Q. What are some of the ways that the new WB-11 is different from its predecessor?
A. Many exciting improvements were made to help licensees and consumers engage in successful transactions. These improvements bring better clarity and understanding to the contract for the mutual benefit of both the parties and the agents. Some of the more significant changes to the WB-11 include: 1. Inspection Contingency: Three-Part Inspection Process (lines 413-435). The buyer may have a home inspection and an inspection of specific property components or features. If the written inspection reports recommend follow-up inspections, these may also be performed provided this all occurs within the stated deadline. The revisions bring much greater clarity about what inspections can be done and under what timeline.
2. E-Mail Delivery (lines 46-55). The ability to deliver transactions documents via e-mail (once the proper consumer consents required by law have been given) brings the transaction into the modern world where the parties to transactions often rely heavily on electronic media.
3. Appraisal Contingency (lines 266-274). The buyer now has the ability to protect him or herself against the possibility of delivering a loan commitment to the seller and becoming committed to buy the home only to find out later that the appraisal is less than the purchase price and the lender is now denying the loan. The appraisal contingency saves the buyer from this fate.
4. Gap Endorsements (lines 346-350). In this era of distressed sellers and foreclosures it is critical that the buyer receive the maximum title protection available.
5. Tax Proration Choices (lines 121-137). The parties have clearer cautionary language and additional potential formulas for property tax prorations, something that is very important for new construction or in areas where there have been be reassessments.
6. Written Delivery Instructions for Loan Commitments (lines 237-248). This provision safeguards against the delivery of a loan commitment to a seller in cases where the buyer has never seen or approved the loan commitment nor directed that it be delivered to the seller.
7. Distribution of Information (lines 275-280). This section authorizes the distribution of information about the transaction that often will be needed by appraisers and assessors. Authorizing the needed information will serve to improve the accuracy and validity of appraisals, assessments and property valuations.
8. Line 1 Agency Models (lines 1-2). The updated line 1 accurately reflects the different agency models in language that the parties can appreciate. In simple terms, line 1 tells the parties which party or parties the agent drafting the offer is oriented to.
9. Sex Offender Registry Information (lines 304-306). This important information is now in the offer so that buyers can find information about any convicted sex offenders in the area.
10. Buyers and Their Agents May Attend Inspections and Testing (line 404). This right will help promote better understanding on the part of the buyers – it is easier to understand if the buyer can see first hand what the inspector describes in the written report.
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