The new Purchase and Sale Agreement and Exclusive to Right Sell agreement changes have been finalized and uploaded to the contract software (zip, flex dotloop). The marked up agreements are include in the links above and below is a summary of why the changes were made. Note, many more adjustments were debated, considered and discussed with legal counsel. The contracts are designed help facilitate the majority of transactions and the committee understands that no contract can be 100% complete for every situation. These final agreements are a work product of many meetings by a dedicated committee led by Mark McIlquham. Thanks to all who served. These agreements were also slightly modified after the Legal Luncheon to reflect comments and suggestions received and considered from the attendees.
Purchase and Sale
Paragraph 3 – Eliminated cash from final payment option to represent standards terms and also to help comply with federal Patriot Act that requires verification of funds to curtail money laundering.
Paragraph 5 – Contingency dates were reordered to occur in a natural sequence of typical events. Cash was added as an alternative to mortgage financing.
Paragraph 8 – Adding language that includes a buyer’s right to use the inspection time to ensure building code compliance and use is included. This was a suggestion was made by a local closing attorney who had experienced issues and thought this clarification could be helpful to both sides of the transaction.
Paragraph 13 -Included Fixtures added the word “appliances” so that this section is only used to list appliances that are included Any other personal property should be handled separately on a bill of sale (also provided in the contract files)
Paragraph 18 – Changed an error reference to Paragraph 16.
Paragraph 20 – Note, This paragraph hasn’t changed but we would like to point out that even if a buyer waives a home inspection, the seller must provide 10 days for a led paint inspection according to MA law, and the buyer can terminate if it is unsatisfactory.
Paragraph 24 – After much debate, the entire paragraph was stricken because of the lack of clarity. Previously a Certificate of Occupancy was to be provided t closing if needed – but many lawyers grappled iwth having to determine if it was required without having any background information on the home’s history of renovation. The committee also felt that new construction homes are handled with special agreements related to warranties and such and would be handled outside of this agreement.
Signatures – The agent, brokerage and license numbers for both have been added. This is to assist cooperating brokers verify active licenses before issuing commission checks and to help the lenders complete the required paperwork.
Exclusive Right to Sell Agreement
Paragraph 3 – The majority no longer practice sub-agency and this reference is not required. If a brokerage and a seller wish to offer sub-agency, there is a separate addendum for that purpose.
Paragraph 6d – Listing Data was changed to eliminate specific marketing venues and no reads as deemed appropriate by the broker Marketing is changing so quickly, the committee believes this should be more generic, while still having a legal obligation to use best efforts.
Paragraph 7a – Cleaned up Lead Paint Form reference.
Paragraph 7g – Added a new disclosure that the seller makes about surveillance equipment located in the home and tweaked he language to remove the requirement that the broker post a notice “on the door (which is still best practice recommended by legal counsel) to a visible notice on the property and in the MLS.
Paragraph 12e – Amended to take into account electronic transmission of contacts and electronic signatures, rather than facsimiles.
Questions or comments? Please get in touch with Sandy Carroll. Thank you!