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Association News, Member Services, Standard FormsAgreement of Sale expected to ship March 1
The publication of the new PAR Standard Agreement for the Sale of Real Estate (ASR) has had some delays but the form is now at the printer and is expected to begin shipping March 1.
“We’ve had some last-minute changes and we want to ensure the form is legally compliant and meets the needs of our members,” said Mike Barth, PAR’s standard forms specialist.
Electronic vendors have started to post the e-forms and all vendors are expected to have the new form online by March 1. The previous ASR is still acceptable to use for transactions.
A sample of the new form and the Guidelines for Preparation and Use (PAR login required) are available on PAR’s web site.
The revised Agreement of Sale incorporates some major changes: an expanded broker box; updated mortgage contingency paragraph and a new format for handling inspections. It also has a reduced default time for inspections of 10 days. In response to the new Real Estate Licensing Registration Act (RELRA) changes, the form incorporates a change in language to dictate what will happen to escrow monies in the event of a dispute.
The Lead-Based Paint Disclosure Form (PAR Form LPD) is being released with the Agreement of Sale and replaces the previous Lead Paint Addendum. The Oil, Gas and Mineral Rights Addendum (PAR Form OGM), which was developed to explain what surface and subsurface rights are included in the sale, is available now.
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Kim Shindle is the Manager of Media Relations at the Pennsylvania Association of Realtors®. |
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There will always be issues with any agreement. No “Standard Agreement” can ever cover “all” of the issues a licensee can experience in their practice without the document consuming a ridiculous amount of pages.
When you think about we have a few options…
Custom: Everyone can use non-standard attorney prepared forms that would require attorney review on both sides and potentially create a quagmire of delays before the buyer and seller actually ever sign the agreement. Additionally, increasing the cost to either the buyer, the seller or both. It could also potentially expose the agent to more liability in the event of a suit. This is how some areas conduct their transactions and it is not too appealing to me (IMHO).
Regional: Use standard Forms geographically specific to the board or region that cover the “local” issues. Not a great option when you consider agent A from one region agent B from an adjoining region who’s form will be used during the transaction, what happens if you are not familiar with the “other” form. You may still deal with attorney review options, etc. You still have some of the issues from the above scenario.
Statewide Standard Form (or as I like to call it … one size fits most): The agreement a few years back (as my father likes to remind me) was only a few pages … it contained the who, what, when, etc. fine it was quick and easy unless your transaction wasn’t exactly the same as the last one you were a part of so you would need to add an addendum… fine easy. Or was it… What if the agent didn’t add the addendum? What if the agent added the wrong addendum. Ok well then rather than an addendum, incorporate some common transactional issues into the agreement…. What happens BAM the agreement is LOOOONG. As much as we don’t like to admit it has to be. Why well sometimes in order to protect the masses we all have to suffer, just a little though. In order to protect an agent from missing an addendum or an item that can place them in hot water the agreement gets longer and longer. The folks at PAR have their job cut out for them… they have to create an agreement short enough to be easy to use, but long enough to protect most of us. That means compromise, some things make it into the agreement and some things don’t Vis-à-vis an imperfect agreement. I think this “imperfect agreement is better than the previous, that is my opinion some will disagree I’m sure. Here is where the rubber meets the road so to speak. It is up to the Licensee and their Broker (with legal counsel) to decide if a specific clause or addendum is needed for their specific transaction. The agent/Broker must be familiar with the tools of the trade just a electrician needs to know how & when to use or not use their multi-meter. The agent/Broker needs to understand the dynamics of their transaction and how the standard forms; addenda interact and affect that transaction. If something in the transaction is not applicable or needs modification then legal counsel can advise on the appropriate steps to correct. The agreement will always have issues it will never be perfect but what it does do is C.Y.A. “most” of the time.
That all being said this may or may not be the forum to voice and express the “issues” but it may be a good place to start.
What? Nobody wants to bring up the multiple issues there are in this “new” asr?
I would like to echo Peter’s comments. There is no “drop dead” date after which the 2005 version of the Agreement of Sale will not be valid. You will not be breaking the law by using the old Agreement. We will likely keep the 2005 Agreement available through our electronic forms vendors until early April to allow agents to use it for a counter offer in a transaction that is already going on, or until they have spent adequate time to understand the new form. After that April cutoff, agents will no longer be able to purchase/download the old form.
Well, one way to make it a condition is to make a comment in the Agent remarks that the new agreement is required. Just like Direct Lenders etc. All requirements of the Seller.
The agreement is not a statutory form so there is no “required“ form. However since PAR strives to make sure that the current form best addresses the “current” real estate issues. In essence agents & brokers can still use the old forms… There are many IMPORTANT changes in the new form and I would strongly recommend adoption of the new form. Either way it was explained to me that PAR will stand behind all versions of their Standard forms.
It states that the previous Agreement of Sale is still acceptable for use. Has a date been established for when it is not acceptable to use it? If not, some Brokers/Agents could conceivably use it forever.
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