Forms 2020: New Standard Forms and Clauses
CATEGORY: Standard Forms
TAGS: Authority to Lease – Residential Co-Listing Form - Separate Representation Fall 2020 Standard Forms Release General Release and Authorization to Pay Deposit Funds Individual Identification Information Record Lockbox Acknowledgement, Consent, Release and Indemnity Material Latent Defects Notice of Condition Waiver Declaration/Fulfillment (Contract of Purchase and Sale)
By Ellen Baragon, Guest Contributor
As part of BCREA’s Fall 2020 Standard Forms Release, seven new standard forms and three new clauses will be released on September 16, 2020.
The following is a summary of the upcoming new standard forms and clauses with brief descriptions outlining why they were created and their intended use.
1. New Forms
Authority to Lease – Residential
This new form provides REALTORS® with a service agreement that can be used if they are listing a residential property for lease on behalf of an owner/landlord and they want to list the property on the MLS®.
Individual Identification Information Record
This one-page form has been developed for low-risk transactions when Brokerages and Realtors are identifying their clients (or taking reasonable steps to identify unrepresented parties) that they meet face-to-face.
Co-Listing Form – Separate Representation
This form has been developed to allow multiple sellers with opposing interests to engage different designated agents to represent them separately in the sale of their property under one MLS® listing.
General Release and Authorization to Pay Deposit Funds
This form was requested and created to help Realtors deal with collapsed deals.. This form should be used when a sale collapses and all parties agree that has in fact occurred.
It includes a recommendation for clients to obtain independent legal counsel before signing. Once signed, this form will have the effect of severing the contractual relationship between the parties, releasing claims they may have thereunder, and directing where any deposit funds that have been given to the brokerage should be paid.
Lockbox Acknowledgement, Consent, Release and Indemnity Form
This form has been designed as a tool to help Realtors facilitate a thorough discussion with their clients about lockboxes, including providing an overview of their uses and benefits and highlighting the potential risks associated with using a lockbox.
It allows the seller to acknowledge that they have been informed of these risks and provides documentation of the seller’s consent in writing. By signing, the seller releases and indemnifies the designated agent and brokerage from liability in connection with the use of the lockbox.
Notice of Condition Waiver / Fulfillment
The purpose of this form is to create a consistent and predictable form of notice for a party to use to waive or declare fulfilled a subject condition for their benefit in the Contract of Purchase and Sale.
Seller’s Disclosure of Material Latent Defects
The purpose of this form is to support Realtors acting for sellers when complying with their obligations under the Real Estate Rules to disclose material latent defects about the property to the buyer prior to the seller accepting an offer, while also ensuring the seller is aware of the information being disclosed.
The form has been designed as a tool to facilitate a thorough discussion with sellers about their disclosure requirements at common law versus the broader disclosure requirements imposed on Realtors under section 5-13 of the Real Estate Rules.
2. New Clauses
BCREA has developed three new title clauses which can be included in the Contract of Purchase and Sale (CPS) to clarify the notations, charges and encumbrances that will remain on title after closing, to the extent not captured by Section 9 of the CPS.
There are often registrations against title that a seller cannot or does not want to discharge, such as easements, building schemes, ordinary restrictive covenants – there will be others too.
Section 9 of the CPS requires the seller to remove all charges not specifically listed in this clause or otherwise set out in the agreement. Many of these charges affect how an owner can use the property. If the seller's title contains an easement, a building scheme or other charge not listed in Section 9, the seller must remove that charge unless otherwise agreed to in the CPS.
If the seller is not able to (or does not wish to) cause these charges to be removed at closing, these new clauses provide a framework that can be added to the CPS (in addition to Section 9) to set out those notations, charges and encumbrances that will remain on title after completion.
Fall 2020 Standard Forms Release Pre-Launch Package
Click here to view the Fall 2020 Standard Forms Release Pre-Launch Package, which includes advanced copies of the revised forms (watermarked and not for use) along with resource guides. BCREA Access username and password are required.
In addition to the new standard forms and clauses, BCREA will also be releasing:
- A significant number of revised forms. Learn more here.
- Updated signature blocks on more than 20 forms. Learn more here.
If you have any questions about the Fall 2020 Standard Forms Release ask your managing broker or email [email protected].
To subscribe to receive BCREA publications such as this one, or to update your email address or current subscriptions, click here.
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