Heads Up: 2014 Standard Forms

Real estate is a dynamic and ever-changing profession. This statement has been lobbed about in various communication and marketing pieces but it is a fact, and this simple fact keeps the OREA Standard Forms Committee quite busy. The Committee reviews requests and recommendations from REALTORS®, real estate boards, and other key stakeholders regarding OREA standard forms and clauses, and proceeds to revise, fine-tune, create, or delete forms and clauses.

Below is a brief summary of the revisions to the 2014 standard forms. A more in-depth summary of changes,  in a table format, is posted in the Members section of the website at www.orea.com. Please note, the 2013 standard forms are still in effect and these are what appear on the website. The 2014 standard forms will be posted in mid-December.

Standard Form 101: Agreement of Purchase and Sale 

Two new statements added in Clause 6: Rental Items to clarify that buyers will be responsible to do whatever is necessary to complete the assumption of the rental contract. The two statements are:

“Including Lease, Lease to Own”

“The Buyer agrees to co-operate and executive such documentation as may be required to facilitate such assumption.”

Standard Form 108: Entry/Access to Property – Acknowledgement [NEW]

This new form clarifies which registrant is to be present when a non-registrant (e.g., home inspector) requires entry to a listed property. With this form, registrants can obtain an acknowledgement from sellers that the sellers are aware of and consent to who will be present during a non-registrant entry to the property.

Standard Form 122: Mutual Release

The statement “The Brokerage hereby releases both parties from any claim that that Brokerage may have had for commission or other remuneration in the above transaction, except as may be herein before specifically provided” moved to the bottom of the form, just above the section for the signature(s) of the brokerage (s).

Standard Form 127: Conditions(s) in Offer – Acknowledgement

The only revision to this form is the name change. It was originally entitled Acknowledgement re: Condition(s) in Offer.

Standard Form 221: Seller Property Statement – Schedule for Condominium

In Section 10 and Section 11, addition of parking space number(s) and locker number(s).

Standard Form 240 : Amendment to Listing Agreement – Price Change/Extension/Amendment(s)

Addition of a subtitle – Change/Extension/Amendment(s) – to indicate the purpose(s) of the form and make it more user-friendly.

Standard Form 320: Confirmation of Co-operation and Representation

New wording added in Clause 3(c), as follows: “The Co-operating Brokerage is not representing the Buyer and has not entered into an agreement to provide customer service(s) to the Buyer.” Revised wording is more specific and confirms with the REBBA Code of Ethics. In addition, the signing and initialing section is reversed. Buyer’s initials ovals appear before seller’s initials ovals.

Standard Form 400: Agreement to Lease – Residential

Addition of new statement in the Address of Landlord section, as follows: “Legal address for the purpose of receiving notices.”

Addition of two new clauses – Clause 14: Insurance and Clause 15: Residency, as follow:

14.  INSURANCE: The Tenant agrees to obtain and keep in full force and effect during the entire period of the tenancy and any renewal thereof, at the Tenant’s sole cost and expense, fire and property damage and public liability insurance in an amount equal to that which a reasonably prudent Tenant would consider adequate. The Tenant agrees to provide the Landlord, upon demand at any time, proof that said insurance is in full force and effect and to notify the Landlord in writing in the event that such insurance is cancelled or otherwise terminated.

15.  RESIDENCY: The Landlord shall forthwith notify the Tenant in writing in the event the Landlord is, at the time of entering into this Agreement, or, becomes during the term of the tenancy, a non-resident of Canada as defined under the Income Tax Act, RSC 1985, c.1 (ITA) as amended from time to time, and in such event the Landlord and Tenant agree to comply with the tax withholding provisions of the ITA.

Stay Tuned

Stay tuned for a future blog where we will review the 2014 clauses.

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Heads Up: 2014 Standard Forms