2021 Forms & Revisions
Throughout the year, Missouri REALTORS® carefully monitor changes in the law (both case law and legislation) at the State and Federal level. We also solicit and consider feedback from members, local boards and other Associations of REALTORS® across the country. Our 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.
We seek to work with all our local boards and continue to believe that standardization is a good risk management strategy to help “level the playing field”, minimize conflicts and promote a smooth and efficient transaction. We receive a tremendous amount of input (THANK YOU!). Each & every comment is reviewed and considered at our monthly meetings. While not all suggestions are approved, our RES forms committee approved a number of proposals throughout 2020, some of which have already been implemented.
We greatly appreciate the leadership exhibited by ALL of our volunteer members who dedicate their time to help ensure that Missouri REALTORS® standard forms are:
- “fair & balanced” with reasonable options that work equally well in all parts of the State (and in both good markets & bad);
- Easy to use and understand; and
- Fairly protect our members.
Six new forms have already been made available this year. The current world-wide Coronavirus pandemic (“COVID-19”) has had unprecedented impacts on real estate transactions. To help you address some of these issues, the Missouri REALTORS® Residential Forms & Risk Management Mission Committees held emergency meetings to develop and approve the following four new forms, which were made available for use in March:
LISTING CONTRACT COVID-19 RIDER/AMENDMENT (MSC-1031) (Effective 3/1/20)
MSC-1031 can be used as an Amendment to an existing listing agreement or as a Rider to a new listing agreement. It is designed to document an Owner's decision to allow (or not) continued open houses, "in-person" (live) showings, and continued access to a Property by potential buyers, buyer's agents, inspectors, appraisers, contractors and others as may be necessary to complete the sale and closing of the Property.
SALE CONTRACT COVID-19 RIDER/AMENDMENT (COVID-2001R) (Effective 3/1/20)
COVID-2001R can be used as an Amendment to an existing sale contract, or as a Rider to a new offer. It provides options for the parties to mutually agree to extend the Closing Date (and potentially all other contingency deadline dates) or to terminate the agreement if COVID-related issues prevent a party’s timely performance under the contract.
COVID-19 RELEASE & HOLD HARMLESS AGREEMENT (COVID-2002) (Effective 3/1/20)
COVID-2002 is a standalone form that can be used in any situation (by Seller, Buyer or Tenant clients & customers) impacted by property access needs or desires in a real estate transaction (both sales & leases). This form acknowledges the obvious risk associated with participating in or allowing in-person activities, like open houses and showings and, in light of the signatory's desire to proceed forward, sets forth their agreement not to sue the REALTOR® involved due to exposure to disease-causing organisms (such as COVID-19). In other words, it releases the identified REALTOR® (and all its agents, etc.) from all claims and liability as a result of any such possible exposure.
COVID-19 SHOWING FLYER (Effective 3/1/20)
The COVID-19 Showing Flyer is a voluntary form, designed to allow for posting on the exterior access doors of a listed property. It asks all persons about to enter a property to confirm they satisfy basic health screening questions (and any other showing terms or protocol an Owner may establish) prior to entry. While it is impossible to effectively screen or monitor all people with complete assurance, it is a "reasonable" step that one might take.
Two new additional forms were made available during the course of 2020:
MSC-2046R ~ Sight Unseen Rider (Effective 9/17/20)
Approved at the virtual September Business Conference to address COVID concerns where a Buyer wasn’t able to see a property prior to submitting an offer, it also accommodate some areas of the State where it was already common to submit an offer “sight unseen.” This new Rider may be attached to the Residential Sale Contract (RES-2000) if a Buyer wishes to place an offer on a Property without first viewing it. The Rider contains options for a Buyer to either: 1) Reserve the right to view the Property within a specific timeframe (and to terminate the Contract by delivering timely Notice if not satisfied); or 2) Waive the right to view the Property. In either situation, the Inspections contingency is still made available per the terms of the Contract agreed to by the parties.
MSC-2046N ~ Property Viewing Termination Notice (Effective 10/12/20)
MSC-2046N is designed for use in connection with the new Sight Unseen Rider approved at SBC (MSC-2046R, discussed above). This accompanying Notice form is quite basic and based on other Notice forms we provide. It provides a vehicle for a Buyer to exercise the contingency under Option 1.
Another new form, to be made available effective 12/31/20, is:
PMG-1005 - Amendment to Property Management Agreement
This form came from the Property Management Output Group and can be used to easily amend the Property Management Agreement form (PMG 1000) with respect to the Rental Rate, Security Deposit, Pet Deposit or Initial Term (or in any other respect as a variety of blank lines are also provided).
The following Missouri REALTOR® forms were substantively revised for 2021. A complete analysis of all changes made is beyond the scope of this summary, but they are discussed in a recent edition of Keeping it Legal. We also publish a “Master Forms Index”, which lists our entire library of forms and includes a brief description of their intended use. For a detailed (section by section) explanation on how to complete some of the most commonly used Missouri REALTORS® standard forms, the 2021 Forms Instruction Manual will also be updated soon. “Live” classroom training provided by Missouri REALTORS® legal staff is also available based on demand.
RES-2000 ~ Residential Sale Contract
- §2 Added “panels” to “Solar Systems” in the “laundry list” of included fixtures (& in the examples of something to be excluded if it is leased or otherwise not to be conveyed).
- §3 The Earnest Money portion of §3 now specifically states a Seller has the right to terminate the Contract if Buyer fails to deliver the Earnest Money in a timely fashion (and before it is actually delivered to the Escrow Agent). A Seller has always had the right to declare a Buyer in breach of the Contract for not timely delivering Earnest Money as promised, but now the form specifically calls it out in black and white, so the parties are clearly made aware of this possibility.
It also defaults to a shorter time frame (5 days instead of 10) for Buyer to deliver the Earnest Money, but it now also provides a new “blank” that can be filled in with a different timeframe for those situations where the shorter 5-day default period doesn’t work.
The changes to §3 also allowed us to remove the “Receipt & Acknowledgement” from the last page of the Contract. It is now assumed that Buyer will deliver the Earnest Money directly to the Escrow Agent (rather than have the REALTOR® take possession of it).
MSC-2050N ~ Inspection Notice & MSC- 2050NR Inspection Notice Response
(Redline 2050N Version)
(Redline 2050NR Version)
We did a bit of an overall on these two forms. MSC-2050N is now a 1-page form, and MSC-2050NR actually replaces MSC-2050NC. Substantively, the inspection process stays the same, but the prior inspection forms were a bit tricky to use (e.g., after you ran out of space on 2050NC). Hopefully, this will help streamline the process a bit by providing a tool similar to that used in an offer-counteroffer scenario. Now, after the initial Inspection Notice has been submitted, a Seller can still indicate his/her basic response on MSC-2050N; however, if Seller wishes to “counter” Buyer’s Notice, the parties will now then move to MSC-2050NR to further negotiate (and go “back and forth” as many times as they wish) during the Resolution Period. MSC-2050NR is also a one-page form (similar to the Counteroffer Form). It also includes an option (Part C) for either party to capitulate and “save the deal” (by Seller agreeing to everything in Buyer’s initial Notice, or by Buyer agreeing to take the Property “as-is”).
MSC-2012R ~ Seller Financing Rider and Disclosure Form
Nothing was substantively changed, but whereas there were previously two separate forms (MSC-2012D has been discontinued) they are now combined into a single form (MSC-2012R). Since the “old” Rider and Disclosure forms were meant to work together anyway, it made more sense to make them a single integrated form.
COM-2000 ~ Commercial and Industrial Sale Contract
There were also a few small revisions to COM-2000 that came out of the Commercial Forms Committee to make that form more usable for our commercial members. These include shortening the default time frames for the appraisal and loan contingencies (at §5), and providing options for the type of deed to be delivered at Closing (at §6).
As always, if you have ANY questions regarding our Standard Forms or any revisions, please call LEGAL LINE at 573-447-5278.