Market Conditions Advisory
Given the real estate market in recent years, this form was developed to advise that the price a buyer is willing to pay and the price a seller is willing to accept for a specific property rests solely with the individuals involved in the transaction. The form states in part:

The real estate market is cyclical and real estate values go up and down. The financial market also changes, affecting the terms on which a lender will agree to loan money on real property. It is impossible to accurately predict what the real estate or financial market conditions will be at any given time.

The ultimate decision on the price a Buyer is willing to pay and the price a Seller is willing to accept for a specific property rests solely with the individual Buyer or Seller. The parties to a real estate transaction must decide on what price and terms they are willing to buy or sell in light of market conditions, their own financial resources and their own unique circumstances.

The parties must, upon careful deliberation, decide how much risk they are willing to assume in a transaction. Any waiver of contingencies, rights or warranties in the Contract may have adverse consequences. Buyer and Seller acknowledge that they understand these risks.

Further, the form clearly informs the parties that they assume all responsibility should the return on investment, tax consequences, credit effects, or financing terms not meet their expectations.

Similar language has been added to the Buyer Advisory, which is available on AARonline.com and will be considered for incorporation into the AAR contracts at the next revision.
(Note: Thanks to workgroup members: Martha Appel, Wednesday Enriquez, Jerome King and James “J.T.” Tsighis.)

AS IS Addendum
The AS IS Addendum has undergone a few minor revisions for clarity. Line 16 previously read “Buyer retains the right to cancel the Contract pursuant to Section 6j.” This line was revised to “Buyer retains the rights pursuant to Section 6j” to clarify that the buyer retains both options in Section 6j of the residential contract: (i) cancel immediately or (ii) allow the seller the opportunity to correct any of the items disapproved. In addition, line 31 was revised to “Buyer acknowledges that Buyer is hereby advised to seek appropriate counsel regarding the risks of buying a property in ‘AS IS’ condition,” to eliminate any argument that the buyer was never advised. Finally, lines 37 – 40 were bolded to further emphasize the hold harmless provisions.
(Note: Thanks to workgroup members: Jerome King, Martha Appel, Jim Sexton, Gayle Henderson,
Ron Houston, Tahona Epperson and Margie O’Campo de Castillo.)

Buyer’s Inspection Notice and Seller’s Response (BINSR) Form
A line for the property address was added to the top of page two due to member reports that, on occasion, page two of the BINSR is separated from page one. This addition will allow brokers to easily match the BINSR pages.

Form Revisions Are an On-Going Process
The AAR Risk Management Committee considers recommendations for new forms and form revisions at virtually every meeting. Although the Committee does not authorize every recommended form or revision, each suggestion is carefully considered. A workgroup is currently in the process of revising the Buyer-Broker Exclusive Employment Agreement, and other form revisions will likely be undertaken before the next form release date in February 2010.