Even Newer Disclosure Form - Use Immediately!

I, like many of you, was surprised to learn that the Virginia Real Estate Board (VREB) recently amended the Virginia Residential Disclosure Statement to comply with House Bill 837. HB 837, which received no attention from the Virginia Association of Realtors or the Virginia Bar during the session, requires a new 7th notice be given to all prospective purchasers advising them that the seller makes no representations with regard to whether the property is located in a “dam break inundation zone.”

The new form was adopted by the VREB on July 10, 2008, and was posted to the VREB website that evening which means Listing agents should get the new disclosure signed by their sellers and use it for all contracts ratified Friday, July 11, 2008, forward.

Buyers who received the old form before July 11 do not need to receive a new form.

Remember: As with the changes effective January 1 of this year, It doesn't matter when you took the listing. If you are giving a form to a prospective buyer on or after July 11, it must be the new disclosure form. If your seller or agent gave the old form on July 11 -15, you might want to give the current form to the buyers to avoid creating a potential loop-hole for a non-performing buyer to discover later in the process.

Here is a link to the form:
Residential_Disclosure.pdf

Here is a link to the write up on NVAR's website on which I based much of my post.

disclosure_notice.pdf

Here is a link to thew new disclosure law.

http://leg1.state.va.us/cgi-bin/legp504.exe?000+cod+55-519


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New MRIS Policy on Short Sales

The Fredericksburg Area Association of Realtors posted an interesting article about the new MRIS policy on Short Sale Listings and the tension between the policy and your ethical obligation as realtors to keep your clients personal financial information confidential.

Michele Freemyers, of my law firm and the Fredericksburg office of Ekko Title added that she wished the posting had began and ended with the following :

"MRIS requires you to disclose this information. The Code of Ethics requires that you NOT disclose this information as it is considered confidential. Bottom line: Get written from authorization from your Seller to disclose the Short Sale status BEFORE you list it in MRIS"

http://faarforum.com/2008/07/mris-short-sales-commissions-disclosures-and-you/

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