and Buyer. REMEMBER: After August 17, 2024, any compensation offered to a Buyer’s Broker cannot be advertised on the MLS .
• Par 8 – Seller Subsidy – This is a  NEW PARAGRAPH. Seller subsidies, or concessions, are payments from the Seller to the  Buyer directly. The definition comes directly from the Residential Sales Contract. The amount for Seller Subsidy may be subject to lender limits if not applied directly to a Buyer’s agent – so be mindful when making this offer.  
• PRACTICE TIP:  Seller Subsidy can be advertised on the MLS, even after August 17, 2024. However, if offered, the amount  cannot be limited to or conditioned upon Buyer being represented by a Buyer’s Broker. Ultimately, Seller Subsidy and Seller-Paid Buyer’s Broker Compensation  should be negotiated on a case-by-case basis .
• Remember: Paragraphs 7 and 8 offer flexibility for Sellers. They may offer both types of financial contributions to Buyers, one type, or none at all. If Sellers intend to defray the costs of a Buyer’s agent, Paragraph 7 is the most direct method.
• Par 9 – Conveyances – Removed “Trash Compactor” as a common item that conveys with Property.
• Par 13 – Substantially revised the Marketing paragraph to conform with Bright MLS’s rule changes, including updating the definition for “Office Exclusive” and removing the 21-day limitation on the “Coming Soon” status.

2. K1338 – Exclusive Right to Represent Buyer Agreement. This form was updated as follows:

• Par 8 - Relocated disclaimer to the top of the Compensation paragraph and reorganized sub-paragraphs for clarity.
• Par 8 – “Broker Fee” changed to “Buyer’s Broker Compensation” for consistency across agreements.
• Clarified that Buyer's Brokers are prohibited from receiving any broker compensation that exceeds the amount agreed to in this paragraph in accordance with the NAR Settlement Agreeement.
  
• Par 8 – Added checkbox for VA Buyers/Buyers who require financial assistance to direct Buyer’s Broker to request Seller contribution in all offers. Seller contribution can include Seller Subsidy and/or Seller-Paid Buyer’s Broker Compensation.

3. K1321 – Residential Sales Contract. This form was updated as follows:

• Par 2 – A new line-item was added to account for Seller Payment towards Buyer’s Brokerage Compensation. This will be used for deducting from the ALTA. This line allows for the Seller and Buyer to negotiate Buyer’s Broker Compensation directly, as part of the contract.
• Par 2 – Clarified that Buyer’s Broker can enforce this provision against the Seller using legal “third-party beneficiary” contract principles.
• Par 3 & 27 – A new definition was added for “Business Days.” “Days” in the Deposit paragraph was changed to “Business Days” to allow Escrow Agent to deposit funds in a timely manner.
• Par 8 – Virginia Resale Disclosure Act – Revised in accordance with new Virginia law which modifies VA Resale Disclosure Act to allow parties to negotiate the time period for Buyer to cancel the contract after receiving the resale certificate.
• Reminder: Seller MUST still deliver the resale certificate. Parties can fill any number of days in the blanks in this paragraph, but if left blank, the Buyer’s right to cancel the contract defaults to 3 days.
• Practice tip: If selecting zero (0) days, NVAR recommends providing the Buyer with Form K1308 – Buyer’s Acknowledgement of Potential Adverse Consequences.
• Par 12 – Conveyances – “Trash Compactor” was removed.
• Par 22 – Renamed to “Broker Compensation” and simplified.

 

4. K1209 – Sales Contract for Unimproved Land. This form was updated to mirror the changes to the Residential Sales Contract.

5. K1281 – Exclusive Right to Lease Listing Agreement. This form was updated as follows:

• REMINDER: Real estate activities related to leasing and rental properties are not subject to the NAR Settlement Agreement; therefore, the changes to our leasing forms do not mirror the changes to forms used for home sales.
• Par 6 – Relocated disclaimer to the top of the Compensation paragraph.
• Par 6 – Moved the Compensation paragraph to earlier in the document, for transparency to the consumer. The total compensation should still be completed in Subparagraph A.
• Par 6 – Subparagraph B – Renamed to “Tenant’s Broker Compensation” for clarity and consistency. This section continues to be for an amount taken from Lease Listing Broker’s compensation and offered to Tenant’s Broker. This amount is optional and can be negotiated by the parties.
• Par 8 – Removed “Trash Compactor” from Provided Fixtures.
• Par 10 – Added showing instructions to be shared with other real estate licensees and prospective tenants, to mirror the instructions in listing agreements.
• Par 11 – Marketing – Substantially revised the Marketing paragraph to conform with Bright MLS’s rule changes. Remember: Bright MLS now requires listings to be entered into the MLS within two (2) days of the effective date of the listing agreement, regardless of whether Seller has authorized public marketing on the MLS. Listings should be entered as “Office Exclusives,” and can be limited to viewing only by the agent and the broker. For more information, please see:  Bright Policy Updates: What to Expect This Summer.

6. K1282 – Exclusive Right to Represent Tenant Agreement . This form was updated to mirror the changes to the Exclusive Right to Represent Buyer Agreement.

7. K1354 – Lease – VRLTA . This form was updated as follows:

• Par 1 – Rent – The Rent chart was moved to the first page pursuant to a new Virginia law requiring all fees be disclosed upfront, on the first page of all lease agreements. A disclaimer was added as required by the new law, stating that a Tenant cannot be charged any fees unless they are outlined in this chart or included in an addendum.
• Par 1 – Rent – Minor cosmetic changes were made to the chart, including a definition for calculating Pro-Rated Rent.
• Par 2 – Premises – “Street Address” changed to “Full Address.”
• Par 4 – Notice – Added checkboxes for Landlord or Managing Agent. Removed options for Work and Home phone numbers and removed “City, State, and Zip Code” for Landlord/Managing Agent.
• Par 5 – Security Deposit - Landlord additional time period for itemized damages reverts to 15 days in accordance with the temporary law expiration.
• Par 8 – Fire Damage – Updated to conform with VRLTA. Both parties are able to terminate, and termination is not automatic.
• Par 11 – Added “Landlord” to the title to clarify that it is the Landlord that performs the Move-In Inspection, not the listing agent.
• Par 12 – Utilities and Services – reformatted for consistency with Exclusive Right to Lease. Removed lawn service and security system as those are not required utilities under the VRLTA.
• Par 13 – Removed Trash Compactor from list of fixtures.
• Par 13 – Renamed “as is appliances” to “as-is items” for consistency with Exclusive Right to Lease.
• Par 15(C) – added “Refrigerator water filters” to tenant obligations.
• Par 15(J) – Clarified that while Landlord is typically responsible for delivering a pest-free home and is responsible to remedy pest infestations, infestations caused by the Tenant are the Tenant’s responsibility.
• Par 17 – Move-Out Inspection – combined subparagraphs. Removed ‘gutters’ from tenant obligations. Added refrigerator water to filter installation responsibilities. Clarified that Tenant is only responsible for remedying pest infestations caused by them. Added blank for “Other.” Removed the pre-agreed-upon security deposit deduction paragraph.
• Par 27 – Access – Added Landlord notice for routine maintenance provision in accordance with new Virginia law.
• Par 30(A) – Transfer of Tenant – Updated this provision pursuant to new Virginia law and court ruling on the SCRA.
• Par 33 – Condemnation – Updated pursuant to new Virginia law.
• Paras 37-39 – Added Megan’s Law Disclosure and moved disclosure-related paragraphs to the end.
• Par 40 – Added “Other” to Attachments.

8. K1402 – Airport Impact Overlay District Disclosure Notice. This form, which pertained only to Loudoun County, was removed from the NVAR library pursuant to a new Virginia law, which prohibits localities from establishing or enforcing a mandatory disclosure requirement for a real estate licensee, any party to a contract for the sale or listing of residential real property, or any authorized agent of such party. This disclosure will no longer be required after July 1, 2024.

9. K1344 – Contingencies and Clauses Addendum. Section 2C for payments to a Buyer’s Broker from a FSBO Seller or Builder has been removed as Buyer’s Broker compensation can now be negotiated directly on the sales contract.

Administrative Changes:

The following forms have been updated to correct clerical errors or to maintain consistency with the rest of the forms library, as provided in the Note above:

• K0004  – Brokerage Representation Agreement Amendment
• K1008 – Rental Application
• K1017 – Property Management Agreement
• K1020 – Post-Settlement Occupancy Agreement
• K1272 – Megan’s Law Disclosure
• K1306 – Escalation Addendum
• K1307 – Seller’s Estimated Costs of Settlement
• K1342 – Home Inspection and Radon Testing Contingency
• K1351 – Short Sale Addendum to Contract
• K1389 – Extension of Review Period for Common Interest Community Resale Certificate Addendum
• K1390 – Understanding Your Rights Under the Resale Disclosure Act
• K1393 – Buyer Offer Cover Sheet

 

Check out more resources here.

For any questions or suggestions for the Standard Forms Committee, please contact Legal Hotline & FAQs (nvar.com).

The NVAR Board of Directors has approved the following new forms and forms changes, as proposed by the NVAR Standard Forms Committee, effective December 1, 2023. 

Please note the listing agreements have been updated in March 2024 to correct a grammatical error.

1. K1336 - Exclusive Right to Sell Listing Agreement & K1337 – Exclusive Agency Listing Agreement.

• The “Compensation” paragraph in the listing agreements was substantially modified to clarify that any compensation paid to the listing broker and/or to the cooperating broker is fully negotiable, until the agreement is signed, and can be any amount, including zero.
• Payment to the listing brokerage is now called “Broker Compensation” and the payment method “in cash” was removed.
• Defined “Buyer Agency Compensation” for the benefit of consumers and removed non-contractual language.
• The disclaimer at the bottom of the Compensation paragraph has been updated to emphasize that all compensation is fully negotiable.
• Title headings were added to the Marketing/MLS Advertising paragraph for ease of reading.
• “Surveillance System” language was added to “Seller Duties and Responsibilities,” consistent with the changes to the Property Management Agreement and Lease.
  

2. K1355 – Exclusive Right to Sell Unimproved Land. The changes in (a) – (f), above, were also made to this form. “Office Exclusive” marketing language was added to Paragraph 8 to reflect the MLS Rule and for consistency with the other listing agreements.

3. K1281 – Exclusive Right to Lease Listing Agreement. The changes in (a) – (f), above, were also made to this form. The formatting was streamlined to reflect changes to the Lease. “Office Exclusive” marketing language was added to reflect the MLS Rule and for consistency with the other listing agreements. New paragraph 17 was added for non-resident landlords, pursuant to the VRLTA.

4. K1338 – Exclusive Right to Represent Buyer & K1282 – Exclusive Right to Represent Tenant. The forms were revised to emphasize the client’s responsibility to pay broker’s fee, and that any cooperative compensation will be credited towards broker’s fee. The disclaimer from the listing agreement was added to clarify that commissions are fully negotiable.

Standard Forms Update Courses

July 10 - 2023 Standard Forms Changes [NVAR Fairfax]

July 14 - 2023 Standard Forms Changes [NVAR Fairfax]

July 19 - 2023 Standard Forms Changes [NVAR Fairfax]

The NVAR Board of Directors has approved the following new forms and forms changes, as proposed by the NVAR Standard Forms Committee, effective July 1, 2023. 

1.  K1209 – Sales Contract for Unimproved Land & K1321 – Residential Sales Contract. These forms were modified to highlight the notice to Seller regarding Buyer’s choice of settlement agent. Language throughout these forms were updated to ensure consistency with the Virginia Code, including references to the RESAA, the Residential Property Disclosure Act, and the Resale Disclosure Act, the latter removing the need for separate paragraphs for properties within common interest communities. Solar panels and electric vehicle charging stations were added to the “Conveyances” paragraph in the Residential Sales Contract. The options to select the new Solar Panel Addendum and “Other” were added to the final “Additions” paragraph of the Residential Sales Contract. 

2. K1307 – Seller’s Estimated Cost of Settlement. The Net Sheet was updated to reflect costs in accordance with the Virginia Code. Recording Releases were updated to $51, including e-file, and the Regional Congestion Relief Fee and WMATA Capital Fee were updated to a total of $2.00 per $1,000 of sales price, meaning $1/each, for properties in certain jurisdictions. 

3.  K1359 – Conventional Financing Contingency, K1339 – VA Financing Contingency, K1340ED - FHA Financing Contingency, & K1372 – USDA Financing Contingency. These forms were updated to remove redundant language from the appraisal contingency paragraphs.

4. K1344 – Contingencies and Clauses Addendum. To ensure consistency across standard forms, blanks for initials were removed from this form. The reference to the Virginia Real Estate Cooperative Act was updated to reflect the current code section.  

5. K1348 – Pet Addendum. This form was updated to add an option for a Nonrefundable Pet Fee. Initial lines were removed from this form and additional blanks were added for the parties’ signature lines. 

6. K1354 – Lease – VRLTA. Paragraph 4 for “Rent” in this form was updated to add rows for the nonrefundable pet fee in accordance with the Pet Addendum and an option for other applicable fees. The definition of “rent” was updated to clarify that pet rent is included in place of pet fees. 

7. K1353 – Appraisal, No Financing Contingency. This form was updated to remove redundant language in accordance with the changes to the other appraisal contingencies. An appraisal deadline was added to the Appraisal Contingency Plus Gap Guaranty to correct a discrepancy between the two appraisal contingencies in this form. 

8. K1385 – Optional Listing Information Sheet & K1393 – Optional Buyer Cover Sheet. These forms were updated to clarify lender letters as “prequalification or preapproval” letters. The options to add internet and cable providers were added to the “Utilities” section of the Listing Information Sheet. 

9. K1389 – Extension of Review Period for COA/POAA Addendum. This form was modified in accordance with the new Virginia Resale Disclosure Act, changing the name to “Extension of Review Period for Common Interest Community Resale Certificate Addendum” and clarifying that there is only one right of cancellation under the Resale Disclosure Act regardless of which common interest community the property falls under.

10. K1390 – Understanding Your Rights Under the VA COA/POAA Act. This form was substantially modified to ensure consistency with the new Virginia Resale Disclosure Act, changing then name to “Understanding Your Rights Under the Resale Disclosure Act.” The information regarding the contents of the resale certificate and the buyer’s right of cancellation were completely rewritten in accordance with the code and all references to the disclosure packet were removed. 

11. K1400 – Solar Panel Addendum to Listing Agreement. This is a new form created to reflect a need in the region for proper conveyance of properties with solar energy collection devices (“solar panels”). Sellers will now be obligated to provide any documentation they have regarding solar panels on their property to the listing agent at the time of execution of the listing agreement, including information about ownership status and financing. This form will assist listing agents in becoming better prepared to handle transactions involving solar panel conveyances; however, we have added a disclaimer to all brokerage representation agreements that Brokers are not expected to be solar panel experts. 

12. K1401 – Solar Panel Contingency Addendum to Sales Contract. This is a new addendum for sales contracts which creates the option of a new contingency for Buyers. Upon ratification of the sales contract, Sellers are obligated to deliver documentation regarding any solar panels on their property to Buyers within a negotiable timeframe to allow for Buyers to understand the technology and required services they may be purchasing. Should the information found in these documents be unacceptable to Buyer, Buyer has the option to void the sales contract. Further, for solar panels which are subject to an existing loan, lease, or other similar financing (collectively, “loan”) at the time of sale, the Seller will provide documentation regarding the loan to the Buyer. The parties will also have the opportunity to negotiate whether the Seller will pay off the remainder of the loan by settlement or if the Buyer will assume the loan. Should the information found in either the loan documents or the solar panel documents be unacceptable to Buyer, the Buyer has the option to void the sales contract. 

13. K1336 - Exclusive Right to Sell Listing Agreement, K1337 – Exclusive Agency Listing Agreement, K1281 – Exclusive Right to Lease, & K1355 – Exclusive Right to Sell Unimproved Land. These forms were substantially modified. The most significant change is the new option for Brokers to terminate listing agreements in the event their Sellers or Landlords are not cooperating. This change requires the creation of two new forms, described hereinbelow. 

    A. The Committee researched why listing agreements never had an option for Brokers to terminate listing agreements and discovered Virginia Code § 54.1-2137, which allows for termination of the brokerage relationship upon default, expiration, or mutual release. 

    B. According to Virginia Code § 54.1-2130, there are two types of relationships which are formed by brokerage representation agreements: (1) agency relationships, and (2) brokerage/contractual relationships. In order to terminate a brokerage representation agreement, both relationships must be terminated to completely relieve both parties of any obligations or duties they may have to each other.  

     C. The brokerage representation agreements in the forms library were all updated to include the statutory definitions for the two types of relationships created by virtue of these agreements, found at the bottom in a new “Definitions” paragraph. 

     D. The Seller or Landlord’s option to terminate the agreement early, in Paragraph 12(F), was updated to require the client deliver written notice to the Broker to terminate the agency relationship. The client would have the option to use the new form: Notice to Terminate Brokerage Representation Agreement. After payment of the negotiable early termination fee, the parties would then sign the new form Release of Brokerage Representation Agreement to terminate the brokerage relationship between the parties and relieve the contractual obligations and duties owed to each other. 

     E. These forms were modified to add Seller or Landlord Duties. 

     F. Pursuant to such duties, a “Seller Default” or “Landlord Default” paragraph was added to outline what is to occur when the client is in breach of such duties. Here, the Broker would have the option to terminate the brokerage representation agreement early by delivering the new Notice to terminate the agency relationship, and then execution of the new Release by both parties to terminate the brokerage relationship. This paragraph addresses the Broker’s duties upon termination. 

    G. Paragraph 4 for “Term” was updated to include statutorily required language regarding the default period for brokerage representation agreements.   

    H. The “Conveyances” and “Provided Fixtures” paragraphs were updated to include solar panels and electric vehicle charging stations. 
    

    I. Paragraph 12 for “Broker Compensation” was modified to reflect three new types of compensation for brokers: (1) a percentage of gross price, (2) a flat fee, or (3) a combination of the two. 
    

    J. An option for a broker’s service fee was added to the Broker’s Compensation paragraph. 
    

    K. The payment types in the cooperating broker compensation subparagraph was updated to be consistent with the remainder of the Broker’s Compensation paragraph. 

     L. The option for “Other Compensation” was removed due to redundancy. 

     M. Compensation for the Broker in the event of a tenant purchase option was removed from the Exclusive Right to Lease as it was deemed to be double-dipping. 

    N. An “Additions” paragraph was added to the seller listing agreements for addenda to be identified. 

14. K1282 - Exclusive Right to Represent Tenant Agreement & K1338 – Exclusive Right to Represent Buyer Agreement. 

     A. In accordance with the changes to the listing agreements, the early termination provisions in (a) – (f), above, were mirrored in these two forms. 
    

    B. The introductory paragraphs were updated to clarify the purpose of the agreements and that the property sought would be real property in Virginia.

    C. The 'Term and Termination' paragraph was updated to mirror the “Term” language in the listing agreements, along with the early termination language. This paragraph in the Exclusive Right to Represent Buyer was also modified to add that if the settlement date for a property occurs after the expiration date of the agreement, but that contract was ratified during the term of the agreement, then the agreement will be automatically extended until settlement.

    D. The “Compensation” paragraph was updated to reflect two (2) new compensation types: (1) percentage of gross price, and (2) a flat fee. 

    E. An option for a broker’s service fee was added to the Compensation paragraph. 

    F. The Compensation paragraph was updated to ensure that contracts for any property type would inure compensation for the Broker.

15. K1398 – Notice To Terminate Brokerage Representation Agreement & K1399 – Release of Brokerage Representation. These new forms were added to facilitate early termination of brokerage representation agreements, as discussed above.  

16. K1391 - New Home Sales Addendum. Paragraph 1 of this form was updated to reflect the paragraph renumbering of the Residential Sales Contract.

17. K1020 - Post Settlement Occupancy Agreement The "Home Warranty" paragraph of this form was updated to reflect the paragraph renumbering of the Residential Sales Contract. 

     

Standard Forms Update Courses
Thurs. Jan 5 at 10 AM [NVAR Fairfax]
Thurs. Jan 12 at 1 PM [NVAR Fairfax]
Fri. Jan 20 at 10 AM [NVAR Fairfax]
Mon. Jan 23 at 10 AM [NVAR Fairfax]

The NVAR Board of Directors has approved the following new forms and forms changes, as proposed by the NVAR Standard Forms Committee, effective January 1, 2023. 

1. K1321ED - Residential Sales Contract This was form was revised to address so-called “split settlements” by removing from the Fees paragraph references to buyer and seller responsibility for paying specific charges from third parties, such as settlement agents and attorneys.

• Checkboxes have been added to the Deposit paragraph to make it easier and more consistent to designate Settlement Agent, Cooperating Broker or Other as the escrow agent.
• Unnecessary disclosures have been removed from the Contract, which are better found in the brokerage agreements.
• We have also clarified the right of access to the property for the WDI Inspection.
• The Personal Property & Fixtures paragraph has been updated to include outdoor sprinkler systems and installed bathroom mirrors.
• The Contract is now 11 pages!
1. K1359ED - Conventional Financing Contingency,K1339ED - VA Financing Contingency, K1340- FHA Financing Contingency,K1372ED - USDA Financing Addendum & K1353ED - Appraisal Contingency No Financing Contingency These forms have been updated to make the language regarding exercising the contingencies clearer and more concise.
   • Checkboxes have also replaced the hashmarks for initials. 
2. K1349ED - Appraisal Contingency Notice. This form has been modified for clarity and concision, as well as consistent with updates to the appraisal contingencies. 
3. K1020 – Seller Post-Settlement Occupancy Agreement. This form has been modified to clarify the Seller’s responsibilities regarding Property Condition while ensuring the Buyers are aware that they are responsible for risk of loss for damages to property beyond Sellers’ control.  
4. K1354ED - Lease VRLTA. This form has been updated to remove temporary statutory provisions relating to COVID that expire on June 30, 2022. The form has also been modified for clarity and concision.  
5. K1387ED - Landlord Notice Regarding Nonpayment of Rent & K1388ED - Payment Plan Addendum. These forms have been modified consistent with the expiration of temporary statutory provisions relating to COVID that expire on June 30, 2022.
   • The forms may still be useful on an optional basis, so they have been clarified to be optional but also streamlined to remove emergency notices previously required. 
6. K1008ED - Rental Application This form has been substantially rewritten to ensure consistency with modern practice while providing the parties more flexibility depending on how they prefer to screen applicants
   • The form has also been reformatted for ease of use and to accommodate up to 4 applicants at once.
7. K1376ED - Assistance Animal Notice. Previously known as the Assistance Animal Approval Notice, this form has been modified to serve as notice for approval or denial of an assistance animal request.  
8. K1336ED - Exclusive Right to Sell Listing Agreement,  K1337ED - Exclusive Agency Listing Agreement & K1355ED - Exclusive Right to Sell Unimproved Land. These forms have been updated to protect brokerage consistent with disclosures removed from Residential Sales Contract.
9. K1281ED - Exclusive Right to Lease This form has been modified consistent with changes in formatting to the Conveyances section in Listing Agreements by removing “No” checkboxes, Other Conveyances, and Does Not Convey.
   • Disclosures have been expanded to protect brokerage consistent with disclosures in other Listing Agreements.
10. K1338ED - Exclusive Right to Represent Buyer Agreement & K1282 – Exclusive Right to Represent Tenant Agreement. These forms have been updated to protect brokerage consistent with disclosures in other Listing Agreements and Sales Contract.
11. K1209ED - Sales Contract for Unimproved Land. This form has been updated consistent with relevant changes to the Residential Sales Contract. 
12. K1342 – Home Inspection and Radon Testing Contingency Addendum. Initials have been removed from the bottom of each page of the form. 

The following forms are added to the Standard Forms Library: 

 

1. K1394ED - Optional Lease Listing Information Sheet (1). This new form is similar to the Optional Listing Information Sheet, but is intended for use in lease listings and is consistent with recommended changes to the Rental Application. 
2. K1395 – Rental Application Denial Notice. This new form is optional, but provides preapproved language for a leasing agent who wishes to provide written notice denying a Rental Application.
   1. This also can serve as an adverse action letter when the grounds for denying the application are due to applicant’s credit report. 

The following forms will be removed from the Standard Forms Library: 

1. K1377 – Assistance Animal Denial Notice. With the Assistance Animal Approval Notice now expanded to include both approvals and denials, this form is no longer necessary. 
2. K1386 – COVID-19 Addendum. With the CDC announcing the end of the pandemic and the effects of the pandemic are now foreseeable events, this form is no longer necessary. 

General change: Initials have been removed from the bottom of each page of forms. We will continue this practice for remaining forms as they are updated. Initials need only be added where there is a strikethrough or handwritten change to the printed forms content. 

Administrative Update August 22, 2022: K1359ED - Conventional Financing Contingency  Renumbered last paragraph from "6" to "5"

 

1. K1321 – Residential Sales Contract.  This form has been substantially revised to clearly address several areas of conflict and frequently addressed issues on the Legal Hotline:
   1. Opening paragraph has been revised to remove any reference to the cooperating brokerage representing Seller, as subagency is no longer permitted in Virginia. Any references to dual or designated agency have been removed as unnecessary – they are more appropriately addressed in the brokerage agreements and required disclosures.
   2. Paragraph 2 (Price and Financing) – Substantially reformatted for clarity, consistency of definitions, and to more easily accommodate cash offers.
   3. Paragraph 2E – Removes requirement for Seller to comply with reasonable lender requirements, this is already addressed in the Title paragraph.
   4. Paragraph 2F – Clearly identify whether there is an Appraisal Contingency towards the beginning of the Contract for ease of offer comparison. With removal of general Access Paragraph (see below), clearly states Seller shall provide Appraiser reasonable access to Property where Contract is contingent on financing and/or appraisal. If Contract is not Contingent on financing and/or appraisal, parties are able to clearly negotiate access. Other relevant clauses from other paragraphs moved to this section.
   5. Paragraph 2G – Previously Paragraph 15.
   6. Paragraph 3 (Deposit) – Substantially streamlined to remove restatements of the law, which are not subject to contract or negotiation. More significantly, this paragraph now provides the Seller with a timely remedy if Buyer fails to Deliver EMD to Escrow Agent. Seller has the option to declare Contract Void if Buyer has not Delivered EMD by deadline, with parties agreeing to sign Release per Void paragraph. Buyer can cure Default any time prior Seller Delivery of Notice to Void.
   7. Paragraph 4 (Settlement) – Clarifies that there is one Settlement Agent which conducts Settlement as defined by Virginia law, even if parties perform through “split settlement.” Performance paragraph moved to this section.
   8. Paragraph 6 (Delivery) – Edited consistent with desire to streamline Contract and remove unnecessary clauses.
   9. Paragraph 7 (VRPDA) – Streamlined to reference and link to statute without repeating non-negotiable statutory requirements. With statutory requirement that Buyer now sign the Residential Property Disclosure Acknowledgement that they are aware of their rights under the VRPDA, this paragraph was unnecessarily repetitive.
   10. Paragraph 10 (Property Maintenance and Condition; Inspections) – Combines the necessary clauses from former Paragraph 11 (Access). Clearly states Seller shall provide Buyer, Broker and Inspector(s) reasonable access to Property where Contract is contingent on home inspection. If Contract is not Contingent on Appraisal, parties are able to negotiate access. This will hopefully remove the need for the ambiguous and confusing “Home Inspection for Informational Purposes Only” clauses added by some Realtors. Also more clearly addresses Walk-Through Inspections and who may attend walk-through (not contractors or inspectors unless otherwise agreed).
   11. Paragraph 11 (Possession Date) – Former Paragraph 12, adding mailbox keys, if any, to the means of access conveyed at Settlement. Also addresses Seller responsibility to delivery exclusive control of any installed Smart Devices (defined in Paragraph 13) at Settlement.
   12. Paragraph 13 (Personal Property and Fixtures) – Smart Devices are defined and clearly convey with Property at Settlement if installed as of date specified in Paragraph 10. Streamlined conveyance checkboxes to remove “No” options. Only check “Yes” if installed or offered, otherwise leave blank. Added “Other Conveyances” and “Does Not Convey” consistent with current practices and acceptable to mortgage underwriters.
   13. Paragraph 17 (WDI) – Clarifies that Seller must perform any treatment and/or repairs per the recommendation of the inspector. Seller must provide reasonable access to Buyer, Broker and WDI Inspector to perform inspection.
   14. Paragraph 20 (Title) – Significantly streamlined process and parties’ rights if title is not marketable and insurable by Settlement. This ensures clarity in parties’ responsibilities and maintains a definitive end date to the contract. Seller will be in default, but parties can agree to extend Settlement Date in order to allow Seller more time to clear title. Significantly, the contract now prohibits Seller from unilaterally recording an easement, covenant or other restriction on title between contract ratification and settlement.
   15. Paragraph 26 (Default) – Removes confusing section regarding whether Brokerages can elect to accept half of the EMD in exchange for a release. This is arguably inconsistent with other remedies. Since it said “may”, it was always at the Brokerages’ discretion, so negotiation would be required for any resolution. Not needed in this Contract.
   16. Paragraph 27 (Void Contract) – Consistent with the Seller’s ability to Void Contract if Buyer fails to timely Deliver EMD, “if any” is added for requirement that release be signed.
   17. Paragraph 30 (Time is of the Essence) – Removes complicated options for parties to extend Settlement Date in the event of a delay caused by TRID Disclosure requirements. This has not been an issue and causes unnecessary confusion. If the parties wish to extend the Settlement Date, they can mutually agree to do so.
   18. Paragraph 32 (Entire Agreement) – Incorporates many of the Miscellaneous clauses into one coherent section.
   19. Removed “Other Provisions” Section – Encourages Realtors to practice law by drafting language beyond the templates and clauses provided, especially those inconsistent with other terms in the Contract. Better place to include other terms is in the Addendum – Sale form.
   20. General Changes – formatting, replace “shall” with “will”, streamlined and ensured consistent use of defined terms. Residential Sales Contract is now 12 Pages!
2. K1342 – Home Inspection & Radon Testing Contingency Addendum. This form was revised to streamline repetitive language regarding the utilities being in service and the consequences for failing to deliver documents or take action on time throughout the form. The Home Inspection Contingencies also now clearly state that “inspection(s)” for the purposes of this inspection include all types of inspections, except those for which NVAR already has a separate clause or addendum – Radon, Well Testing, Well Inspection or Septic Inspection.
3. K1343 –Inspection Contingency Removal Addendum. This form was modified to require that Sellers shall provide reasonable access to property for inspectors, in addition to Buyer and Buyer’s Broker, during final walk-through when Seller has agreed to perform repairs as part of ICRA.
4. K1336 – Exclusive Right to Sell & K1337 – Exclusive Agency Listing Agreement. Modified consistent with changes in formatting to the Conveyances section of Contract by removing “No” checkboxes, Other Conveyances, and Does Not Convey.
5. K1385 – Optional Listing Information Sheet. Modified consistent with changes in formatting to the Conveyances section of Contract by removing “No” checkboxes, Other Conveyances, and Does Not Convey. Added line for Seller to request Proof of Funds and/or Lender Letter.
6. K1393 – Optional Buyer Offer Cover Sheet. This new form is similar to the Optional Listing Information Sheet. It is an optional form that does not becomes part of the Contract, but could assist Listing Agents in reviewing or comparing offers by summarizing all the most pertinent information in an offer. This also provides a way for the Cooperating Agent to request that the Listing Agent confirm in writing that the offer has been presented or the Seller has waived presentment in accordance with SOP 1-7 of the Code of Ethics.
7. K1209 – Sales Contract for Unimproved Land. This form has been updated consistent with applicable changes to the Residential Sales Contract.

 

The NVAR Board of Directors has approved the following new forms and forms changes, as proposed by the NVAR Standard Forms Committee, effective July 1, 2021.

K1387 - Landlord Notice Regarding Nonpayment of Rent - Lease

K1388 – Payment Plan Addendum – Lease. This development necessitated certain administrative updates to this form. This completely updated form replaces the Notice Regarding Request Due to Economic Hardship (former K1388) which was  removed by the Board of Directors in January 2021. This form complies with recent revisions to the Virginia Residential Landlord and Tenant Act which require landlords owning more than 4 properties to offer tenants a repayment plan before moving to obtain possession of the property for nonpayment of rent. This form contains all required provisions from Virginia Code § 55.1-1245. * Administrative Update July 2, 2021: Virginia’s COVID-19 State of Emergency expired June 30, 2021.

K1392 – Referral Agreement. This new form is designed to better serve members by providing a basic referral agreement for use between brokerages or when broker-provided forms are not otherwise available.

K1354 – Lease VRLTA. This form has been updated consistent with recent revisions to the Virginia Residential Landlord and Tenant Act, extending from 5 days to 14 days the amount of time that landlords must wait after serving written notice on a tenant notifying the tenant of nonpayment of rent and the landlord’s intention to terminate the lease. Paragraph 25 has also been updated to comply with recent changes to Virginia law regarding Landlord reservation of rights. The Access paragraph has been updated to comply with changes to Virginia law regarding reasonable access during a state of emergency declared by the Governor.

If you have any questions about these changes, please contact the Legal Hotline. 

The NVAR Board of Directors has approved the following new forms and forms changes, as proposed by the NVAR Standard Forms Committee, effective January 1, 2021:

K1391 – New Home Sales Addendum. This new form is designed to provide members greater flexibility when representing buyers and builders of new residential property.  This form may be used in conjunction with the Residential Sales Contract and related addenda and may be used at any stage of construction. This form will replace K1208 – New Home Construction Contract.

K1373 – Options Addendum.  This form has been modified for usage in conjunction with the New Home Sales Addendum.

K1281 – Exclusive Right to Lease.   This form has been modified to reflect recent updates to the MLS Rules and Regulations with respect to “Coming Soon” listings involving new construction/condo conversions/major renovations for which there is no occupancy and to ensure consistent terminology with other forms.

K1336 – Exclusive Right to Sell Listing Agreement/ K1337 – Exclusive Agency Listing Agreement. These forms have been modified to provide greater clarity for sellers and protections for brokers with respect to seller-provided reports and information regarding the condition of the property. The forms have also been updated to reflect recent updates to the MLS Rules and Regulations with respect to “Coming Soon” listings involving new construction/condo conversions/major renovations for which there is no occupancy, and to ensure consistent terminology throughout the forms library.

K1355 – Exclusive Right to Sell Unimproved Land. This form has been modified to reflect recent updates to the MLS Rules and Regulations with respect to “Coming Soon” listings involving new construction/condo conversions/major renovations for which there is no occupancy, and to ensure consistent terminology throughout the forms library.

VA/FHA/USDA Appraisal Contingency Addenda.  These forms have been updated consistent with feedback from members since the July 1, 2020 updates to the Appraisal Contingencies.  These changes more closely align the forms to the federal guidelines while ensuring buyers using federally supported mortgage loan programs can submit offers that are received as favorably as offers including conventional financing and appraisal contingencies.

K1349 – Appraisal Contingency Notice. This form has been updated consistent with the changes to the FHA/VA/USDA Appraisal Contingency Addenda.

Administrative/Technical Updates:

 

The followings forms have been removed from the Forms Library:

K1208 – New Home Construction Contract.  This form has been replaced with new form K1391 - New Home Sales Addendum, which covers more types of transactions and should be more effective than the narrow scope of the New Home Construction Contract.

 

K1382 – Construction Financing Contingency.  This form is no longer necessary because the New Home Sales Addendum is an addendum to the Residential Sales Contract. Addenda which are typically used in conjunction with the Residential Sales Contract may likewise be used with the New Home Sales Addendum.

 

The following forms have been temporarily removed from the Forms Library pending review to ensure compliance with recent changes to Virginia law and federal regulations relating to evictions and rental assistance:

K1387 – Request Due to Economic Hardship - Lease

K1388 – Notice Regarding Request Due to Economic Hardship

 

If you have any questions about these changes, please contact the Legal Hotline.

The NVAR Board of Directors has approved the following new forms and forms changes, as proposed by the NVAR Standard Forms Committee, effective July 1, 2020:

K1389 – Extension Of Review Period For Condominium Resale Certificate/ Property Owners’ Association Disclosure Packet Addendum.  This is a new form consistent with revisions to the Virginia POA Act, Virginia Condominium Act and the Residential Sales Contracts.  This form allows parties to extend the 3 day right of cancellation under the POA Act and/or Condominium Act by up to an additional four (4) days. The form may be used at or after ratification and may be used multiple times, as needed.

K1390 – Understanding Your Rights Under The Virginia Condominium Act/Property Owners’ Association Act.  This new form is an optional resource provided by brokers to buyers to inform the client of the statutory requirements for association resale disclosure packets and certificates. Inclusion of this form enables the education of parties while removing unnecessary language from the Sales Contracts. Relevant provisions from deleted forms K1025 – Purchaser’s Acknowledgment Of Receipt Of Condominium Disclosure; K1126 – Purchaser’s Acknowledgement of Receipt of Property Owners’ Association Disclosure Packet are incorporated into the new form.

K1321 – Residential Sales Contract.  This form has been modified consistent with recent revisions to the Virginia Property Owners Association Act and Virginia Condominium Acts and to remove unnecessary provisions. The Residential Sales Contract is now only 13 pages. The form has also been modified to remove confusing language regarding buyer Default if they fail to settle on time as part of financing contingencies.  Additional formatting changes were made to improve clarity and consistency across the NVAR forms library. *Administrative update 08/2020 to clarify responsibility for Regional WMATA Capital Fee.

K1209 – Sales Contract for Unimproved Land. This form has been modified consistent with revisions to the Residential Sales Contract.

K1208 – New Home Construction Contract.  This form has been modified consistent with revisions to the Residential Sales Contract.

K1354 – Lease VRLTA.  This form has been modified consistent with revisions to the Virginia Residential Landlord Tenant Act. Provisions regarding late fees were revised to clarify that the 10% late fee for nonpayment of rent may not exceed the lesser of 10% of the total monthly Rent or 10% of the reaming balance owed under the Tenancy. An acknowledgment of receipt was added to address the new Department of Housing and Community Development form “Statement of Tenant Rights and Responsibilities”. Paragraph 2 (Lease Term) has also been revised to clarify the term of the tenancy and end-of-lease procedures. Paragraph 19 (Security Deposit) has been updated to clarify that he 45-day period for return of the itemized statement and Security Deposit begins at the later of Termination of the tenancy or Tenant’s vacating Premises. Other formatting changes were made to improve clarity and consistency across the NVAR forms library.

K1281 – Exclusive Right to Lease.  This form has been modified consistent with recent changes to the Virginia Fair Housing Act, which add “source of funds” as a protected class.

K1359 – Conventional Financing and Appraisal Contingency Addendum.  The Appraisal Contingency portion of this form has been modified consistent with revisions to the Home Inspection Contingency Addendum to establish a Negotiation Period and Buyer’s Election Period. This change will simplify the Appraisal Contingency and ensure consistent procedures across NVAR’s most frequently used forms. Language regarding Default and exercising the financing contingency has been removed for clarity and consistency with changes to the Residential Sales Contract.

K1353 – Appraisal Contingency No Financing Addendum.  This form has been updated consistent with the changes to the Conventional Financing and Appraisal Contingency.

K1349 – Appraisal Contingency Notice. This form has been updated consistent with the changes to the Conventional Financing and Appraisal Contingency, FHA/VA/USDA Financing Contingencies, and Appraisal Contingency No Financing Addenda.

VA/FHA/USDA Appraisal Contingency Addenda.  These forms have been updated consistent with the changes to the Conventional Financing and Appraisal Contingency but taking into account the unique federal guidelines pertaining to federally supported mortgage loan programs.

The followings forms have been removed from the Forms Library:

K1346 – Understanding Virginia Residential Disclosure Act. The form is no longer necessary due to upcoming revisions to the Virginia Residential Disclosure Act. Effective July 1, 2020, buyers must sign an acknowledgment that they are aware of the buyer-beware disclosures in the Residential Property Disclosure Statement, removing the need for this form.

K1299 – Request for Property Owners’ Association Disclosure Packet & K1024 – Request For Condominium Disclosure.  These forms are unnecessary, as most associations have their own procedures for requesting resale disclosure packets and the contents of such disclosures. 

K1025 – Purchaser’s Acknowledgment Of Receipt Of Condominium Disclosure; K1126 – Purchaser’s Acknowledgement of Receipt of Property Owners’ Association Disclosure Packet. This form is no longer necessary due to recent statutory updates. Buyer’s 3 day right of cancellation begins upon delivery of the disclosure, regardless of whether Buyer acknowledges receipt. Relevant provisions have been incorporated into the new form K1390 – Understanding Your Rights Under the Virginia Condominium Act/Property Owners’ Association Act.

 

The NVAR Standard Forms Library has been updated to provide Realtors® with new tools and to correct certain outdated forms. The following changes were approved by the Board of Directors effective April 1, 2020:

K1385 Optional Listing Information Sheet – This new form is designed to assist buyer’s agents when submitting offers.  It is prepared by the listing agent and contains a comprehensive collection of the information necessary to submit a clean offer. Listing agents can upload the form directly into MLS for easy access. This form eliminates the need for the buyer’s agent to contact the listing agent for basic information concerning the property, such as party names, conveyances, fixtures and utilities. For simplicity, its sections mirror those in the Residential Sales Contract. This is an optional form which may not be incorporated into any agreement. It also contains language notifying buyers that it is not a disclosure or representation by the seller.

K1308 Buyer’s Acknowledgement of Potential Adverse Consequences – This form was last updated in 2005.  It provides brokers with written confirmation that their agents discussed the potentially adverse consequences associated with waiving certain contractual protections (home inspection, financing, etc.) with their buyer clients prior to submitting the offer. It has been modified to remove ambiguous provisions and to update formatting and terminology consistent with modern NVAR forms.

K0004 Listing Agreement Amendment – This form has been substantially modified to comply with the current MLS statuses and the MLS Off-MLS & Office Exclusive Policies. There were concerns that the K0005 Listing Withdrawal form was being misused because of the change to the MLS definition of Withdrawn status. To address these concerns, relevant provisions of K0005 Listing Withdrawal have been incorporated into this form. By consolidating these two forms, brokers can now amend the listing agreement and/or update the MLS status with single document.

The followings form has been removed from the Forms Library:

K0005 Listing Withdrawal – This form is no longer necessary due to recent changes in MLS Rules and the relevant provisions having been incorporated into K0004 Listing Agreement Amendment.

If you have any questions about these changes, please contact the Legal Hotline.

December 1, 2019 Standard Forms Changes

By: Matthew L. Troiani, Esq.

The NVAR Standard Forms Library was updated effective December 1, 2019 in order to comply with recent changes in MLS Rules. In order to avoid any confusion, the Forms Library will not be updated on January 1, 2020.

1. K1321 Residential Sales Contract – This form has been modified consistent with revisions to the Virginia Code in the Property Owners Association and Condominium Acts. The Contract specifically allows for buyer delivery of the earnest money deposit by wire transfer. The form has also been modified to remove redundant definitions of Deliver and Possession Date in paragraph 31. The FIRPTA provisions have been substantially modified to more accurately define who is subject to FIRPTA and incorporate the parties’ responsibilities under the statute if FIRPTA does apply. These revisions remove the need for a separate FIRPTA Addendum.
2. K1209 Sales Contract for Unimproved Land – This form has been substantially modified consistent with recent revisions to the Residential Sales Contract and to update Virginia Code references.
3. K1336 Exclusive Right to Sell Listing Agreement, K1337 Exclusive Agency Listing Agreement, K1355 Exclusive Right to Sell Unimproved Land, K1281 Exclusive Right to Lease Listing Agreement – These brokerage agreements have been substantially modified to ensure compliance with the new MLS Policies. The “Coming Soon” policy has been incorporated into the brokerage agreement because the only relevant restriction on marketing is the limitations on showings. Leasing and land sales have been excluded from the new policy, but these forms have also been updated to ensure there is no longer any need for a separate Pre-Marketing Addendum. The FIRPTA provisions in these forms have also been updated consistent with the changes to the Residential Sales Contract. The Exclusive Right to Lease Listing Agreement has been updated to remove reference to “opting out” of the VRLTA, since there is no longer any “opt-out” possibility for residential leases.
4. K1354 VRLTA Lease – This form has been modified to update Virginia Code references and remove any language regarding “opting out” of the VRLTA.

   The followings forms have been removed from the Forms Library:

5. K1369 Pre-Marketing (“Coming Soon”) Addendum to Listing Agreement – This form is no longer necessary due to recent changes in MLS Rules and the relevant provisions have been incorporated into the Listing Agreements.
6. FIRPTA Addendum – This form is no longer relevant as all relevant provisions have been incorporated into the Residential Sales Contract.

 

1. K1321 Residential Sales Contract 

This form has been substantially modified in conjunction with revisions to the financing contingencies. The definition of Seller Subsidy can now be found in the Definitions Paragraph of the Contract and is removed from the financing contingencies. The Buyer Representations paragraph has been modified to remove authorization to the cooperating brokerage to provide buyer financial information since this is redundant with Paragraph 2. The most substantive change is to page 1, which has been modified for clarity. The necessary information to review the offer, including sales price, amount of loan and type of loan, remains on the first page of the contract, but Specified Financing, Alternative Financing, and Assumption terms are now contained in the relevant financing contingencies. The contract has been shortened by 1 page without significantly lengthening the financing contingencies!

2. K1359 Conventional Financing and Appraisal Contingency Addendum, K1340 FHA Financing Contingency Addendum, K1339 VA Financing Contingency Addendum, and K1372 USDA Financing Contingency Addendum 

These forms have been modified to more clearly define Specified Financing, how the contingency is satisfied/removed and the consequences for switching to Alternative Financing. The contingencies have also been modified to include 2 options for the Seller and Buyer to negotiate upfront, similar to the Home Inspection Contingency. The first option, called the Contingency with Automatic Extension, is essentially the current financing contingency. A second option, called the Contingency with Automatic Expiration, has been added for Sellers and Buyers to choose a contingency that automatically expires at the Financing Deadline. Reference to the Seller Subsidy has been removed since it is a defined term in the Contract. Assumption terms have been added to the FHA, VA and USDA Financing Contingencies.

3. K1336 Exclusive Right to Sell Listing Agreement, K1337 Exclusive Agency Listing Agreement, K1355 Exclusive Right to Sell Unimproved Land, K1281 Exclusive Right to Lease Listing Agreement 

These brokerage agreements have all been modified to explicitly state that the Listing Broker is not obligated to continue to market and show the Property after a contract/lease has been ratified unless otherwise instructed in writing by the client. This creates a default option once the parties have gone under contract. If a NVAR Seller/Landlord wishes to continue to the market the property post-ratification, they can instruct the Listing Broker in writing. The Exclusive Right to Lease Listing Agreement has also been modified to inform landlords that the NVAR Common Law Lease is no longer available. If landlords are eligible to opt-out of the VRLTA and wish to do so, they may seek professional advice on drafting a lease.

4. K1369 Pre-Marketing Addendum to Listing Agreement 

This form has been updated to remove references to MRIS and reorganizes the selection options to emphasize the discussion regarding listing the property in the MLS.

5. K1282 Exclusive Right to Represent Tenant Agreement

This form has been modified to include a warning to Tenant to not take videos or photos of other people’s property without authorization, similar to the warning in the Exclusive Right to Represent Buyer Agreement.

The NVAR Board of Directors has approved the following new forms and forms changes, as proposed by NVAR’s Standard Forms Committee. To view the Educational Version of the form, please click on the form title.

1. K1343 – Inspection Contingency Removal Addendum

This form was previously 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. It removes ambiguity for both the buyer and seller as to what the Occupancy Charge will be at closing.

3. K1342 – 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 for 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. K1384 – 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. K1117 – 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. K1321 – 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. Paragraphs 15 & 16 – The former Paragraphs 15 and 16, Financing Application and Alternative Financing, were moved 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 were included to comply with the Jan. 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. 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 took effect on Jan. 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.

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.

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 calculating 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 and infrequently used. 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 Jan. 1, 2019, there will no longer be a substantive difference between the common law landlord/tenant provisions and the Virginia Residential Landlord Tenant Act (VRLTA). 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.

Effective September 15, 2018, the NVAR Board of Directors has approved the following forms changes, as proposed by NVAR’s Standard Forms Committee. To view the Educational Version of the form, please click on the form title.

K1360 – Private Well and/or Septic Inspection Contingency Addendum:

This form was revised to again permit the parties to designate either the Buyer or Seller as the responsible party for the Septic Inspection. The form was also revised to create additional protections for the Buyer in the event the Seller is responsible for the Septic Inspection but fails to perform the Septic Inspection or make timely delivery of the Septic Inspection Report. Some of the terminology was updated to coincide with regulatory standards. The revised form allows the parties to mutually identify the Septic Inspector during contract negotiations. Finally, the revisions clarify Seller’s responsibility to remove impediments to the Septic Inspection.

 

The NVAR Board of Directors has approved the following new forms and forms changes, as proposed by NVAR’s Standard Forms Committee. To view the Educational Version of the form, please click on the form title.

1. K1375 – ASSISTANCE ANIMAL ADDENDUM (NEW)

This is a new form that was created to provide a lease addendum where the landlord has approved a request for an assistance animal in accordance with the Americans with Disabilities Act and the Fair Housing Act, and is not the same as the Pet Addendum. The Addendum permits a tenant to have an assistance animal in the dwelling, subject to certain tenant responsibilities for the animal.

2. K1376 – ASSISTANCE ANIMAL APPROVAL NOTICE (NEW)

This is a new form that was created to provide a formal notice by which a landlord can approve a tenant’s request for a reasonable accommodation for an assistance animal.

3. K1377 – ASSISTANCE ANIMAL DENIAL NOTICE (NEW)

This is a new form that was created to provide a formal notice by which a landlord can deny a tenant’s request for a reasonable accommodation for an assistance animal.

4. K1378 – REQUEST FOR REASONABLE ACCOMMODATION/RULE OR POLICY (NEW)

This new form was created to provide a formal request by a tenant or applicant for a reasonable accommodation to a rule or policy. This form will allow the landlord to review and either approve or deny the request. This form will work in conjunction with K1376 and K1377.

5. K1379 – REASONABLE MODIFICATION ADDENDUM/ PHYSICAL STRUCTURES (NEW)

This new form was created to provide a formal request for a tenant or applicant to make a modification to the physical structure of a dwelling in order to reasonably accommodate a disability. The form is to be provided by the landlord upon request, and incorporated into the lease as an addendum if the modification is approved.

6. K1380 – VERIFICATION OF DISABILITY (NEW)

This new form was created for a tenant or applicant to complete with the assistance of a verifier who has a therapeutic relationship with the tenant/applicant in situations where a disability is not readily apparent. Once completed, the form will be submitted along with the Request for Reasonable Accommodation/Rule or Policy.

7. K1383 – NOTICE - LEASE (NEW)

This new form was created to provide a blank form in which parties can provide notice under the VRLTA and Common Law Leases.

8. K1273 – NOTICE - SALE

This form was updated to distinguish it from the new Notice – Lease form and to update changes in terminology since 2015.

9. K1017 – PROPERTY MANAGEMENT AGREEMENT

This form was significantly updated to reflect changes in the law, required disclosures, and property management practice since 2001. The form was also reorganized for convenience of use.

10. K1374 – PROPERTY MANAGEMENT INFORMATION FORM

This form was updated to reflect changes in the law, the Property Management Agreement, and property management practice.

11. K1333 – LEASE COMMON LAW

This form was updated as follows:

a) To create a new separate Paragraph 11 addressing smoking on the Premises, including electronic cigarettes.

b) Paragraph 32 (formerly Paragraph 30) was updated to provide notice to the parties, not just to the tenant, that separate commission may be owed if the tenant purchases the property.

c) The Assistance Animal Addendum was added as an option in Paragraph 39.

d) Paragraph 44 was added to provide the statutorily-required notice that one or more parties may be real estate licensees.

e) Brokerage Information was added to the end in the same manner as the Residential Sales Contract.

12. K1354 – Lease VRLTA

This form was updated as follows:

a) To create a new separate Paragraph 12 addressing smoking on the Premises, including electronic cigarettes.

b) Paragraph 33 (formerly Paragraph 30) was updated to provide notice to the parties, and not just to the tenant, that separate commission may be owed if the tenant decides to purchase the property.

c) The Assistance Animal Addendum was added as an option in Paragraph 40.

d) A new Paragraph 45 was added to provide the statutorily required notice that one or more parties may be real estate licensees.

e) Brokerage Information was added to the end in the same manner as the Residential Sales Contract.

13. K1321 – RESIDENTIAL SALES CONTRACT

This form was updated in three areas:

a) Paragraph 4 – The clause requiring that the Settlement occur on the prior business day in the event the Settlement Date falls on a Saturday, Sunday or legal holiday was moved from Paragraph 33(E) to Paragraph 4.

b) Paragraph 13 – Clarifies that while wall mounted electronic components/devices do not convey with the property, related mounts, brackets and hardware do convey with the property unless the parties agree otherwise in writing. This is intended to clarify conveyance and to address disputes between parties regarding the removal of the mounts and the adequacy of repairs of the holes left behind when mounts are removed.

c) Paragraph 20 – Adds a check box for situations where no Wood-Destroying Insect Inspection is required or requested by a lender or the parties.

14. K1282 – EXCLUSIVE RIGHT TO REPRESENT TENANT

These changes were administrative in nature to correct a typographical error in Paragraph 15.

The NVAR Board of Directors has approved the following forms changes, as proposed by NVAR’s Standard Forms Committee:

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

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 and Appraisal Contingencies Addendum

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’s Post Settlement Occupancy Agreement and K1225 – 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. K1360 – 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 Listing Agreement

This change was administrative in nature. The second paragraph 26 was renumbered to 27.

 

1. K1371 – USDA Financing Addendum
   1. This addendum was created at the request of the membership.The addendum has been specifically drafted to address the requirements associated to a USDA loan (appraisal; amendatory clause; pest inspection).
2. K1321 – Residential Sales Contract
   1. Paragraph 2 was modified to add USDA financing addendum as an option.
   2. Paragraph 3 was modified to add the word “deposit” before both delivery options.
   3. Paragraph 10:This paragraph was modified to delete the words “and/or other inspections” when the buyer waives his right to a home inspection.
   4. Paragraph 12: This paragraph was modified to add that the Septic Waiver Disclosure must be provided by seller (if applicable) per Section 32.1-164.1:1 Code of Virginia, and that State Board of Health septic system waivers are not transferable.
   5. Paragraph 24 was updated to add that the seller should provide at settlement keys and key fobs, access codes and digital keys.
   6. Paragraph 41:USDA Financing addendum was added as an option.
3. K1342 – Home Inspection and Radon Testing Contingency Addendum
   1. This form was modified to distinguish between a contract contingent on a full home inspection and one where the buyer would only have the right to void the contract and not negotiate repairs or credit.This second option was created to clarify the practice of home inspection for informational purposes only.
4. K 1344 – Contingencies and Clauses Addendum
   1. Paragraph 1(C) Seller’s Purchase of Another Home:This paragraph was modified to clarify the purpose of the contingency.This contingency is designed to allow a seller to ratify a contract for the purchase of another home and conduct any due diligence they deem necessary, such as home inspections, radon inspections etc.
   2. Paragraph 2(F) Real Estate Cooperative:This is a new paragraph to the contingencies and clauses addendum which is to be used in the event the property is part of a cooperative.This clause provides for the buyer’s right to void upon receipt of the required public offering statement.This clause tracks the statutory requirements associated with a sale of a unit in a cooperative.
5. K 1360– Well and Septic Addendum
   1. Paragraph 1(B) Well and Well Water Inspection Contingency:This paragraph was modified to clarify that this contingency applies to the well itself and the well water.This means that a buyer who wishes to have well water testing done in addition to the water potability test outlined in paragraph 1(A), could conduct those tests under this contingency.In addition, this paragraph was modified to mirror the home inspection contingency process by creating an inspection deadline, a negotiation period and a buyer’s election period.
   2. Paragraph 2(A) Alternative System Maintenance Contract:This language is not new to the contingency.It has been set aside in its own paragraph to highlight its importance.
   3. Paragraph 2(B) Septic Inspection Contingency:This contingency was modified to mirror the home inspection contingency process by creating an inspection deadline, a negotiation period and a buyer’s election period.In addition, the description of the inspection has been modified based on recommendations from the field.As a result, every inspection will include a walk-over visual inspection and probing of the drain field area for a conventional system or a visual inspection of the alternative system.In addition, the buyer may elect to conduct pumping and inspection of all treatment tanks (excluding pump and recirculation tanks) and/or excavation as necessary to visually inspect the distribution boxes, test pumps and controls and evaluate the function of pumping or pressure dosed dispersal systems.Finally, in the event the buyer voids the contract he agrees to restore the property to substantially the same physical condition as it was prior to the septic inspection.

6. K1020 and K1225 – Pre and Post Settlement Occupancy Agreements: No substantive changes were made to these forms.  The changes to these forms were required to continue to ensure that these occupancy agreements continue to be exempted from the VRLTA and VLTA. 

January 1, 2017 NVAR Standard Forms Changes

1.     Exclusive Agency Listing Agreement – K1337; Exclusive Right to Sell Listing Agreement – K 1336; and Exclusive Right to Sell Unimproved Land Listing Agreement – K1355.
a.    Property.  The committee added language which tracks the MLS fields associated with listings such as the number of levels, whether there is a basement etc.
b.    Conveyances.  The list of conveyances was amended to distinguish between the different types of fireplaces and their attending equipment.  
c.    Broker Duties.  This paragraph was updated to include bolded language towards the end of the paragraph providing a blank to write out specific showing instructions for the property if applicable.
d.    Marketing/MLS/Internet Advertising.  This paragraph was updated to comport with the reality of the life cycle of a listing and continue to be in compliance with the DOJ-NAR settlement.  To that end, we have separated the authorization for internet display from the rest of the VOW disclosures.  That way, a seller will first choose whether or not they will allow their listing to be disseminated on the internet.  If they choose yes, then there is a disclaimer which follows and the listing agent needs to complete section D.  If they say no, then section D may remain blank.  
e.    Broker Compensation. The offer of compensation language which used to be in the marketing/MLS/Internet Advertising paragraph has been moved to this paragraph for consistency and clarity.  In addition, a new section C was added to address whether there will be a variable rate commission entered in the listing.
f.    Current Liens.  This paragraph was updated to comport with the current practice.  A reminder was inserted for the seller that the loans on the property will need to be paid off at settlement.  The account numbers for the loans have been deleted as they were no longer necessary.  Finally a paragraph was added to ensure that sellers agree to comply with requests from settlement agents for loan payoffs.
g.    Seller Duties.  The old miscellaneous information paragraph was divided into two paragraphs.  One entitled Seller Duties and the other Miscellaneous Information.  The Seller Duties paragraph was modified to provide for a disclosure of whether the seller has an audio recording system in the property followed by a warning and release of liability for real estate agents.  This paragraph was further modified to allow access to the property by the Broker’s unlicensed assistant to perform their duties as outlined in the real estate regulations.  
h.    Utilities (Land Listing Agreement Only).  This paragraph was updated to include additional descriptions of the utilities which may be available at the property such as cable or fiber optics.
 
2.    Sales Contract for Unimproved Land– K1209
This form has been completely updated to match more closely our Residential Sales Contract.  However, the following three paragraphs are specific to this contract:  Fees and Expenses; Land Use Assessments/Rollback Taxes; and Study Period Contingency.

3.    Rental Application – K1008
The rental application was modified to include two additional questions:  Whether the tenant requires a visual smoke detector (to comply with new laws) and whether they are entitled to diplomatic immunity.

4.    Lease – Common Law – K1333 and Lease – VRLTA – K1354
These forms were updated to comport with significant legal changes.  
a.    Lease Term.  The two options for lease term have been reduced to one option whereby the tenant agrees to vacate at the end of the lease term unless the parties have provided at least 60 days notice their wish to extend the term.  
b.    Early Termination.  The paragraph was moved to follow immediately after the lease term paragraph.  No new language.  
c.    Late Payment.  This paragraph was simplified.  The language now outlines clearly the fees associated with any late payments by the tenants.
d.    Fixtures and Appliances.  This paragraph was modified to separate those fixtures and appliances which are part of the premises and those which are provided in as-is condition.  
e.    Smoke and Carbon Monoxide Detectors.  This paragraph was updated to comply with recent changes in Virginia law.  The tenant may not tamper with carbon monoxide detectors and must maintain them where installed.
f.    Access to the Premises.  This paragraph was clarified to state that the tenant allows the listing agent to place a sign, a lockbox and show the premises 90 days prior to the end of the lease term if the property is listed for sale and 60 days prior to the end of the lease term if the property is listed for rent.  In addition, language was inserted to warn tenants about the damages they may incur if they fail to allow showings to potential tenants or buyers.
g.    Notice Regarding Diplomats.  This paragraph has been made into an informational paragraph for the benefit of the landlord explaining the possible consequences of renting their property to a diplomat.

 

Chuck Cornwell, chairman of the NVAR Standard Forms Committee, discusses the July 1, 2016 Form Changes.

July 1, 2016 NVAR Standard Forms Changes

1.     Residential Sales Contract – K1321

a.    Deposit.  The new language clarifies that the Deposit needs to be delivered to the Escrow Agent and not the real estate licensee in order to satisfy the terms of Deposit paragraph.  

b.    Virginia Condominium Act.  This paragraph has been updated to comport with the new laws.  The Condo Act now allows a buyer to void a contract after receipt of the resale certificate OR receipt of a notice of non-availability of the resale certificate.  

c.    Foreign Investment in Real Property Tax Act (FIRPTA).  This paragraph was added to the contract to handle circumstances under which the seller is a foreign person for taxation purposes and thus subject to FIRPTA.  If the Seller is a foreign person for taxation purposes, then in addition to checking the appropriate box in this paragraph, the seller will have to complete the FIRPTA Addendum – K1370

d.    Wood Destroying Insect Inspection.  This paragraph was updated to comport with the practice and the inspection report provided by the pest inspection companies.  The validity of the report was extended from 30 days to 90 days.  In addition, the seller will now have to provide written evidence of treatment and repairs as may be applicable.

2.    K1370 – FIRPTA Addendum
This is a new form to the NVAR forms library which was created by the committee at the request and with the input of the attorney roundtable.  The increase in foreign buyers and sellers has created a need to address FIRPTA in our contract.  FIRPTA is a complicated federal law which affects the obligations of the parties under the contract.  These requirements are disclosed in this new addendum to allow the parties to get a head start on the process and ensure a smooth and timely settlement.

3.    Financing Contingencies and Notices for their removal

a.    Conventional, VA and FHA Financing Contingencies – K1339, K1340 and   K1359.  
The changes to these contingencies represent a major shift in the mechanics of the financing contingencies in our contracts.  Previously, a contract with a financing contingency that was not satisfied by the financing deadline continued up to and including settlement date, unless the seller delivered notice to the buyer that the contract would become void.  Once a seller delivered that notice, the only option for the buyer was to deliver a written commitment from the lender or evidence of funds necessary to settle without financing, otherwise, the contract would become void within three days.  Under the new financing contingencies, a contract with a financing contingency that has not been satisfied by the financing deadline still continues up to and including the settlement date.  Seller also retains the option to deliver a notice to buyer, however, there is no longer an automatic voiding of the contract if buyer does nothing.  Instead, seller may, at seller’s option send a notice to the buyer alerting the buyer that the buyer has three days to either void the contract or proceed with the contract without the financing contingency in place.  If the buyer, after receiving the seller’s notice, does nothing, the contract is no longer contingent on financing and the buyer no longer has the protection of the financing contingency.  The buyer has to decide whether to void the contract or take the risk of no longer having the protection of the financing contingency.  Also, a sentence was added to provide that nothing shall prevent the parties from agreeing to some other remedy under mutually acceptable terms.   

b.    Seller’s Notice Requesting Removal of the Financing Contingency – K1371.  This new form will allow the seller to send a notice to the buyer telling the buyer that they have three days to void the contract or the financing contingency will expire and the buyer will proceed to settlement without the protection of the financing contingency. 

c.    Buyer’s Notice Removing the Financing Contingency – K1331.  This form has been updated to allow a buyer to remove any of the financing contingencies (VA, FHA, and Conventional) without having to show proof of funds or a written commitment letter.

4.    K1335 – Seller Financing Addendum
This form was updated to reflect current market practices.  It contains four major areas.  (1) The first requires the parties to agree as to whether seller financing will be a first, second or third deed of trust.  The addendum then allocates the responsibility for drafting the required documents, which version of documents will be used and who will pay for the drafting of these documents.  (2)  The second paragraph describes basic loan terms:  amount, payment of principal and interest, the term and any pre-payment terms.  (3) The third paragraph addresses taxes and insurance escrows.  (4) The fourth paragraph addresses the requirement for buyer’s credit documentation and approval by the seller.  The buyer has 10 days from the date of ratification to provide the seller with credit documentation (defined by agreement of the parties).  The buyer also grants the seller the right to obtain the credit documentation from third parties.  The paragraph then provides a remedy in the event the buyer fails to provide the required credit documentation and a remedy in the event of material changes in the buyer’s financial condition prior to settlement.

5.    K1297 – Useful Information about a Transaction
This form was updated to reflect the addition of a FIRPTA paragraph and addendum to the Residential Sales Contract.

6.    K1207- Disclosure of Brokerage Relationship to Unrepresented Parties
This form was updated to comply with the changes to the Agency statute in the Code of Virginia which will become effective July 1, 2016.  The updated statute makes away with the requirement to use the disclosure form in commercial transactions.  This form will now only be required in residential transactions.

7.    K1363 - Disclosure of Dual Agency or Dual Representation in a Commercial Transaction

This form was updated to comply with the changes to the Agency statute in the Code of Virginia which will become effective July 1, 2016.  The updated statute eliminates the previous classifications of licensees for commercial transactions.  Commercial agents will now act as agents or independent contractors.  They will no longer be known as standard agents and will no longer be able to practice as a limited service agent.

8.    K1346 – Understanding Your Right under the Residential Property Disclosure Act
This form was updated to comply with the changes to the Residential Property Disclosure Act in the Code of Virginia which will become effective July 1, 2016.  The statute was amended to add to list of disclosures that the owner makes no representation on covenants and restrictions which may affect the property or to zoning and permitted uses of adjacent parcels.   It advises the buyer to exercise due diligence pertaining to covenants and restrictions that may be recorded in land records that affect the real property or any improvements located on the property. Similarly, the law advises buyers to exercise due diligence in regard to the costs associated with maintaining, repairing, or inspecting any wastewater system, including any costs or requirements related to the pump-out of septic tanks.

9.    K1299 – Request for POA packet and  K1024 – Request for Condo documents
The form was updated to comply with recent changes in the Property Owner’s Association Act and the Condominium Act.  The form now tracks the statutes specification of who the owner of the property can have copies of the POA/Condo packet sent to.  In addition it has shortened the number of days which an owner has to pay for the packet from 90 to 60 days.  The association will be able to charge the owner directly if settlement does not occur within 60 days of the packet delivery.