The 2017 GAR Forms Revisions Package will be released on Monday, May 1. While most of the revisions are to correct errors found in the January release of the 2017 GAR Forms Package, there are two forms with substantive changes.
First, the F79 All Cash Sale (No Financing Contingency) Exhibit has been modified to allow the parties to negotiate whether the buyer can reserve the right to pay for all or a portion of the purchase price with a mortgage. In the event that the buyer reserves the right to obtain a mortgage, the F79 has also been modified to allow the parties to negotiate whether the buyer shall have the right to unilaterally extend the closing date as set forth in the Purchase and Sale Agreement, or whether the buyer loses the right to unilaterally extend in the event that the mortgage lender is delayed and cannot fulfill its obligations.
The second substantive form change is the F123 Community Association Disclosure Exhibit. This form has been renamed “Payment of Community Association Fees and Disclosure Exhibit.” One of the biggest changes to this form is that the fees associated with obtaining a community association account statement or clearance letter are paid by the seller since it is an expense that is necessary for the seller to provide good and marketable title to the property. The revised F123 also added a subsection for Transfer and Initiation Fees for the seller to disclose. The form stipulates that the seller must pay for any fee increases that were not initially disclosed on the F123, or subsequently disclosed in a notice to the buyer not later than three (3) days prior to the end of the due diligence period.
The Forms Committee hopes that by assigning specific fees to the parties ahead of time, this will help avoid the issue of the parties arguing at the closing table of who must pay for all of the fees associated with obtaining the community association account statement or clearance letter as well as any fees that were not disclosed or higher than the disclosed amount.
The 2017 GAR Forms Revisions Package Changes, the revised F79 and the revised F123 can be found at the links below for your review prior to the May 1 release.
2017 GAR Forms Revision Package Changes
F79 -ALL CASH SALE (NO FINANCING CONTINGENCY) EXHIBIT
F123 - PAYMENT OF COMMUNITY ASSOCIATION FEES AND DISCLOSURE (“DISCLOSURE”) EXHIBIT