February 16, 2015
The Cincinnati Area Board of Realtors implemented a new residential contract form for use starting January 1, 2015. The changes are substantial, compared to Board contracts in effect prior to now:
- The contract gives an option for a “short proration” of real estate taxes. Instead of prorating for the entire period of unpaid taxes, the proration is only for the current period (a difference of about six months). This is largely a new concept to the Cincinnati marketplace;
- The contract calls for payment from the seller to the buyer of the CAUV recoupment amount. This change alone could result in a substantial credit on closings of agricultural property;
- Shifting of expenses from buyer to seller, including an option for the seller to pay $300 of an owners’ policy of title insurance; and
- The obligation for the seller to provide extensive information on covenants and assessments.
So, it’s “buyer beware” and “seller beware” with respect to the new contract form.