2011 is here and North Carolina REALTORS® have entered a new world of forms.
Anchored by a new NCAR Standard Offer to Purchase and Contract with significant revisions, approximately 20 standard forms and addenda to the Offer to Purchase and Contract have been changed.
While there was some housekeeping on several forms and a few points in the Offer to Purchase and Contract, the marquee change driving many of the revisions is the revision of the Offer to Purchase and Contract to incorporate a "Due Diligence Period" into the transaction.
"Due Diligence Period" replaces the former "Alternative 1" and "Alternative 2" Property investigation, loan confirmation date, appraisal, survey, and repair negotiations processes and replaces them with a defined, negotiated period in which the Buyer will gain satisfaction regarding property condition and ability to fund the transaction.
At the end of the Due Diligence period, or any negotiated extension, the Buyer will remove all contingencies, and will only be able to terminate and receive refund of any earnest monies if Seller is unable to convey clear title or is unable to close within 14 days of the closing date in the contract.
Strategies and theories have abounded in the 6 months leading up to the required us of the 2011 Offer to Purchase and Contract.
Bottom line: REALTORS® need to study and understand the new forms and terminology, and do a good job of explaining the process to clients. And all parties need to keep their eye on the stated goal, to convey the property from Seller to Buyer.
Good Faith and Good Will, along with a smidgen of skill, will help in the learning curve in this abrupt transition.
Mike Jaquish, REALTOR®
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