The following legal forms were revised and updated for 2016:

• Purchase Agreement (Improved Property) • Purchase Agreement (Unimproved Property)• Listing Contract (Exclusive Right to Sell) Improved Property• Listing Contract (Exclusive Right to Sell) Unimproved Property• Listing Contract (Exclusive Right to Lease)• Mutual Release From Listing Contract

The following legal forms were added for 2016:

• ADDENDUM TO PURCHASE AGREEMENT ESCALATION CLAUSE

(Form #55)

• SIGNATURE PAGE ADDENDUM(Form #56)

PURCHASE AGREEMENT (Form #02) Line 32

C. PRICE: Buyer will pay the total purchase price of ($___________) ________________________________________ Dollars for the Property. If Buyer obtains an appraisal of the property, this Agreement is contingent upon the Property appraising at no less than the agreed upon purchase price. If the appraised value is less than the agreed upon purchase price, either party may terminate this Agreement or parties may mutually agree to amend the price.

REASON: To clarify what options the parties have in case of a low appraisal.*Note: Same change was made to Purchase Agreement Unimproved Property (Form #34), Line 15

* Language in red is new language

PURCHASE AGREEMENT (Form #02) Line 61

1. □ CASH: The entire purchase price shall be paid in cash and no financing is required. Buyer to provide proof of funds within _______ days of acceptance.

REASON: To clarify that cash means actual cash on hand and that Buyer must show proof they have it.

*Note: Same change was made to Purchase Agreement Unimproved Property (Form #34), Line 46

* Language in red is new language

PURCHASE AGREEMENT (Form #02) Lines 86-107CLOSING:

1. DATE: The closing of the sale (the “Closing Date”) shall be on or before _________, or within ______ days after ______________, whichever is later or this Agreement shall terminate unless an extension of time is mutually agreed to in writing. Any closing date earlier than the latest date above must be by mutual written agreement of the parties.

If closing cannot occur by “Closing Date” due to any governmental regulation or lender requirement, the date closing shall be extended for the period necessary to satisfy these requirements, not to exceed 7 business days.

2. FEE: The settlement or closing fee incurred in conducting the settlement charged by the closing agent or company shall be paid by □ Buyer (included in allowance, if provided) □ Seller □ Shared Equally.

* Language in red is new language addeddue to Federal closing procedure changes

PURCHASE AGREEMENT (Form #02) Lines 86-107 (cont.)CLOSING:

3. CONTINGENCY: This Agreement: □ is not contingent upon the closing of another transaction; □ is contingent upon the closing of the pending transaction on the

property located at ___________________ scheduled to close by ______________.

4. GOOD FUNDS. Notwithstanding terms to the contrary, the Parties agree that as a condition to Closing, all funds delivered to the closing agent’s escrow account be in such form that the closing agent shall be able to disburse in compliance with I.C. 27- 07-3.7 et. seq. Therefore, all funds from a single source of $10,000 or more shall be wired unconditionally to the closing agent’s escrow account and all funds under $10,000 from a single source shall be good funds as so defined by statute. Buyer is advised that the cost incurred to wire funds on behalf of the buyer to the closing agent’s escrow account for the closing of this transaction shall become

an expense to the buyer and the actual cost incurred shall appear on the closing statement.

PURCHASE AGREEMENT (Form #02) Lines 86-107 (cont.)These changes to the Closing section took effect Oct. 3, 2015.

REASON: Re-formatted for ease of reading and following.

*Note: Same change was made to Purchase Agreement Unimproved Property (Form #34), Lines 76-89

PURCHASE AGREEMENT (Form #02) Line 197

If the INITIAL inspection report reveals …

REASON: Caps and bold “initial” to help distinguish that the additional time doesn’t kick in until after first inspectionreveals an issue which requires additional testing orinspection.

PURCHASE AGREEMENT (Form #02) Line 215

…and after having given the Seller the opportunity to remedy the defect Seller is unable or unwilling to remedy ….REASON: To make it clear Buyer must give Seller the opportunity to remedy the defect rather than Buyer terminating the contract.

*Note: Same change was made to Purchase Agreement Unimproved Property (Form #34), Line 161

* Language in red is new language

PURCHASE AGREEMENT (Form #02) Line 305

..Agreement, but not later than 10 days prior to closing pursuant to I.C. 32-21-5-8.5.REASON: Indiana State law amendment.This change took effect Oct. 3, 2015.

*Note: Same change was made to Purchase Agreement Unimproved Property (Form #34), Line 227

* Language in red is new language

PURCHASE AGREEMENT (Form #02) Line 404

This □ is □ is not a limited agency transaction.

REASON: Bolded to highlight and make consistent throughout the forms.

*Note: Same change was made to Purchase Agreement Unimproved Property (Form #34), Line 342

LISTING CONTRACT (Form #01): Lines 67-69 moved to Lines 81-83

SELLER HAS BEEN ADVISED OF BROKER’S COOPERATIVE COMPENSATION POLICY, including the amount of compensation that will be offered to cooperating Brokers which is ___% of the selling price or $______________.

REASON: Added space for flat fee. Moved to new line so it stands on its own and co-op is discussed after total commission.

*Note: Same change was made to Listing Contract Unimproved Property (Form #50), Lines 67-69

* Language in red is new language

LISTING CONTRACT (Form #01)

Moved language from Lines 226-227 and added it at the end of Line 188.

REASON: Put all HOA information together.

*Note: Same change was made to Listing Contract Unimproved Property (Form #50), Lines 213-214 moved to Line 183

LISTING CONTRACT TO LEASE (Form #35)

Changed every “Seller” to “Owner”.

REASON: To avoid confusion since this is a Listing to Lease.

MUTUAL RELEASE FROM LISTING CONTRACT (Form #33) Line 9

In consideration of Seller’s desire that Broker no longer market the property, The Parties to the Listing Contract agree as follows:

REASON: It may be Broker’s desire to terminate thecontract so reference to Seller’s desire to terminate was deleted.

* Language in red is new language

The following legal form was added for 2016:

• ADDENDUM TO PURCHASE AGREEMENT ESCALATION CLAUSE (Form #55)

REASON: To be used when Buyer wants to increase the purchase price in case of competing offers.

The following legal form was added for 2016:

• SIGNATURE PAGE ADDENDUM (Form #56)

REASON: To be used when there are multiple parties and additional signature lines needed. May be used as an addendum to any form.

Special thanks must be extended to the IAR Forms Committee. This volunteer group provides many hours of time each year to provide the most current updates to

these forms.Questions on these changes may be directed to

the IAR Legal Hotline.

IAR Legal Hotline: 1.800.444.5472 toll free

The IAR Legal Hotline is available to managingbroker members and their designated agents, statewide.