YOU SPOKE AND WE
LISTENED—NEW ADDENDUM
AVAILABLE ON NWMLS
The competitive market has brokers scrambling to show that their buyer
should be the seller’s choice. With limited inventory, eager buyers are waiving
contingencies to show sellers that they want their home. This business practice
has put brokers at risk as many brokers have drafted contingency removal
clauses and added them to a blank addendum.
Several Danforth brokers have brought to our attention the
need for an addendum to protect the client as well as the
Danforth broker. CBDA Form #301 is now available under
company Forms in the NWMLS.
This addendum addresses 3 areas of concern:
1. The first section is a WARNING to the buyer regarding
the removal of contingencies that were added to
the contract for their protection. This section also
has a checklist for the most commonly removed
contingencies. There is also a check box for removing
the Financing Contingency but notifying the seller that
the buyer is still obtaining a loan.
2. The 2nd area of concern deals with Seller procured
inspection reports. This paragraph makes clear that
even though the seller has obtained an inspection on
the property that this is NOT a warranty, express or
implied regarding the condition of the property. It also
advises the Buyer to obtain their own inspection.
3. The last area deals with Non-Refundable Earnest
Money. There are 2 options available. The first option
(item #3) is called a Non-Refundable Deposit as the
money is immediately released to the seller. This is not
Earnest Money. The second option (item #4) is used
for when you collect Earnest Money and then agree
to release a portion or all of it to the seller later. The
default is 10 days later but this can be adjusted per the
client’s need.
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Our attorney has advised
that this addendum MUST
be used for the removal
of contingencies. Don’t
draft your own language!
Click here for CBDA #301
The Washington
Realtors’ Attorney, Annie
Fitzsimmons, is currently
discussing the issues
which put you at risk.
Click here for access to
the Broker Liability Series