Did you hear about the form changes adopted in TREC’s November meeting? Me neither…it can be a challenge to sift through the crazy amount of emails we receive daily in this industry. Identifying which ones are important and which ones are a time suck isn’t easy. Oftentimes, I end up picking the time suck emails because they’re flashy, pretty, or catch my eye. Then I end up missing out on something important because I’ve spent my only “email time” reading junk! If you’re like me and missed this information, consider subscribing to our blog. I know what you’re thinking: “But that will be just another email to add to my collection.” We only blog about important changes, useful tips, or up-and-coming things to know. We are a safe bet for your email reading choices.
So, what did you miss? The following forms got a makeover at the end of 2018:
– Third Party Financing Addendum
– Addendum Concerning Right to Terminate Due to Lender’s Appraisal
– Buyers Termination
– Notice of Sellers Termination of Contract
The Third Party Financing Addendum will now require that if the buyer wants to terminate under paragraph 2B, the buyer must give the seller written notice not later than 3 days before the contract’s closing date and must provide the seller written evidence of the lender’s determination. The form was also reformatted with new paragraph lettering vs. numbers to be consistent with the formatting in other TREC forms.
The Addendum Concerning Right to Terminate Due to Lender’s Appraisal didn’t get much of a makeover, just minor word adjustments in an effort to make the form clearer.
The Buyers Termination now has a total of 8 different options to choose from when the Buyer is terminating. The 3 new choices are boxes 3, 6, and 7. Box number 3 is used when the buyer is terminating under the Property Approval section of the Third Party Financing Addendum and includes the verbiage that the buyer has delivered to the seller a written statement from the lender as to why the property isn’t approved. Box number 6 is used when the buyer is terminating based on the Appraisal Addendum. Box option 7 is used when the buyer is terminating under Paragraph 6D of the contract because timely objections were not cured by the end of the cure period by the seller.
The Notice of Sellers Termination of Contract is new as of 8-13-18, but I wanted to include this one just in case you missed that email too! This form has two options for the seller to choose from when terminating the contract. The first option is used when the buyer does not deliver Earnest Money within 3 days. However, keep in mind the seller must terminate before the buyer delivers the Earnest Money, even after the 3-day period has ended. Tricky tricky! The second option is titled “Other”.
All of these forms are now available in your zipForm Plus Library. Be sure to check that your existing templates have updated automatically, a new perk in zipForm! The new forms have mandatory use of March 1, 2019.
Written by: Kelli Burns, Training & Education Specialist at Independence Title