REINCheck

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VO [00:00:06] You're listening to REINCheck with Andrea Rice, Contracts and Industry Specialist at REIN, where you get the latest member news and information delivered straight from the source, REIN MLS.

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Andrea Rice [00:00:20] Hello and welcome to REINCheck. I am your host, Andrea Rice, and today we are checking in with REIN Sales Managers Advisory Committee members Tanya Monroe and Courtenay Mason to discuss the form changes that were released on July 3rd. Tanya, Courtney, thank you so much for being here today.

Tanya Monroe [00:00:38] Thank you.

Courtenay Mason [00:00:39] Thank you for having us, Andrea.

Andrea Rice [00:00:41] Yeah, so exciting. So, eight forms were updated and released on July 3rd. And this is pretty exciting because we typically have 20 or more forms getting updated semiannually. So, this is kind of a welcome relief. But there were some big changes. The biggest change comes with our two new forms. So, Tanya, do you mind starting out with the common interest community forms?

Tanya Monroe [00:01:08] No problem, Andrea. There are two great changes and I'm excited as well. And those forms are CIC hyphen one. And let's back up a minute. The CIC stands for Common Interest Community. So, guys, let me tell you, with this umbrella. Which is, just think of this. At the top of the umbrella, we used to have the CIC and within that, beneath that will be your normal what you're used to. Condos, POAs, and Co-ops. So just remember, the CIC is the word. So, getting back to the form, the first change on the form was the CIC one, and that replaces the Condominium Disclosure Package addendum we formally call con res one, and the Request for Property Owners Association Disclosure Packet Addendum, formerly known as POA one and Co-op Interest Addendum to Purchase Agreement Co-op one. You get it now? This is why I'm excited. All combined. One form. Okay, then of course, with that form, the CIC one, that is your request for the CIC. Whatever type property we're dealing with. Then, of course, we've got to have another form for receipt. And that is your CIC two. Love it. Replacing the buyer's acknowledgment receipt of condominium disclosure package, conres two and buyer's acknowledged receipt of property owners association, POA two and Buyer Acknowledgment Co-op Interest Package Disclosure. Wow. See why I'm excited again? So the condo the POA the co-op they're all under what? CIC. And Andrea, just for our audience, we had Brandon Allred our attorney and he really did an excellent job in explaining these changes and these forms. And you can go to REINMLS.com, and you can check out the broker symposium, which again really highlights these changes that will occur July 3rd.

Andrea Rice [00:04:09] Yes. Thank you, Tanya. And that is by far the biggest change and the update to Senate Bill 1222, which prompted these new forms. Really, it made it so we had to make some changes on some other forms to incorporate these changes throughout the REIN library. So, Tanya, can you give our members an insight into some of the other forms that were affected by this change?

Tanya Monroe [00:04:35] Be glad to, Andrea. And as you stated with the Senate Bill 1222, we did have to make these changes. And these changes really affected some of our other forms, starting with our purchase agreement. So, I'll try to highlight briefly what those changes were because we did have a few forms that we needed to modify and change. So starting with the purchase agreement, we had paragraph 14 A which is your contingencies. We used to see them for condominiums, POA. This was updated because of that Senate bill. So, within the purchase agreement, you'll see in that paragraph 14, which I, you know, I'm excited. I am excited because it pretty much eliminates like two pages in the contract. You can check it out. So that's a good thing. So that's been modified. Why? Because we're now dealing with the CIC. The other thing that we had to change because of this in the purchase agreement was paragraph 23. We had to update the language to align with that Senate bill so that we could show the notices for the delivery for the condominium, not the condominium, excuse me, the CIC addendum, ok. And of course, we did the purchase agreement, but we have to now go to the Standard New Construction Purchase Agreement. So, we had to do paragraph 13, which is your contingencies. And again, for the Virginia Code Senate Bill 1222. So we made those changes as well. And within the new construction contract, we also had to modify paragraph 27 for the notice so that we included the language for Common Interest Community Disclosure Packet. So that was done. Okay, we can't forget the land. Unimproved land, we had to do the same thing. So, paragraph eight contingencies, we had to update for the code change. So that was done as well for the CIC. And the last one I will mention, last but not least, our Standard Listing Agreement. Yes. So, in paragraph eight, representations, warranties, and agreement, we had to do what? Updated language. So, these were some of the forms that were affected with this code change effective again, July 3rd.

Andrea Rice [00:07:26] Yes. Thank you. And for those of you listening, I hope you've had a chance to check out the new forms and the changes to the forms that Tonya just mentioned. If not, the red lines, the new forms are available on REINMLS.com. So just go in there, take a minute and look at those and, you know, you'll see that a lot of that language, it just really was we eliminated from six forms to the creation of these two new forms. So that's great. And like Tanya said, we were able to eliminate a lot of extra language out of the purchase agreement, new construction, and unimproved lot by really incorporating these new common interest community language from the code. So that was a big chunk of the updates for July 3rd. But that leaves us with a few more changes to cover. So, Courtenay, can you briefly cover the other changes that took effect on July 3rd?

Courtenay Mason [00:08:24] Absolutely. I would love to. And I get the easy part of some of these changes since Tanya did such a wonderful job explaining all of our changes to the CIC. One of the first changes I'll talk about is in the purchase agreement under paragraph 13 B, we addressed VA financing terms that actually changed a while ago now, but we're updating our contract to reflect that. The seller used to have to reimburse the buyer for the cost of a termite moisture inspection and that is no longer the case. Now veteran buyers have the option to cover that expense themselves. So, we removed that language from the contract that dictated that, and the agents and their clients will be able to determine what suits their interests when making the offer. We also made a couple of updates to the selling firm Brokerage Fee Notice page that is the com dash one form. And on that form, we had a line item for an under contract date. But typically, at the time of when a selling agent is making an offer to purchase on a property for a customer or client, we were not aware of what that under contract date was going to be at that time. So, we removed that line item from that form because it was not necessary, and it provided an easier option for us to ratify that agreement without that line on the selling firm brokerage fee notice. So, what you will continue to use is page one of the purchase agreement for ratification date and the under contract date will no longer be needed on the selling for brokerage fee form. We also did a couple of updates to the standard listing agreement, and that's on paragraph nine. We added verbiage under the miscellaneous paragraph to cover the following: to the extent any handwritten or typewritten terms in the agreement conflict with or are inconsistent with the printed terms of the agreement, the handwritten or typewritten terms shall control. So, this just means that if there are two things on this listing agreement that conflict with each other, if there's something that's handwritten or typewritten by the agent or client that will supersede or be the controlling language for the [inaudible]. And I think that covers some of the other minor changes that we included in this form release.

Andrea Rice [00:10:55] Yes. Thank you, Courtenay. And that covers all of the resale form changes that took effect July 3rd. And like I said, it's a little bit of a lighter load than we normally have, which is great. Now, there were just a couple of changes for the rental forms, and that was with the lease. So, I'd like to mention those now in paragraph four A of the lease. It was just changing the code reference to update the correct code. And then in paragraph six A of the lease, there were some changes in response to House Bill 1702, and those edits to that paragraph were made in an effort to ensure that the minimum time frames are observed when there is a change in the terms and conditions of the lease. And attorney Brandon Allred covers that code change and the reasoning behind this update to the release in the broker symposium video that we mentioned earlier. So, I really highly recommend checking that out so that you can have a more robust understanding of the rationale behind all of these changes. Tanya, Courtney, do you have anything else that you would like to add?

Tanya Monroe [00:12:07] I would like to just add one thing concerning the request for the Common Interest Community Resale certificate, which is CIC one. Sometimes, we know in this area, you might have a property that could be a condo and both a POA. So on the form, it states duplicate and delivery for each CIC community.

Andrea Rice [00:12:39] Thank you. Thank you for pointing that out.

Courtenay Mason [00:12:41] Absolutely. That's a great point to add. I'd also like to mention that the SMAC committee and the PMAC committees we meet all year long to ensure that our forums are up to date with Virginia Code. And we love reviewing feedback from members and we welcome feedback at all times. And I'm sure Andrea will let you all know how you can reach us, and we welcome your feedback. Thank you for having us today.

Andrea Rice [00:13:06] Thank you. Thank you, Tanya. Thank you, Courtenay. And thank all of you for listening. As always, I appreciate you taking the time to stay informed. If you have any suggestions for SMAC or PMAC, please submit those to SMAC@reininc.com and I will make sure that your suggestion gets on an upcoming meeting agenda. And check out the broker symposium video that is currently available on RINMLS.com for more in-depth commentary on the form changes mentioned here today. If you missed any of the previous episodes of REINCheck, I do invite you to go to REINMLS.com and take a listen. Make sure you subscribe so that you get future episodes delivered directly to you when they are released. Thank you and have a great rest of your day.

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VO [00:13:47] You've been listening to REINCheck with Andrea Rice. Stay in the know from those who know. Delivered straight from the source, REN MLS.

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