2020 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 has made a number of proposals to be reviewed by the Risk Management Mission Committee at our September Business Conference meetings in Springfield, MO (9/26/19).
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.
One new form has already been made available this year. It is:
DSC-8002 ~ Wire Fraud Advisory (Effective 3/15/19)
Cyber scams and email frauds in real estate transactions are all too familiar. It’s a big problem which doesn’t seem to be getting any better. Money wired to a fraudulent account via bogus wire instructions typically cannot be recovered. This form can be used to help raise awareness and reduce the incidents of fraud. In addition to providing valuable resources to call upon if/when needed, most (if not all) cyber insurance underwriters will require a signed form like this.
A second new form is proposed to be made available effective 12/31/19. It is:
MSC-5070 ~ Additional Signature Page
This form is being made available for use when a Missouri REALTORS® standard form does not have enough space to accommodate the signatures of all parties to a transaction. It can be completed as necessary. The Missouri REALTOR® standard form to which it is attached should be referenced in the blank on line 1.
The following Missouri REALTOR® forms were substantively revised for 2020. 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 2020 Forms Instruction Manual will also be updated soon. “Live” classroom training provided by Missouri REALTORS® legal staff is also available based on demand.
DSC-8000 ~ Seller’s Disclosure Statement for Residential Property
- §1 Added “relevant” questions regarding solar panels, PACE loans and related topics/issues (e.g., if these items are leased or financed, to describe the terms thereof and provide documentation)
- §17 “Special Assessments” clarified to cover those which are NOT paid with real estate taxes. Also expanded to include Clean Energy Districts, Community Improvement Districts, TIFs & NIDs.
RES-2000 ~ Residential Sale Contract
- §2 Added “Solar Systems” to the “laundry list” of included fixtures (& also highlighted it as an example of something to be excluded if it is leased or otherwise not to be conveyed).
- §7 Shortened the “Note” admonishment (at subpart c) about the need to review the cost and availability of insurance during the Inspection Period. Labeled options (1-3) under support H (home warranty) to clarify choices.
- §7 Deleted the “Waiver of inspection rights” option (§7D). Some Buyers would reportedly waive inspections, but still try to use them in a ‘back door’ fashion ~ by giving inspection reports to lenders in attempt to “squeeze” a Seller into doing repairs (or risk losing financing). The “Waiver” box did not seem to be used all that much, and when it was, it was often simply marked by mistake. To avoid those situations (the primary concern) it was deleted it in its entirety. Savvy Buyers who truly want to waive inspections will know how to waive inspections (& still can if they want).
- §17 Changes made to clarify that the Contract does not limit a Buyer to a single walk-through. The permitted purposes of a walk-through are to confirm that (1) the Property is in the same general condition it was on the Effective Date, and (2) that any required repairs were properly completed (which preferably will occur ASAP for each repair that may be required). Also added specific reference to the “Walk-Through Notice” form that may be used for these purposes (MSC-2600N).
- §21 Added the word “Rider” to the first two forms referenced.
- §25~ Blank asking for the “MLS ID” of the involved licensees.
- Committee reports that MLS’s do not actually require this information.
- Added reference to the new “Additional Signature Page” form (MSC-5070).
Note ~ All of the Association’s standard forms may be revised in similar respect.
- Added blanks and instructions for situations where the Contract is being signed on behalf of an entity (i.e., Company Name and Title).
MSC-2600N ~ Final Walk-Through Notice
MSC-2021N ~ Existing Property Sale/Kick-Out Notice(Redline Version)
- Consistent with the foregoing, removed the word “Final” from title/caption.
- Formatting changes made to conform with the introductory language and style of other “Notice” forms (“This Notice is given pursuant to...).
- Additional changes made to facilitate the concept that more than one walk-through may be needed. • Date & time also added.
- Part C of the form revised (removed “Pursuant to part B above”) to better allow a Buyer to waive the contingency for the sale of their existing home (even if it hasn’t yet been sold) before Seller exercises the kickout.
- Part C caption now reads “Buyer’s Kick-Out Response/Waiver” (deleted “&”).
MSC-2090R ~ Possession by Seller After Closing Rider
- Shortened Title.
- The admonishment to this form was shortened last year (to further temper its use) by deleting “normally” from the introductory “NOTE” (i.e., “Occupancy by Seller after Closing is not normally advised.”)’. In effort to conform this and our other Riders for possession other than at Closing (MSC-2080R & 2085R) additional reformatting and minor language tweaks were incorporated.
- §§6&7 Clarified responsibility for damages and losses.
MSC-2080R ~ Agreement for Possession by Buyer Prior to Closing Rider
- Revisions similar to RES-2090R were proposed to MSC-2080R & 2085R (e.g., conformed and relocated “NOTE” box to top of form; shortened title; conformed formatting and language).
- §2 Mirrored language from MSC-2085R.
MSC-2085R ~ Limited Purpose Entry by Buyer Prior to Closing Rider
- Made conforming changes similar to those proposed for MSC-2080R & 2090R.
MSC-1100 ~ Authorization to Show Property
- Line 10 ~ Changed “Sale Price” to “Sellers Asking Price”. Designed to clarify and eliminate questions from a prospective Seller (“Is this the contract?” and “Is this what the buyer will pay?”).
As always, if you have ANY questions regarding our Standard Forms or any revisions, please call LEGAL LINE at 573-447-5278.