2023 Forms & Revisions Mid-Year Update

2023 Forms & Revisions Mid-Year Update

Thanks to our Commercial Forms Committee, Property Management Section and Consumer Engagement Output Group, we are pleased to supplement our library of Missouri REALTORS® standard forms, effective 4/3/23, as follows.  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.

Forms & Revisions 

COM-2000: Commercial Sale Contract
(Redline Version)

  • Historically, the Commercial Sale Contract followed its own separate format.  Even though some of our members use both RES-2000 & COM-2000, they were just completely different animals and each of them operated differently.  The attached represents the culmination of about 18 months of work by the COM Forms Committee to conform the structure of COM-2000 so that it is consistent with the structure of RES-2000.  While there are a number of substantive areas that do remain different (e.g., scope of personal property included includes everything used in connection with the operation of a building for COM deals, & scope of inspections includes various financial books & records showing the income and expenses of the Property, including confidentiality provisions for such) they now both utilize the same 31 Section titles and order.  These improvements minimize risk by using, where appropriate (e.g., “boilerplate” clauses, like our FIRPTA disclosure), identical terminology and instruction to address the same topic.

COM-2050N: Commercial Inspection Notice
(Redline Version)

  • COM-2050 has long been available as a tool to help negotiate a potential resolution of Commercial Inspection Notice objections.  Just like we did a couple years ago for residential transactions (MSC-2050N), COM-2050N has now been converted into a 1-page form.  COM-2050NR (discussed below) is also now made available to allow for further negotiations.

COM-2050NR: Commercial Inspection Notice Response
(Redline)

  • COM-2050NR is technically a “new form”, but it’s essentially “page 2” of old COM-2050.  It’s now also a one-page form and is designed to facilitate negotiations regarding commercial inspection results, similar to that used in an offer-counteroffer scenario.  A Seller can use it to “counter” a Buyer’s initial Inspection Notice, & thereafter, both parties can use it to further negotiate (and go “back and forth” as many times as they wish) during the “Resolution Period”.  It also includes an option (Part C) for either party to “Capitulate” & “save the deal” (if Seller agrees to everything in Buyer’s initial Inspection Notice, or Buyer agrees to take the Property “as-is”).

DSC-1020: “Fair Housing & Equal Opportunity For All” flyer

  • Federal, State & local laws protect people from discrimination when renting or buying a home. REALTORS must also conduct their business in accordance with a strict Code of Ethics.  That includes the obligation to provide equal opportunity and professional services to everyone.  This new flyer is made available (thanks to our Consumer Engagement Output Group) for use when entering into brokerage relationship agreements (with both Sellers and Buyers).  It reminds clients of a REALTOR’s ethical and legal obligations to provide equal opportunity for all in any housing related activities.

(RES-3010): Residential Lease
(Redline Version)

  • A task force from our Property Management Section was appointed last year to update our lease form to capture some of the “best practice” lessons they have learned from their years of serving as property managers.  A variety of beneficial changes were approved, including the addition of a “No-Smoking” & “No Growing” policy (by default); language to recognize that a rental property might include certain “Common Areas” generally made available for use by ALL tenants (e.g., at a townhome or multi-unit complex); to highlight the impact that zoning and other applicable laws may have on the number of unrelated people who can occupy a rental housing unit (§6) and the need for a Tenant to evaluate such matters before signing a lease; beefed up remedies (now including collection costs); and to recognize that a co-signer (“Guarantor”) may be required before Landlord will agree to enter into a lease with someone without a satisfactory credit and leasing history.

PM- 3015: Residential Lease Guaranty

  • Oftentimes, a Landlord requires the obligations of the named tenant(s) under a Residential Lease to be separately guaranteed by a third party.  This NEW form is based on (& very similar to) our Commercial Lease Guaranty (COM-3015) but it specifically deals with our Residential Lease form.  It is a guarantee of both payment and performance (i.e., it is not limited to failure to pay rent).  An appropriate Notary/Acknowledgment form (e.g., MSC-5000, 5010, 5020, 5030, 5040, 5050 & 5060) should be used in connection with executing a Residential Lease Guaranty

PM-5050:  Additional Signature Page (Leasing)

  • This NEW form is made available for use in connection with our Residential Lease (RES-3010) Residential Lease Guaranty (PM-3015) & other standard form leasing documents if they do not have enough space to accommodate the signatures of all Landlords/Tenants or Guarantors.  It can be completed by those parties in a leasing transaction if/as necessary.  The Missouri REALTOR® standard form to which it is attached should be referenced in the blank on line 1. It is essentially the same as MSC-5070 (our Additional Signature Page form for Sale Contracts), but now, PM-5070 can be separately used for Tenants, Landlords and Guarantors in leasing transactions.

As always, if you have ANY questions regarding our Standard Forms or any revisions, please call LEGAL LINE at 573-447-5278.