Below is a summary of some important changes that have been made to several NC REALTOR® Standardized forms. All NC REALTORS® must implement these new forms no later than August 31, 2022.
Changes to Offer to Purchase and Contract (Form 2-T)
Must Indicate if Sale Includes a Mobile Home
Location: Paragraph 1(c)
Change: New checkboxes have been added for the parties to indicate if the sale includes a mobile home.
New Paragraph Regarding Fuel Tanks
Location: Paragraph 7(d)
Change: This new paragraph consolidates all the information regarding fuel tanks into one paragraph. Seller representations regarding fuel tanks in the listing agreement have been copied to this paragraph so that this information is now in the contract. Additionally, some wording has been added to specify that the seller is not allowed to remove any fuel from the tank or resell any fuel in the tank prior to closing.
Changes in Buyer/Seller Obligations Related to Owner’s Associations/HOAs
Location: Paragraph 9
Change: The wording has been changed here to indicate that the seller is responsible for paying any fees related to transferring ownership with the HOA. Additionally, some specific expenses that are the buyer’s responsibility have been listed. Any expenses not specifically listed here will be the sole responsibility of the seller.
Refund of Due Diligence if Property is Damaged Before Closing
Location: Paragraph 11
Change: This paragraph has been amended to indicate that the buyer will get a refund of both their due diligence money AND earnest money if the property is materially damaged before the closing, and they elect to terminate the contract. Previously, the wording indicated that the buyer only was due a refund of their earnest money.
Right of Buyer to Sue for Specific Performance in the Event of Seller Breach
Location: Paragraph 23(b)
Change: Wording has been added to specifically state that the buyer has the right to sue the seller for specific performance if the seller attempts to breach the contract.
New Property Management Forms
Residential Rental Contract (Ground Lease) (Form 414-T)
This new form is designed to be used by property managers who rent lots in mobile home parks.
Early Termination of Residential Rental Contract (Form 426-T)
This new form is designed to be used when a tenant wishes to terminate their lease before the end date.
Demand for Possession (Form 427-T)
This new form is designed to document a property manager’s demand for possession of a property prior to filing for an eviction, which is a statutory requirement of all eviction proceedings.
“Sight Unseen” Addendum (Form 446-T)
This form is designed to be used when the tenant is leasing a space that they have not physically seen prior to signing the lease.
New Commercial Forms
Guaranty Addendum (Form 595-T)
This new addendum is designed to be used when a third party is guaranteeing the tenant's obligations under the lease agreement.
Memorandum of Lease (Form 595-T)
This new form is designed to be used for leases 3 years in length or longer and it meets the requirements to be filed with the Register of Deeds in order to protect the tenant against the landlord’s lien creditors or purchasers.
Copies of new forms have been provided to all approved forms software vendors. REALTORS® must terminate the use of old forms by August 31, 2022.
What do you think about these changes to our forms? Let us know in the comments below or share with a colleague in an upcoming CE Class!
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