Lancaster County REthink Council Presentation 101025

The Lancaster County (PA) REthink Council of Berkshire Hathaway HomeServices Homesale Realty presentation covering the NEW changes in PAR forms.

1. 10 October 2025 1

2. 10 October 2025 2 Standard Forms Update (Effective September 1, 2025)

3. Which forms are changing? 10 October 2025 3 ACA ASR ASMH ASNC ASVL CBC CBCR XLR XLS XLSC Appraisal Contingency Addendum to Agreement of Sale Standard Agreement for the Sale of Real Estate Standard Agreement of Sale for Manufactured Home on Leased Land Standard Agreement for the Sale of New Construction Standard Agreement for the Sale of Vacant Land Cooperating Broker Compensation Agreement Cooperating Broker Compensation Agreement for Rentals Listing for Rent Contract – Exclusive Right to Rent Real Property Listing Contract (Seller Agency) – Exclusive Right to Sell Real Estate Listing Contract – Exclusive Right to Sell/Lease Commercial Property Forms in RED will be reviewed in this session

4. Appraisal Contingency (ACA) 10 October 2025 4 Paragraph 1 gives the Buyer three options : Purchase Price Dollar amount less than Purchase Price Dollar amount determined by Buyer If appraisal value is met in option 2 or 3, Buyer: Provide additional funds Adjust loan amount Adjust the loan-to-value (LTV) ratio If appraisal value is NOT met , Buyer: Terminate Renegotiate agreement

5. Appraisal Contingency (ACA) – Example 10 October 2025 5 Real Life Scenario Your Buyer client is looking at a home that has been on the market for 24 hours and is listed at $350,000 . When showing the property, you see 15 other agents’ business cards on the counter. Your Buyer client LOOOOOVES the property and wants to make an offer. They are willing to offer $380,000 on the property but want to make sure that they are not drastically overpaying. How do you structure the Appraisal Contingency if the Buyer tells you that they are willing to cover $15,000 if the appraisal comes in low, but no more? Answer: Insert $365,000 in Paragraph 1.c.

6. Agreement of Sale (ASR) 10 October 2025 6 Buyer Financing (paragraph 8) now allows for three options: True CASH purchase (Seller no longer needs to open up home to appraisers) Waived ; however, Buyer may still pursue financing Obtain financing Moved the Mortgage Commitment Date to make it easier to see

7. Listing Contract (XLS) 10 October 2025 7 Marketing of Property (paragraph 25) accounts for MLSs that offer delayed marketing options like ‘Coming Soon’ and ‘Office Exclusives.’ Seller may choose: No delayed marketing strategy Delayed marketing strategy – need to indicate whether it is ‘Coming Soon’ or ‘Office Exclusive’

8. 10 October 2025 8 Standard of Practice 3-2: REALTORS® are prohibited from delaying or withholding delivery of a buyer’s/tenant’s offer while attempting to negotiate compensation. These ethical obligations in no way restrict the REALTORS®’ or clients’ ability to negotiate compensation in the clients’ best interest, including in offers to purchase or lease. In June of 2025, the National Association of REALTORS® made eleven changes to its Code of Ethics

9. Cooperating Broker Compensation (CBC) 10 October 2025 9 Eliminated language that said CBC would be negotiated prior to submitting an of sale This complies with NAR’s June ’25 changes to Standard of Practice 3-2 of the Code of Ethics

10. Inspection Contingency in the ASR 10 October 2025 10 What Agents Read What Agents Understand

11. 10 October 2025 11

12. 10 October 2025 12 Best Practices: When in doubt about what a clause or addendum says – talk to your manager Don’t assume the co-op agent knows what they’re doing – pick up the phone and call them