2023 Forms & Revisions
Throughout the year, Missouri REALTORS® carefully monitor changes in the law and feedback from members, Local Boards/Associations, and other Associations of REALTORS® across the country. Our committees constantly review our forms library 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 believe that standardization is a good risk management strategy and continue to work with all local boards 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 and every comment is reviewed and considered at our monthly meetings. While not all suggestions are approved, our RES forms committee approved several proposals for 2023.
We appreciate the leadership exhibited by ALL 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.
The following Missouri REALTOR® forms were revised for 2023. These changes are also discussed in a recent edition of Keeping it Legal. We also publish a “Master Forms Index”. It 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 (at §5B) now directly provides for appraisal access rights (separately from general inspection access rights at §7A). It now specifically includes Seller’s separate agreement “to provide reasonable access to the Property for this purpose upon reasonable advance Notice from Buyer”.
- At §7A, as previously drafted, “reasonable access” to a Property (for both inspection & appraisal purposes) was generally granted by the Seller. This new language clarifies that access to the Property (under §7A for Inspection purposes) is limited to the specified “Inspection Period”.
- Our ‘new’ “As-Is Inspection Waiver Rider” (MSC-2051R) is now specifically referenced (for use if a Buyer intends to waive inspections).
- At §7B, instruction was added to “Insert ‘N/A’ if not applicable” to make it clear in those situations where a Buyer intends to waive the “Property Data Review Period” rights. If left blank, the “Property Data Review Period” will remain to be (by default) 5 days after the Effective Date.
- At §7E, the parenthetical at the end of the paragraph was added to make it clear that (as always) the parties can avoid an automatic termination of the Contract by reaching a mutually acceptable written agreement between them before the stated deadline.
- At §7F (like §7B), instruction was added to “Insert “N/A” if not applicable” to make it clear if Buyer intends to waive the “Municipal/Governmental Inspections” contingency. If left blank, a Seller will remain required to provide a Buyer with Notice (by default, within 15 days after the Effective Date) of any such violations or requirements that Seller will not correct or satisfy.
- At §10, examples of “special taxes” (TIFs, CIDs, & NIDs) that may exist (and constitute “Special Assessments”) were identified.
- The paragraph regarding proration of general taxes was also revised to address what should be done when a deal is closing, but BOTH the current year’s assessment AND tax rate for the subject Property are not known. It was deemed best to go with whatever such information is currently available (i.e., to the extent either is available). Thus, the word “both” was deleted.
- At §17, consistent with the changes made and discussed at §5B and §7A above, Seller’s agreement to allow access to a Property for purposes of conducting a “Walk-Through” (upon “reasonable advance Notice”) was separately included.
- Seller’s obligation to have utilities on (at Seller’s expense) was also extended (from only during the “Inspection Period” & “Walk-Through”, to “through Closing”). The Committee felt it was best to have a clean & simple rule in this regard. In situations where this will not work (i.e., utilities will not be on), the licensees involved should (just like they do now) negotiate an acceptable alternative to address their unique situation.
- Likewise, a Buyer’s right to require a transfer of utilities (if/when a Property is vacant) was deleted. The word “UTILITIES” was also added to the caption of §17.
DSC-8000C: Condominium/Co-Op/Shared Cost Development Rider
- At §21, a new checkbox was added to reference our Condominium Rider (CND-2010R).
- Our Condominium Rider to Sale Contract (CND-2010R) is to be completed by a Buyer and attached to a sale contract if involving a condominium Property. It calls for certain information (required by statute) that a Buyer may not know.
- To facilitate a Buyer’s ability to fully and accurately complete CND-2010R, DSC-8000C was revised to set forth (at “new” §3, labeled “CONDOS ONLY”) the information a Buyer needs (with respect to an Original/Resale Certificate, Tenant Rights & First Refusal Rights).
- Captions were added to help organize and facilitate completion of the remainder of the form (i.e., §1 is now labeled “PROPERTY/UNIT” information, and §2 regards “GENERAL INFORMATION” (equally applicable to condos, Co-Ops & other “Shared Cost” Developments). This information was relocated and reformatted, but not substantively changed.
- Ideally, DSC-8000C is to be attached to an otherwise fully completed Seller’s Disclosure Statement (DSC-8000), but it may be used independently.
MSC-2011R: Government Loan Rider
MSC-2021N: Existing Property Sale/Kick-Out Notice
- Revised to accommodate new VA Circular (eff. 6/15/22) regarding termite inspection fees and repair costs (which now may be negotiated and paid for by a VA Buyer).
- The amount of the loan being sought by a Buyer may now also be described as either a percentage of the Purchase Price or a specified dollar amount.
- MSC-2021R (Contingency for Sale of Buyer’s Existing Property) was revised last year to automatically terminate if a Buyer’s Existing Property does not close on or before the stated “Existing Property Closing Deadline”. In other words, a Buyer no longer needs to “Notify” a Seller that an Existing Property did not timely close (because the Contract automatically terminates if the “Existing Property Closing Deadline” passes without a closing).
- At Part A, we did not take out last year the words “or Termination” from the caption. This was corrected.
- At Part B, the prior blank (to specify the time and date when the Contract will terminate if Buyer does not timely waive the contingency) was deleted, because a “Kick-Out Notice” is not effective until it is delivered (which can’t always be accurately predicted). To avoid mistakes and potential confusion, the blank was replaced with ‘shall terminate at the time specified in MSC 2021R following delivery of this Kick-Out Notice…”
MSC-2045: Buyer’s Inspection Authorization
- The Committee considered a number of alternatives, but ultimately, essentially kept this form the way it was (but with some improvements):
- Instructions on how to “CHECK AND COMPLETE ” the applicable section of the form (A or B) were improved.
- To improve clarity, captions were added to the applicable sections (A: “INSPECTIONS TO PROCEED” or B: “ALL INSPECTIONS WAIVED)”.
- At §A, added language (similar to §B) that, to the extent not noted therein (or “hereafter instructed in writing prior to expiration of the Inspection Period”), Buyer waives all other inspections (and releases Broker from any claims in connection therewith).
- The Committee kept separate “checkbox B” to indicate Buyer knows they’re waiving any and all opportunity to do inspections. This can now also be done (contractually, in advance) by checking Box 3 in MSC-2051R.
MSC-2049N: Property Data Review Termination Notice
- The following (non-substantive) changes were made to provide additional clarity:
- Corrected reference from “Inspection Notice” to “Termination Notice”.
- Added reference that such Notice is given specifically pursuant to §7B (Property Data inspection rights).
- Removed “in the Contract” from the introductory note.
- Shortened “You are requested to” to “Please” above Buyer signature fields.
MSC- 2050NR: Inspection Notice Response
MSC-2051R: As-Is Inspection Waiver Rider
- At Part B, for when a Buyer or Seller does not agree to an Inspection Notice Response received (or want to make a counter proposal), the sentence “Please Capitulate at Part C below, or sign and return the attached Mutual Release (MSC-4050)” was added to be more intuitive & consistent with the Contract.
- If a Buyer desires to “waive inspections”, this “new” form (approved last year) 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).
- The Committee initially considered if §7B and 7F checkboxes (for specific Property Data & Governmental Inspection waivers) should be added. As discussed above, RES-2000 was revised to clarify that §7B&7F should just be waived (if/when desired) directly in the Contract.
- The Committee voted to make this form apply to only §7D (general inspections). A caption and additional introductory language to that effect was added (to improve clarity and general layout).
- The language at each box was revised to shorten and generally conform them with each other (e.g., removed language re: Buyer agrees to repair damage & indemnify Seller because that is covered in the Contract; removed “A” from the various references to “§7A” b/c more parts of §7 arguably apply; replaced language about inspectors selected by Buyer with “qualified inspector”).
- At Box #3, clarified Seller need not allow access to the Property for inspection purposes.
- Added Note that waiver of any §7D inspection rights does not waive any other Contract rights.
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 contract for the sale of certain property. MSC-6000 is made available for commercial AND land and farm transactions. It is not intended to be used for single family residential transactions.
- At §6, Seller agrees to not negotiate with others to sell or lease the subject Property until a Contract is signed. New language (and a blank) was added to specify the time frame by which the Contract must be signed (or Seller will again be free to negotiate with others).
- References to “you” and “we” were made to be party specific (Buyer/Seller).
- Reference to “the enclosed duplicate” of the LOI was deleted (because it was perceived to be an outdated practice in this day of electronic signatures and document sharing).
As always, if you have ANY questions regarding our Standard Forms or any revisions, please call LEGAL LINE at 573-447-5278.