Paragraph 21. NOTICES is often not completed upon execution of the final contract. We’ve heard many different reasons for leaving it blank over the years. A strong contender is the agent simply doesn’t readily have the information at the time of the offer. Some agents choose to list their own address, email, and phone number. Other agents even fear listing their client’s information. The One to Four Family Residential Contract states that all communication from one party to the other must be in writing and are effective when emailed, mailed, hand delivered, or faxed to the contact info listed in the blanks of paragraph 21.
Here are the top 3 reasons you should complete this very important paragraph of the contract.
1. In today’s real estate world we must adhere to the regulations of the Consumer Financial Protection Bureau (CFPB) . Due to this, lenders will require an address for the buyer(s) and seller(s) on every Closing Disclosure (CD). The completion of this information allows lenders to remain compliant with TILA-RESPA Integrated Disclosure (TRID) guidelines. It can delay lender approval and delivery of the document if this information is not completed timely.
2. As stated in the contract, Paragraph 21 is where notices are sent to the parties during the contract to close timeline. Here at Independence Title Company we offer to forward many items on behalf of the agents and/or the seller, per the contract. We cannot do that without the contact information. Some examples may include the survey, HOA resale package, restrictions, title commitment, and ordering the Home Warranty .
3. Time sensitive action is required in most provisions of the contract. Listing yourself as the point of contact can cause a delay in the delivery of items and/or increase your liability to your client.
If you are hesitant to put buyers’ and sellers’ contact information in Paragraph 21, as long as you’re using the contact information to provide notice to the other party you’re not soliciting another agent’s client. However, we do offer an alternative if not listing contact info is important to you or your company. We provide a Buyers/Sellers Information sheet with the receipted contract. This information sheet is not shared and is kept in our secure file. The completed form can be mailed, emailed or faxed back to us. For further information, please reach out to your Escrow Team or your Business Development Representative.