Although somewhat boring in nature, the Northwest Multiple Listing Service (NWMLS) came out with some significate changes to the real estate forms brokers are required to utilize with their buyers and sellers. Buyers and sellers in Washington rarely hire attorneys to review real estate contracts and rely on the expertise of their agents. The recent changes to the forms makes it that much more important to engage the best real estate broker the buyers and sellers can find. Don’t just engage your brother-in-law or, acquaintance to assist you with your purchase or sale. Hire the best.
Here’s one example: If there is an escalation clause that increases the purchase price, the listing broker must present the competing offer along with the fully executed offer to purchase back to the buyer to reach mutual acceptance. If the competing offer has been altered in any way or, the listing agent fails to include the competing offer, the purchase price will automatically be the original purchase price presented by the buyer, without any escalations.
Here’s a second example: If the buyer conducts an inspection and seeks to request repairs by the seller and communicates that by sending the inspection report to the seller without written permission, the buyer effectively has waived their inspection and cannot request seller to make any repairs. If the buyer terminates the transaction because of the inspection, the buyer will lose their earnest money deposit.
Here’s a third example: If the seller fails to provide the buyer with a specific form, even though that form is not considered a part of the purchase and sale agreement, the buyer can terminate the transaction all the way up until closing and their earnest money will be returned to the buyer.
There are many more changes to the real estate forms that could impact the buyers and sellers in a transaction. Broker needs to be competent enough to understand those changes and use them properly to protect their clients, both buyers and sellers.
If you have comments or questions about this article, please email me at smeyers@kw.com.
Steve Meyers is a Managing Broker at Keller Williams Realty in Seattle, Washington. He can be reached at (206) 972-3328 or smeyers@kw.com.
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