SFAR is pleased to announce that the following revised forms are now available on all electronic platforms with the exception of the Listing Agreement, which is available on the SFAR and Instanet platforms only. The revised forms can be found by logging into the the SFAR website and clicking on the San Francisco Forms library under the Documents Tab.
Key revisions of the forms are summarized below:
1. "Contract for the Sale and Purchase of Real Property": Paragraph 1 refined to refer to specific loan types and terms and with the addition of a new defined term "COE" for Close of Escrow; Paragraph 5 adds a provision automatically extending the close of escrow to the next business day where COE otherwise would occur on a weekend or legal holiday; Seller's Initials at bottom of all pages moved to the right side; Paragraph 12, Structural Pest Control Inspection now an automatic right under the general Property Inspection provision with option to waive it, Sale of Buyer's Property provision moved to follow Rental Property, New Paragraph 20 re Statutory Pipeline Notice, Revision to Arbitration and Liquidated Damages to create boxes around the initial blocks and move the Seller's box to the right, Addition of new Paragraph 31 confirming no legal advice by brokers in connection with the arbitration and liquidated damages clauses and that initialing by both parties to the contract is necessary to make these clauses operative but without both initials the contract's other provisions are in effect; Paragraph 34, no longer an automatic termination, Seller now holds the right in their discretion if Buyer fails to perform and Revision to the Compensation Paragraph at the last page.
2. "Removal of Conditions": Changes made to conform to the changes made to the Purchase Agreement and addition of provision confirming the buyer removes conditions based upon satisfaction with the matters investigated;
3. "Notice to Perform or Remove Conditions": Same as above and confirms Seller holds the right to terminate, not that the contract automatically terminates;
4. "Exclusive Right to Sell Listing Agreement": Revisions to Paragraph 5 re the Obligation to Pay Commission to address questions raised for all similar listing agreements by a court decision.
And, members are reminded that only up to date versions of SFAR's standard forms should be used in future transactions.