Unlike the current contract, per the revision, an approval that contains a condition that the buyer must sell another property is considered “Loan Approval,” providing Rider V is made part of the contract. Consequently, if a buyer is approved for financing but the approval is conditioned upon an appraisal to be completed in the future, this will not be considered “Loan Approval.” 8(b)(i) – This subsection redefines “Loan Approval.” This term now includes two components: that a buyer is approved for the financing described in the contract, and that the lender received a satisfactory appraisal if one is required.Although a low appraisal can still derail a transaction, if it is received before expiration of the Loan Approval Period, the property can be returned to the market sooner and a new buyer found. Under the current contract, a low appraisal could derail a transaction as late as the closing, if that’s when the appraisal was completed. Why the change? The change was made to expedite receipt of the appraisal if required by the buyer’s lender. (Note: The word “appraisal” includes appraisals and alternative valuations.) New to the contract, however, is that the buyer’s lender must receive a satisfactory appraisal before the “Loan Approval Period” expires – the first time a FR/Bar contract specified this. 8(b) – Two tasks are to be completed during the “Loan Approval Period.” As before, the buyer must obtain approval for financing as described in Paragraph 8b.Spend time familiarizing yourself with the changes, so that you understand buyers’ and sellers’ responsibilities when the new contract goes into everyday use.
Paragraph 8, which addresses how the purchase will be paid for, contains many updates. Watkins says no contract can ever be perfect as long as the world keeps changing, but the FR/Bar contract has been tested over the years, and many of the new updates originated as suggestions from Realtor members. The Realtor and attorney members of the Joint Statewide Realtor Attorney Committee dedicated hours and hours of their time, and they deserve our gratitude.” “A great deal of time and energy went into these updates. “Laws, technology practice and society change over time, and Florida Realtors® updates its forms every few years to respond to those changes,” says Juana Watkins, Florida Realtors vice president of law and policy and general counsel. Florida Realtors Board Certified Professional.Specialties, Designations & Endorsements.
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