A Message From NEFAR Legal Counsel Jeff Marks
Two verbiage revisions have been made to NEFAR's Purchase and Sale Agreement (PASA), both being on page 2. The revised version shows a date of 04/20r1 (r1 indicates revision 1 to teh 04/20 PASA).
Both the updated PASA, and a redline version, are on this website (Forms tab within the Members Only section, login required).
Change 1, Page 2 - under 2. Financing
In line 50, after the words “loan without financing contingency,” the following words were added, "in which case lines 52-105 below do not apply to this Agreement even if marked or completed.” This change was made to indicate that if the buyer is getting a loan, but there is no financing contingency, then there should also be no appraisal contingency. If the buyer wants an appraisal contingency, even when the buyer is getting a loan without financing contingency, then you would need to add language in paragraph 17. I would suggest language something like, “Buyer’s obligation to perform this Agreement is contingent on the property appraising for at least the purchase price. A copy of the low appraisal must be provided to the Seller by __________ in order for Buyer to invoke this contingency Buyer shall pay the cost of any appraisal.”
Change 2, Page 2 - under Application, lines 95-97
The following new sentence was added after the paragraph that describes when the buyer would apply for a loan. “Seller shall, upon reasonable notice, provide access to the Property for appraisals, and if not, the Loan Approval Period will be extended by the time access was denied.” This was added because paragraph 3A (Access and Utilities) stated that the Seller would make the Property available for inspections and investigations during the time period for inspections and investigations. That does not address making the property available for appraisers, and the time periods for making the property available for appraisers could be different then the time period provided for Buyer’s inspections.