CFPB Rules and FR/BAR Changes

By: Rene’ Rutan, REC Relations Manager, Attorneys Title Fund Services, LLC

The real estate settlement industry has been in overdrive preparing for the October 3rd implementation of the CFPB’s new TILA-RESPA Integrated Disclosures Rule (TRID) but have you considered how the process changes contemplated will affect your use of the Florida Realtors® – Florida Bar Residential Sales Contract (FR/BAR)?

Melissa Jay Murphy, Senior Vice President and General Counsel of Attorneys Title Fund Services, LLC and G. Thomas Ball, Partner with BakerHostetler, LLP answered those questions and more at a meeting of the Central Florida Real Estate Attorneys’ Council (CFREAC) on Thursday.

Murphy explained that TRID forces significant changes to the timelines we have all grown accustomed to in conducting real estate closings. As a result, the parties will need to collect key information and perform due diligence much earlier in the process.

The Joint Realtor®/Attorney Committee, which Ball chairs, recognized these challenges and revised various FR/BAR provisions including:

  • Extension of Closing Date
  • Financing
  • Deadlines for Title Evidence, Inspections and Surveys
  • Riders for Seller Financing, Appraisal Contingency and Homeowners/Flood Insurance

They added that the implications are magnified over the next week because TRID implementation is driven by the date the buyer/borrower applies for their mortgage. Do you use the new version of the FR/BAR or the old? It’s important to use the version of the contract that coincides with what your buyer is likely to do. Talk to your buyer and determine when they plan on applying for financing and choose the contract that best fits your situation. Contact a real estate attorney if you are unsure of which form to use. If you do not typically work with a real estate attorney search the Florida ARECS Member Directory to find a suitable attorney in your area.

If you are one of those folks still using a really old version of the FR/BAR, it’s really time to upgrade! Those old contracts just don’t address the post-TRID world.

View the complete presentation.

View the Suggested CFPB Addendum to FAR/BAR.

View the 2015 Revised FAR/BAR Critical Dates.