ma ceu commonly used forms re39r06
DESCRIPTION
An interactive and informative course designed to review the most commonly used forms in a real estate transaction. We will look at federal, state and local forms. We will explore the difference between the laws and regulations and the policies and customs regarding their use.TRANSCRIPT
COMMONLY USED FORMSMANDATORY/OPTIONAL
RE39R05Jody OBrien
Licensee‐Consumer Relationship Disclosure
• When must it be Presented?– Requirement is unchanged, all brokers and salespersons must present form at first personal meeting
– If any change occurs in the relationship, disclosure must be made and written consent given
Licensee‐Consumer Relationship Disclosure
• Seller Agent• Buyer Agent• Designated Agent• Facilitator• Dual Agent
The Mechanics…
• Disclosure of possible relationships• Consumer choice of non‐contractual relationship
• Name of office/firm and license number• Office policy relative to representation (designated vs. traditional
• Signatures acknowledging receipt of information
• Licensee’s number and “today’s” date
Informed Consent
• Board of Registration Consent Form– Approved language– In writing, must be signed by both agent and consumer
– Conclusive Presumption
Timing of consent to Dual Agency
• Either at the commencement of the relationship– Notice
• When occurs• Must obtain consent prior to offer
Timing of Consent to Designated Agency• Commencement of the relationship
– Notice
• When Designated Agency occurs• Must be obtained prior to the execution of an Offer to Purchase
Home Inspector Forms
• Home Inspector license law enacted 1999• Effective May 1, 2001• All licensees required to provide a copy of the state mandated document entitled “Facts for Consumers about Home Inspectors” at the time of the first written contract
• Designed to provide Buyers with information about the process and their right, not a requirement of the Seller to allow the Buyer to have inspection
Lead Paint Disclosures
• Lead Form must be completed and signed by the seller and the listing agent before it’s signed as acknowledged by the Buyer
• Upload document to MLS• Buyers acknowledge disclosure with offer
Lead Paint Disclosures
• Failure to provide Buyer with a form that has already been completed by the seller creates risk of liability
• Often overlooked…Federal Lead regulations require that the executed document be attached to the Purchase and Sale
Tenant Lead Notification
• Landlord or agent must provide each prospective tenant with written notice prior to the execution of a written agreement
• Landlord and agent must maintain copies of all signed documents
Short Term Rentals
• Exempt if rented less than 31 days• Landlord and tenant sign a Short Term Vacation or Rental Exemption Notification
• Visual inspections and acknowledgement• Must include number of days, telephone number, signature and dates
• Failure to complete form may negate exemptions
Tenant Fee Disclosure
• Written notice to prospective tenants must be given at the first personal meeting
• Must state charges for assistance, when and how paid, and whether the fee is due even though no tenancy may be created
• Requires that the form provide agent’s name, license number, date and signatures
Tenant Fee Disclosure
• Where no fee is to be charged there is no affirmative obligation to provide disclosure
• Records must be kept for three years including copies of checks
• Failure to provide a notice may result in the tenant’s right to return of application and rental fees
Offer to Purchase• An Offer to Purchase is a Contract for Sale of real property– Parties– Description of property– Consideration– Offer and Acceptance– Date– Ernest money– Terms– Dates– Contingencies
Purchase and Sale Agreement
• A Purchase and Sale Agreement is a Contract for Sale
• It can be viewed as the road map of the transaction
Purchase and Sale Agreement
• Minimum provisions of the contract:– Parties– Description of the property– Consideration– Time for performance and possession– Title Deed– Adjustment (proration of taxes, utilities, fuel, insurance etc. )
– Casualty Loss
Purchase and Sale Agreement
• Default• Contingencies clauses• Construction of agreement• Dates and signatures
Equitable Title
• After the buyer and seller have executed a sales contract, the buyers received an interest in the land known as equitable title. This allows the buyer to sue in equity for specific performance if the seller refuses to perform under the contract of sale and the buyer is ready willing an able to perform
Specific Performance
• Specific performance is when the seller is forced to transfer legal title and the buyer gets possession
• Legal title only transfers on delivery and acceptance of the deed
Jody O’BrienThe RE/Education Company
Committed to Professionalism in Real Estate through Education
Blogwww.reeducator.wordpress.comPresentationwww.slideshare.net/ReEducationCompanySocial Mediawww.twitter.com/reeducatorwww.youtube.com/msreeducatorwww.facebook.com/reeducatorwww.linkedin.com/in/reeductor
Thank you for Attending