Speaker 1:
Sounds good. All right, so as you guys know, I took the PMAR class, it's about an hour and a half long, on the new forms. By new forms, I mean the changes to the old forms. There are some pretty significant changes, and then there are just, kind of, terminology changes. This is the samples of the new forms that are coming out officially tomorrow. So this is the residential sale agreement. Not a ton of changes in the first couple of pages, but going down, there's... Under fire representation regarding financing, it now says, "Buyer shall request the ordering of the lender's appraisal no later than expiration with the inspection period". That's just a minor change, but it is fairly significant. Just a little bit more strict on, you have to get that requested by the end of the inspection period. It used to say, "shall make a good faith effort to secure." And that's just a little bit more specific.
I'm scrolling through here. The changes are highlighted in yellow, so we will see those clearly. The FIRPTA tax withholding requirement, so they decided to get a little bit more specific on this as well. And they also want to help protect both the buyer and the buyer's agent. Essentially, this is an important thing that a lot of people don't think about. And most title companies in the Portland Metro area will handle the FIRPTA requirements and just the documents that need to be signed on their own, and the title companies that I've worked with do. But if they don't, then it's going to be important to focus a little bit more on this. But yeah, they're just trying to make it more clear for both the buyer, the buyer's agent, and basically all parties whose responsibility it is to get the document signed, and this is whether the person is a US citizen or not. So there're documents that need to be signed.
All right. Miscellaneous items, a small change in the smart smoke and carbon monoxide detector section. It's basically just saying that it's installed. Previously, it was just saying that they need to be present in the place as required by law, and it didn't say installed which basically meant people could lean it up against the wall or put it on the kitchen counter or something like that. And if someone were to do that, in theory, they could do both, and it passed the appraisal and passed everything. In theory, the buyer could go after the buyer's agent and a variety of people, the appraiser, inspector, if it was present like that and their full family died or something like that. So that's going to be an important one. Just make sure they are properly installed and fixed to the walls.
Speaker 2:
Well and per ORS 479 is the updated code of leave for which such detectors are required in each of the bedrooms. Whereas, previously you could locate one outside the hall amongst all three bedrooms. And so what you'll find is these old houses may already have a smoke alarm in them, but it's not installed according to this updated code.
Speaker 1:
Gotcha.
Speaker 2:
So that just keep that in mind when you're doing listings, you might as well have the seller just put in the required amount of carbon monoxide detectors.
Speaker 1:
Yeah.
Speaker 2:
So, I believe it's one per bedroom. And then if it has gas, one carbon monoxide detector on each level of the house.
Speaker 1:
Yeah.
Speaker 2:
So if it has three stories, you need three carbon monoxide detectors.
Speaker 1:
And does it specify that it has to be five feet or under?
Speaker 2:
Yes.
Speaker 1:
All right.
Speaker 2:
I believe it does.
Speaker 1:
Yeah. So basically just send that directly to your sellers and buyers. But those are going to be accessible, smart home features. That's just a new section altogether. It makes sense. I mean, a lot of homes now have smart home features, whether it's a Ring doorbell or a Nest thermostat or something like that. It's basically saying that the sellers have a duty to disclose or provide the password to the buyers. And as a listing agent, you just need to make sure that, hey, tell your clients, hey guess what you got to give your passwords over, so make sure you change them from one that's personal to more generic one prior to handing over the keys. And that's just going to be something they can just send over.
Speaker 3:
So, are those considered light fixtures now?
Speaker 1:
So there's a lot of gray areas so they're also saying make sure that you put it in the fixtures and personal property section, what is included in the sale. So sometimes the Rings are hardwired in and pretty much unilaterally that's going to be considered a fixture. But there are also battery-operated ones that are not hardwired in. So those would not be. But in general, there are going to be considered a fixture, and they will be equivalent to the sale unless otherwise specified.
Speaker 2:
I mean typically when someone replaces a fixture, they usually have the old one too. So if they really want the Rings, they'll just swap it out. Yeah. So you just, you want to be clear that that particular item is coming along with the sale.
Speaker 1:
Exactly.
Speaker 2:
Those things are like 300 bucks apiece. It's not like an insignificant amount of money if there are three of them on the property.
Speaker 1:
For sure.
Speaker 3:
And I mean does that go for like Ring cameras inside too and stuff like that anyway?
Speaker 1:
Yeah, I mean if they're fixed, again, just specify if you know that your clients, if you're representing the seller and they really want to keep everything put that in the notes, if it's still there and if it's not still there, then that's great. If they took it out prior, a lot of people want to have some sort of surveillance of the property or maybe they want their SimpliSafe system still in there or something like that. But it's just a new one. Earnest money. This is again kind of this semantics to a certain extent, but it's basically saying that the seller may terminate instead of just assuming that it's terminated if the buyer does not submit their earnest money.
Speaker 3:
This is allowing the seller to not terminate the agreement.
Speaker 1:
Yeah, exactly.
Speaker 1:
But whatever it is, it just has to be in writing.
Speaker 1:
Tenant is currently in possession of the property, so this is kind of important as well. So they added this if applicable, tenant relocation costs, which we're all familiar with at this point. And it's kind of self-explanatory, but do you guys have any questions on that?
Speaker 1:
Definitions and instructions. Basically just saying that the buyer and seller mean both singular and plural. Pretty self-explanatory. It could be John and Mary are the buyer and it's just a buyer, not buyers. And that's how it's defined for the purpose of the contracts.
Speaker 1:
Oh, so this is just not that important. It's actually in a different section where this is the case but it's basically saying that agents and firms are also going to be going to mediation and arbitration if necessary. And it's apparently so they are actually specifically said, "This addition cross-references the sections 36 to 39 dispute resolution of the sale agreement, which involves agents and their companies to clarify that while they are not parties to the transaction, they are subject to mandatory mediation and arbitration provisions."
Speaker 1:
So this section, number nine, signed and accepted. So this is just based on what constitutes delivery and electronic transmission, and so when the agreement is signed and accepted as what the agreement becomes legally binding on buyer and seller. And then they also said that with termination it can be a little bit different. They do need to get the signature of the other party if you're terminating. Whereas if you are, I don't know, it's pretty self-explanatory when you read it.
Speaker 1:
And apparently, this is not a new edition. It actually was in there previously and then they put it back in.
Speaker 1:
Nothing else on that and I think that's all I'm going to go over right now. There are a variety of other changes to different things, but we didn't even finish the whole thing in an hour and a half, so I'm not, going to go through the whole thing. I will forward over, I forwarded everything else over, but I will also send the notes from the lawyer that reviewed this, and that'll be helpful as well. 66 pages of that and 25 pages of this. [inaudible 00:10:40]
Speaker 3:
Cool. Were there any other highlights from any of the other stuff?
Speaker 1:
Not really. Nothing that was really super important in my opinion. I think. So there was one thing, actually, I don't really deal with manufactured homes. There are changes to the backup offer addendum but nothing too crazy. They changed the levy of additional property taxes in a couple of the addendums.
Speaker 1:
I mean there's two buyers or pair addendum, but again, it's all pretty self-explanatory.
Speaker 1:
[crosstalk 00:11:27] They did change the townhome and plan community slash owners association addendum. Now it's called the homeowners association townhome and planned community addendum. The main reason they're doing that is that they want to make sure that even the people in the mountain park and any area with has this addendum included because a lot of people have just been foregoing it.
Speaker 2:
Sounds good.
