Thanks to the hard work of the NHAR's forms and legal committees, New Hampshire agents have new and updated forms with some great benefits! We pulled out our top three takeaways from NHAR legal counsel Matt Johnson's latest video for what every agent should know about the changes:
1. Clause 21 in the P&S
The first change directly updates the P&S agreement. Flip to page five to see the new clause - "choice of law and venue."
This clause states that any disputes that come from the contract must be determined in accordance with the laws of the state of New Hampshire, and the venue in which the disputes would occur must be within the state or federal courts in New Hampshire.
According to Matt Johnson, the need for this clause came about based on a court case in which the parties were trying to have the contract be interpreted under a different state's law.
2. Waiver of Inspection Rights Addendum
Next up is a brand new form! This form is a tool for buyer agents to use should the buyer choose to waive inspections. The buyer would sign it if waiving any inspections to make them aware of the risk presented in doing so. It also has them release any claims against the buyer agent or the brokerage as it relates to issues that could have been discovered during inspections.
We know home inspections have been a contentious subject for the past few years! Because of that, we also recommend you check out NHAR attorney Matt Johnson's video on risks that both the buyer and seller face when it comes to the buyer waiving the home inspection!
3. Termination of the Purchase and Sale Agreement
Our third big takeaway is the most helpful one for us! It's another new form called the Termination of Purchase and Sale Agreement.
This document allows parties to agree to terminate the contract without having to make a decision based on what happens with the earnest money deposit. Now, the parties can determine the future of earnest monies at a later date. Thanks to this form, there will be less confusion about when the property can go back on the market!
We love these new tools, and want to thank NHAR attorney Matt Johnson and the forms and legal committees for their efforts in making these updates! In addition to our top three takeaways, they've also added a delayed showings clause and property status clause to the Clause Library and road access language to the Property Disclosure form. For more information, check out NHAR's full video below!