There have been a couple of changes to the TAR forms (F33 & F40) which will go into effect on June 1, 2012. The Landlord Tenant Act has also changed for those of you who deal with Leases and Property Management.

F40 – Independent Contractors Agreement
F33 – Special Stipulations
Landlord Tenant Act

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Changes and Explanation for F40:
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TAR has made a few changes to the “F40 – Independent Contractor’s Agreement” form, concerning the termination of the agreement.  It is important to review and renew Independent Contractor’s Agreements periodically.  TAR strongly recommends that this be done every year.  If you have not done so, now would be a good time to review the Agreement in your office and execute updated agreements for all agents in your office.  Here are the changes made to the form effective 6-1-2012 (BLUE TEXT):

and

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Changes and Explanation for F33:
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There have been some questions concerning associations and fees which are required to be paid at closing.  These fees ranged from everything from document fees to capital expense fees.  To clarify this, the Residential Forms Committee has provided some language which can be placed in Special Stipulations of the Purchase and Sale Agreement to better address this.  This language will place the responsibility for any expenses which have occurred in the past squarely on the seller, and place all future expenses (including those required for the transfer of the property) on the buyer. This language is expected to be permanently placed in next year’s (2013 version) Purchase and Sale Agreement.

Effective 6-1-2012, this language is found on Form F33, paragraph 22 (BLUE TEXT):

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Landlord Tenant Act Explanation of Changes
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In addition the Landlord and Tenant Act has been revised in two important ways.  First, the law used to only apply to those counties whose population exceeded 68,000 people under the most recent US Census.  However, it will now only apply to those counties whose population exceeds 75,000.  These counties are the same as they were under the former statute: Shelby, Davidson, Knox, Hamilton, Anderson, Blount, Bradley, Madison, Maury, Montgomery, Sevier, Sumner, Sullivan, Rutherford, Williamson, Washington and Wilson.  There was also a change concerning the Landlord’s ability to terminate the lease for violence or threat to the health, safety or welfare of tenant or others on the leased property.  The Landlord may terminate the lease with three days receipt by Tenant of written notice that the Tenant or another person on the property has intentionally committed a violent act; behaves in such a manner that constitutes or threatens to be a real danger to the health safety or welfare of the life or property of those on the leased property or that creates a hazardous OR unsanitary condition on the property which affects the health, safety or welfare of the life or property of other persons on property.  Before, it had to create both a hazardous and unsanitary condition before the Landlord could terminate.  Now, it can be either one.