2021 FRBAR Contract Changes Effective November 1
Fourth Quarter 2021
Paragraph 1 (d)Personal property
Paragraph 9 (a) Costs to be paid by Seller
• Now includes thermostats, doorbells, television wall mounts, television mounting hardware, mailbox keys and storm protection items and hardware
• Charges for FIRPTA withholding and reporting added
• Deleted intercoms
• Chapter 153 is added to “municipal lien search” definition
Paragraph 4 – Closing Date
Paragraph 9 (d) Survey
• Changed definition of closing to include that the closing shall occur:
• Changed to at least 5 days prior to the closing date
• Paragraph 9 (f)
When all funds required for closing are received by the closing agent and collected pursuant to Standard S **
All closing documents have been furnished by each party (already in the closing provision)
** WHAT THIS MEANS: If a financed buyer is a mailaway and closing is on a Friday, funding/disbursing would not happen until at least the following Monday or when all documents and loan funds are received by closing agent.
Paragraph 5 – Extension of the closing date • Limits extension of closing date from 10 days to 7 days if closing funds from buyer’s lender are not available do to CFPB requirements having not been met Paragraph 6 (b) – Occupancy and Possession • Now covers disclosure of seasonal or short-term vacation rentals • Tenant estoppel letters shall not be required on seasonal or short-term vacation rentals
Addition of Rider DD – “Seasonal and Vacation Rental”
Pre-closing (Rider T)
Post-closing (Rider U)
Paragraph 7 – Assignability • Adds a default • If no box is checked, then buyer may not assign this contract Paragraph 8 Financing • Includes the Buyer’s financing and lender’s receipt of property appraisal or alternative valuation satisfactory to the lender in the definition of time frame for Buyer obtaining loan approval • Buyer shall upon written request keep seller and broker fully informed about the status of Buyer’s mortgage loan application, loan processing, appraisal and loan approval including any property related conditions of loan approval. • If within the loan approval period, Buyer obtains loan approval, Buyer shall notify Seller of same in writing prior to expiration of the loan approval period
Paragraph 9 (c)Title Evidence and Insurance
• Seller shall pay, in full prior to or at the time of closing any assessment(s) allowed by the public body to be prepaid • For any assessment(s) which the public body does not allow prepayment, OPTION (a) shall be deemed selected for such assessment(s) Standard F – Time • Removal of 5:00 p.m. time (now 11:59PM)
Which shall end or occur on a Saturday, Sunday or a national legal public holiday shall extend to the next calendar day which is not a Saturday, Sunday or a national legal public holiday.
Standard G – Force Majeure • Now includes governmental actions and mandates, governmental shutdowns, epidemics and pandemics • The Force Majeure event will be deemed to have begun on the first day the effect of the Force Majeure prevents performance, nonperformance or the availability of services, insurance or required approvals essential to closing Standard O –Notice & Delivery • All notices must be in writing • May only be made by mail, a facsimile transmission, personal delivery or email. • Text will not be considered a method of notice Counter Offer • Seller counters Buyer’s offer remains • Seller rejects Buyer’s offer was eliminated New Riders: • Seasonal/Vacation Rentals (Rider DD) • Pace Disclosure (Rider EE)
This newsletter is for informational purposes only and is not intended as legal advice nor opinion. For legal advice or opinion, seek the advice of a licensed attorney.
MSC Title, Inc | 40 North Osprey Avenue | Sarasota, FL 34236 | 941.552.5211