In a couple of weeks, the Multi-Board 7.0 is going to drop, with the intention of retiring the 6.1 sometime in February or March 2019. Though the 6.1 served us well, the industry evolves, and our contract need to evolve with us.
Here are 3 quick takes from the new form.
1. Realtors no longer have to pick a mortgage contingency deadline.
For those of you who have been in the business for awhile, this is going to feel really weird to start. The new form sets the deadline at “forty-five (45) days after Date of Acceptance or five (5) days prior to the date of Closing, whichever is earlier.” This takes care of the problem created by the default setting of 60 days after acceptance in the 6.1, which was often after the date of closing.
2. The scope of the inspection contingency has been narrowed.
Experienced practitioners will know that inspection requests frequently enter the realm of the absurd. I once had a deal fall apart because the seller wouldn’t agree to paint the living room ceiling. The 7.0 makes it clear that “Minor repairs, routine maintenance items and painting, decorating or other items of a cosmetic nature, no matter what the costs to remedy the same, do not constitute defects, are not a part of this contingency and shall not be a basis for the Buyer to cancel this Contract.” Significantly, a request that violates the provisions of the paragraph entitles the seller to terminate the contract. Buyers are also not required to send any part of the report with their requests.
3. Closing must take place at title company location closest to the property.
This may not seem like a change, but that “rule” was merely customary in 6.1 and prior. We have all had a cheeky attorney who insisted on closing in their office in the loop, even though the property is in Naperville. That frustrating situation is no more starting with 7.0.
So, what do you think? I would love to hear your comments about these changes. Of course, there are a lot more changes, both big and small. But these are the 3 that stuck out most to me. Shoot me an email at email@example.com with your thoughts.