News Bulletin - September 7, 2021
Buyer's Conditions Updates Effective January 2022
Effective January 3rd, 2022, significant changes are being made to the process of satisfying buyer's conditions in the Agreement of Purchase and Sale. The new process will require a buyer to provide the seller or seller's agent with written confirmation that they have satisfied their buyer's conditions before the condition deadline.
Education and Resources
The Commission has created a training video about the changes to buyer's conditions. All licensees are required to watch the video and must clearly understand the new process prior to January 2022.
For more information on the changes to buyer's conditions, visit the Commission's website.
Brokers and managing associate brokers were notified of the changes in July so that they could learn the new process and support their brokerage's licensees in transitioning to the new process.
New and Revised Forms
Effective January 3rd, 2022, the following forms will change to reflect the new process:
- Form 400: Agreement of Purchase and Sale, clause 4.1
- Form 402: Resale Condominium Schedule, clause 2.2
- Form 403: Agreement of Purchase and Sale for New Construction, clause 4.1
- Form 404: Vacant Land Schedule, clause 2.3
- Form 406: Mini/Mobile Home Schedule, clause 3.2
- Form 407: Multi-Unit Residential Income Property Schedule, clause 2.1
- *NEW* Form 408: Buyer Waiver of Conditions
- Form 431: Water and Septic Schedule, clause 2.1
The Commission has created Form 408 for buyers to provide as written notice that they are satisfied and waiving their conditions. The revised Agreement of Purchase and Sale will require Form 408 to be provided to the seller or seller’s agent on or before the condition deadline.
The revised forms become mandatory on January 3rd, 2022. Until January 3rd, licensees must continue using the current forms and following the original process for satisfying buyer's conditions.
Additional Minor Forms Changes
The Board of Directors recently approved minor changes to four forms as recommended by the Forms Committee. The forms affected include:
- Form 201 - Seller Designated Brokerage Agreement
- Form 400 - Agreement of Purchase and Sale
- Form 406 - Mini/Mobile Home Schedule
- Form 407 - Multi-Unit Residential Income Property Schedule
The revised forms will become mandatory on January 3rd, 2022.
The NSAR has been provided with the forms so they can be added to WEBForms®. To view the forms changes, CLICK HERE.