In installment 3 of our 10 part series on recent changes to the FARBAR AS IS Residential Contract for Sale and Purchase we look at changes to provisions dealing with Occupany and Possession as well as contract assignability. Here are the changes:
- Occupancy and Possession: Paragraph 6(a) was revised to specify that if a buyer is to pre-occupy a property, parties are directed to Rider T for use in such situations. The new language in this subparagraph expands the seller's obligation to disclose to the buyer all occupancy arrangements that will occur after closing which exist or which the seller intends to enter into. The previous version of the contract covered disclosing leases. Given how commonplace seasonal and short-term vacation occupancies are, these arrangements are now covered as well. The new contract excludes the need for obtaining tenant estoppel letters from short-term or seasonal rental tenants.
- Assignability: Paragraph 7 now states that where the parties fail to select whether the contract is assignable, a default has been added that the contract will NOT be assignable. This is a change from the previous version of the contract, which did not contain default language.
If you have a real estate issue or are looking for a lawyer to close your transaction or list your transaction for sale, contact us today.