Jim Valentine on Real Estate
It’s that time of year again, January and the local board of realtors has released the new contract forms for the year. Each year the contract committee works with legal counsel to review the approved contract forms to make sure they comply with current legislation and practices. Sometimes changes are made just so the contracts are easier to read and understand. This year there are some interesting changes.
The first form in the package (they are listed alphabetically) is the buyer’s representation agreement. This form has been around for decades but not utilized much until recently. It will likely be a very familiar document for buyers now and into the future due to a recent national lawsuit that has received a lot of attention. The form is actually a “listing” of a buyer, an agreement whereby the buyer pays their agent the real estate commission due them for performance of their duties.
Changes to the form include a notation advising the buyer that “some sellers, such as new home subdivisions and for sale by owners, will not compensate broker unless broker makes the first visit with buyer. If BUYER makes a first visit without broker, BUYER agrees to compensate broker as stated in the commission section below.”
Additional changes include disclosures that the real estate commission is not fixed by law and is set by each broker individually and may be negotiable between buyer and broker. Buyer negotiates with their broker what fee they are willing to pay for their broker’s services.
Finally, it discloses that the fees generally can’t be financed as a part of a mortgage. Fees paid by sellers are part of the sales price and are, consequently, financeable.
The listing contract has a good change where it used to say that the seller agreeing is to make available…” all data, records and documents pertaining to the property.” That was too all encompassing, but now this has been added, “…that they have in their possession.”
Another new element, “Seller must notify any prospective buyer, broker, or other party entering the property, if the property is equipped with security cameras or similar devices that are capable of audio recordings or broadcasts, as per NRS 200. One more clarification, “Seller acknowledges any work or inspections scheduled by broker shall be at the cost of the seller unless otherwise specified by separate agreement.”
Not all real estate agents are Realtors, but those that are must abide by the Code of Ethics. That is covered in the newly added clause, “Realtors, for the protection of all parties shall assure whenever possible that all agreements related to real estate transactions including, but not limited to, listing and representation agreements, purchase contracts and leases are in writing in clear and understandable language expressing the specific terms, conditions, obligations and commitments of the parties.”
The residential offer and acceptance agreement clarifies the closing date by using a date certain or a modified date agreed in writing by buyer and seller modifying previous language that was ambiguous. HOA transactions thankfully received a great clarification in the boilerplate language.
Other forms received minor changes that will serve well for understanding the intentions and commitment of the parties. Make sure your agent is using forms that have a 1/24 date on the lower right of the page. Wildlife and livestock disclosures are now inserted in the boilerplate of residential and vacant land offers and the sellers must warrant that they have the authority to sell the property. These are some samples of changes in the profession for 2024. It is all done to better serve the public and keep them safe.
When it comes to choosing professionals to assist you with your Real Estate needs… Experience is Priceless! Jim Valentine, RE/MAX Gold Carson Valley, 775-781-3704. dpwtigers@hotmail.com.