Arkansas Realtors Association

ARKANSAS REALTORS® ASSOCIATION

SUMMARY OF CHANGES IN 2009 FORMS

Sharla Lau, Fort Smith, 2008 Chairman Risk Reduction Committee

Bill Olson, Batesville, 2009 Chairman Risk Reduction Committee

DISCLAIMER Please note the Arkansas Realtors® Association is not an attorney and cannot give legal advice. Likewise, the Arkansas Realtors® Association is not a Broker and does not accept responsibility for your actions. Should any recommendation or suggestion given in this Training Guide conflict with the policy directed by your Broker or attorney, you should follow their directives, not those contained in this Training Guide.

Arkansas REALTORS® Association, 204 Executive Court, Suite 300, Little Rock, AR 501-225-2020 Local, 888-333-2206 Tollfree Statewide. 501-225-7131 Fax www.arkansasrealtors.org

10/29/08 On the following pages the changes to the 2009 ARA Forms are shown. The changes are shown in red Rationales are shown in green. EXCLUSIVE RIGHT-TO-SELL AGREEMENT (RESIDENTIAL) EXCLUSIVE RIGHT-TO-SELL AGREEMENT (LOTS & ACREAGE) (New Closing Protection Paragraph, Par. 7 in ERSA Residential, Par. 10 in ERSA Lots& Acreage) (All subsequent paragraphs are renumbered) 7. CLOSING PROTECTION . Seller shall have the right to request that title insurer(s), if any, issue closing protection to indemnify against loss of closing funds because of acts of a Closing Agent, title insurer's named employee, or title insurance agent. Any cost for closing protection will be paid by the requesting party(ies). Listing Firm strongly advises Seller to inquire of the Closing Agent(s) about the availability and benefits of closing protection.

To insure all funds have been properly disbursed, Seller has been advised of the availability of purchasing a Closing Protection Letter, an additional binder to be added to the Title Insurance Policy at closing. __Seller accepts the Closing Protection Letter __Seller declines the Closing Protection Letter

With the passage by the Arkansas Legislature of Act 684 of 2007 this will be interjected to the seller at the first contact, and the seller can reject or accept at any time. This gives notice to inquire with local title companies regarding the benefits of a closing protection letter. If someone questions the cost, this is out of our control.

ADDENDUM TO THE EXCLUSIVE RIGHT-TO-SELL AGREEMENT (New wording) This Addendum to the Exclusive Right-to-Sell Agreement, upon its execution by both parties, is herewith made an integral part of the aforementioned Exclusive Right-to- Sell Agreement. All other terms as provided in the initial Exclusive Right-to-Sell Agreement are incorporated herein by reference and remain exactly as set forth therein, solely except those amended above. This Addendum to the Exclusive Right-to-Sell Agreement may be executed in multiple counterparts each of which shall be regarded as an original hereof but all of which together shall constitute one in the same.

This is a clean-up of the merger language that was added into all the other addenda last year, and was missed in this one. EXCLUSIVE BUYER AGENCY AGREEMENT NON-EXCLUSIVE BUYER REPRESENTATION AGREEMENT (New Closing Protection Paragraph) (Par. 14 in the EBAA, Par. 10 in the NEBRA) (All subsequent paragraphs are renumbered) 14. CLOSING PROTECTION. Buyer shall have the right to request that title insurer(s), if any, issue closing protection to indemnify against loss of closing funds because of acts of a Closing Agent, title insurer's named employee, or title insurance agent. Any cost for closing protection will be paid by the requesting party(ies). Selling Firm strongly advises Buyer to inquire of the Closing Agent(s) about the availability and benefits of closing protection. Buyer has been advised of the availability of purchasing a Closing Protection Letter, an additional binder to be added to the Title Insurance Policy at closing .

__Buyer accepts the Closing Protection Letter __Buyer declines the Closing Protection Letter Notwithstanding the option chosen by Buyer, the Clos ing Protection Letter may be requ ir ed at the lender’s discretion

With the passage by the Arkansas Legislature of Act 684 of 2007 this will be interjected to the buyer at the first contact, and the buyer can reject or accept at any time. This gives notice to inquire with local title companies regarding the benefits of a closing protection letter. If someone questions the cost, this is out of our control.

REAL ESTATE CONTRACT (RESIDENTIAL) 2. This Property is  Detached  Manufactured/Mobile Home with Land  Condominium/Town Home (See Condominium Town Home Addendum Serial No.______)

ADDRESS AND LEGAL DESCRIPTION AND ADDRESS: ______(Five lines here)

This lets the checkboxes distinguish between a detached dwelling, a manufactured home with a land purchase attached, or a condominium- townhouse. The intent is to help lenders and appraisers identify what type of home is being purchased. Sometimes the legal description is so long there is not room enough to write in the address. The switch pushes the address first. REAL ESTATE CONTRACT (RESIDENTIAL) 9. TITLE REQUIREMENTS: Buyer and Seller understand that Listing Firm and Selling Firm are not licensed title insurance agents as defined by Arkansas law and do not and cannot receive direct or indirect compensation from any Closing Agent regarding the closing process or the possible purchase of title insurance by one or more of Buyer and Seller.  A. Seller shall furnish, at Seller's cost, a complete abstract reflecting merchantable title to Buyer or Buyer's Attorney; or,  B. Seller shall furnish, at Seller's expense, an owner's policy of title insurance in the amount of the Purchase Price. If a loan is secured for the purchase of the Property, Buyer agrees to pay mortgagee's portion of title policy. An enhanced version of title insurance coverage may be available to Buyer for this transaction. Discuss enhanced coverage with your title insurance provider to determine availability and features. If Buyer elects to obtain enhanced title insurance coverage, Buyer shall pay for any title insurance cost in excess of the cost of a standard owner’s title policy.  C. Buyer and Seller to equally split the cost of a combination owner's and mortgagee's policy title insurance ordered by Seller in the amount of the Purchase Price, including the cost of a title search, title examination, title insurance binder, final closeout of the title policy and any other related title insurance charges. An enhanced version of title insurance coverage may be available to Buyer for this transaction. Discuss enhanced title insurance coverage with your title insurance provider to determine availability and features. If Buyer elects to obtain enhanced title insurance coverage, Buyer shall pay only the increase in title insurance cost in excess of the equally divided standard title insurance and other costs set forth above in this Paragraph 9C.  D. Other:______

Buyer shall have the right to review and approve a commitment to provide title insurance prior to Closing. If objections are made to Title, Seller shall have a reasonable time to cure the objections.

Regardless of the policy chosen, Buyer and Seller shall have the right to choose their Closing Agent(s).

There are enhanced coverages available from title companies. This allows the buyer to be aware of options and coverages that are available prior to closing. If the buyer does elect the enhanced coverage, this indicates buyer has elected to absorb the additional cost. The buyer needs to inquire about the coverages, and is urged to call and have the coverages thoroughly explained to them prior to closing. We have been cautioned by the State of Arkansas Insurance Commissioner that we are real estate licensees, not insurance agents, and cannot discuss the coverages in an insurance policy. The Arkansas Insurance Commissioner has approved this language for our use. Enhanced coverage is only available on single-family residences (with limitations), so this change is not on the contracts for lots and acreage or commercial. REAL ESTATE CONTRACT (RESIDENTIAL) Par. 10 REAL ESTATE CONTRACT (LOTS AND ACREAGE) Par. 9 REAL ESTATE CONTRACT (COMMERCIAL) Par. 7 10. SURVEY: Buyer has been given the opportunity to obtain a new certified survey. Should Buyer decline to obtain a survey as offered in Paragraph 10A of this Real Estate Contract, Buyer agrees to hold Seller, Listing Firm and Selling Firm involved in this Real Estate Contract harmless of any problems relative to any survey discrepancies that may exist or be discovered (or occur) after Closing.  A. A new certified survey, in a form satisfactory to Buyer, certified to Buyer within thirty (30) days prior to Closing by a registered land surveyor,  showing property lines only  showing all improvements, easements and any encroachments will be provided and paid for by:  Buyer  Seller.  B. No survey shall be provided.  C. Other:______Should Buyer agree to accept the most recent survey provided by Seller, this survey is for information purposes only and Buyer will not be entitled to the legal benefits of a survey certified in Buyer's name.

These changes were made to clarify the types of surveys being ordered or requested. This language has been approved by numerous survey companies across the state. The words “in a form” were taken out to clarify the true meaning of a survey. The word “certified” was deleted at first, because it is mentioned later. REAL ESTATE CONTRACT (RESIDENTIAL) 17. TERMITE CONTROL REQUIREMENTS:  A. None  B. A Letter of Clearance (Wood Infestation Report) requiring a Termite Protection Contract with a One-Year (1) Warranty to include treatment and full protection plan shall be provided by Seller at Seller's cost. Seller shall order a proposal from a licensed Termite Contractor within ten (10) business days after acceptance of this Real Estate Contract. All repairs necessary to allow issuance of such Termite Protection Contract, excluding a new Termite Protection Treatment, are to be part of the Third-Party Requirements pursuant to Paragraph 15B. If Buyer is obtaining financing, such Termite Protection Contract shall be in a form acceptable to the Lender.  C. Other: ______(additional blank lines here)

The rationale for including this is to protect buyers, and give buyers the protection that damage repair is a part of the termite contract. Read your contract carefully to ascertain what is covered as to repairs and what is not covered. This is necessary to prevent a delay in closing and being notified of a service-only contract. The wording we have used for the protection plan is industry language. NOTICE!! NOTICE!! NOTICE!! New Plant Board Regulations: There are certain houses that do not qualify for the full clearance letter so a waiver form must be used. The cost to obtain a waiver is $50. All paperwork for the waiver must be requested from the Plant Board, then delivered back to the Plant Board for approval. When the Plant Board receives the paperwork they have two days to reply. Effective January 1, 2009, these regulations go into effect. See the copy of the regulations and a copy of the proposed waiver form at the back of this manual. REAL ESTATE CONTRACT (RESIDENTIAL) Par. 23 REAL ESTATE CONTRACT (LOTS AND ACREAGE) Par. 21 REAL ESTATE CONTRACT (COMMERCIAL) Par. 19 23. RISK OF LOSS: Risk of loss or damage to the Property by fire or other casualty occurring prior to the time Seller delivers an executed and acknowledged deed to Buyer is expressly assumed by Seller. Should the Property be damaged or destroyed prior to Closing, Buyer shall have the option to: (i) enter into a separate written agreement with Seller whereby Seller will agree to restore the Property to its condition at the time this Real Estate Contract was accepted, (ii) accept all insurance proceeds and the Property in its existing condition, or (iii) terminate this Real Estate Contract and recover the Earnest Money. Buyer and Seller agree any written agreement concerning option (i) or (ii) above shall be prepared only by licensed attorneys representing Buyer and Seller. Notwithstanding the choice selected in Par 15, Buyer shall have the right prior to Closing to inspect the Property to ascertain any damage that may have occurred due to fire, flood, hail, windstorm or other acts of nature, vandalism or theft.

This is to further explain that regardless of whether 15A or 15B or 15C is checked, the buyer has the right to go back and make sure the property is in the same condition as when the real estate contract was executed. (Note: In the Real Estate Contract (Lots and Acreage) and in the Real Estate Contract (Commercial) the words “Notwithstanding the choice selected in Par. 15” are omitted since the reference to Paragraph 15B does not apply, but the right to inspect does.)

REAL ESTATE CONTRACT (RESIDENTIAL) Par. 31 REAL ESTATE CONTRACT (LOTS AND ACREAGE) Par. 28 REAL ESTATE CONTRACT (COMMERCIAL) Par. 27 31. FIRPTA Compliance, Tax Reporting. Buyer and Seller agree to disclose on or before Closing, to the person or company acting as Closing Agent for this transaction, their United States citizenship status, solely for the purpose of compliance with the Foreign Investment in Real Property Taxation Act (FIRPTA). In addition, Buyer and Seller shall execute all documents required by such Closing Agent to document compliance with the FIRPTA and all other applicable laws. Buyer and Seller agree that nothing in this Real Estate Contract is intended to limit the responsibility of the Closing Agent as defined pursuant to United States Treasury Regulation 1.6045-4 to (i) be the “reporting person” under state and federal tax laws (including without limitation 26 USC Section 6045(e)), and (ii) file all necessary forms regarding the Closing, including without limitation form 1099, 8288 or 8288A., and (iii) bBy accepting the role as Closing Agent this Agreement shall obligate the Closing Agent to fulfill their responsibilities as set forth above and as defined by the above statues. Seller will execute an affidavit confirming compliance with FIRPTA, as prepared by the Closing Agentperson or company.

This is a legal language clean-up from legal counsel.

REAL ESTATE CONTRACT (RESIDENTIAL), at the bottom of the form in the signatures section The above offer was  rejected  counteroffered (Form Serial Number ______ Buyer informed of Notification of Existing Real Estate Contract Addendum (Form Serial Number ______) on (month) ______(day) ______, year) ______,at ______(a.m.)(p.m.). ______Seller's Initials Seller's Initials

We have developed a new addendum to notify the Buyer that an existing real estate contract may already be in effect. The new checkbox gives this notice. There may be a possibility that you check that you are making a counteroffer and also check the box notifying the buyer of an existing real estate contract.

REAL ESTATE CONTRACT (LOTS AND ACREAGE) REAL ESTATE CONTRACT (COMMERCIAL) 2. ADDRESS AND LEGAL DESCRIPTION AND ADDRESS: Buyer is not relying on Seller, Listing Firm or Selling Firm regarding location of the Property, Buyer having sole responsibility to engage surveyors, engineers, attorneys or other professionals to determine the location, size, slope and boundaries of the Property. If Buyer is dissatisfied with the results of such determination, Buyer, without further obligation, may declare this Real Estate Contract null and void and receive a return of Earnest Money (defined below). ______Total of seven lines here Sometimes the legal description is so long there is not room enough to write in the address. The switch pushes the address first.

GENERAL BUYER/LESSEE DISCLAIMER 20098 Refers to Real Estate Contract /Rental-Lease Agreement Serial Number ______

Property Address:______

Presence of Mold in a Property Mold, mildew, spores and other microscopic organisms and/or allergens (collectively referred to as “Mold”) are environmental conditions that are common in residential properties and may affect the Property. Mold, in some forms, has been reported to be toxic and cause serious physical illnesses, including, but not limited to, allergic and/or respiratory reactions or other problems, particularly in persons with immune system problems, young children and/or the elderly. Mold has also been reported to cause extensive damage to personal and real property.

Existence of chemical or drug substances in a Property Buyer/Lessee is strongly urged, as part of any pre-closing investigation desired by Buyer/Lessee concerning the Property to: (i) conduct testing for possible existence of chemical(s) to manufacture illegal drugs or illegal drug substances in, on or about the Property, as desired by Buyer/Lessee, and (ii) to visit with applicable law enforcement authorities about possible prior illegal activity on or about the Property.

Presence of a Convicted Sexual Offender in the Neighborhood If the presence of a registered sex offender is a matter of concern to the Buyer/Lessee, Buyer/Lessee understands that Buyer/Lessee must contact local law enforcement officials or access the State of Arkansas registered sexual offender website at http://www.acic.org regarding such information.

Real estate agents cannot suggest, refer, recommend, or infer that you should or should not use an inspector for Mold, Chemical and Drug Substances. Should you desire an inspection by a qualified inspector, you should contact an inspector who has been authorized and/or certified to capture samples for laboratory testing. No warranty, representation or recommendation can be made by real estate agents(s) concerning any inspector. The Buyer(s)/Lessee(s) signing this disclaimer is/are STRONGLY URGED to independently determine the competency of any inspector to be used in connection with the purchase, sale or rental of real estate. By signing this form in the space below, it is acknowledged that the disclaimer listed above has been read and understood, the real estate agents(s) has/have fully complied with the policy outlined herein and I/we understand our responsibility to independently choose and determine the competency of an inspector. ______Buyer / Lessee Date ______Buyer /Lessee Date

These are such important issues the form has been modified so it can be used on rentals and leases as well as purchases.

COMMERCIAL LEASE 7. OPERATING EXPENSES: Operating expenses of the Property shall be paid by Lessor unless otherwise noted below. The ______Lessor will pay the taxes assessed against the real Property and the improvements thereon, and will keep the outside walls and roof in repair, provided however, that the ______Lessee will never be held liable for damages for failure to repair the roof or outside walls unless any gross negligence has occurred by Lessee. Lessor is to have exclusive use of the roof. In the event the walls should so deteriorate as to require rebuilding, or if the cost of repairing the outside walls or the roof should exceed the sum of $______. ______% of the value of improvements, the ______shall have the right to terminate this Commercial Lease on giving thirty (30) days notice to the ______. The ______will pay the premium for Property insurance on the Property. Such premium shall be the cost of Property insurance covering not less than ______( ______%) percent of the replacement value of the Property. Such Property insurance policy shall name Lessor as an insured party. Any proceeds from any insurance claim shall be paid to Lessor. ______will keep the Property, including plumbing, water tower, parking area, sidewalks, sewer lines, water pipes, gas pipes, and electric wiring in repair throughout the term of this lease. ______will pay for the repair and maintenance of the heating, ventilating, and air conditioning equipment and ducts. ______will pay for the replacement of the heating, ventilating and air conditioning equipment as needed. The floors, fixtures and plate glass, including storefront doors, will be repaired or replaced as needed by ______. Lessee will pay as additional rent, any tax on rents that may from time to time be assessed by a governmental body. ______will pay for janitorial and extermination services. ______will pay all utility bills, including the sanitary sewer tax that accompanies the monthly water bill except for ______. Upon the expiration of this Commercial Lease, in course or by breach of any of its provisions, Lessee will restore the Property to Lessor in as good condition as when possession was taken by Lessee, ordinary wear and tear excepted. We took out blank lines and specified lessor or lessee, and clarified who will be responsible for damages to the roof and outside walls. We removed the exact sum of responsibility and added a percentage of value which will be agreed upon by lessor and lessee at the time of execution.

RESIDENTIAL LEASE/RENTAL AGREEMENT 3. SECURITY DEPOSIT: Management, on behalf of Owner, acknowledges receipt from Resident the amount of $ ______as Security Deposit, which Resident acknowledges does not exceed is less than two months rent. The Security Deposit is given by Resident as evidence of Resident's good faith to honor and comply with the terms and conditions of this Residential Lease/Rental Agreement and shall be held by Management in a non-interest-bearing trust account. Management shall hold the Security Deposit, or part thereof, toward any damages or losses Owner may sustain by reason of Resident's default of any kind or nature whatsoever. Damages include but are not limited to: (1) unpaid Resident charges, (2) labor and materials required to clean the Property or a part thereof, (3) the cost of painting and redecorating the Property resulting from unfair wear and tear, (4) the cost of repairing and replacing any portion of the Property that may have been defaced, injured, destroyed, altered or removed in any manner, and (5) administrative costs, advertising, redecoration or other costs similar to those outlined in this paragraph that Management may incur to relet the Property due to premature termination of this Residential Lease/Rental Agreement on the part of Resident. Should Owner’s losses due to Resident's default exceed the Security Deposit, Resident agrees to pay Management, on behalf of Owner, for such excess losses when billed. It is further agreed by Resident to remit when billed by Management for damages as outlined in Paragraph 7 of this Residential Lease/Rental Agreement in order that the Security Deposit will remain intact. Management, on behalf of Owner, as may be required by law, shall return the Security Deposit, less any sum deducted in accordance with Arkansas law or this Residential Lease/Rental Agreement, in the time and manner provided by law. This change is made to conform with language in Sec.18-16-304 of Arkansas’ 1979 Landlord-Tenant Act.

PROPERTY MANAGEMENT AGREEMENT 3. Owner Responsibilities. Owner agrees the address for notices to Owner from Managing Agent shall be ______. Owner assumes sole responsibility for checking for correspondence from Managing Agent at the above address. Any delivery by Managing Agent of correspondence, municipal notices, service of process, or other information shall be deemed effectively delivered to Owner by Managing Agent so long as Managing Agent has, within three (3) two(2) business days of receipt, deposited such information in the United States mail, with sufficient postage to ensure delivery, addressed to Owner at the above address. If Managing Agent so performs, Owner agrees that, notwithstanding any statute, rule, regulation or provision of common law, Managing Agent has discharged all fiduciary, contract and other duties to Owner, Managing Agent not having further obligation. In addition, if Owner is not an Arkansas citizen or domestic Arkansas entity, Owner shall deliver to Managing Agent all filings required by Arkansas law to eliminate the need for income tax withholding, including without limitation filings with the Arkansas Department of Finance and Administration pursuant to Act 1982 of 2005 (and regulations thereunder), or, in the alternative, Owner understands, acknowledges, agrees and instructs Managing Agent to withhold for taxation purposes all sums required by law and, in addition, agrees to reimburse Managing Agent for all tax or accounting expenses incurred in determining the withholding amount and for preparation and filing of applicable forms. Owner warrants and represents to Managing Agent, that no withholding is required from any rentals or other disbursements to Owner in that Owner has United States citizenship status, pursuant to the Foreign Investment in Real Property Taxation Act (FIRPTA) or otherwise under state and federal law, it being the obligation of Owner to file all state and federal tax returns applicable to Owner and the Property (and income therefrom) and to pay all applicable taxes in connection therewith.

This is to make this paragraph consistent with the time window in Paragraph 6. This is a new addendum created to have a standard form to use to handle the unique characteristics of a town home or condominium transaction. It will have the standard formatting as used for the other ARA forms.

Condominium / Town Home Addendum Form Serial Number: XXXXXXXXXXXX

Regarding the Real Estate Contract (Form Serial Number ______) Dated (month) ______(day)______(year) ______, between Buyer ______and Seller______, covering the real property known as ______(the “Property”), the undersigned Buyer and Seller, in consideration for the covenants, agreements and promises made below and other good and valuable consideration, receipt and sufficiency being acknowledged, agree as follows:. 1. Approval of Association Bylaws, Fees, and Assessments: Seller agrees to provide Buyer with a copy of the association bylaws, items the association fee covers, and any known or expected special assessments within ____ business days after this addendum has been signed by Buyer and Seller. If Buyer finds any or all of these unacceptable within ____ business days of receipt, Buyer may declare the real estate contract null and void with Buyer to receive a refund of earnest money (if any). 2. Survey: Buyer understands that a new survey may not be applicable. 3. Inspection: Regarding paragraph 15 of the real estate contract, Buyer’s right to inspect is extended to include the condominium / town home amenities and all areas shared in common. 4. Prorations: All association fees and special assessments shall be prorated at closing. 5. Title Insurance: Buyer is strongly encouraged to extend title insurance coverage to include an ALTA 4 Title Endorsement. 6. POA Financials: Seller and or Developer to provide condominium / town home POA Financials within ______business days after this addendum has been signed by Buyer and Seller. If Buyer finds the financials unacceptable within ____ business days of receipt, Buyer may declare the real estate contract null and void with Buyer to receive a return of earnest money (if any).

7. Seller’s Affirmation: Seller affirms that all association fees and special assessments (if any) due and payable to the association, have been paid by the Seller. Buyer will not be responsible for fees incurred prior to the time the deed is conveyed at closing.

This Condominium/Town Home Addendum shall not be effective unless signed by Buyer and Seller on or before (month)______(day)______, (year)______, at ______(a.m.(p.m.).

THIS IS A LEGALLY BINDING ADDENDUM WHEN SIGNED BY THE PARTIES BELOW. READ IT CAREFULLY. YOU MAY EMPLOY AN ATTORNEY TO DRAFT THIS FORM FOR YOU. IF YOU DO NOT UNDERSTAND THE EFFECT OF ANY PART, CONSULT YOUR ATTORNEY BEFORE SIGNING. REAL ESTATE AGENTS CANNOT GIVE YOU LEGAL ADVICE. THE PARTIES SIGNED BELOW WAIVE THEIR RIGHT TO HAVE AN ATTORNEY DRAFT THIS FORM AND HAVE AUTHORIZED THE REAL ESTATE AGENT(S) TO FILL IN THE BLANKS ON THIS FORM. THIS FORM IS PRODUCED AND COPYRIGHTED BY THE ARKANSAS REALTORS® ASSOCIATION. THE SERIAL NUMBER BELOW IS A UNIQUE NUMBER NOT USED ON ANY OTHER FORM. THE SERIAL NUMBER BELOW SHOULD BE AN ORIGINAL PRINTING, NOT MACHINE COPIED, OTHERWISE THE FORM MAY HAVE BEEN ALTERED. DO NOT SIGN THIS FORM IF IT WAS PREPARED AFTER DECEMBER 31, 2009. FORM SERIAL NUMBER: 000000-000000-000000

The above Condominium/Town Home Addendum is executed on (month)______(day) ______, (year)______, at______(a.m.) p.m.).

______Selling Firm

Signature:______Signature:______

Printed Name:______Printed Name:______Principal or Supervising Broker Buyer

Signature: ______Signature:______

Printed Name: ______Printed Name:______Selling Agent Buyer

The above Condominium/Town Home Addendum is executed on (month)______(day)______, (year)______, at______(a.m.)(p.m.).

______Listing Firm

Printed Name:______Printed Name:______Principal or Supervising Broker Seller

Printed Name: ______Printed Name:______Listing Agent Seller

This is a new addendum created to have a paper trail when notification is given to a potential buyer that an existing real estate contract already exists on the subject property. It will have the standard formatting as used in the other ARA forms. Some of the wording used is consistent with the Arkansas Court system and may not be typical real estate language.

NOTIFICATION OF EXISTING REAL ESTATE CONTRACT ADDENDUM Regarding the attached Real Estate Contract (Form Serial Number ______) Dated (month)______(day)______, (year)______, between Buyer ______, and Seller ______covering the real property known as ______(the “Property”), the undersigned Buyer and Seller, in consideration for the covenants, agreements and promises made below and other good and valuable consideration, receipt and sufficiency being acknowledged, agree as follows: Seller accepts the above numbered and dated Real Estate Contract for the above named real property as a Real Estate Contract that is subordinate to Contract(s) Serial #______dated______, Serial #______dated______, Serial #______dated______, Serial #______dated______, with the following provisions:

1. Buyer is aware that seller has a previously accepted Real Estate Contract(s). Hereinafter any one or more of the above-listed contract(s) shall be referred to as the “Prior Contract(s). This Contract, hereinafter referred to as Subordinate Real Estate Contract, shall be subject to termination of the Prior Real Estate Contract(s) listed above. Without providing any additional rights to Buyer, Seller shall have the right to renegotiate, extend the closing of, modify the terms of, or otherwise make substantial revisions and changes in the rights and obligations of the parties to the Prior Contract(s). 2. All time periods for performance in this Subordinate Real Estate Contract shall not begin until notification has been received and acknowledged that this Subordinate Real Estate Contract has been placed into First Real Estate Contract Position. Buyer shall be deemed in receipt of the Notice upon the earlier of (a) actual receipt of the Notice, or (b) two (2) business days after Seller or Listing Firm deposits the Notice in the United States mail, certified for delivery to Buyer at ______with sufficient postage to ensure delivery. 3. Buyer may withdraw this Subordinate Real Estate Contract at any time prior to receiving Notice from Seller that this Subordinate Real Estate Contract is in First Real Estate Contract position without any penalty to Buyer, and Earnest Money, if any, to be returned to Buyer. 4. In any event, this Subordinate Real Estate Contract will be null and void and earnest money, if any, returned to Buyer if this Subordinate Real Estate Contract is not placed into First Real Estate Contract position on or before (month) ______(day) ______, (year)______. 5. Closing date, to be mutually determined upon this Subordinate Real Estate Contract being placed into First Real Estate Contract position, shall not be later than ____days from the date this Subordinate Real Estate Contract is placed into First Real Estate Contract position.

This Notification of Existing Real Estate Contract Addendum shall not be effective unless signed by Buyer and Seller on or before (month)______(day)______, (year)______, at ______(a.m.(p.m.).

THIS IS A LEGALLY BINDING ADDENDUM WHEN SIGNED BY THE PARTIES BELOW. READ IT CAREFULLY. YOU MAY EMPLOY AN ATTORNEY TO DRAFT THIS FORM FOR YOU. IF YOU DO NOT UNDERSTND THE EFFECT OF ANY PART, CONSULT YOUR ATTORNEY BEFORE SIGNING. REAL ESTATE AGENTS CANNOT GIVE LEGAL ADVICE. THE PARTIES SIGNED BELOW WAIVE THEIR RIGHT TO HAVE AN ATTORNEY DRAFT THIS FORM AND HAVE AUTHORIZED THE REAL ESTATE AGENT(S) TO FILL IN THE BLANKS ON THIS FORM.

THIS FORM IS PRODUCED AND COPYRIGHTED BY THE ARKANSAS REALTORS® ASSOCIATION. THE SERIAL NUMBER BELOW IS A UNIQUE NUMBER NOT USED ON ANY OTHER FORM. THE SERIAL NUMBER BELOW SHOULD BE AN ORIGINAL PRINTING, NOT MACHINE COPIED, OTHERWISE THE FORM MAY HAVE BEEN ALTERED. DO NOT SIGN THIS FORM IF IT WAS PREPARED AFTER DECEMBER 31, 2009. FORM SERIAL NUMBER: 000000-000000-000000

The above Notification of Existing Real Estate Contract Addendum is executed on (month)______(day) ______, (year)______, at______(a.m.) p.m.).

______Selling Firm

Printed Name:______Printed Name:______Principal or Supervising Broker Buyer

The above Notification of Existing Real Estate Contract Addendum is executed on (month)______(day)______, (year)______, at______(a.m.)(p.m.).

______Listing Firm

Signature: ______Signature:______Printed Name: ______Printed Name:______Listing Agent Seller

This is a new addendum created to further assist buyers and sellers for seller financing options. It will have the standard formatting used in the other ARA forms. This addendum is for information purposes only to assist the attorney in preparation of legal documents for this transaction. Final note and mortgage must be prepared by a licensed Arkansas attorney. This addendum is for seller financing on a note and mortgage transaction with seller and buyer. It is not to be used in ANY transaction that involves contract- of-sale.

Seller Financing Information Addendum 2009

Regarding the Real Estate Contract (Form Serial Number ______) dated (month)______(day)______, (year)______, between Buyer, ______, and Seller, ______, covering the real property known as ______(the “Property”), the undersigned Buyer and Seller, in consideration for the covenants, agreements and promises made below and other good and valuable consideration, receipt and sufficiency being acknowledged, agree as follows:

1. FINANCING: Buyer agrees to execute a promissory note to Seller in the amount of $______. The Note bearing interest at the rate of ______will be payable as follows:

a. In equal consecutive monthly installments of principal and interest in the amount of $______amortized for a period of ______months, with the first payment being due on ______, and a like payment on each and every ___day of the month thereafter until ______, at which time the entire unpaid balance together with accrued interest will be due and payable. Monthly payments will be sent to______b. The Note is not assignable or assumable without the express written consent of the Seller.

2. TAXES AND INSURANCE: Annually Buyer shall furnish Seller evidence, before the taxes become delinquent, that all taxes on Property have been paid. Buyer shall furnish Seller annual evidence of paid Hazard Insurance naming Seller as an additional loss payee.

3. COLLATERAL: The Note is to be secured by a Mortgage granting to Seller a  first Mortgage lien  second Mortgage lien  third Mortgage lien upon the real estate described above. The Mortgage is to be recorded at the Circuit Clerk and Recorders Office of the County in which the Property is located.

This Seller Financing Information Addendum shall not be effective unless signed by Buyer and Seller on or before (month)______(day)______, (year)______at ______(a.m.) (p.m.). NOTICE: THE FINAL NOTE AND MORTGAGE, WHICH MAY CONTAIN OTHER TERMS TO BE APPROVED BY BUYER AND SELLER, MUST BE REDUCED TO WRITING AND PREPARED BY OR UNDER THE SUPERVISION OF A LICENSED ARKANSAS ATTORNEY. THIS IS A LEGALLY BINDING ADDENDUM WHEN SIGNED BY THE PARTIES BELOW. READ IT CAREFULLY. YOU MAY EMPLOY AN ATTORNEY TO DRAFT THIS FORM FOR YOU. IF YOU DO NOT UNDERSTAND THE EFFECT OF ANY PART, CONSULT YOUR ATTORNEY BEFORE SIGNING. REAL ESTATE AGENTS CANNOT GIVE YOU LEGAL ADVICE. THE PARTIES SIGNED BELOW WAIVE THEIR RIGHT TO HAVE AN ATTORNEY DRAFT THIS FORM AND HAVE AUTHORIZED THE REAL ESTATE AGENT(S) TO FILL IN THE BLANKS ON THIS FORM.

THIS FORM IS PRODUCED AND COPYRIGHTED BY THE ARKANSAS REALTORS® ASSOCIATION. THE SERIAL NUMBER BELOW IS A UNIQUE NUMBER NOT USED ON ANY OTHER FORM. THE SERIAL NUMBER BELOW SHOULD BE AN ORIGINAL PRINTING, NOT MACHINE COPIED, OTHERWISE THE FORM MAY HAVE BEEN ALTERED. DO NOT SIGN THIS FORM IF IT WAS PREPARED AFTER DECEMBER 31, 2009. FORM SERIAL NUMBER: 000000-000000-000000

The above Seller Financing Information Addendum is executed on (month)______(day) ______, (year)______, at______(a.m.) p.m.).

______Selling Firm

Signature:______Signature:______Printed Name:______Printed Name:______Principal or Supervising Broker Buyer

The above Seller Financing Information Addendum is executed on (month)______(day)______, (year)______, at______(a.m.)(p.m.).

______Listing Firm

Printed Name: ______Printed Name:______Listing Agent Seller

2009 changes in SELLER PROPERTY DISCLOSURE

TO BE COMPLETED BY SELLER: (Please Print) Date: ______Seller(s): ______Seller  is  is not occupying the Property. If Seller is occupying or has occupied the Property, give length of occupancy in years:______Property Address: ______Approximate finished, heated & cooled square footage (if applicable): ______Approximate Date of Construction: ______Please check the following boxes as they apply to the Property:  Water, and is provided by  A rural water district or other non-municipal water system:  A municipality or county: ______ Well  Other: ______ Natural gas, and is provided by: ______ Propane tank: Owned Rented from: ______ Electricity, and is provided by: ______ Sewer, and is provided by  A non-municipal sewer system: ______ A municipality or county: ______ Septic system (See questions # 2 & 3, following page). Type, if known: ______ Other: ______ Mandatory Property Owner's Association Dues: Amount $_____ Frequency:  Mandatory Property Owner's Association Dues: Amount $_____ Frequency: ______Covered by association fee (check all that apply):  swimming pool  hot tub  playground  clubhouse  tennis courts  exterior maintenance  termite contract grounds maintenance  fitness center  water __  gas __  garbage pickup  other ______Additional items were added to the Seller Property Disclosure that POAs could cover and it is essential that new buyers have the information.

Boat Slips Number to be conveyed, if applicable:  Covered boat slips (No. ____)  Uncovered boat slips (No. _ __)  Lifts_ (No. _____ )  Other docks (No. ) ______ Not applicable If the boat slip(s)/dock(s) is(are) involved in the sale of the real property transaction it is essential to the buyer to have knowledge if the boat slip/dock is to convey or if it is to be considered as personal property.

Condo minium/Town Home , total number of parking spaces______ Open (No.___)  Assigned (No .____) Owned (No.____) These spaces are  Uncovered (No. ___)  Covered (No,___)  Garage (No.___) If it is a Condominium/Town Home, Buyer needs to know how many of the parking spaces are to be included in the transaction.

(Then after the introductory check-box section, the following changes in the questions were made where questions 12 and 14 were moved to questions 3 and 4 position)

1. To your knowledge, are there any features of the Property shared in common with adjoining landowners, such as walls, fences, driveways, septic systems, water wells, satellite dishes, or shared meters or shared utilities? 2.12. To your knowledge, is there a Homeowners Association, historical preservation district, or architectural committee or board that has any authority over the Property? 3.14. To your knowledge, are there any common areas such as pools, tennis courts, driveways, roads or walkways co-owned with or used by others?

This is to bring the questions related to a property owners association all together. With the moving of Questions 12 and 14 to positions as Questions 2 and 3, the subsequent questions are renumbered.)

(End of changes in 2009 Forms)