2014 Commercial Forms Changes

2013 Residential Forms Changes

2014 IAR Commercial Forms Changes


The following 2014 Legal Forms were revised:

2014 Commercial Forms Changes

Purchase Agreement

Listing Contract - Exclusive Right To Sell, Form #F04SELL - Exclusive Right To Lease, Form #F04LSE - Exclusive Right To Sell or Lease, Form #F04


The following 2014 Legal Forms are new: Exclusive Tenant Representation

Exclusive Tenant Representation (With Tenant Payment)

Purchase Agreement Commercial – Industrial Real Estate (Land Only)

Registration and Commission Agreement

Amendment to Listing Contract Commercial-Industrial Real Estate



Clearly spells out when Buyer must submit earnest money. Gives the Seller a clear remedy for Buyer’s failure to submit earnest money.

Line 23-24

Rationale:



Added to incorporate the Earnest Money release procedure found in Indiana license law and made consistent with IAR residential forms.

Line 23-24

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Moved “Additional Provisions” section to paragraph R and renamed it “Further Conditions.” Better location and made consistent with IAR residential forms.

Line 29

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To clarify that all conditions must be met – not just those previously labeled due diligence.

Line 43

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Deleted “Due Diligence” and replaced with “Inspection Period” to include other contingencies as well.

Line 80

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So the parties can decide which party will pay for each item.

Line 149-160

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To include other agreed-to provisions elsewhere in the Agreement.

Line 159

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Line 159

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To be in accordance with the Good Funds law.


Line 15

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Exclusive Right To Sell, Form #F04SELL

Changed “midnight” to “11:59 p.m.” so there will be no misunderstanding of which day.


Line 49-50

Changed “negotiations” to “communications” to protect commission for broker who worked with a client but may not have gone as far as contract negotiations. Added verbiage to include entity as a Buyer — not just individuals.

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Line 188

Added NAR Code of Ethics details to include this new protection against discrimination.

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Line 15


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Exclusive Right To Lease, Form #F04LSE


Line 28

To protect broker commission in case tenant relocates or expands in the same building. Added “(See last page)” to refer to an example of the commission agreement.

Rationale:




Line 44-45

Changed “negotiations” to “communications” to protect commission for broker who worked with a client but may not have gone as far as contract negotiations. Added verbiage to include entity as a buyer – not just individuals.

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Line 187


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Line 234

Added to clarify the commission agreement.

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Line 15


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Exclusive Right To Sell or Lease, Form #F04


Line 33-38

Added verbiage to protect broker commission in case tenant relocates or expands in the same building. Added “(See last page)” to refer to an example of the commission agreement.

Rationale:




Line 58-59

Changed “negotiations” to “communications” to protect commission for broker who worked with a client but may not have gone as far as contract negotiations. Added verbiage to include entity as a buyer – not just individuals.

Rationale:




Line 221


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Line 15

Added to clarify the commission agreement.

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New Legal Form: F48

Exclusive Tenant Representation



New Legal Form: F49

Exclusive Tenant Representation (With Tenant Payment)



New Legal Form: F50

Purchase Agreement Commercial-Industrial Real Estate (Land Only)



New Legal Form: F51

Registration and Commission Agreement



New Legal Form: F52A-D

Amendment to Listing Contract Commercial-Industrial Real Estate



Ques%ons on these changes may be directed to the IAR Legal Hotline. The IAR Legal Hotline is available to principal and managing broker members, and their designated agents, statewide.

1.800.444.5472 toll free Indiana 1.317.913.3254 local 1.317.842.8494 fax [email protected]

IAR Legal Hotline:


Special thanks must be extended to the IAR Commercial Forms CommiBee. This volunteer group provides the most current updates to these forms. These changes and new forms will be available to members in January, 2014.