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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 (orec.help@orec.ok.gov).
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