QUESTION: I will be taking a listing on a property next month that has a swimming pool. The owner plans on having it winterized soon, which involves a fair amount of work, including lowering the water level, draining all the pipes and filling them with pool antifreeze, removing ladders and other non-permanent items, and putting…
QUESTION: I am listing a home for sale for a brother and sister. The home was previously owned by their parents, both of whom have passed away. My clients have told me that the home has not had power or water for over a year. If I list the home, will my clients be required…
The following residential forms have been revised effective July 1, 2022. A summary of the significant changes to each form is included. A marked-up copy of each form showing the exact changes may be viewed by clicking on the name of the form.
The following residential forms have been revised effective July 1, 2021. A summary of the significant changes to each form follows the list. A marked-up copy of each form showing the exact changes may be viewed by clicking on the name of the form immediately preceding the summary of the forms. Jointly-Approved Forms (approved by…
QUESTION: My clients have a fully executed contract (Standard Form 2-T), but the buyers have not timely delivered the agreed upon earnest money deposit and due diligence fee. We know we can send a notice to the buyers demanding that they deliver the funds under paragraph 1(d) of the contract. Does the notice have to…
QUESTION: One of my listings was all set to close, but the buyer discovered during his final walk-through that the HVAC system wasn’t working properly. We had it checked out and unfortunately, it appears that one of the air conditioning units needs to be replaced to the tune of $6,000. The unit was working when…
Forms Guy chats about the buyer’s right to terminate a contract if the condition of a property changes.
QUESTION: I have a question about paragraph 18 of Standard Form 2-T. Titled “Survival,” it states that if any provision of the contract is required to be “observed, kept or performed” after Closing, it shall survive Closing and remain binding on the parties until fully performed. That provision seems inconsistent with paragraph 4(h) of the…
QUESTION: I represent buyers who have a property under contract. The parties used the standard Offer to Purchase and Contract (Standard Form 2-T). In paragraph 2(d), where the parties are given an opportunity to list any items that are not owned by the sellers, and therefore will not convey, the word "none" was inserted. In…
QUESTION: I represent a buyer. Prior to submitting an offer on the Offer to Purchase and Contract (form 2-T), we wrote the words “NONE EXCEPTED” in the blank space in paragraph 2(e). When the seller returned the signed contract, he did not cross out any of the items listed in paragraph 2(b) or modify the…
QUESTION: From time to time, I receive offers in which the buyer's agent has not inserted a date in the blank in paragraph 1(j) of Standard Form 2-T. That blank is used to specify the expiration of the "Due Diligence Period." Instead, these agents insert the words: "30 days after the Effective Date." Should I…
QUESTION: I represent a buyer. We found a house that my client liked and submitted an Offer to Purchase and Contract. In paragraph 10, the "Home Warranty" paragraph, we checked the second box which reads: "Buyer may obtain a one-year home warranty at a cost not to exceed $______ and Seller agrees to pay for…
QUESTION: I am about to list a property that has a large propane tank on it that the seller leases from her propane fuel provider. It has just been filled. I anticipate that the property will sell quickly. I have been reviewing the newly-released version of the Offer to Purchase and Contract (Form 2-T), and…
QUESTION: If a buyer indicates in paragraph 5(b) of the Offer to Purchase and Contract (Form 2-T) that they have to sell other property in order to qualify for a new loan or to complete the transaction with the seller, does that create a contingency that would allow the buyer to terminate the contract and…
QUESTION: I am the listing agent on a property that is under contract. Closing is scheduled for next week. My sellers are concerned that the buyers might not go through with the purchase, and they don’t want to move all of their furniture and other possessions until they know that the buyers have actually signed…
QUESTION: We are having a friendly difference of opinion in my office about using the Agreement to Amend Contract (Form 4-T) to revise the Settlement Date in a contract, and the effect of the parties not checking the second box under “Settlement Date.” Most of our agents think the 14-day delay period in paragraph 12…
QUESTION: Don’t be mad at me, but my buyer made an offer with no date specified in the blank of paragraph 1(j) of the Offer to Purchase and Contract (Form 2-T), and the seller accepted the offer as written. I thought that if no date was inserted in this particular blank, then the Due Diligence…
Summary of July 2021 Commercial Forms Changes
QUESTION: My buyer is closing on a property in two days, and we just learned that the water heater is leased and not owned by the seller. The seller is claiming that my client needs to assume the lease and the lien on the unit. The water heater was not mentioned in paragraph 2 of…
New Governmental Compliance Provision in Form 2-T
QUESTION: In paragraph 3 of the Offer to Purchase and Contract (Form 2-T), my client and the seller agreed that the “refrigerator in the kitchen” would convey to my client at closing. I examined the refrigerator to ensure it was fully functioning when the contract was signed. Now the Due Diligence Period has ended, and…
QUESTION: I have been reviewing the newly-released version of the Exclusive Right to Sell Listing Agreement (Form 101), and I see that paragraph 17, which covers dual agency, has a number of changes. Why were the changes made? And what suggestions do you have about how listing agents should go over that paragraph when they…
The following residential forms have been revised effective July 1, 2023. A summary of the significant changes to each form is included. A marked-up copy of each form showing the exact changes may be viewed by clicking on the name of the form.
QUESTION: I represent a seller. I just received an Offer to Purchase and Contract on Standard Form 2-T. In paragraph 1(d), on the line designating the Due Diligence Fee, the buyer inserted a zero. In paragraph 1(j), where the Due Diligence Period is defined, the buyer inserted a date that would equate to a roughly…
