Seller Disclosure Act takes effect July 26th

Q: 

Is it true that Forms 17 and 17C are changing again soon and that all exising Forms 17 and Forms 17C will have to be replaced?

A: 

On July 26, 2009, the revised Seller Disclosure Act takes effect causing significant changes to both Form 17 and Form 17C.  The seller of any property subject to the Seller Disclosure Act that is listed on or after July 26 must complete the new version of the forms. 

If the property is already listed and subject to an existing purchase agreement by July 25, seller should not complete the new version of the form.  The only exception to this is that if the existing sale fails, then the new version of the form must be given to any buyers who purchase the property on or after July 26, 2009. 

If the property is currently listed and remains unsold as of July 26, then listing agent must discard the existing form 17 or form 17C and have seller complete an entirely new form to give to any buyers after July 26.  Listing agents should be certain to remove any old Forms 17 and 17C from the attached documents section of their MLS listings first thing on July 26 and replace them with the newly completed, new forms.

It is absolutely essential that all hard copies of Form 17 and Form 17C be destroyed not later than July 26.  Changes were made to the forms throughout so there is no way to simply substitute a single page or two from the new form into the old form.  If use of the revised form is necessary, seller must complete the entire new Form 17 or Form 17C.

None of the exemptions to the Seller Disclosure Act were modified in any way.  Any property that is currently subject to or exempt from the Seller Disclosure Act remains that way after the revised law takes effect.

Additional information relative to the revised Seller Disclosure Act is available on the link below.  All REALTORS® are encouraged to read the linked legal bulletin, prepared by legal counsel to the NWMLS, as it contains additional, necessary information regarding related forms revisions and a seller’s obligation to amend the Seller Disclosure Act after it is given to a buyer.

http://www.nwmls.com/wr/LB182.html

This entry was posted on Thursday, July 2nd, 2009 at 3:09 pm and is filed under Uncategorized.