The following forms have been updated and are now available in our Forms & Contracts library. MRED and all e-signature vendors have also been sent a copy of these revised forms. See below for more information on the forms that have been revised and what’s changed:
Exclusive Right to Sell Listing Agreement
Following 10 months of usage and feedback from our members on the Exclusive Right to Sell Listing Agreement, the updates to the listing agreement largely focus on changes to Paragraphs 11 and 12, which discuss compensation.
- Removed references to old net vs. gross definition language. For percentage-based compensation, all listing brokerage compensation is based on the purchase price in the sales contract. If the parties wish to compute compensation on a different value, they will need to clearly define that in their agreement.
- Expanded check-box options for brokerages and sellers for listing brokerage compensation.
- Paragraph 12 renamed to Buyer Brokerage Compensation instead of Procuring Compensation (Buyer Side).
- All checkbox options for seller-authorized cooperating compensation or incentives have been removed. Paragraph 12 is now an acknowledgement that the Seller may receive offers from buyers requesting that the Seller contribute towards that buyer’s brokerage compensation. The choice to contribute or negotiate is that of the Seller. The Seller will also acknowledge that should they contribute towards the buyer’s brokerage compensation, it will be in addition to the listing brokerage compensation outlined in the agreement. Off-MLS offers of seller-authorized cooperating compensation are still allowed; however, that pre-written term is no longer available in the association-provided form contract.
- A new Paragraph 25 allows the parties to agree to additional terms or attachments.
Exclusive Right to Lease Listing Agreement
All updates referenced above in the for-sale listing agreement have also been made to the Exclusive Right to Lease Listing Agreement.
Price Escalation Notice
This document has been clarified to be a notice to the seller and not a binding contract or addendum. As stated in the notice, the parties shall update a purchase and sales contract to reflect any final and agreed-upon escalated purchase price.
The definition of Maximum Purchase Price was also simplified and clarified so that it reads the maximum purchase price the buyer is willing to pay.
As-Is Rider
The As-Is Rider has new paragraphs and expanded options for buyers and sellers looking to enter into an “As-Is” contract. A new paragraph discusses that the seller is not providing any warranties or representations to the buyer as to the physical condition of the property. Additionally, a new Inspection paragraph is available should the parties also agree that, in addition to no warranties or representations by the seller, the parties are changing the terms of the inspection contingency. This new paragraph is optional, and if left blank, the default inspection contingency of the contract shall control. If looking to change the inspection contingency terms, the parties can agree that the buyer is waiving their rights to an inspection, or the parties can agree that the buyer may conduct an inspection but not ask for any repair requests.
This new language and expanded options bring the concepts of the As-Is Rider and Chicago Association of REALTORS® Contracts into alignment with similar language in the Multi-Board 8.0 Contract.
Inspection Contingency Rider
The Inspection Contingency Rider has been updated to provide 3 options to the parties regarding the inspection contingency: 1.) waiving the buyer’s right to an inspection; 2.) a right to inspection but make no repair requests; or 3) a right to inspection and make repair requests.
PLEASE NOTE: As we continue to update our riders and notices, we are also updating the naming structure to remove any prefix number or letter to a rider. All riders and notices are now sorted in alphabetical order based on the name of the document.