by Michele Gillis
Staff Writer
Details really matter, particularly in a time when any sort of contract can be challenged.
That’s why today’s Realtors are learning a new set of forms, and it appears that they are being well received by the real estate community.
The Florida Realtors and the Florida Bar recently released the new Florida Realtors/Florida Bar Purchase Contract, As-Is Contract and Comprehensive Rider. These were known as the FAR/BAR contracts.
Some of the changes:
• larger print.
• the addition of initial blanks at the bottom of each page.
• a limited hold harmless and indemnity clause for brokers and agents.
• several new riders that include an appraisal contingency, an agreement to arbitrate disputes and a short sale rider.
“These new forms are the culmination of four years of work by the Joint Realtor Attorney committee, authors of the FAR/BAR contracts, to create a better tool for Realtors and attorneys alike,” says Marcia Tabak, deputy general counsel of the Florida Realtors. “Some new features include mediation of disputes by parties prior to litigation, a permit inspection period, and blanks for the parties to initials at the bottom of each page to acknowledge receipt and several new riders, including an appraisal contingency.”
Broker Sherry Davidson of Davidson Realty said there are more details in the new contract.
“Areas that were vague in the past, such as personal property included in the sale, are now very explicitly spelled out,” said Davidson. “Other changes relate to issues we are seeing now with more distressed property such as the items the seller is required to maintain until closing, the inspection process and property condition. The changes are extensive.”
A summary of the changes to each form was posted online on the state association’s member Web site, www.floridarealtors.org, as are highlighted contracts reflecting changes.
Additionally, there were two education sessions on the new forms during Florida Realtors’ Convention & Trade Expo this past August, as well as a ‘Train the trainer’ session.
A Webinar was also provided on the new forms. Currently, there is an online ‘flipbook’ tutorial tool available to walk members through the changes to the form, also posted on floridarealtors.org.
“Although the revisions seem extensive initially, Florida Realtors members quickly recognized that many of the provisions were carried over from the previous version of the ‘FAR/BAR’ contract, comprehensive rider, and the current version of the FAR contract,” said Tabak. “This has assisted many with understanding the new form.”
Davidson likes what she sees.
“The changes are good for the most part,” she said. “The agent has to know the contract and make sure the buyer and/or seller understands what they are agreeing to. I think there will be fewer disputes because more things have to be agreed to when writing the contract.”
In order to use the new contract correctly, Davidson advised that Realtors need to spend more time checking the details.
She gave an example from the contract by quoting one sentence.
“‘Torn screens (including pool and patio screens), fogged windows and missing roof tiles or shingles will be repaired or replaced by seller prior to closing,’ said Davidson.
If the seller doesn’t know the contract says this, she pointed out, they will not be happy when they find out.
“Spend the time to be familiar with every paragraph and make sure you explain everything to your customer,” said Davidson.
The older contract versions (FAR/BAR-8, FAR/BAR-ASIS-2X and FBCR-10) are no longer available.