ORLANDO, Fla. \u2013 Revisions to the Florida Realtors\/Florida Bar Contract for Sale and Purchase (FR\/Bar) \u2013 both the AS IS and the Residential \u2013 have recently been approved and contain numerous changes. In addition, seven Riders have been updated and three new Riders were created. The update gives members time familiarize themselves with the changes and goes into effect on Nov. 1, 2021.<\/span><\/span><\/p>\n

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Updates: Florida Realtors\/Florida Bar Residential & AS IS Contracts<\/div>\n
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A look at the 2021 changes to the Florida Realtors\/Florida Bar contracts standard Residential Contract for Sale and Purchase and the \u201cAS IS\u201d version.<\/div><\/div>\n
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Learn more<\/div>\n
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\u201cLaws, technology practice and society change over time, and Florida Realtors\u00ae updates its forms every few years to respond to those changes,\u201d says Juana Watkins, Florida Realtors vice president of law and policy and general counsel. \u201cA great deal of time and energy went into these updates. The Realtor and attorney members of the Joint Statewide Realtor Attorney Committee dedicated hours and hours of their time, and they deserve our gratitude.\u201d<\/span><\/span><\/p>\n
Watkins says no contract can ever be perfect as long as the world keeps changing, but the FR\/Bar contract has been tested over the years, and many of the new updates originated as suggestions from Realtor members.<\/span><\/span><\/p>\n
Major FR\/Bar updates<\/span><\/span><\/h3>\n
Paragraph 8, which addresses how the purchase will be paid for, contains many updates. Spend time familiarizing yourself with the changes, so that you\u00a0 understand buyers\u2019 and sellers\u2019 responsibilities when the new contract goes into everyday use.<\/span><\/span><\/p>\n
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8(b)<\/strong> \u2013 Two tasks are to be completed during the \u201cLoan Approval Period.\u201d As before, the buyer must obtain\u00a0 approval for financing as described in Paragraph 8b. New to the contract, however, is that the buyer\u2019s lender must receive a satisfactory appraisal before the \u201cLoan Approval Period\u201d expires \u2013 the first time a FR\/Bar contract specified this. (Note: The word \u201cappraisal\u201d includes appraisals and alternative valuations.)\n
Why the change? The change was made to expedite receipt of the appraisal if required by the buyer\u2019s lender. Under the current contract, a low appraisal could derail a transaction as late as the closing, if that\u2019s when the appraisal was completed. Although a low appraisal can still derail a transaction, if it is received before expiration of the Loan Approval Period, the property can be returned to the market sooner and a new buyer found. <\/p>\n
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8(b)(i)<\/strong> \u2013 This subsection redefines \u201cLoan Approval.\u201d This term now includes two components: that a buyer is approved for the financing described in the contract, and that the lender received a satisfactory appraisal if one is required. Consequently, if a buyer is approved for financing but the approval is conditioned upon an appraisal to be completed in the future, this will not be considered \u201cLoan Approval.\u201d\n
Unlike the current contract, per the revision, an approval that contains a condition that the buyer must sell another property is considered \u201cLoan Approval,\u201d providing<\/em> Rider V is made part of the contract. Why the change? If the seller agrees to a buyer\u2019s offer that includes Rider V, the seller is now aware that the buyer\u2019s offer is contingent on the buyer selling another property.<\/p>\n
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18, Standard O<\/strong> \u2013 Delivery notice methods changed. In addition to current options \u2013 mail or personal delivery \u2013 notices may also be delivered by fax or email. However, certain electronic media delivery previously provided for in the contract was deleted. This is noteworthy because it means texts cannot be used to provide notice for these contracts. The change was made because texts can disappear over time, making them unreliable as evidence to prove that a notice was delivered.<\/span><\/span><\/li>\n<\/ul>\n
Examples of other FR\/Bar changes<\/span><\/span><\/h3>\n
\u201cThis article provides an overview of major forms changes but should not be considered a substitute for reading the new contracts and understanding how even small changes might impact some of your transactions,\u201d says Watkins. \u201cAs always, Florida Realtors Legal Hotline<\/a> is available as a free member benefit, and our staff lawyers will be happy to offer further education on the changes.\u201d<\/span><\/span><\/p>\n
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\u201cPersonal Property\u201d now includes thermostats, doorbells, television wall mounts and television mounting hardware, mailbox keys, and storm protection items and hardware \u2013 and intercoms were deleted.<\/span><\/span><\/li>\n
A critical component of closing \u2013 that all funds required for closing are received by the closing agent and collected pursuant to STANDARD S\u201d \u2013 has now been included in the paragraph that defines closing.\u00a0\u00a0 <\/span><\/span><\/li>\n
An extension of the closing date based on CFPB (Consumer Finance Protection Bureau) delivery requirements was reduced from up to 10 days to 7 days, and it was clarified that this extension is automatic only if the loan was approved and through underwriting prior to the originally agreed upon closing date.<\/span><\/span><\/li>\n
The occupancy clause now covers disclosure of existing seasonal or short-term vacation rentals \u2013 or if such rentals are intended if the occupancy would take place after closing.<\/span><\/span><\/li>\n
A buyer has an obligation to keep the seller informed of the status of a loan application, appraisal, loan approval and property-related conditions, if the seller requests this information in writing.<\/span><\/span><\/li>\n
The buyer can now wait until the end of the \u201cLoan Approval Period\u201d to inform the seller, in writing, that the loan was approved. In the current version, the buyer had to \u201cpromptly advise\u201d the seller.<\/span><\/span><\/li>\n
One item was added to costs paid by the seller: FIRPTA withholding and reporting (FIRPTA applies to transactions with foreign sellers).<\/span><\/span><\/li>\n
Special assessments imposed by special districts will be prorated and not negotiated in Paragraph 9f.<\/span><\/span><\/li>\n
Watercraft lifts and related equipment are now items subject to the buyer\u2019s inspection that should be in working condition (Residential Contract only); also, a change allows sellers to complete repairs without estimates if the seller desires.<\/span><\/span><\/li>\n
Time calculations: The new contract states that a calendar day will be based on where the property is located and clarifies calculations if a date or time period ends on a Saturday or Sunday, a day that is a national legal holiday, or on a day a national legal public holiday is observed.<\/span><\/span><\/li>\n
Force Majeure: The definition of Force Majeure has been expanded and now also includes \u201cgovernmental actions and mandates, government shutdowns, epidemics or pandemics.\u201d<\/span><\/span><\/li>\n
Counteroffer language was simplified and the rejection option eliminated. <\/span><\/span><\/li>\n
New riders include Mold Inspection, Seasonal\/Vacation Rentals\/Pace Disclosure.<\/span><\/span><\/li>\n<\/ul>\n
The new contracts \u2013 including redline versions that show the changes \u2013 are posted on Florida Realtors\u2019 website<\/a>.<\/span><\/span><\/p>\n
\u00a9 2021 Florida Realtors\u00ae<\/span><\/span><\/p>\n<\/div><\/div>\n
Go to Source<\/a>
\nAuthor: kerrys<\/p>\n","protected":false},"excerpt":{"rendered":"
By Kerry Smith Florida Realtors and the Florida Bar work together to keep FR\/Bar contracts current and useful, and the latest update has just received final approval from both groups. Members will have time to study the changes before it replaces current forms on Nov. 1. The AS IS contract, Residential contract and seven Riders were updated, and three new Riders were created. ORLANDO, Fla. \u2013 Revisions to the Florida Realtors\/Florida Bar Contract for Sale and Purchase (FR\/Bar) \u2013 both the AS IS and the Residential \u2013 have recently been approved and contain numerous changes. In addition, seven Riders have been updated and three new Riders were created. The update gives members time familiarize themselves with the changes and goes into effect on Nov. 1, 2021. Updates: Florida Realtors\/Florida Bar Residential & AS IS Contracts A look at the 2021 changes to the Florida Realtors\/Florida Bar contracts standard Residential Contract for Sale and Purchase and the \u201cAS IS\u201d version. Learn more \u25ba \u201cLaws, technology practice and society change over time, and Florida Realtors\u00ae updates its forms every few years to respond to those changes,\u201d says Juana Watkins, Florida Realtors vice president of law and policy and general counsel. \u201cA great deal of time and energy went into these updates. The Realtor and attorney members of the Joint Statewide Realtor Attorney Committee dedicated hours and hours of their time, and they deserve our gratitude.\u201d Watkins says no contract can ever be perfect as long as the world keeps changing, but the FR\/Bar contract has been tested over the years, and many of the new updates originated as suggestions from Realtor members. Major FR\/Bar updates Paragraph 8, which addresses how the purchase will be paid for, contains many updates. Spend time familiarizing yourself with the changes, so that you\u00a0 understand buyers\u2019 and sellers\u2019 responsibilities when the new contract goes into everyday use. 8(b) \u2013 Two tasks are to be completed during the \u201cLoan Approval Period.\u201d As before, the buyer must obtain\u00a0 approval for financing as described in Paragraph 8b. New to the contract, however, is that the buyer\u2019s lender must receive a satisfactory appraisal before the \u201cLoan Approval Period\u201d expires \u2013 the first time a FR\/Bar contract specified this. (Note: The word \u201cappraisal\u201d includes appraisals and alternative valuations.) Why the change? The change was made to expedite receipt of the appraisal if required by the buyer\u2019s lender. Under the current contract, a low appraisal could derail a transaction as late as the closing, if that\u2019s when the appraisal was completed. Although a low appraisal can still derail a transaction, if it is received before expiration of the Loan Approval Period, the property can be returned to the market sooner and a new buyer found. 8(b)(i) \u2013 This subsection redefines \u201cLoan Approval.\u201d This term now includes two components: that a buyer is approved for the financing described in the contract, and that the lender received a satisfactory appraisal if one is required. Consequently, if a buyer is approved for financing but the approval is conditioned upon an appraisal to be completed in the future, this will not be considered \u201cLoan Approval.\u201d Unlike the current contract, per the revision, an approval that contains a condition that the buyer must sell another property is considered \u201cLoan Approval,\u201d providing Rider V is made part of the contract. Why the change? If the seller agrees to a buyer\u2019s offer that includes Rider V, the seller is now aware that the buyer\u2019s offer is contingent on the buyer selling another property. 18, Standard O \u2013 Delivery notice methods changed. In addition to current options \u2013 mail or personal delivery \u2013 notices may also be delivered by fax or email. However, certain electronic media delivery previously provided for in the contract was deleted. This is noteworthy because it means texts cannot be used to provide notice for these contracts. The change was made because texts can disappear over time, making them unreliable as evidence to prove that a notice was delivered. Examples of other FR\/Bar changes \u201cThis article provides an overview of major forms changes but should not be considered a substitute for reading the new contracts and understanding how even small changes might impact some of your transactions,\u201d says Watkins. \u201cAs always, Florida Realtors Legal Hotline is available as a free member benefit, and our staff lawyers will be happy to offer further education on the changes.\u201d \u201cPersonal Property\u201d now includes thermostats, doorbells, television wall mounts and television mounting hardware, mailbox keys, and storm protection items and hardware \u2013 and intercoms were deleted. A critical component of closing \u2013 that all funds required for closing are received by the closing agent and collected pursuant to STANDARD S\u201d \u2013 has now been included in the paragraph that defines closing.\u00a0\u00a0 An extension of the closing date based on CFPB (Consumer Finance Protection Bureau) delivery requirements was reduced from up to 10 days to 7 days, and it was clarified that this extension is automatic only if the loan was approved and through underwriting prior to the originally agreed upon closing date. The occupancy clause now covers disclosure of existing seasonal or short-term vacation rentals \u2013 or if such rentals are intended if the occupancy would take place after closing. A buyer has an obligation to keep the seller informed of the status of a loan application, appraisal, loan approval and property-related conditions, if the seller requests this information in writing. The buyer can now wait until the end of the \u201cLoan Approval Period\u201d to inform the seller, in writing, that the loan was approved. In the current version, the buyer had to \u201cpromptly advise\u201d the seller. One item was added to costs paid by the seller: FIRPTA withholding and reporting (FIRPTA applies to transactions with foreign sellers). Special assessments imposed by special districts will be prorated and not negotiated in Paragraph 9f. Watercraft lifts and related equipment are now items subject to the buyer\u2019s inspection that should be in working condition (Residential Contract only); also, a change allows sellers to<\/p>\n","protected":false},"author":4,"featured_media":5542,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/posts\/5541"}],"collection":[{"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/comments?post=5541"}],"version-history":[{"count":0,"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/posts\/5541\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/media\/5542"}],"wp:attachment":[{"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/media?parent=5541"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/categories?post=5541"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/tags?post=5541"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}

\n <\/p>\nUpdates: Florida Realtors\/Florida Bar Residential & AS IS Contracts<\/div>\n <\/a>\n <\/h2>\n