Whole > Sum of Parts

[Editor’s Note:  The views expressed here are solely those of Ross Kaplan, and do not represent Edina Realty, Berkshire Hathaway, or any other entity referenced.  If you need legal advice, please consult an attorney.]

One of the (many) fringe benefits of working at the best office (City Lakes), at the Twin Cities’ best and biggest broker (Edina Realty), is hearing colleagues like Budd Batterson (and 2011 Minnesota Realtor of the Year!) give a detailed overview of upcoming forms changes.

Like he did at this morning’s Edina Realty – City Lakes weekly meeting.

Effective each August 1, this year’s changes are easily the most significant in years.

Thankfully, the biggest change is mainly about format, not substance.

Form(s) vs. Substance

So, instead of an 8-page Purchase Agreement followed by separate Addenda for Financing, Seller-Paid’s, and Inspection, those forms are now all included in a 12-page Purchase Agreement.

One immediate benefit:  no more disputes about mis-numbered or un-numbered contracts.

Also likely new for 2017 – 2018 (last-minute tweaks are still being made):

–Broader language in the “Fixtures” section of the Purchase Agreement describing radon remediation systems.

–In the “Seller’s Duties” section of the standard Minnesota Listing Contract, new language expanding Sellers’ responsibility for safeguarding their home to cover visits by inspectors and other professionals (e.g., handymen), not just prospective Buyers and Buyers’ agents.

–New language — also in the standard Minnesota Listing Contract — explicitly contemplating that Buyers may take pictures or video of homes they’re viewing (vs. seeking to hold listing agents responsible when that happens.  Note to Sellers:  Buyers do this now, anyways, and there’s almost nothing listing agents can do about it).

Deafening Silence; Nod to Reality

Of course, some of the biggest news is what isn’t being changed.

For example, the change last year simplifying the Inspection timetable.

According to Budd, collective silence on the revised Addendum — now integrated into the body of the Purchase Agreement — indicates that the vast majority of Minnesota Realtors are happy with it (count me amongst the minority who preferred the old Addendum).

See also, “Congrats, Budd!”; “Why I Don’t Number Pages in Purchase Agreements“; “It’s 11:55 p.m. on Day #10 of the Inspection Period. Do the Buyer and Seller Still Have a Deal?”

About the author

Ross Kaplan has 19+ years experience selling real estate all over the Twin Cities. He is also a 12-time consecutive "Super Real Estate Agent," as determined by Mpls. - St. Paul Magazine and Twin Cities Business Magazine. Prior to becoming a Realtor, Ross was an attorney (corporate law), CPA, and entrepreneur. He holds an economics degree from Stanford.

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