AIR`s liquidated compensation clause is different from CAR and applies only to the surety. AIR limits its integrated arbitration clause to unseructed damages or consignment disputes. It also provides that if the down payment is paid to the seller as a liquidated damage, then all trust and cancellation fees of the title are paid by the seller. If a broader arbitration clause is desired, then the separate AIR Form arbitration addendum must be used. But this endorsement also has limits to what is covered by arbitration. Most « commercial brokers » will use the AIR form if they represent a seller because he has passive contingencies (automatic removal). CAR forms are usually used when the broker is not part of the AIRCRE organization that concedes these forms. The CAR form is usually cheaper for a buyer. I am a member of both organizations and I use AIR and CAR forms.
I also used CAR forms for sellers, as for everything, it depends. 😊 The CAR agreement sets the date of the trust to be days after the adoption. Paragraph 1. D. provides in part that the CAR agreement is more restrictive, as it requires the seller`s approval for any transfer of the buyer`s interest in the agreement. From a practical point of view, the buyer can give in because it would probably be unreasonable for the seller to withhold consent. But this clause can give rise to unnecessary litigation if the seller wants to play games. The CAR clause is in paragraph 30 and provides for a relevant part: the CAR agreement being linked to the date of acceptance, the extension of the buyer`s date to eliminate contingencies does not automatically extend the deadline of the treuhand. Most brokers forget what a loophole can create for the seller to serve a message, to perform and perhaps notice the cancellation of the trust. This is a common practice in today`s « sellers market. » As airtight as this process may seem, real estate lawyers are often asked to negotiate disputes that come from one or more parties that do not follow the Treuhand`s instructions. Buyers or sellers who have experienced problems with the transaction or fiduciary proceedings should contact a real estate lawyer who is familiar with trust instructions in commercial and residential real estate transactions.
Both buyers and sellers should carefully analyze the instructions built into the RPA before signing, so that there are no more nasty surprises afterwards.