Transaction Process Guideline For Selling (Buyer`s) Agent

Transaction Process Guideline For Selling (Buyer’s) Agent
This is a step-by-step guide for REeBroker Group agents on how to handle the transaction
process as a selling (Buyer’s) agent. You can find the forms listed on our checklists at car.org,
or through our transaction coordinator.
Step 1: Buyer(s) Representation
You may have a client sign:
BUYER REPRESENTATION AGREEMENT-EXCLUSIVE C.A.R. form BRE
This form is optional and is not required by our policy, however, please note that the buyer may use
another agent or make an offer by themselves even on a property you have shown them. You may not be
able to receive a commission without this agreement.
You do not need to notify us or send any forms to REeBroker for this step.
Step 2: Purchase Contract/Offer
1)
Review the MLS report and follow the Listing Agent’s instructions on viewing the property and
submitting an offer. The listing agent will inform you of any special requirements they want
submitted with the offer.
2)
When the Buyer finds a property and would like to make an offer, you must complete and obtain
signature(s) for the following documents:
RPA- RESIDENTIAL PURCHASE AGREEMENT
BIA-A - BUYERS INSPECTION ADVISORY
AFFILIATED BUSINESS DISCLOSURE (REeBroker Group Document Library)
AD -DISCLOSURE REGARDING REAL ESTATE AGENCY RELATIONSHIP
(Selling firm to buyer)
Send the RPA-Purchase Agreement (offer) to the Listing Agent. Attach forms BIA-A, AD, and a
copy of the earnest money deposit check to the purchase agreement.
NOTE: There are many benefits for our agents to use our in-house escrow holder, Trusted National
Escrow. We recommend to always including Trusted National Escrow as the escrow holder on a
Residential Purchase Agreement RPA Section 7.C.1
Optional forms:
REO-REO ADVISORY
SSA-SHORT SALE ADDENDUM AND ADM-ADDENDUM stating section 6 of the SSA is
removed.
Additional information regarding Short Sale Addendum Section 6:
When representing a short sale buyer, draw up an additional addendum to the purchase contract that
removes Section 6 from the short sale addendum. Due to this section lets the seller continue to
show the home and send other offers to the bank. Your clients offer could potentially be bumped
from first offer position.
3)
The seller can reject, accept, or send a counter offer. During the negotiation period you may use:
BCO- BUYER COUNTER OFFER
ADM-ADDENDUM
4)
The earnest money deposit check must be handled by following the instructions on your home
page.
February 5, 2015
Step 3: Open Escrow/Title
1)
When all parties agree with the purchase terms and you have a fully executed contract, you can
open an escrow. Remember that if you use Trusted National Escrow, transaction coordination
services are provided as a standard service.
2)
If our office holds the earnest money deposit, please instruct us where to send it by emailing
info@reebrokerca.com or faxing your request to our office.
AT THIS POINT YOU MAY ORDER OUR TRANSACTION COORDINATOR SERVICE
Our transaction coordinator will assist you with the rest of the transaction process.
3)
Once escrow/title is open, please create a transaction file by completing the following steps:
(Please note: Your file must be created within 48 hours of receiving a signed agreement.)
3.1
3.2
3.3
3.4
3.5
3.6
3.7
Visit http://reebroker.com/
Click on Agent Login, enter your username and password
Click on “My Transactions”
Click on “Add New Transaction”
Complete the fields requested in the transaction file.
Hit Save (IMPORTANT: check to see if there are any error messages in red font or
highlighted boxes before closing out of the transaction. Errors must be corrected before
closing out of the file otherwise your file will not save.
To begin uploading your documents in PDF format, return to the “my transactions” page,
and click the “Upload” paperclip link pertaining to the file
Note: You are required to report all offers to your Broker, even those that are not
accepted. Reporting Unaccepted Offers:
At the time the offer expires if the seller has not responded please rename the pdf with all
documents pertaining to the unaccepted offer accordingly: street address, buyer(s) name.
Then upload the pdf to your “unaccepted offer” transaction file located at the top of your
“My Transaction” page. This is not only a REeBroker requirement, but also a CalBRE
requirement.
Our Transaction Coordinator can take care of the majority of this process for you.
Step 4: Inspection/Disclosure Period
1)
2)
Depending on the transaction type and your client(s) needs, you may be required to order different
types of inspections (termite, home inspection, septic system, roof, plumbing, etc.), as well as
complete the following:
BIE – BUYER INSPECTION ELECTION
RR - REQUEST FOR REPAIR (if needed)
The Seller may reject or accept the request, agree to make some of the repairs, or offer monetary
reimbursement for the repairs. Please be advised the seller is not required to respond to your
request.
The Listing Agent must provide additional disclosure forms and reports to the buyer within 7 days:
Click Here for the RPA Timeline
Local disclosures may vary according to city and county. Please ask your escrow company or visit
the local Association of Realtors to research the local disclosure requirements. Some local
disclosures are available in the REeBroker Document library. Please remember, if you are using
Trusted National Escrow, they will be able to help you with all these forms and any questions you
may have about them.
February 5, 2015
**IMPORTANT: Remember, once the contingencies are removed, your buyers are putting their deposit
at risk. If the transaction is canceled by the buyers, AFTER the contingencies have been removed, it may
be very difficult to get a refund of the earnest money deposit. Please make your buyer aware of this.
3)
For residential property, each agent (listing and selling) must complete their own
AVID - AGENT VISUAL INSPECTION DISCLOSURE
4)
Your TC or you must prepare all the required documents on the transaction checklist and obtain the
parties’ signatures. Checklists are available in the REeBroker Document Library
5)
You must ensure that the buyer(s) receive all necessary reports and documents, containing all
appropriate signatures. If any of the required forms are not received by the time agreed upon in the
contract, you may send the seller a: NSP- NOTICE TO SELLER TO PERFORM
If the seller fails to perform an action by the date disclosed in the NSP, you may choose to cancel escrow
using: CC - CANCELLATION OF CONTRACT, RELEASE OF DEPOSIT AND JOINT ESCROW
INSTRUCTIONS
6)
We have observed that the majority of escrows close late because of financing issues. Because of
this it is critical that you stay in touch with your buyer’s loan officer and make sure they are aware
of the contingency removal date and closing date. It is also beneficial to be familiar with how the
loan process is going, in order to be ready to help and support the buyer(s) if they need it.
7)
Stay in communication with the escrow/title officer, making sure that they have all the fully
executed transaction forms and documents. Also, make sure their dates for contingency removal
and closing of escrow are the same as yours. Ask the escrow/title officer to provide a preliminary
or estimated closing statement (HUD) for the buyer.
8)
If, for any reason, the transaction process has been cancelled you may use:
CC - CANCELLATION OF CONTRACT, RELEASE OF DEPOSIT AND JOINT ESCROW
INSTRUCTIONS
You must upload the fully executed cancellation form to the transaction file, write a note in file for
Broker explaining why the listing was cancelled, changing the status from “Open” to “Request for
Cancel” and press “save” within 48 hours.
Once you request a transaction for cancellation the Broker will check the file and change the status
to “Cancel” if the file is accepted for cancellation, or we may ask you for additional documentation.
Step 5: Closing Process
1)
It is very important to know that the only approved signature on any commission distribution
instructions is the Brokers. Please instruct your escrow officer to prepare the instructions and send
them to our office at info@reebrokerca.com. The Broker will sign this form, fax it back to the
escrow/title company and upload a copy to your transaction file. There will be a penalty charged to
the agent if the commission instructions are signed by anyone but the Broker. Please review your
Agent Acknowledgment Documents on your homepage for more information regarding penalties.
2)
Assist your buyer(s) with the final inspection and fill out:
VP - VERIFICATION OF PROPERTY CONDITION
Generally the VP is completed 3 to 5 days BEFORE the close of escrow.
3)
Escrow will provide the buyer(s) with an estimated closing statement for which the buyer(s) must
transfer the required down payment to the escrow company. Make sure the buyers are aware that
they will usually need to be WIRING their funds (no money orders, cashier checks or personal
checks) to escrow a couple days BEFORE escrow is supposed to close.
4)
Know where and when the buyer(s) are going to sign the loan documents. It is recommended that
you assist the buyer(s) with signing. This will ensure that you will be available for assistance if a
“last minute problem” arises.
Please help the buyer(s) obtain the keys, garage or gate opener, postal box key, etc., from the seller.
Provide phone numbers for the utility companies. Moving to a new house can be challenging for a
buyer. Provide as much support to your client as possible. We have observed that this step is very
important in receiving referrals.
February 5, 2015
5)
It is a good idea to give the new owner a closing gift. We believe that the best gifts are household,
long-term usable item with your name and contact information on them.
Step 6: Organize, Upload and Submit For Review
1)
To receive your commission, you must upload all completed documents to the transaction file. You
may upload as many documents and forms as you wish (not only those that are required). We
recommend you upload everything (including copies of e-mails) associated with this transaction.
This way you do not have to keep the transaction file somewhere else and it will always be available
for you on our website. This is a great benefit for our agents.
You may begin uploading completed transaction documentation and forms (use PDF format) to your
transaction file. Remember to use the corresponding checklist from the REeBroker Document
Library for your transaction type. These checklists will show you which forms and signatures will
be required for your file to be accepted by the Broker. The proper way to read these checklists are as
follows; all documents listed on the left are required, on the right, you will find which signatures, if
any, are required on the documents.
2)
We require you to use PDF format for document uploading. A single upload cannot exceed 10MB.
You will receive an error message if your file is too big. You will need to either scan your
documents in smaller batches, or check your scan settings. You may also visit smallpdf.com for a
simple free way to shrink the size of your document.
3)
Please use the correct Selling Agent Transaction Checklist from the Document Library to organize
your file. You may add additional forms and documents in the list, according to your transaction.
4)
You may write “Notes” on the transaction page for the Broker. These notes are for information
only not for communication. If you have to ask a question, please contact us at
info@reebrokerca.com or call the office at 760-722-3222
5)
We will release your commission according to the information inputted into the transaction file
when your file is accepted. The escrow information is required in order to process your
Commission Demand.
6)
The file will be accepted when:
6.1. The file contains all required forms and signatures listed on the checklist.
6.2. All forms are correctly filled out with all necessary signatures and dates.
6.3. Copies are legible.
7)
We ask for 48 hours to review a file, so be sure you are submitting your file at least two days before
the close of escrow. If your file is accepted prior to the close of escrow, we will send a demand to
escrow instructing them to release the commission directly to you. Please allow us two business
days to review your file and submit the demand to escrow.
8)
When all required forms are uploaded, you must change the transaction status from “Open” to
“Submit for review” and press “Save” The Broker will check your file and may ask you for
additional forms by changing the status back to “Open”. If the Broker accepts the file, the status
will be changed to “Accepted.” You will receive an email when the status of your file is changed.
Then your commission demand will be processed and sent to escrow. Note: You may submit the
file for review twice with no charge; however, an additional fee for extra reviews may be assessed.
9)
When escrow distributes checks and your transaction is accepted, the Broker will change the
transaction status to “Complete”, indicating that your transaction is finished.
Please contact us at info@reebrokerca.com if you need further assistance with your transaction.
February 5, 2015