EFFECTIVE JANUARY 01, 2018
Both St Louis Association of Realtors and Missouri Association of Realtors introduced updated real estate contracts effective 01/01/2018. The purpose for these changes is to keep pace with legal and technological requirements/advancements.
Taking a look at the changes for the St Louis forms:
• The Listing Contract (LC), Residential Sales Contract (RSC) and Special Sales Contract (SSC) now have the following verbiage added: “The text of this form may not be altered in any manner without written acknowledgement of all parties.” This is to prevent ‘doctoring’ of the contracts with PDF Writers that can mimic the typeface and size and language. Any and all changes must be initialed by all parties.
• The Listing Contract also now includes verbiage addressing Foreign Investment (FIRPTA). The seller needs to declare he/she is not a foreign person.
• The Residential Sales Contract Paragraph 2 Inclusions and Exclusions has been updated to address fixtures removing the wording “such as flat screen tv’s” and replacing it with electronic equipment in the introduction of the section. There are also changes to the itemized items for the purpose of clarification.
• RSC & SSC Paragraph 3 includes clarification for Earnest Money. When completing the form, the agent needs to check a box that he/she physically has the check or it will be sent to the escrow agent.
• RSC & SSC Paragraph 4 Method of Finance now includes a dedicated section for Seller Paid Closing Costs. No need to use the Special Agreements any more.
• RSC & SSC Paragraph 5 Closing and Possession clarifies possession and the exchange of keys with a check box for closing or a time and date “but in no event prior to Closing as defined above…..”
• RSC Paragraph 7 is now a Franchise Disclosure.
• RSC Paragraph 9 & SSC Paragraph 8 Adjustments and Closing Costs now includes wire protection letter costs.
• RSC Paragraph 16 & SSC Paragraph 11 now called Miscellaneous Provision and combines the previous sections relating to Time is of the Essence, Binding Effect, Governing Law and Entire Agreement.
• RSC Paragraph 17 & SSC Paragraph 14 renamed Foreign Investment (FIRPTA). Seller confirms he/she is not a foreign person…
• RSC Paragraph 22 & SSC Paragraph 19 renamed Square Footage Disclosure. “Broker is not an expert….”
• RSC Paragraph 23 & SSC Paragraph 21 renamed Relationship & Communications Disclosures. Providing greater detail as to Licensee Personal Interest Disclosure.
• Both Residential and Special Sales Contracts now have a requirement for all parties to initial the bottom of each page with the exception of the respective last pages.
• For standardization purposes, the additional verbiage added to address Licensee Personal Interest Disclosure have been included in the Relationship Disclosure Addendums.
As a reminder, it is a violation of Missouri law to use forms for which the approval has been withdrawn. The association will not defend the use of withdrawn forms. Generally, E&O insurance policies require the use of approved forms.
If you have any questions, please do not hesitate to contact your Client Care Specialists with Mastroianni Consulting at
(636) 220-7830 or firstname.lastname@example.org