Insight | February 2016

FORMS GUY

Forms Guy Gives Liz a Quiz

BY: WILL MARTIN | GENERAL COUNSEL

DEAR FORMS GUY, I don’t have a specific question for you, but I was just wondering what’s on your mind these days? Sincerely, Liz

DEAR LIZ: Thanks for asking. I’ve been in a reflective mood recently, pondering the thousands of questions my law partner and I have gotten over the past year. In fact, I’ve picked out 10 of my favorites from our weekly Q&As. Would you like to hear them? Sincerely, Forms Guy

LIZ: Sure!

FORMS GUY: Tell you what, I’ll pose each of the questions to you and we’ll see how many you get right, okay?

LIZ: This is very exciting!

FORMS GUY: Question No. 1: Is the new Mineral, Oil and Gas Rights Mandatory Disclosure Statement required for sales of vacant land?

LIZ: I don’t see why it shouldn’t be, so my answer is yes.

FORMS GUY: I agree that there’s no reason why it shouldn’t be required for vacant land sales, but it isn’t, so the correct answer to the question is “no”. Read the Q&A I wrote on January 6, 2015. You can find it in the archived Q&As under the category “Real Estate License Law and Rules” on the Legal Department page of the NCAR member site.

LIZ: Shoot!

FORMS GUY: Don’t be discouraged, Liz. We’re just getting started. Here’s question No. 2: If a buyer and seller agree to a new settlement date, does the 14-day permitted delay period still apply?

LIZ: Yes!

FORMS GUY: Right, unless the parties agree otherwise. Also, there’s a new optional checkbox in the Agreement to Amend Contract form that allows a fourday delay rather than a 14-day delay. Read more about that in the Q&A dated August 4, 2015. It’s in the archived Q&As under “Forms/Contract-Related Forms.”

LIZ: What’s the next question?

FORMS GUY: Question No. 3: If a seller sells the fuel in a tank back to the fuel provider after she’s entered into a contract to sell her property, but the fuel is still in the tank at settlement, does the buyer get the fuel as part of the purchase price?

LIZ: Since the fuel is still in the tank at settlement, I think the answer is yes.

FORMS GUY: Wrong, Liz. Go back and read paragraph 2(b) of the Offer to Purchase and Contract. And while you’re at it, review the Q&A dated August 25, 2015, under “Forms/Offer to Purchase and Contract” in the archived Q&As.

LIZ: Gosh, I’m only one out of three so far. What’s question No. 4?

FORMS GUY: It’s another fixtures question, Liz. Is a free-standing stove a fixture that conveys with the property according to the contract?

LIZ: If it’s not a built-in stove, it’s personal property, not a fixture, so the answer is clearly no.

FORMS GUY: I hate to break it to you, Liz, but you clearly whiffed again. You’re correct that a free-standing stove ordinarily would not be considered a fixture by law, but the question was whether it’s a fixture according to the contract. “Range/stove/oven” is on the list of items in paragraph 2(b) of the contract that are considered fixtures and included in the purchase price. So, whether the stove is a fixture or not is irrelevant because the parties have agreed between themselves that it’s a fixture for purposes of their contract.

LIZ: Where can I find that Q&A?

FORMS GUY: It’s under “Forms/Offer to Purchase and Contract” and it’s dated September 8, 2015.

LIZ: Okay, what’s the fifth question?

FORMS GUY: Let’s say a buyer agent delivers a due diligence fee to the listing agent, and the listing agent