As questions emerge, we answer them here. Also, they are posted online with all materials: Main TRID Resource Page
Does the new TRID disclosure requirements apply to commercial loans?
No, this is home loan regulation. Contact the lender to verify details on time-frames for the loan type the buyer is seeking, but know that most all commercial loans do not require the same time-frame and disclosure requirements as we shared for the new TRID regulations. Sale of mobile homes are also exempt. Reverse mortgages, Home Equity Line of Credit (HELOC), Community No-interest loans and creditors making 5 or fewer loans per year are also exempt from these regulations.
Do we need an addendum like the Mass Form, to handle TRID delay issues?
No, not at this time. Board Legal Counsel, the CEO and the President met and debated and discussed four different addendums created at the very last minute for TRID changes. We don’t believe they are needed. Why?
We already addressed how to handle adjustments without having to delay the closing, a key component to the addendums. In our practice, the closing attorney can calculate the numbers if not provided for by the seller’s attorney, and they are binding.
There were concerns about creating automatic extensions that don’t require buyer and seller consent. Currently, there is no extension to the closing date without consent, and there is no compelling reason now to create one… we will continue to monitor this and may make a modification if it is discovered that the lenders or attorneys are unable to perform in the timelines we’ve established.
All addendums that were produced cited the need for an automatic extension due to compliance with TRID. That isn’t possible. The regulation creates no delay; an individual or institution’s failure to perform as expected creates delay.
None of the addendum address when notice of delay has to be given. It is conceivable that the buyer could have the moving truck packed and on their way to closing when they learn of a delay. The consensus that our standards for performance and mutual consent should be preserved, unless we learn otherwise after roll-out and actual implementation.
Some attorneys are requiring asking us to strike “time is of the essence”. Is that going to be removed from our Purchase and Sale agremeent?
No, not at this time. There have been a handful of law firms that routinely requested that be stricken long before the TRID disclosure issue. Our current agreements and way of doing business hold the dates to be hard performance dates unless otherwise mutually agreed. If the buyer’s attorney recommends that be stricken, that is a negotiable item between the seller and the buyer.
Can we get a list of all of the Real Estate Agent’s contact information and license numbers for filling out the contact worksheet?
You have access to that information now! In FlexMLS, go to SEARCH | OFFICE / MEMBER. In the search results, you will find the agent’s contact information, including their license number if it’s in the database. It’s up-to-the minute and available 24/7!
Please go check your own profile to make sure your license number is listed, by going to | PREFERENCES | MY PROFILE| and then QUICK PROFILE MAINTENANCE. The license number field is right there. It takes 2 seconds and would be really helpful to all!
Does the Agreement for Sale of Personal Property Form protect the seller from having to sell there stuff if the sales doesn’t close? Should there be language that says if there is no sale, there is no transfer of personal property?
Yes, Mike Shepard, Board Legal Counsel, changed from a Bill of Sale to an “Agreement for Sale of Personal Property” for this very reason. A seller might be willing to give the mower away for a song, but only to the future owner of the home… if the deal falls through, so should the sale of personal property. That agreement specifically states that at the closing the seller will sell… if the property doesn’t sell, neither will will personal property.
What happens if the Bill of Sale says “for personal enjoyment” instead of a dollar amount, but then the seller doesn’t leave the items behind?
The buyer should contact their attorney in that instance. The buyer will have a claim against the seller and that should be handled between both parties. The lawyer can advise on how best to proceed for a breach.
And in case you missed the questions last posted online:
Mastering the new contracts with fixed dates will be a challenge. What are the best practices for picking dates?
Very simply, follow the basic guidelines for time-frames and if the 15 day or 45 day or 60 day time-frame falls on a weekend or holiday, move it forward to the next working day. A niffy resource for helping you can be found online at TimeandDate.com. Simply enter your start date (the contract’s termination date) and set the number of days forward you’d like it to go. In the example below, we entered 10/15/2015 as the termination date, and asked for the date 45 days from then… the result was Sunday November 29th, so in the contract, we would enter the mortgage and insurance contingency date to be 11/30/2015… or the Monday following exactly 45 days.
When should we have the Contact Worksheet filled out?
As soon as possible. If your buyer is truly prepared, send it along with the Purchase and Sale Agreement when forwarding it to the lender and attorney. At the latest, this should be completed when the Inspection Contingency is completed.