Category Archives: Getting to closing

Change commissions after accepted offer?

 

One of the requirements for gaining access to MLS as a For Sale by Owner or as any full service real estate client is an offer of commission.  It can be as low as one dollar (as with List2Move.com) but you have to make a blanket offer of commission and it has to be documented in the listing agreement (Contract)!  This “offer” basically says, “if you (a Realtor) bring me an offer that I accept, I will pay you (that Realtor) “x” amount of dollars or percent!!!!  It is contractual, it is specified in the MLS and only Realtors who have access to the MLS database can see it!!!!!   Again, it is contractual because we are dealing with money….which should make cents, right?

 

Negotiation of the commission can only happen before the contract is signed!

 

Real life story….

I got a call this morning from an agent who has an accepted offer with a seller.  She tells me that the seller who is offering 1.5% says they are going to pay less because the buyer came in before they put the home on the MLS without a Realtor, however, the contract was drawn up by a Realtor with the Realtor’s name on it naming the Realtor’s company as the procuring cause of the sale.

I looked up the offer of compensation on our listing agreement, and it read 1.5%.   Seller didn’t renegotiate with Realtor before accepting the offer and therefore, most likely, the Realtor will be paid the full 1.5% commission.

Negotiation beyond the Engineers Inspection

Can a buyer negotiate after signing off on the engineers inspection?

 

Not really…. unless you let them.

 

We just had this happen to one of our Rochester NY For Sale By Owner clients.  The buyer signed off on the engineers inspection, then right before closing they threatened not to close unless the seller agreed to fix something which would have cost the sellers 5 thousand dollars.   We suggested they talk to their attorney, and ask him about suing for what they call…..”Specific Performance.”  Specific Performance basically means that in this case, the buyer would be forced by the court to buy the sellers home.

 

Long story short, the sellers did talk with their attorney and they closed two weeks ago, without having to pay for the repair!  Don’t let buyers push you around, talk to your attorney about any legal questions.

Real Estate Forms-Rochester, Buffalo, and Syracuse NY

These forms are free to List2Move.com customers.  So go ahead and register now.  Only pay when you you go live!!!!

NYS required real estate sales forms

 

OK, the purpose of posting these real estate forms is to help you sellers sell by owner and save money!

These are the same forms that real estate agents in Rochester, NY use.  They will also be available on the List2Move.com Rochester, Buffalo, and Syracuse NY site.

****Available now to List2Move clients in your Account under Legal Forms*******

 

If you look at any of these contract forms they are all ‘fill in the blank’ because real estate agents can not practice law.  So you don’t need a degree in Rocket Science to fill one out.  List2Move clients can access the broker 24/7 for any questions regarding these forms.

Forms are broken down like this

  1. Contracts-covering the general agreement
  2. Addenda-further spelling out the agreement
  3. Disclosure-forms that are sometimes legally required

When the contract is delivered to you from a buyer it should have the purchase and sale contract with the corresponding addenda (Such as Engineers Inspection details or FHA’s ‘All Parties Agreement) and you will add to it Lead Paint Disclosure if applicable or even maybe a property condition disclosure. See what John Blyth, top real estate attorney, said about property condition disclosure.

 

1. Contracts

Contract-Purchase and Sale-Residential-This is what the buyer’s will present you.

Contract-Purchase and Sale-Manufactured Housing

Contract-Purchase and Sale-Vacant Land

Contract-Purchase and Sale-Condo/HOA

Contract-Continuation of Purchase and Sale Contract-Used when you run out of paper during counter offers etc.

 

2. Addenda to contracts- further spell out the agreements

Addendum-All Parties Agreement for FHA/VA financing

Addendum-Buyer’s Notice Conditional Removal of Contingencies

Addendum-Buyer’s Notice of Removal of Contingencies

Addendum-Lead Compliance (Seller’s-Required if built before 1978)

Addendum-Lead compliance for Leasing of Properties (Landlords)

Addendum-Mortgage Assumption (If you are going to let someone “assume” your mtg)

Addendum-Property Inspection (ex…Engineers Inspection)

Addendum-Seller Financing

Addendum-Transfer of Title Contingency (When your buyer has to sell their home to buy yours)

Addendum-Utility Surcharges

Addendum-Well and Septic Services

 

3. Disclosure

Addendum-Disclosure Notice for All Residential Property in Wayne County

Protect Your Family From Lead In Your Home Pamphlet

Bump Notice to Buyers

Cancellation and Release of Purchase and Sale Contract

Personal Property Agreement

Property Condition Disclosure for COMMERCIAL Properties

Property Condition Disclosure RESIDENTIAL properties

 

4. Other

Open House Sign In Sheet

Can the Bank Mandate an Engineers Inspection?

One of our sellers called yesterday and asked this question… “The buyer called me tonight and said that he cannot get a commitment letter until the home inspection is done by the bank.  Is this true?”

In this case the buyer had wavied the engineer’s inspection and had applied for a conventional mortgage. The bank most likely wants to get the appraisal done, not an engineers inspection. I don’t know any conventional bank that has ever required a home inspection.