The revised 2012 standard forms addressed several important issues brought forward by REALTORS® and the real estate boards.
The first involves the email notices clause. When first introduced by OREA, the clause, entitled “Email Delivery of Documents and Notices,” could be included in Schedule A of the standard agreements of purchase and sale. This is no longer necessary as the following forms now include this clause:
- Form 100: Agreement of Purchase and Sale
- Form 101: Agreement of Purchase and Sale – Condominium Resale
- Form 102: Agreement of Purchase and Sale – Cooperative Building Resale
- Form 103: Option to Purchase
- Form 110: Agreement of Purchase and Sale
- Form 115: Agreement of Purchase and Sale
- Form 140: Assignment of Agreement of Purchase and Sale
- Form 141: Assignment of Agreement of Purchase and Sale – Condominium
- Form 400: Agreement to Lease – Residential
- Form 500: Agreement of Purchase and Sale – Commercial
- Form 501: Agreement of Purchase and Sale Condominium Resale – Commercial
- Form 502: Agreement of Purchase and Sale for Business in Leased Premises
- Form 510: Agreement to Lease – Commercial
- Form 511: Agreement to Lease – Commercial
- Form 515: Agreement to Sub-Lease – Commercial
Please be careful when using email to distribute documents and notices. For more information, go to http://www.oreablog.com/2011/09/youve-got-e-mail.
A second issue addressed by the committee involves ownership of information, such as brochures and other documents, included and distributed with a listing. These documents may have been created by other parties. Real estate boards expressed concern regarding the authority or permission to distribute this material.
Consequently, the committee revised the “Use and Distribution of Information” clause in the following forms:
- Form 200: Listing Agreement – Authority to Offer for Sale
- Form 210: Listing Agreement – Authority to Offer for Sale
- Form 520: Listing Agreement – Commercial – Authority to Offer for Sale
- Form 525: Listing Agreement – Commercial – Authority to Offer for Lease
- Form 530: Listing Agreement – Commercial – Authority to Offer for Sub-Lease
A third issue relates to Form 320: Confirmation of Co-operation and Representation, which confirms the amount of commission to be paid by the listing brokerage to the co-operating brokerage.
Discrepancies have occurred. For example, the Listing Agreement states that the co-operating brokerage will receive XX%. When Form 320 is completed, a different amount is inserted. No one notices the discrepancy until it is time to pay the commission.
In the hopes of resolving this issue, the committee revised the wording of sections 3(a)(1) and 3(b)(1). A prompt was added to the blank section of the form where the amount of commission is inserted – “Commission As Indicated In MLS® Information.”
Finally, because of ongoing privacy requirements, the committee added a disclaimer in Form 260: Residential Market Comparison Guide.
Stay tuned for a future blog where we will review the Standard Clauses.
For More Information
The forms are posted in the Members Only section of OREA’s website (www.orea.com).