AAR Miscellaneous New and Revised Forms | January 2011

Posted on January 1, 2011 by Michelle Lind, Esq.

The  Miscellaneous Forms Workgroup was chaired by Martha Appel and included Larry Hibler, Jim Amdahl, Kathy  Sanford, Paula Serven, Liz Echeverria and AAR staff Christina Smalls and Jan  Steward. This group worked on five miscellaneous forms: Multiple  Counter Offer, Multiple Offer/Counter Offer, Counter Offer, Residential Buyer’s  Inspection Notice and Seller’s Response (BINSR) and Short Sale Addendum to the Residential  Resale Real Estate Purchase Contract.

The Multiple Counter Offer form was revised  to clarify when the seller was agreeing to the terms of the Multiple Counter  Offer or submitting an additional counter offer. The Multiple Offer/Counter Offer form is a new form that essentially  mirrors the Multiple Counter Offer form. This form is intended for use by  buyers making offers on multiple properties. The Counter Offer form, which has  remained unchanged since 1996, was revised for consistency with the Multiple  Offer/Counter Offerand Multiple Counter  Offerforms. The acceptance language  in all three forms now references the Notice section of the Contract (Section  8m) for acceptance delivery purposes.

The Residential  Buyer’s Inspection Notice and Seller’s Response (BINSR) form was  expanded to three pages by adding additional lines. The additional lines were  added to respond to members comments that more  space was needed for a seller to respond to a buyer’s notice of items disapproved.

A  small but significant revision was made to the Short Sale Addendum to the Residential Resale Real Estate Purchase  Contract. The line in the Short  Sale Addendumrequiring the buyer to  pay all loan costs was removed because it is becoming more common that the  seller will pay some loan costs in a short sale transaction. As a result, the  parties responsible for paying loan costs in a short sale transaction will be  as set forth in the Contract. As an aside, a short sale workgroup will be  formed in the near future to again discuss AAR’s short sale forms, as well as  other issues arising from this type of transaction, and recommend any actions  that AAR might take to make a positive impact on the industry in this regard.