listing a property for sale

LISTING A PROPERTYLISTING A PROPERTY

For agents and their admin’s, For agents and their admin’s, as well as the do it as well as the do it

yourselfer’syourselfer’s

Darryll Whaley

OverviewOverview

The enclosed explanation is used to The enclosed explanation is used to describe a a listing transaction. describe a a listing transaction.

This four step process is designed to give This four step process is designed to give you a system to follow as documents come you a system to follow as documents come in for various client files.in for various client files.

The entire escrow process as it relates to The entire escrow process as it relates to those who will be handling the documents those who will be handling the documents for a real estate transaction, is laid out for a real estate transaction, is laid out herein and should be seen as a most nearly herein and should be seen as a most nearly complete guide to handling a listing escrow.complete guide to handling a listing escrow.

Listing Procedure #1Listing Procedure #1 The following Documents are deemed necessary in order to legally have a The following Documents are deemed necessary in order to legally have a listing agreement with a client who wants to sell their house: These forms listing agreement with a client who wants to sell their house: These forms are also located on the following page.are also located on the following page.

1.1. Residential Listing AgreementResidential Listing AgreementExplains relevant items to the agreement such as the property address, Explains relevant items to the agreement such as the property address, the length of agreement between the Broker and client for listing the the length of agreement between the Broker and client for listing the property, purchase price, commission.property, purchase price, commission.

22. . Disclosure regarding Agency RelationshipsDisclosure regarding Agency RelationshipsAgency must be secured between the sellers and the listing agent so that Agency must be secured between the sellers and the listing agent so that the relationship has been made legal. Allows other realtors to see that the relationship has been made legal. Allows other realtors to see that there is a relationship there and allows for other realtors to have a point of there is a relationship there and allows for other realtors to have a point of contact for information.contact for information.

33. . Sellers AdvisorySellers AdvisoryWhen a seller lists their house, they must be aware of the many possible When a seller lists their house, they must be aware of the many possible problems that can arise in the process of selling as house, such as problems that can arise in the process of selling as house, such as electrical problems that went undetected, nuisance repair items, plumbing electrical problems that went undetected, nuisance repair items, plumbing leaks and many other things. It is the agents responsibility to let the seller leaks and many other things. It is the agents responsibility to let the seller know that they should prepare the home in the best manner possible in know that they should prepare the home in the best manner possible in order to secure the best buyer, and that means having the home inspected order to secure the best buyer, and that means having the home inspected by a pest expert or even a licensed house inspector. Knowing that credits by a pest expert or even a licensed house inspector. Knowing that credits towards the buyers can arise from improperly taken care of items, the towards the buyers can arise from improperly taken care of items, the sellers have the opportunity to eliminate some if not most of that prior to sellers have the opportunity to eliminate some if not most of that prior to listing the house.listing the house.

Listing Procedure #1 Listing Procedure #1 cont.cont.

Once these forms have been signed by the seller and the agent, Once these forms have been signed by the seller and the agent, the relationship and understanding has been officially formed.the relationship and understanding has been officially formed.

Prior to turning these papers in to office administration, the agent Prior to turning these papers in to office administration, the agent will be filling out supporting documents found in the copier room will be filling out supporting documents found in the copier room that will allow the property to be placed on the MLS, signs placed that will allow the property to be placed on the MLS, signs placed in the front yard, and access given to consumers who search from in the front yard, and access given to consumers who search from the internet. These forms are filled out by the agent or escrow the internet. These forms are filled out by the agent or escrow coordinator and turned in with a copy of the forms from above. coordinator and turned in with a copy of the forms from above. Copies of the forms listed below do not need to be made. They Copies of the forms listed below do not need to be made. They are simply for office administration.are simply for office administration.

1.1. MLS Camera Sheet (Gives thorough explanation of MLS Camera Sheet (Gives thorough explanation of property)property)

2.2. Sign Order FormSign Order Form3.3. New Listing ChecklistNew Listing Checklist4. 4. New Listing sheet (Used if not to be placed on MLS)New Listing sheet (Used if not to be placed on MLS)


Once these forms above have been filled out, they are to be Once these forms above have been filled out, they are to be turned in with a copy of the forms signed by the sellers to turned in with a copy of the forms signed by the sellers to administration staff.administration staff.

Keep originals signed by sellers and agent and make a copy for Keep originals signed by sellers and agent and make a copy for each:each:

1. Copies to the sellers1. Copies to the sellers2. Originals to the agents file2. Originals to the agents file

You can use a 6 CLASP ENVELOPE FOR LISTINGS. Using your You can use a 6 CLASP ENVELOPE FOR LISTINGS. Using your own Transaction Worksheet, place it in the front clasp of the own Transaction Worksheet, place it in the front clasp of the binder and fill in what you can, such as the list price, clients binder and fill in what you can, such as the list price, clients information, etc. You will be filling this in more completely information, etc. You will be filling this in more completely once you get an accepted offer and need to make a copy for once you get an accepted offer and need to make a copy for other parties. lets talk about that more belowother parties. lets talk about that more below..

Listing Procedure #2Listing Procedure #2

Now that you have the listing agreement and the property is Now that you have the listing agreement and the property is active for other real estate agents viewing on the MLS, you are active for other real estate agents viewing on the MLS, you are going to want to get a going to want to get a PEST INSPECTIONPEST INSPECTION performed. This is performed. This is a mandatory item deemed necessary in making sure the a mandatory item deemed necessary in making sure the property is fit for transfer and if in need of repairs, done prior property is fit for transfer and if in need of repairs, done prior to the close of escrow.to the close of escrow.

There is no Pest Inspection in this binder, but this is the point There is no Pest Inspection in this binder, but this is the point

at which one is ordered up, after the listing agreement is at which one is ordered up, after the listing agreement is secured, but prior to receiving an offer from a buyers agent. It secured, but prior to receiving an offer from a buyers agent. It is good to have one on hand when a buyers agent requests is good to have one on hand when a buyers agent requests one.one.

Additionally, the following forms must now be filled out by the Additionally, the following forms must now be filled out by the sellers so that when a qualified buyer does make an offer on sellers so that when a qualified buyer does make an offer on the property, they can be delivered for their signatures. These the property, they can be delivered for their signatures. These forms can also be found on the following page. forms can also be found on the following page.


1. Real Estate Transfer Disclosure Statement 1. Real Estate Transfer Disclosure Statement This disclosure asks various questions about items that come with This disclosure asks various questions about items that come with the property as well as potential known items that relate to the the property as well as potential known items that relate to the property that might distract from the desirability of the property property that might distract from the desirability of the property that the buyer might want to be aware of. The best rule of thumb that the buyer might want to be aware of. The best rule of thumb is to ALWAYS disclose.is to ALWAYS disclose.

2. Supplement to the Real Estate Transfer Disclosure 2. Supplement to the Real Estate Transfer Disclosure StatementStatementThis Disclosure backs up the TDS and asks more in-depth This Disclosure backs up the TDS and asks more in-depth questions that relate to the desirability of the propertyquestions that relate to the desirability of the property

3. Lead Based Paint Hazards Disclosure3. Lead Based Paint Hazards DisclosureThis Disclosure asks the sellers if they are aware of any lead This Disclosure asks the sellers if they are aware of any lead based paint on the premisesbased paint on the premises

4. Smoke Detector Statement of Compliance4. Smoke Detector Statement of ComplianceProperly functioning smoke detectors must be in all bedrooms and Properly functioning smoke detectors must be in all bedrooms and in the master hallway. The sellers must sign off on their in the master hallway. The sellers must sign off on their functioning properly functioning properly


5. Water Heater Statement of Compliance5. Water Heater Statement of ComplianceAll Water Heaters must be double strapped for earthquake All Water Heaters must be double strapped for earthquake durability, must be 18 inches off the ground, and must be outfitted durability, must be 18 inches off the ground, and must be outfitted with a pressure relief valve in the event of overheating. The with a pressure relief valve in the event of overheating. The sellers must sign off on this being correct.sellers must sign off on this being correct.

6. Natural Hazards Booklet6. Natural Hazards BookletThis booklet is standard and talks about natural hazards that occur This booklet is standard and talks about natural hazards that occur in our area. Within the booklet, there is a questionnaire that asks in our area. Within the booklet, there is a questionnaire that asks the seller some questions as to their knowledge of any natural the seller some questions as to their knowledge of any natural hazards that might have occurred in their area. Sellers are hazards that might have occurred in their area. Sellers are required to fill this out and answer honestly and sign that they required to fill this out and answer honestly and sign that they have been handed the booklet.have been handed the booklet.

7.7. Other Mandated Docs…Other Mandated Docs…RETDS, Supplemental Statutory, RETDS, Supplemental Statutory, Statewide Buyer and Seller Questionnaire, Statewide Buyer and Seller Questionnaire,

8. Is it a short sale? 8. Is it a short sale? Make sure you collaborate with the bank on Make sure you collaborate with the bank on their mandatory documentstheir mandatory documents


If doing a condominium, please add the following form:If doing a condominium, please add the following form:PUD - Planned Unit Development DisclosurePUD - Planned Unit Development Disclosure

These forms now having the sellers signatures and the These forms now having the sellers signatures and the agents signatures where requested, should be paper agents signatures where requested, should be paper clipped together, along with the pest inspection if it has clipped together, along with the pest inspection if it has come in, and held on to in the come in, and held on to in the 6 CLASP BROWN 6 CLASP BROWN ENVELOPE FOR LISTINGS ENVELOPE FOR LISTINGS binder for when they are binder for when they are needed. needed.

The description above, is how every listing is handled from The description above, is how every listing is handled from an agency standpoint. Up to this point, we are not in an agency standpoint. Up to this point, we are not in receipt of any other documents other than what we have receipt of any other documents other than what we have had the seller sign, and the had the seller sign, and the PEST INSPECTIONPEST INSPECTION we have we have requested.requested.


When we receive an offer from another agent representing a When we receive an offer from another agent representing a buyer, we will most commonly receive the following documents: buyer, we will most commonly receive the following documents: And if we don’t we must see to it that they occur prior to the close And if we don’t we must see to it that they occur prior to the close of escrow. These forms can also be found on the following page.of escrow. These forms can also be found on the following page.

1. California Residential Purchase Agreement and Joint 1. California Residential Purchase Agreement and Joint Escrow InstructionsEscrow Instructions8 page document outlining the terms in which the buying party 8 page document outlining the terms in which the buying party wishes to purchase the said property. wishes to purchase the said property.

2. Buyers Inspection Advisory2. Buyers Inspection AdvisoryJust as the sellers were advised to inspect the property prior to Just as the sellers were advised to inspect the property prior to closing escrow, the buyers have been instructed by their agent as closing escrow, the buyers have been instructed by their agent as well.well.

3. Disclosure Regarding Real Estate Agency Relationships - 3. Disclosure Regarding Real Estate Agency Relationships - buyers agency with agentbuyers agency with agentThe buyers agent must disclose to the listing agent that he has The buyers agent must disclose to the listing agent that he has proper representation, so he will be sending over an agency proper representation, so he will be sending over an agency disclosure which proves this.disclosure which proves this.


4. Disclosure Regarding Real Estate Agency Relationships - to 4. Disclosure Regarding Real Estate Agency Relationships - to Sellers from buyers agentSellers from buyers agentThis form is needed when a buyers agent is making an offer for his This form is needed when a buyers agent is making an offer for his clients. The buyers agent must prove he is not a party with the clients. The buyers agent must prove he is not a party with the sellers and therefore has the sellers sign one of these disclosure with sellers and therefore has the sellers sign one of these disclosure with his name on it as well. his name on it as well. (You will always see three of these agency (You will always see three of these agency disclosures in any transaction)disclosures in any transaction)

5. Pre-qualification Letter5. Pre-qualification LetterA Letter from a Lender having pre-qualified their client for the funds A Letter from a Lender having pre-qualified their client for the funds needed to purchase the property.needed to purchase the property.

6. Copy of a personal check to be deposited with the Title 6. Copy of a personal check to be deposited with the Title Company within three days after acceptance of offer. Company within three days after acceptance of offer.

These being received, having already being signed by the buyer and These being received, having already being signed by the buyer and now being signed by the seller, makes not a binding agreement, but now being signed by the seller, makes not a binding agreement, but an agreement to move forward through an escrow process, normally an agreement to move forward through an escrow process, normally a thirty day process, to which both parties perform duties in order to a thirty day process, to which both parties perform duties in order to show their interest in the property.show their interest in the property.


As an escrow coordinator, it is important at this point to As an escrow coordinator, it is important at this point to realize a few things so you are not confused:realize a few things so you are not confused:

1. A Copy of these forms (1-4 above) or the originals if hand delivered 1. A Copy of these forms (1-4 above) or the originals if hand delivered to the office by the other party, must be sent back to the buyers to the office by the other party, must be sent back to the buyers agent after a copy has been made or the triplicates have been agent after a copy has been made or the triplicates have been removed for copying. Also included must be the disclosures and removed for copying. Also included must be the disclosures and the pest inspection that we paper clipped together. They will be the pest inspection that we paper clipped together. They will be reviewing these disclosures and report over the next few weeks reviewing these disclosures and report over the next few weeks during the inspection phase of the escrow.during the inspection phase of the escrow.

2. A copy of everything must be placed in the 2. A copy of everything must be placed in the 6 CLASP BROWN 6 CLASP BROWN ENVELOPE FOR LISTINGS. ENVELOPE FOR LISTINGS.

3. A copy must be given to office administration staff3. A copy must be given to office administration staff for their for their records.records.

4. A copy must be given to your sellers. Often, your sellers will let 4. A copy must be given to your sellers. Often, your sellers will let you collect these in a manila envelope that you can hold on to and you collect these in a manila envelope that you can hold on to and give only when it becomes pertinent. give only when it becomes pertinent.


At this point in the transaction, the buyers agent is ordering At this point in the transaction, the buyers agent is ordering up the up the HOME INSPECTIONHOME INSPECTION which is not our concern. It is which is not our concern. It is just noted here for fyi purposes and is normally delivered just noted here for fyi purposes and is normally delivered via the mail so the listing party can review and sign off on via the mail so the listing party can review and sign off on receipt of it. It is provided on the following page for receipt of it. It is provided on the following page for example only and is not a part of the example transaction example only and is not a part of the example transaction used in this binder. used in this binder.

It is also now the sellers agents responsibility to order up a It is also now the sellers agents responsibility to order up a NATURAL HAZARDS REPORT. NATURAL HAZARDS REPORT. It is provided on the It is provided on the following page for example only and is not a part of the following page for example only and is not a part of the example transaction used in this binder. example transaction used in this binder. This report allows the sellers to be as up front and honest in This report allows the sellers to be as up front and honest in conveying all pertinent information about the property. It is conveying all pertinent information about the property. It is developed by professional engineers for the purposes of developed by professional engineers for the purposes of providing information to all interested parties. providing information to all interested parties.


Both of these items will be ordered up during or about the first week of Both of these items will be ordered up during or about the first week of the escrow. On the seventeenth day of the escrow, the first of two the escrow. On the seventeenth day of the escrow, the first of two contingencies needs to be removed contingencies needs to be removed (Inspection Contingency)(Inspection Contingency). All . All physical inspections will need to have been performed, including the physical inspections will need to have been performed, including the pest inspection and the home inspection. All disclosures need to have pest inspection and the home inspection. All disclosures need to have been read, and the natural hazards report has to be reviewed by both been read, and the natural hazards report has to be reviewed by both parties and all must be parties and all must be signed off.signed off.

During the escrow process, a During the escrow process, a PRELIMINARY TITLE REPORT PRELIMINARY TITLE REPORT will be will be sent to the listing parties office for review. This report is furnished in sent to the listing parties office for review. This report is furnished in part through public records from the City of Martinez as it relates to the part through public records from the City of Martinez as it relates to the property and the plot is lies on. Quite often, this is nothing more than property and the plot is lies on. Quite often, this is nothing more than boilerplate information, but is deemed necessary in the disclosing of all boilerplate information, but is deemed necessary in the disclosing of all informationinformation

Once these items have been performed and the reports are in hand, , Once these items have been performed and the reports are in hand, , you should expect the following back in to your possession, with you should expect the following back in to your possession, with signatures by all parties on all forms, and initials on front covers of the signatures by all parties on all forms, and initials on front covers of the reports:reports:


1. Real Estate Transfer Disclosure Statement 1. Real Estate Transfer Disclosure Statement 2. Supplement to the Real Estate Transfer Disclosure Statement2. Supplement to the Real Estate Transfer Disclosure Statement3. Lead Based Paint Hazards Disclosure3. Lead Based Paint Hazards Disclosure4. Smoke Detector Statement of Compliance4. Smoke Detector Statement of Compliance5. Water Heater Statement of Compliance5. Water Heater Statement of Compliance6. Natural Hazards Booklet6. Natural Hazards Booklet7. Pest Inspection Report with initials of receipt by buyers party7. Pest Inspection Report with initials of receipt by buyers party8. Home Inspection Report with initials of receipt of buyers 8. Home Inspection Report with initials of receipt of buyers

partyparty9. Natural Hazards Report with signatures on several pages 9. Natural Hazards Report with signatures on several pages

where requested by both partieswhere requested by both parties10. Preliminary Title Report with initials of receipt of buyers 10. Preliminary Title Report with initials of receipt of buyers

partyparty11. Other State Mandated Forms as they become available. Be 11. Other State Mandated Forms as they become available. Be

sure to check!sure to check!


If doing a condominium or Property that has an HOA, please add If doing a condominium or Property that has an HOA, please add the following form:the following form:

12. PUD - Planned Unit Development Disclosure12. PUD - Planned Unit Development Disclosure

At this point in the escrow process, you need to stop and make At this point in the escrow process, you need to stop and make copies of the forms above for the following parties:copies of the forms above for the following parties:

1. Originals to go in 1. Originals to go in 6 CLASP BROWN ENVELOPE FOR LISTINGS 6 CLASP BROWN ENVELOPE FOR LISTINGS 2. A copy to the office administration team2. A copy to the office administration team3. A copy to the sellers3. A copy to the sellers

We might want to assume, but not always, that because the forms We might want to assume, but not always, that because the forms above were sent back to us, the buyers agent won’t need a copy, above were sent back to us, the buyers agent won’t need a copy, but this is a perfect scenario. there will be times where you will but this is a perfect scenario. there will be times where you will need to pursue getting one of these forms signed off on by having need to pursue getting one of these forms signed off on by having to track down the other agent.to track down the other agent.


Now that we have all of the reports, disclosures, purchase agreement Now that we have all of the reports, disclosures, purchase agreement and supporting documents signed by both parties, copies handed in to and supporting documents signed by both parties, copies handed in to office administration, copies back to the buyers agent, and a copy in a office administration, copies back to the buyers agent, and a copy in a manila envelope for our sellers, we will need to make sure that the manila envelope for our sellers, we will need to make sure that the buyers are going to give final sign off on the purchase of the house we buyers are going to give final sign off on the purchase of the house we have listed.have listed.

The form on the following page is an addendum, and addendums can The form on the following page is an addendum, and addendums can allow for information to be added to a purchase contract conveying allow for information to be added to a purchase contract conveying additional terms, items to be included or excluded, or it can be a simple additional terms, items to be included or excluded, or it can be a simple sentence stating that the buyers hereby remove all contingencies sentence stating that the buyers hereby remove all contingencies standing in their way of this purchase and are now 100% sure they want standing in their way of this purchase and are now 100% sure they want this piece of property. It will most commonly look like my example.this piece of property. It will most commonly look like my example.

The first contingency, as spoke briefly to above, is the The first contingency, as spoke briefly to above, is the Physical Physical Inspection Contingency Inspection Contingency which states that the buyers accept what which states that the buyers accept what might need correcting, or what has been reported on, as it relates to the might need correcting, or what has been reported on, as it relates to the inspections that were performed and the disclosures that were received.inspections that were performed and the disclosures that were received.


The second contingency is the The second contingency is the Loan and Appraisal Loan and Appraisal Contingency Contingency which states that the loan has been approved and which states that the loan has been approved and the property has appraised at the price agreed to between both the property has appraised at the price agreed to between both parties.parties.

At the end of the escrow process, whether it is 30 days or more, At the end of the escrow process, whether it is 30 days or more, the title company will have the buyers and sellers in to sign the the title company will have the buyers and sellers in to sign the closing documents and will send a copy of the closing report to the closing documents and will send a copy of the closing report to the agents office. When this has been received, the file is considered agents office. When this has been received, the file is considered closed and all documents that are in the closed and all documents that are in the 6 CLASP BROWN 6 CLASP BROWN ENVELOPE FOR LISTINGS ENVELOPE FOR LISTINGS are to be placed into a larger white are to be placed into a larger white envelope provided by the agent and placed in the file cabinet for envelope provided by the agent and placed in the file cabinet for future reference.future reference.

Congratulations, now you should be more familiar with escrow Congratulations, now you should be more familiar with escrow coordination from a realtors perspective.coordination from a realtors perspective.

listing a property for sale

Technology

smoke detector statement

water heater statement

preliminary title report

natural hazards report

natural hazards

pest inspection

office administration

title company