NVAR FORM CHANGES EFFECTIVE JANUARY 1, 2014
HOME INSPECTION & RADON TESTING CONTINGENCY (K1342)
• Amended to clarify and s...
NVAR FORM CHANGES EFFECTIVE JANUARY 1, 2014
VIRGINIA JURISDICTIONAL ADDENDUM (K1345)
• Paragraph 1 “Definitions”
o Date of...
NVAR FORM CHANGES EFFECTIVE JANUARY 1, 2014
CONTINGENCIES AND CLAUSES (K1344)
• Post Settlement Occupancy Option Paragraph...
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NVAR forms update Jan 2014

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Universal Title has compiled the changes to the new forms.

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NVAR forms update Jan 2014

  1. 1. NVAR FORM CHANGES EFFECTIVE JANUARY 1, 2014 HOME INSPECTION & RADON TESTING CONTINGENCY (K1342) • Amended to clarify and simplify the back-and-forth exchange of negotiations. Home Inspection Contingency • Added extension of contingency if utilities are not in service for any reason during the Home Inspection Contingency Period. • If inspection is unsatisfactory to Purchaser, it is “in Purchaser’s sole discretion” to either (1) provide inspection report with “inspection addendum” outlining requested remedies OR (2) provide inspection report and notice voiding contract. Reminder: Purchaser must actually obtain a home inspection in order to void contract under the home inspection contingency • Negotiation Period: Time period when Purchaser and Seller can exchange as many offers and counteroffers as necessary to ratify an addendum. Contract will not automatically become void because of a missed deadline or refusal of one party to participate in active negotiations. • Purchaser’s Election: If no agreement can be reached during the Negotiation Period, Purchaser is the sole party possessing the power to void the Contract. If Notice to Void is not delivered within the Purchaser’s Election period, contingency is removed and Purchaser agrees to take the property AS-IS. Radon Testing • Utilities to remain in place or contingency period extends • Seller to pay for additional testing, and contingency period will extend, if Radon Professional reports that requirements for testing have not been met (windows shut, doors closed except for normal ingress/egress, exhaust fans off). • Negotiation Period & Purchaser’s Election: same negotiation options as Home Inspection Contingency
  2. 2. NVAR FORM CHANGES EFFECTIVE JANUARY 1, 2014 VIRGINIA JURISDICTIONAL ADDENDUM (K1345) • Paragraph 1 “Definitions” o Date of Ratification: Date of Ratification means the date of Delivery of the final acceptance in writing by Purchaser and Seller of all the terms of this Contract to Purchaser and Seller o EXAMPLE: If Seller signs the Contract agreeing to all terms and fills in Date of Ratification as 11/15 but doesn’t deliver said Contract back to Purchaser until 11/17, timeframes for contingencies do not start until 11/17. o Meant to prevent bad behavior of signing a contract and holding onto it to shorten the contingency periods based on the Date of Ratification. o Proposal has been made to make this change to the Regional Contract. • New Paragraph 14 “DISCLOSURE OF SALES PRICE TO APPRAISER” o Gives both brokers the authority to release the sales price of the contract to any appraiser who contacts them to obtain the information. o Broker is not required to release this information, but has the option to do so. o Appraiser is capitalized and is meant to be defined as set forth in the Virginia Code (according to Standard Forms Committee Members) o Question of agents’ liability in determining whether or not the person calling you is an appraiser as defined in the Code. Agent risks disclosing non-public information regarding the contract to a third party that does not qualify as an appraiser. RELEASE FROM REGIONAL SALES CONTRACT (K1116) • Brokers are no longer a part of the release (since they are not parties of the contract). Signature blanks for brokers have been removed. • Checkboxes in Paragraph B2 have been removed. • Paragraph C has been removed.
  3. 3. NVAR FORM CHANGES EFFECTIVE JANUARY 1, 2014 CONTINGENCIES AND CLAUSES (K1344) • Post Settlement Occupancy Option Paragraph was deleted since there is a standalone form that covers Post-Settlement Occupancy • Paragraph 1.A.4 “Contingencies, Sale of Purchaser’s Property and Kick-Out” o Check boxes were added for whether or not Seller will accept an assignment of funds. SELLER POST SETTLEMENT OCCUPANCY (K1020) • Paragraph 3 “Property Maintenance and Condition” o Old Title of Paragraph was “Equipment, Maintenance and Condition” o Removes old Paragraph 7 warranty items to comply with changes previously made to the Regional Sales Contract o Adds “except as otherwise agreed to in writing” to the start of the first sentence o Deletes “including existing appliances, heating, cooling, plumbing, electrical systems and equipment, smoke and heat detectors, and landscaping and lawn PURCHASER PRE-SETTLEMENT OCCUPANCY (K1225) • Paragraph 3 “Property Maintenance and Condition” o Old Title of Paragraph was “Equipment, Maintenance and Condition” o Removed old Paragraph 7 warranty items to comply with changes previously made to the Regional Sales Contract o Old Language: “in the same original condition” o New Language: “in substantially the same condition as of the Date of Occupancy” • Paragraph 5 “Alterations and Risk of Loss” o Amended to clarify what type of insurance should be carried by each party and to have it conform to the Post Settlement Occupancy Form o Deleted sentence suggesting the parties consult an insurance agency regarding coverage o Purchaser to maintain adequate insurance to cover personal property and liability o Seller to maintain homeowner’s insurance adequate to protect the Property.

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