2022 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.
Three new forms will be made available effective January 1, 2022. They are:
DSC-8003: Seller’s Disclosure Statement ADDENDUM
This 1-page form is made available to easily facilitate a Seller who needs to update a prior Seller’s Disclosure Statement (as required by law and §15 of RES-2000) if any new information pertaining to a Property is discovered by or made known to Seller at any time prior to Closing and constitutes an adverse material fact or would make any existing information set forth in a prior Seller’s Disclosure Statement false or materially misleading. It can also be used to facilitate a more tailored means by which to satisfy disclosure obligations regarding the results of prior inspections (e.g., by providing them upon acceptance of a contract).
MSC-2051R: As-Is Inspection Waiver Rider
If a Buyer desires to “waive inspections”, this Rider provides three different options to choose from: 1) Buyer does not waive the right to inspect or terminate, but does waive the right to negotiate for their repair or a price reduction (i.e., there is no “Resolution Period”); 2) Buyer does not waive the right to inspect, but does waive the right to terminate or negotiate; & 3) Buyer waives even the right to conduct inspections (or to terminate or negotiate).
MSC-6000: Letter of Intent to Purchase
Letters of Intent are sometimes used to assist preliminary negotiations regarding the possibility of entering into a binding agreement for the sale of certain property. MSC-6000 (Formerly “COM-5000”) is technically not “new”. It was relabeled (as “MSC-6000”) and recaptioned, and is now made generally available for commercial AND land and farm transactions. Language was added directly below the caption to clearly state that it is not intended to be used for single family residential transactions, but no substantive changes were otherwise made.
The following Missouri REALTOR® forms were substantively revised for 2022. 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. “Live” classroom training provided by Missouri REALTORS® legal staff is also available based on demand.
RES-2000: Residential Sale Contract
- The Appraisal contingency checkbox (at §5B) must be checked even if Buyer is applying for a conventional loan under §5C3. The Box at §5B should be checked ANYTIME a Buyer desires to have a contingency right (i.e., terminate or ask for price reduction) on account of a “low appraisal”.
- At §5C (regarding a “Conventional” loan contingency), added new language that “If there is no appraisal contingency (i.e., if subpart B is not checked above) or the appraisal contingency has been waived or removed, then failure of the Property to appraise at the Purchase Price will not constitute grounds to exercise this financing contingency.” A “low appraisal” is no longer valid grounds to exercise the conventional loan financing contingency unless Box B at §5 is checked.
- Relocated (to 1st sentence of paragraph 3 of §6) the parenthetical “(other than the Permitted Exceptions as defined below)” so that it is not “buried” in the middle of the paragraph. This hopefully makes more clear that in order to review and object to “Subdivision Documents” (which are otherwise a “Permitted Exception”) MSC-2060R (“Subdivision Review Rider”) must be attached to the Contract.
- Introduced (at §7E) a new definition (“Capitulation”) to facilitate an expedited “Resolution Period” (which, by default, is 10 days after Seller’s receipt of an Inspection Notice) in situations where a Seller declines to satisfy a Buyer’s ‘objections’ or make a counter proposal. The effect is to allow a Seller to force a Buyer to promptly “capitulate” (within 2 days thereafter by default, or whatever other timeframe is set forth in the blank provided) or the Contract will automatically terminate. As noted below, MSC-2050NR was also revised to help implement this option to accelerate the “Resolution Period”.
- Deleted (at §7F) the “Note: A monetary adjustment may affect the terms of Buyer’s loan (e.g., down payment, interest rate and private mortgage insurance), and may also affect Buyer’s ability to obtain any required occupancy permit.” The same “Note” is already included at §7E. It was considered to be duplicative and saved space to allow for other pagination & formatting improvements.
- At §10 (“ADJUSTMENTS/CLOSING COSTS”), the enumerated lists of things to be paid for at Closing by Buyer (or Seller, or prorated, as the case may be) were consolidated into a paragraph format. The substance is the same, but this helped eliminate the existing pagination problem at §25.
- At §21 (“RIDERS”) added new checkboxes to attach either (or both) a Subdivision Review Rider (MSC-2060R) or Rental Property Rider (MSC-2035R). The blanks for “Other” were put into a column format (allowing up to 4 more Riders to be attached & referenced).
MSC-2050N: Inspection Notice
MSC-2050NR Inspection Notice Response
- Last year, the Inspection Notice was converted into a 1-page form. The inspection process now works like an offer/counteroffer. As requested, additional blanks were added to list the “Objections” a Buyer may have (Additional pages can still be added if needed of course).
- Clarified at Part A that any repairs are to be made “prior to the scheduled Closing Date unless otherwise specified below”
- Part A was also revised to better align with “best practice” (and RES-2000 §7) on the limited proper use of inspection reports. They should be used to satisfy disclosure obligations (NOT for general distribution or advertising purposes). Accordingly, only the “relevant portion(s)” must be provided.
- At ‘PART B Option B2’, added “Capitulation” language to effectuate a shortened “Resolution Period” (per the changes made to §7E of RES-2000). It will apply in situations where a Seller declines to satisfy all items objected to by Buyer, and does not desire to make a counter proposal. By default, a Buyer must now “Capitulate” w/n 2 days (or whatever timeframe is inserted in the blank provided) or the Contract will terminate. Part C of MSC-2050NR is referenced and available to use for this purpose.
- As requested, additional blanks were added to detail a party’s “Response” to an Inspection Notice at Part A. Again, additional pages can still always be added (if needed).
- Streamlined the form by consolidating language regarding the need to perform repairs “prior to the scheduled Closing Date unless otherwise specified below”.
- The form already indicates (by checkboxes in Part A) which party is initiating the Inspection Notice Response. Accordingly, the “TO” & “FROM” sections at top were eliminated.
- “Printed Name” instructions were added below the signature line for both parties.
- “PART C” was given a caption (“CAPITULATION”) and the defined term “Resolution Period” was cross-referenced to §7E of the Contract. Part C allows either party to capitulate and “save the deal” (by Seller agreeing to everything in Buyer’s initial Notice, or Buyer agreeing to take a Property “as-is”).
- PART C was also clarified to read that “Buyer accepts the Property without satisfaction of any conditions originally objected to”.
DSC-8000: Seller’s Disclosure Statement for Residential Property
For years, JCBOR had its own form Disclosure Statement. JCBOR requested changes on a variety of topics/issues. After productive discussions, the following changes were approved and JCBOR voted to “sunset” its own disclosure form.
- Pg.1 ~ Identify better any lease or other use agreement for the Property
- §1 ~ New questions re operational status of chimney & date last cleaned
- §1, 4&17 ~ Identify the owner of any leased HVAC or other equipment
- §12 ~ Now specifically requests if Owner is aware of any casualty loss (as opposed to only if a claim has been filed) during Owner’s ownership.
- §17 ~ Now specifically requests if the Property has been used for any “non-residential” purpose during Owner’s ownership. It also calls for more information regarding any leased utility systems (or shared use or lease agreements).
- Signature Page ~ Adds reference to newly approved DSC-8003 (for use to supplement a Seller’s Disclosure Statement).
DSC-8000A: Water Well/Sewage System Disclosure Rider
- Now includes questions asking for the size and age of any septic tank, as well as if any bedrooms have been added at the Property since the Sewage System was installed, all of which is important information to know in order to confirm compliance with current septic tank State regulations.
MSC-2020N: Appraisal Notice
- Clarified references to any resolution as pertaining to this “Appraisal Contingency” only.
- Added second box under Part C to allow a Buyer to waive a prior request to reduce the Purchase Price (thereby resolving the Appraisal Contingency).
- Under Part C (Buyer’s termination option) changed language (from “You are requested to”) to “Please sign and return the attached Mutual Release (MSC-4050) to Buyer.”
MSC-2021R: Contingency for Sale of Buyer’s Existing Property
- This contingency was previously designed (like other Missouri REALTOR® forms) on a “Use it or Lose it” basis. In other words, if a Buyer’s Existing Property did not close on or before the stated “Existing Property Closing Deadline”, then that Buyer was required to send a Notice in order to terminate the Contract.
- The revisions were designed such that a Contract will now AUTOMATICALLY terminate if the Existing Property does not timely sell (unless Buyer waives the contingency prior to the deadline).
- The intended benefit is to “save” a Buyer who may not realize (for some reason) that a Notice is required to be delivered to Seller in order to terminate the Contract.
MSC-2021N: Existing Property Sale/Kick-Out Notice
- Since MSC-2021R was revised to automatically terminate (see above) MSC-2021N also required some revision. Essentially, ‘Box B’ under ‘Part A’ was no longer needed (or appropriate) because Buyer no longer needs to Notify Seller that an Existing Property did not timely close. Now, the Contract automatically terminates if the “Existing Property Closing Deadline” passes without a closing.
RES-3015: Residential Lease Amendment
- Added property address (for easy reference).
- Also added a few extra blanks at §4.
LND-2000: Vacant Land Sale Contract
- Added “Section, Township & Range” to the Property Description line.
MSC-4050: Mutual Release
- The following fields were added to improve the instructions on what to do with Earnest Money:
- Mail or pickup options (with address)
- “No checks issued because” option
COM-1010: Seller’s Agency Listing Contract (Exclusive Right to Sell)
- The revisions made are too voluminous to summarize here. Essentially, COM-1010 was revised to conform, where appropriate, with the section and formatting layout of the residential listing forms.
MISCELLANEOUS LISTING AGREEMENTS
In April, our form Residential Exclusive Right to Sell Listing Agreement (RES-1010) was revised to include specific Owner instructions (via checkbox on pg.1) regarding “Love Letters”, and to further explain (at §13) and advise against accepting them. Effective 1/1/22, similar revisions were made to the following forms:
- FRM-1010 Seller’s Agency Farm Listing Contract (Exclusive Right to Sell)
- FRM-1010TB Transaction Brokerage Farm Listing Contract (Exclusive Right to Sell)
- FRM-1020 Seller’s Agency Farm Listing Contract (Optional Form)
- FRM-1020TB Transaction Brokerage Farm Listing Contract (Optional Form)
- FRM-1025 Seller’s Open Farm Listing Contract
- FRM-1020TB Transaction Brokerage Seller’s Open Farm Listing Contract
- MSC-1010 Landlord’s Agency Real Estate Rental Listing Contract
- MSC-1010TB Transaction Brokerage Real Estate Rental Listing Contract
- RES-1010TB Transaction Brokerage Listing Contract (Exclusive Right to Sale)
- RES-1020 Seller’s Agency Listing Contract (Optional Form)
- RES-1020TB Transaction Brokerage Listing Contract (Optional Form)
- RES-1025 Seller’s Open Listing Contract
- RES-1025TB Transaction Brokerage Seller’s Open Listing Contract
- RES-1060 Seller’s Agency Contract with Builder to Procure Buyer
- RES-1060TB Transaction Brokerage Contract with Builder to Procure Buyer
As always, if you have ANY questions regarding our Standard Forms or any revisions, please call LEGAL LINE at 573-447-5278.