Say goodbye to the Reply to Inspections/Reports Addendum to the Agreement of Sale (Form RR) and meet its cousin, the Buyer’s Reply to Inspections/Reports or Written Corrective Proposal. You can call it the BRI.
As of March 7, Form RR will no longer be available in the PAR library for use, and Form BRI will take its place. The BRI looks very similar to the RR; it is the use of the form that is different. A sample of the BRI (along with all the other forms in this batch of revisions) is on the PAR website along with the complete Guidelines. Here’s a summary of what you need to know:
1. Form BRI is NOT an addendum to the Agreement of Sale. It’s worth repeating, so here it goes: Form BRI is NOT an addendum to the Agreement of Sale. Not only have those words been removed from the title of the form, but there are reminders at the top and bottom of Form BRI and the lines for the sellers’ signatures have been removed. The BRI is now basically a one-way wish list, going from the buyer to the seller.
2. Form BRI is NOT an addendum to the Agreement of Sale. Just in case you missed the first one.
3. Form BRI is a Written Corrective Proposal. The inspection contingency paragraphs for PAR’s standard sales agreements (except for commercial sales) provide the buyer with three options during the Contingency Period: accept the property, terminate the Agreement or submit a Written Corrective Proposal. Form BRI is the Written Corrective Proposal that serves as the starting point for negotiation. The buyer can list any repairs, corrections, improvements or modifications they want as a result of the inspection report and send it directly to the seller for a response.
4. You can use multiple forms for multiple inspections. Just as was done with Form RR, the buyer may accept the property given the results of an inspection or submit a written corrective proposal. However, submitting a BRI with “accepted” for one inspection(s) does not mean that the buyer accepts the results of all inspections. A buyer can submit a BRI accepting a boundary inspection yet submit a second BRI with a written corrective proposal based on an inspection for wood-destroying pests.
5. Form BRI is meant to be used in conjunction with the Change in Terms Addendum, Form CTA. The Change in Terms Addendum IS an addendum to the Agreement of Sale, and it is where the parties will record any changes to the Agreement that were made during the Negotiation Period. Before, everything was listed on the RR and the parties crossed off and added things as negotiations went on. Now, those negotiations take place on the BRI (see 1 and 2, above) and the final resolution is recorded on the CTA. There is space to record a list of repairs that the seller will do, change the purchase price, or change the seller assist, as permitted by the lender, if any.