From floridarealtors.org
A National Association of Realtors (NAR) survey finds that more than 50 percent of real estate agents plan to extend sales contracts and build in more time for closings due to the Oct. 3 implementation of new mortgage disclosures.
Currently, the HUD-1 settlement form can be revised and delivered up to the day of settlement.
By contrast, the new Truth in Lending Act/Real Estate Settlement Procedures Act integrated disclosures (TRID) that goes into effect Oct. 3 must be finalized and in the borrower’s hands three days prior to closing.
Failure to meet that deadline can result in a re-issuance of the closing disclosure and another three-day waiting period.
“When asked about their plans to deal with the new TRID rules, 55.9 percent of Realtors plan to change their purchase agreements to reflect a longer timeline, while 31.2 percent will add contingencies to the contract,” says NAR based on the research conducted.
Florida Realtors plans to update its contracts on Sept. 28, 2015, in preparation for the October change.
The association currently has the updated contracts posted online in a redline version that graphically shows the changes.
The poll did not specifically ask how long a Realtor would extend a sales contract, and there appears to be no consensus on the issue.
The NAR study also found that 82 percent of agents have taken some type of training to prepare for the TRID regime that takes effect Oct. 3.