Back in the beginning of October, Maryland REALTORS® rolled out changes to its statewide forms library, which contains contracts, disclosures and addenda that members of Maryland REALTORS® use to service clients and bring real estate transactions to settlement. This year there were significant changes bringing a total of nine new forms, including a reorganized Residential Contract of Sale, as well as five revised forms, including the Property Inspections Addendum.
The new Property Inspections Addendum saw a major changewhere buyers can now unilaterally terminate the Contract of Sale based on their general dissatisfaction with the results of the inspection(s). The old Property Inspections Addendum did not afford buyers the option to unilaterally terminate the contract, and instead had to request repairs first, and if the seller denied any of the requested repairs, then the buyer had the right to terminate. This change has also rendered the often used As-Is Addendum obsolete, so it has been retired from the formslibrary.
Another change on the Property Inspection Addendum was the incorporation of wood-destroying insect inspections as an option for buyers, whereas that right was previously contained within the body of the old Residential Contract of Sale. The old Contract of Sale called for an inherent agreement on the seller paying up to 2% of the purchase price for termite treatment/repairs—and this has now been removed. In addition, the Veterans Administration recently changed its policies and now allow a VA buyer to pay for wood-destroying insect inspection fees and repair costs, so VA buyers who wish to retain the right to negotiate payment for repairs of damage caused by wood-destroying insects with the seller, should activate this inspection on the new Property Inspections Addendum.
One other new form is the Advanced Treatment Unit (ATU) and/or Best Available Technology (BAT) Septic System Disclosure. These systems utilize technology approved by the Maryland Department of the Environment for removing nitrogen from onsite sewage disposal systems. This new form calls for sellers to disclose the existence of such septic systems and further requires that the seller provide the necessary documentation and information so buyers can remain in compliance with required system maintenance, testing and reporting requirements. Not all new or replacement septic systems installed in Maryland are required to be ATU or BAT, so listing agents need to confirm the type of system in place to determine if this new form is required.
Lauren Bunting is a Broker with Keller Williams Realty of Delmarva in Ocean City, Maryland.
