2017 Forms & Revisions
Throughout the year, Missouri REALTORS® carefully monitor changes in the law (from both the courts and legislatures) at the State and Federal levels. We also solicit and consider feedback from members, local boards and other Association of REALTORS® across the country. Our standard forms committees constantly review our library of forms with legal counsel and revise them as necessary (or create new forms). This process ensures that Missouri REALTORS® standard forms are legally compliant and relevant to current market conditions and practices.
2017 New Forms
3. MSC-2010A ~ “Buyer’s Financing Contingency Affidavit”
§5 of our form sale contracts (RES, FRM, LND & COM-2000) is the Financing Section. It provides (in part) that if a Buyer is unable to obtain a loan on or before the Loan Condition Deadline (and doesn’t have a rejection letter from the lender in-hand), the Buyer can submit a notarized affidavit to that effect (to exercise the financing condition and terminate the contract). MSC-2010A is now available to use for this specific purpose (where the Buyer is an individual).
4. MSC-2010B ~ “Non-Individual Buyer’s Financing Contingency Affidavit”
Since all Buyers are not individuals (and MO statutory notary language requirements differ), MSC-2010B was created to serve as an alternative to MSC-2010A. It is to be used in situations where the Buyer is NOT an-individual (e.g., if the Buyer is a LLC or other entity). The linked “redline” above shows how it differs from MSC-2010A.
5. DSC-6000~ “Disclosure of Information Regarding Waste Disposal Site or Demolition Landfill”
This new form was created to cover the "last remaining” mandatory (statutory) disclosure listed on DSC-8000 (our “Seller's Disclosure Statement for Residential Property”). As noted above, DSC-8000 underwent a major overhaul last year. One other thing we did was to set out, up-front at page 1, each of the 3 topics that (if present at a Property) REQUIRE disclosure by statute. We now have separate forms to use (if/when needed) to make disclosures for 1) Meth 2) Lead Based Paint & 3) Waste Disposal/Landfill sites.
2017 Forms Revisions
6. RES-2000 ~ “Contract for Sale of Residential Real Estate”
Revised to cross-reference (at §5, ‘Financing’) the 2 new forms (MSC-2010A & MSC-2010B) discussed above; and to delete (at §15) "completed" in connection w/ delivery of a Seller's Disclosure Statement (further discussed below).
7. MSC-2010 – “Financing Agreements”
Revisions were limited to referencing MSC-2010 Seller Financing Disclosure.
8. MSC-2000 ~ “Contract Amendment”
This form was previously entitled “Amendment to Contract for Sale of Real Estate”. Because no one calls it that, we simply shortened its title (to “Contract Amendment”).
9. MSC-4035 ~ “Prospective Purchaser”
This form is used by a listing broker to implement a “Protection Period” under our form Listing Agreements (when they are about to expire without a sale). We added blank lines to ID multiple prospects (simultaneously), further explanatory language, and improved formatting & signature blocks.
Some changes made impact several documents in the Association’s library of standard forms:
10. Amending Listing Agreements via email
For years, the MREC has followed a policy whereby the parties to a listing can agree to make changes to it via email, but ONLY if they first separately agree to do so in writing. We’ve had language in our form listing agreements for a LONG time to this effect, but it wasn’t as intuitive as it could be on how to complete to show this intent. A separate checkbox and paragraph has now been added to clearly indicate if amendments by email are approved. This change affects roughly 40 of our form brokerage relationship agreements. RES-1010 “Seller's Agency Listing Contract (Exclusive Right to Sell)” is typical of the changes made in this regard.
11. Foreign Investment in Real Property Tax Act (“FIRPTA”)
FIRPTA has been law over 30 years (although some tweaks were made to its tax withholding rates and other matters earlier this year). For more details watch our Keeping it Legal video on FIRPTA. If applicable (i.e., in situations where the Owner is not a US Citizen or resident alien) it can pose significant additional burdens on the parties, which are best managed if discovered and addressed as soon as possible in a transaction. The potential issue has been highlighted, by including relevant questions and explanatory language in both DSC-8000 “Seller's Disclosure Statement for Residential Property” and in all of the Association’s form listing agreements.
DSC-8000 was also revised to cross-reference DSC-6000; and to further emphasize the importance for an Owner to fully complete it. The option to check a box that “Seller elects to make no additional disclosures” remains, but should be used only sparingly in those limited situations where an Owner truly has no relevant knowledge of the subject Property’s history.
12. DSC-8020 ~ “Farm & Vacant Land or Lot Disclosure Statement”
Was revised, but essentially just to make the "Parcel" blank longer.
13. MSC-4050 “Mutual Release”
Revised to better identify the actual parties thereto, along with other formatting changes. The broker(s) involved in a transaction may sign (and thereby become a party to) a Mutual Release, but they are not required to do so. It is not binding on someone who does not sign it.
These new forms and changes are all discussed in our December 2016 edition of Keeping it Legal. We also publish a Master Index, which lists our entire library of forms and includes a brief description of their intended use. For a detailed (line by line) explanation on how to complete 12 of the most commonly used Missouri REALTORS® standard forms, see the 2017 Forms Instruction Manual.
1. DSC-8000B ~ Lakes & Ponds/Waterfront Property Disclosure Rider (Eff. 7/1/16)
In January 2016, DSC-8000 (“Seller’s Disclosure Statement for Residential Property”) was substantially revised. One big change was to shorten it, by creating 4 new Riders to cover specific situations that do not apply to all properties (e.g., for private wells & sewage systems; condos & coops; and pools & hot tubs). For more information on those changes, please review our 2016 Form Revisions Page.
DSC-8000B was one of those new riders. It covers both (a) items typically associated with a waterfront property (e.g., boat docks, slips, lifts), and (b) specific details regarding the maintenance history, etc. of the associated lake/pond. It now dedicates a separate page (front & back) to each topic. It also now distinguishes between “private” and “public” lakes (e.g., Lake of the Ozarks & Table Rock). A property owner adjoining a “public” lake will likely not be as familiar with the scope of knowledge available to the owner of a “private” lake (and is not called upon to complete those detailed questions).
2. RES-3010 ~ Residential Lease (Eff. 10/31/16)
Our Residential Lease form was modified to adjust for changes made by HB 1862 (codified at §535,300 RSMO). It now allows a Landlord and Tenant to agree, upon entering the lease up-front, to a minimum (and mandatory) carpet cleaning fee (essentially, as a non-refundable part of the security deposit). Landlords must provide the Tenant with a receipt for the actual carpet cleaning costs incurred (within 30 days of the lease termination), and are now also required to maintain a separate escrow account for any tenant security deposits they hold (just like real estate licensees are required to do) to see a Keeping it Legal video with more information on how HB 1862 may impact your business.
If you have questions regarding our Standard Forms or any revisions, please call LEGAL LINE at 573-447-5278.