1st Class & Fast

Residential Purchase Contract Changes

for 2014
Your Standard Forms Committee has made a number of changes to the Columbus
REALTORS/CBA Residential Real Estate Purchase Contract that were approved in July
2014. The new contracts are now available in the Member Service Center (store) and PCF
Online Forms. (If youve selected ZipLogix or Dotloop as your online forms vendor, you might
check with them as to when the new contract will be available.)
Some of the changes eliminate duplicative language, and rearrange existing language and
paragraph numbering in order to emphasize certain issues of concern and create a more
logical order of presentation. With this in mind, here are the most significant changes:
Paragraphs 1.4 and 1.5 are reversed. The additional terms and conditions now come
before the attorney approval clause, making for a more logical order of presentation.
Paragraph 12.1 is eliminated (and the remaining subparagraphs in paragraph 12 are
renumbered accordingly). Former paragraph 12.1 stated [t]he Buyer has been given the
opportunity to examine the premises and in making this offer shall rely solely upon the
Buyers inspections and/or tests with reference to the condition, character, and size of the
premises. Some Ohio courts have interpreted similar language in real estate contracts as
constituting an as-is clause, effectively eliminating the sellers obligation under Ohio law to
disclose known latent defects to the buyer. The committee and the Columbus Bar
Association are of the opinion that the contract should reflect Ohio law on this subject. If the
parties wish to insert an as-is clause, they can do so in new paragraph 1.4.
Paragraph 10 was reworked to account for the possibility that there may be more than one
earnest money deposit made during the course of a transaction. The change was made in
response to a growing practice among both Realtors and attorneys to provide for an initial
earnest money deposit, followed by an additional deposit upon completion of the remedy
periods under paragraph 4.
Paragraph 7.1 was rewritten as follows (new language is in bold italics):
The Seller shall furnish and pay for an ALTA Homeowners Commitment and Policy of
Title Insurance (latest revision) in the amount of the purchase price with a copy of the
subdivision or condominium plat.

In the event that an ALTA Homeowners Policy is not applicable for issuance on the
premises, the Seller shall furnish and pay for an ALTA Owners Commitment and Policy of
Title Insurance (latest revision) with a copy of the subdivision or condominium plat.
Seller shall provide the base policy coverage for the applicable ALTA policy. Buyer is
responsible for the cost of any coverage that requires additional premium for
endorsements or the deletion of any standard exceptions.
The title evidence shall be certified to within thirty (30) calendar days prior to closing with
endorsement as of 8:00 AM on the business day prior to the date of closing, all in
accordance with the standards of the Columbus Bar Association, and shall show in
Seller marketable title, in fee simple, free and clear of all liens and encumbrances subject to
all matters listed in Paragraph 6.1.
Title insurance endorsements and the deletion of standard exceptions to coverage provide
buyers with title insurance coverage beyond that which is provided in the basic Homeowners
or Owners policies. The new language was added to provide title agents with clear,
unambiguous guidance regarding the responsibility of the parties for the payment of
additional title insurance premiums for such additional coverages.
While the most common endorsements are for mechanics liens filed after closing for work
performed prior to closing (known in the industry as the mechanics lien endorsement), and
for the accuracy of surveys provided to the title underwriter and buyer prior to closing (known
as the survey endorsement), there are actually dozens of endorsements for additional
coverages that could be purchased by the parties. In many cases buyers must purchase a
survey endorsement and certain environmental endorsements as a lender requirement.
All buyers are encouraged to seek legal advice regarding the need for endorsements or
deletion of standard exceptions. This is particularly true when the subject property is located
in a rural area or outside of a platted subdivision.