I have lambasted the real estate industry on more than one occasion for issues I have with inconsistencies and the things that I categorize as unfair practices due to the adverse impact they have on consumers.
One of my recent Tampa mortgages blog posts criticized the new FAR/BAR residential real estate contract for blatantly disregarding recent industry changes that were contradicted in the revised contract. (The FAR/BAR contract in Florida is so called because it represents terms and conditions agreed upon by the Florida Association of Realtors and the Florida BAR Association.)
As a minor concession, here are two examples of things that the new FAR/BAR contract actually got right:
- Extension of Closing Date: Item 5 on Page 2 makes a provision to automatically delay the closing for a period of no more than 7 days if the closing funds from the buyer’s lender are not available at the time of the scheduled closing (based on the requirements in MDIA that would automatically delay the closing anyway).
This is a great example of acknowledging current lending guidelines and incorporating them into the instrument of the transaction itself. Love when that happens!
- And under Item 8 (which is the all-essential Financing section), there is acknowledgment of the repercussions of FHA and VA repair standards not being met. What it does is make one of the conditions in the FHA/VA addendum part of the main body of the contract so there is no question what the outcome would be in that scenario.
At the end of the day, the right hand has to know what the left hand is doing in this and any other industry. Maybe we’re starting to make some progress after all.