10/10/2014 THE NEW 2015 RESIDENTIAL SALES CONTRACT (VIRGINIA) Why the Change?

Transcription

1 THE NEW 2015 RESIDENTIAL SALES CONTRACT (VIRGINIA) RYAN H. STUART MBH SETTLEMENT GROUP OLD TOWN ALEXANDRIA A new Contract is a Good Thing. I will survive this change and my career as a Realtor will continue to flourish. If I panic, I can always pick-up the phone and call Ryan, my Broker, or NVAR. - o - I m good enough, I m smart enough, and gosh darnit, people like me. REPEAT AFTER ME.... Why the Change? After 20 years, the concept of a multi-jurisdictional Contract has run its course. Too Much Confusion Too Much Liability Reduce the overall length of the Contract 1

2 Provision/Paragraph Old RSC Contract New VA Contract Real Property 1 1 Jurisdictional Addendum 2 n/a Price & Financing (now Price & Specified Financing) 3 2 Deposit 4 3 Old Contract vs. New Contract Down Payment 5 5 Settlement 6 4 Property Maintenance & Condition 7 10 Access to Property 8 11 Utilities 9 12 Personal Property & Fixtures Financing Application Alternate Financing Purchaser s Representations Termite Inspection (now Wood-Destroying Insect Inspection) Damage or Loss Title Possession Date Fees Broker s Fee Adjustments Attorney s Fee Performance Default Other Disclosures Assignability Definition Miscellaneous Void Contract Home Warranty Time is of the Essence Entire Agreement Electronic Signatures 32 n/a Provision/Paragraph Old VJA New VA Contract Old Virginia Jurisdictional Addendum Vs. New Contract Definitions (now Delivery) 1 6 Financing 2 n/a Virginia Residential Property 3 7 Disclosure Act Smoke Detectors 4 17 Target Lead-Based Paint Housing 5 18 Virginia Property Owners Association 6 8 Act Virginia Condominium Act 7 9 Notice to Purchaser Regarding RESAA 8 4 (now Settlement) Notice of Possible Filing of Mechanics 9 22 Lien Additional Fees Arbitration Real Estate Licensed Parties Additions Disclosure of Sales Price to Appraiser Other Terms DATE OF OFFER OLD REGIONAL SALES CONTRACT: NEW RESIDENTIAL SALES CONTRACT (VIRGINIA): This sales contract ( Contract ) is made on ( Contract Date )... This sales contract ( Contract ) is offered on ( Date of Offer )... 2

3 Date of Offer 10. PROPERTY MAINTENANCE & CONDITION Seller will deliver the Property... in substantially the same condition to be determined as of Date of Offer OR Date of home inspection OR Other:. 25. BROKER S FEE Seller irrevocably instructs Settlement Agent to pay Broker compensation ( Broker s Fee) at Settlement as set forth in the listing agreement and to disburse the compensation offered by Listing Company to Selling Company in writing as of the D ate of Offer, and the remaining amount of Broker s compensation to Listing Company. 2. Price & Specified Financing NOW INCLUDES PERCENTAGES (%) DEFINITION OF SPECIFIED FINANCING M ODIFIED TO INCLUDE NOT ONLY LOAN AMOUNT AND LOAN TYPE, BUT NOW ALSO TERM OF YEARS AND INTEREST RATE. 3. DEPOSIT 3

4 3. DEPOSIT Purchaser s deposit ( Deposit ) in the amount of check and/or $ by note due and payable on shall be held b y ( Escrow A g ent ). P urcha ser h a s delivered OR will deliver the Deposit by days after D a t e o f R a t i f i c a t i o n. DELIVERY 6. DELIVERY M ORE U SER- FRIENDLY Deliveries will be sent as follow: A. Addressed to Seller at the Property Address unless otherwise specified below by United States mail, hand delivery or courier service or Fax OR (Check all that apply): To Seller: NO M ORE COURTESY COPIES 4

5 HOA & CONDO DOCS 8. VIRGINIA PROPERTY OWNER S ASSOCIATION ACT 9. VIRGINIA CONDOMINIUM ACT HOA ( 8) For delivery of the Packet or the Notice of nonavailability of the Packet, Purchaser prefers delivery at if electronic copy or if hard copy. *The Purchaser should fill-in both physical address and address. Condo ( 9) For delivery of the Certificate, Purchaser prefers delivery at if electronic copy or if hard copy. *Though not required, the Seller is always prudent to get written acknowledgment of receipt. ACCESS TO PROPERTY REGIONAL SALES CONTRACT 8 PURCHASER AND/OR PURCHASER S REPRESENTATIVE WILL HAVE THE RIGHT TO MAKE A FINAL INSPECTION WITHIN 5 DAYS PRIOR TO SETTLEMENT AND/OR OCCUPANCY, UNLESS OTHERWISE AGREED TO BY PURCHASER AND SELLER. 5

6 ACCESS TO PROPERTY RESIDENTIAL SALES CONTRACT (VIRGINIA) 11 PURCHASER AND/OR PURCHASER S REPRESENTATIVE WILL HAVE THE RIGHT TO MAKE WALK-THROUGH INSPECTION(S) WITHIN 7 DAYS PRIOR TO SETTLEMENT AND/OR OCCUPANCY, UNLESS OTHERWISE AGREED TO BY PURCHASER AND SELLER. 21. TITLE Old Regional Sales Contract 16 TITLE IS TO BE GOOD AND MARKETABLE, AND INSURABLE... OTHERWISE, PURCHASER MAY DECLARE THIS CONTRACT VOID, UNLESS THE DEFECTS ARE OF SUCH CHARACTER THAT THEY MAY BE REMEDIED WITHIN 30 DAYS BEYOND THE SETTLEMENT DATE. 6

7 New Residential Sales Contract (Virginia) 21 TITLE IS TO BE GOOD AND MARKETABLE, AND INSURABLE... OTHERWISE, ON SETTLEMENT DATE, PURCHASER MAY AT PURCHASER S OPTION EITHER (A) DECLARE THE CONTRACT VOID IN WRITING, OR (B) MUTUALLY AGREE TO EXTEND SETTLEMENT DATE UNDER TERMS ACCEPTABLE TO BOTH PARTIES. ELECTRONIC SIGNATURES 32 OF THE REGIONAL SALES CONTRACT ALLOWED THE PARTIES TO CONSENT TO ELECTRONIC SIGNATURES, BUT REQUIRED MUTUAL CONSENT VIA SEPARATE INITIALS TO DO SO. ELECTRONIC SIGNATURES THE UNIFORM ELECTRONIC TRANSACTION ACT (UETA) ALLOWS FOR THE USE OF ELECTRONIC SIGNATURES IF: SEPARATE AGREEMENT AMONG THE PARTIES OR CONSENT CAN BE INFERR ED BY THE PARTIES CONDUCT 7

8 Financing Addenda Conventional, FHA & VA Financing Addenda have all removed the list of 7 non-exclusive examples/scenerios for Purchaser s Default. That s It... You Made It!!! GOOD LUCK AND WE LL SEE YOU AT THE SETTLEMENT TABLE! 8