In Good Form Check out these changes to the forms you use.
By now, most of you know that both the FAR-8 and the FAR/BAR-7s contracts have been updated respectively to the FAR-9 and FAR/BAR-8. Former versions no longer appear online; therefore, it’s recommended that you stop using the old forms. Should you decide to use the old forms, be sure to consult an attorney for an opinion on the forms’ legality.
Here are a few of the changes made: FAR Contract Changes
Some FAR-9 revisions include a new “permit limit” in Paragraph 5(a) (Closing Procedure; Costs) specifying the maximum amount the seller will pay to rectify issues with outstanding open permits or previously non-permitted work. Likewise, subsection 4 of Paragraph 8(a) (Warranty, Inspections, and Repair) now highlights the seller’s responsibility to address these permit issues. If final inspections can’t be completed by the closing date due to delays by the governmental entity, then the closing date is extended for 10 days to complete the inspections. If, after the 10-day extension, final inspections can’t be completed, then either party may cancel the contract and the buyer’s deposit is returned. FAR/BAR Changes
Check out the numerous updates to Paragraph IV (Financing). A new provision advises that if the buyer gets loan approval or waives the financing contingency, but the transaction doesn’t close, the seller will be entitled to the buyer’s deposit, unless the seller caused the failure to close or the buyer’s lender fails to receive and approve an appraisal of the property in an amount sufficient to meet the terms of the loan approval.
Another FAR/BAR-8 change added new language in Paragraph VI (Closing Date), allowing a closing date extension due to extreme weather or major force or cause outside the control of the parties until essential utilities and services are restored and insurance is available.
The FAR ASIS-8 contract was recently discontinued. Sales associates should now use the FAR-9 contract with Addendum H of the FARA-9 Comprehensive Addendum (updated for this purpose). For copies of FAR forms online, go to www.floridarealtors.org, click on “Tools and Support,” then click on “Forms.”
Questions? Call FAR’s Legal Hotline, (407) 438-1409, Monday through Friday, 9 a.m. To 5 p.m. Please have your real estate license number available when you call.