Jim Valentine on Real Estate
It’s that time of year again when the local Board of Realtors releases the 2025 forms. We always take a moment to review the changes so we can give you a heads up for your potential transactions this year.
The changes this year actually started back in August when due to litigation there was a settlement that led to a mandate from the National Association of Realtors that local Multiple Listing Services require agents to have buyers sign a Buyer Compensation Agreement before showing them a home. We reviewed that form at that time.
The 2025 forms include a brochure regarding home insurance. Very timely. It covers so much more than risk protection matter as, it details things like be sure to check with the seller’s insurer to determine if they will continue that policy. It advises that you see how homeowner’s insurance can affect your transaction, and that you include the property’s insurability as a condition of the contract. It also discusses the C.L.U.E. report and much more. Get the brochure and give it a read.
There is a new form called Commercial/Investment Property Purchase Agreement that is a nice blend of commercial terms and residential language. It is easy reading while encompassing all the commercial aspects of an enhanced residential transaction.
There is now a Lessee Estoppel Certificate. That is important for a tenant for it protects the tenant as well as buyers and sellers from any fraud in a rental situation. It is a written statement of the rents, deposits, etc. Missing from this form is the personal property component so we recommend that you add a clause if you rent and own the fridge, washer/dryer, etc. You can avoid downline hassles by establishing up front who owns what.
All residential forms will have the word “shall” replaced with “will.” This was at the recommendation of legal counsel. The Backup Offer Addendum has a new clause that specifies when the buyer will confirm in writing about moving into primary position.
The Exclusive Buyer Representation Agreement has removed the general description and left it vague, or allows specific descriptions. This is, in fact, what most practitioners are doing. It also allows them to have an agreement with multiple agents as long as they aren’t conflicting. The specific property description further allows for this. The benefit of having more than one contract should be evaluated by the buyer for their circumstances and situation.
A new clause in the listing agreement allows brokers to publicly market compensation to a selling broker excluding the MLS. This is a major change for practitioners, but doesn’t change what has been happening, it only makes it easier to effect. The Solar Power System Disclosure form has many changes that will make things better for the parties when transacting properties with a solar energy system.
Realtors use forms to structure their transactions. They write a few things in to customize the offer per your objectives, but the bones of the offer are the forms. As forms change you should be aware of the changes for they could change how you do business in a given situation.
Read the fine print for most of your contract terms will be in the fine print. Realtors fill in the blanks. If you are familiar with the forms you can read the blanks, but be aware of the form you are reading and what it really says. Forms change.
When it comes to choosing professionals to assist you with your Real Estate needs… Experience is Priceless! Jim Valentine, License No. BS-03481, RE/MAX Gold Carson Valley 775-781-3704. dpwtigers@hotmail.com.