Note: The Oklahoma Real Estate Commission's Commission Comment is the Official Publication of the Oklahoma Real Estate Commission. Past Commission Comment newsletters may be viewed online at the OREC website anytime by clicking here. The following Commission Comment was published first by OREC on November 20th, 2015.
New Oklahoma Real Estate Commission Contracts and Forms were released on November 1. While the response to changes on these forms has been overwhelmingly positive, we've received several questions we'd like to clarify for Oklahoma licensees. This special edition of Commission Comments will answer these questions. Remember, the Residential Property Condition Disclosure Form is required by law, and the new form must be used for any residential property subject to the Residential Property Condition Disclosure Act listed after November 1. Otherwise, all of the OREC contracts and forms, including the new Listing Agreement, are optional. Your broker and/or local board/association of REALTORS® may have a different listing agreement you can use.
What is the "entity" number?
The entity number, which is listed on the bottom of the residential sales contract, is the office where the associate's license is held. Listing the entity number on the contract is not a requirement in our Code & Rules; however it is a TRID (TILA-RESPA Integrated Disclosure) requirement.
Why was the repair cap removed?
The repair cap language was removed from the residential sales contract as a result of an industry request, as some licensees felt removing the cap would help in the negotiation process. The current Treatments, Repairs, Replacements and Reviews paragraph states that the seller and buyer should negotiate the TRR items, specifically which items should be repaired, without a specific dollar amount. If a written agreement is not reached within the time as stated in the contract, the contract shall terminate and the earnest money should be returned to the buyer.
What is a floodway?
A new question (Question #4) on the Residential Property Condition Disclosure Form is "What is the floodway status of the property?" This question is important because floodway status may impact a property owner's ability to rebuild if the property is destroyed in a natural disaster. "Floodway" is defined statutorily in the Oklahoma Floodplain Management Act as "the channel of a stream, watercourse or body of water and those portions of floodplains which are reasonably required to carry and discharge the floodwater or floodflow of any river or stream." A more common-sense definition provided by the Oklahoma Water Resources Board is the area needed to carry the base flood. Licensees can refer to the interactive map located on the Oklahoma Water Resources Board Web site at http://www.owrb.ok.gov/hazard/fp/floodplain.php for more information. Specific addresses can be typed in and show if the property is in a floodplain or a floodway.
We hope these questions help you better understand our new Contracts and Forms. As always, the OREC Contract and Forms committee appreciates and welcomes any questions or suggestions you might have – please contact the OREC offices (email@example.com).
Written and Published by: VanEd