In addition to the Agreement of Sale, there will be three other revised forms and one brand new form in the PAR library on Jan. 1.
The Property Management Agreement (Form PMA), Broker’s Fee Agreement (Form BFA) and Pre-settlement Possession Addendum (Form PRE) have received a face-lift and the new Broker’s Request for Affirmation (Form BRFA) has been added.
Changes to Form BFA and Form PRE are simple and straightforward. One line was added to Form BFA to explain that a broker may hold deposit checks uncashed until an agreement has been signed; small clarifications have been made for Form PRE to cover instances of both possession and access to the property prior to settlement. Changes to Form PMA are more comprehensive. For starters, the form is now specifically for residential property management. Many other changes were made throughout the form, updating legal provisions and giving it a more cohesive structure.
New for this year is Form BRFA, which was drafted by the committee in response to the change to NAR’s Code of Ethics, Standard of Practice 1-7. Effective Jan. 1, SOP 1-7 will require a listing broker to provide a written response to a cooperating broker who asks for proof that an offer has been submitted. The listing broker may respond with an affirmation that an offer has been submitted or notification that the duty to present the offer is waived due to the existence of a current agreement. Form BRFA will allow a cooperating broker to submit a written request for affirmation and will also provide the tool for the listing broker’s response.
You can review all of these forms and their corresponding guidelines on the Standard Forms page prior to their release on Jan. 1. If you have any questions about changes or how to use the forms, please contact Standard Forms Manager Desiree Brougher.