CRI FORM, Do we still sign?  NO: If lender requests a signed copy, yes.  Otherwise, follow these instructions:  “With the recent updates to RealSmart Agent, we no longer require the Commission Reduction Instruction form.  Any credit to Buyer/Seller will now be added in the Commission screen.  To add the reduction to your file, you will need to log into your file on RSA, click on the EDIT button in the upper right hand corner of the screen, select the Commission Tab, and then input the reduction into the appropriate box.  This will then appear on the Commission Instructions sent to title.  Please let us know if you have any questions.”   Q: Hello Jeff, Are we able to edit once the commission instruction have been sent?  I believe I tried and not able to edit.  A: You will need to reach out to our closing dept for that, they can amend the commission instructions and resend if you need them to do that. I have also copied our closing dept on this email.  Take care,

 

CRI GOING AWAY SOON (APRIL, 2019): LM OVERVIEW TO MW:  (See further below in GREEN)  NOTE:  We do not offer discounted fee's for owner/agent transactions.   Rationale for fees:

· The commission legally belongs to the broker(age) and we distribute to licensees from there

· The CRI accounts for the brokers approved credit/rebate to the consumer 

· HUD, DOJ and RESPA allow for brokers to credit/rebate portion of their commission but it MUST be listed as a cred on the HUD 1/Settlement Statement and the name of the party giving the credit must also be identified

· ADRE SPS 2008.6 - licensees who provide a premium, credit or rebate in a real estate transaction disclose the credit, or rebate to all parties in the transaction including the lender and third party service providers in the purchase contract and closing statement

Because the commission technically belongs to the broker we are required to document the above in the event of a credit, rebate, etc., and I believe our form best satisfies the requirement.  

CRI:  FREE, PER TRUDY: Better to state - I will provide you with a complimentary home warranty - approx value of $X.   Yes - free is OK - but they need to give approx. value  and expiration date as well.

 

COMMISSION REDUCTION, LARGE DOLLAR AMOUNT (ie, $140K):  Hi XYZ, obviously, this is a substantial dollar amount so I am waiting to run it by the DB. I just want to make sure you're aware that the 1099 from HS at the end of the year will reflect total commissions earned. In other words, you're earning over $140K on this transaction before you give it to the Buyer. We always recommend that the agent speak with their accountant before doing this, especially when it's a significant contribution. A: Hi XYZ, I just spoke to Laurie. She's saying it's OK to sign it based on your response to my previous reply. I have cc'd the Closing Dept so they're aware of it too. JT

 

COMMISSION REDUCTION:  NEED TO MODIFY LISTING AGREEMENT? NO!!!     Q: The selling agent is reducing her commissions on this one, essentially giving it back to the seller. Do I need to update our listing agreement with an addendum also since the co-broke and total commissions paid out are now reduced? A: No, the base commission was already established.  These modifications are what I would call "back office" changes whereby the agents are making concessions usually to make the deal work. These changes should be documented by the agents but you don't have to go all the way back and modify the original listing agreement to accomplish that. Make sense...?  Let me know, thx, Jeff.

 

COMMISSION REDUCTION ADVERTISING/MARKETING REQUIREMENTS FOR BUYER/SELLER CREDIT PROGRAMS  (Be sure to include the following talking points in your discussions/presentations)  (In Addition to HomeSmart Logo, Fair Housing Logo plus BROKER APPROVAL REQUIRED)     We can "credit" our clients in a transaction, we do not send or give them a "rebate" or “cash.”   1) Subject to lenders approval, 2) CREDIT not REBATE, 3) Dates of program, 4) Approx value, 5) How Qualify (what performance is required), 6) Waive commission, take $ off sales price, tax free, 7) Waive commission, have seller give same dollar amount in concessions instead, tax free (Better, less out of pocket cash required at closing + tax free + not taxed on this income + better than off sales price, amortization schedule = short vs long!) 

OR

NEW: 2/15/2021

I think your marketing campaign has some merit but you will need to modify some of your discussion points to meet our criteria regarding credits to the buyer.  COMMISSION REDUCTION ADVERTISING/MARKETING REQUIREMENTS FOR BUYER/SELLER CREDIT PROGRAMS (In Addition to HomeSmart Logo, Fair Housing Logo plus BROKER APPROVAL REQUIRED)  

 

 We can "credit" our clients in a transaction, we do not send or give them a "rebate" or “cash.”  Required language and disclosures:  1) May be Subject to both lender and builder approval, 2) CREDIT not REBATE, 3) Dates of program, 4) Approx value, 5) How Qualify (what performance is required).

 

You need to make it abundantly clear in your buyer broker agreement that if they go to a new build without you and you do not register them with the builder that the buyer will be liable to pay your compensation above and beyond the sales price of the home.  You should show them specific examples of  what their liability to you could be given different price scenarios.  You should also remove any reference to your PLLC and registered partners, that is a tax strategy and does not affect your fiduciary responsibilities or agency relationship with the buyer.  Additionally, most builders will not honor a buyer handing them your business card, that does not satisfy their procuring cause requirement since you did not accompany and register them on their first visit.  You will need to modify that section as well.

 

Please review these changes and give me a call when you get a minute to discuss further.

 

CRI:  Credit Reduction Instructions:   CREDIT SELLER OR BUYER AT COE:  Q: I want to credit a portion of my commission to the Buyer’s down payment or closing costs.  How do I do that?  NOTE:  CRI FORM NO LONGER REQUIRED-AGENT CAN ENTER DIRECTLY INTO THE COMMISSION SECTION OF THEIR TRANSACTION FILE (APRIL, 2019).  LENDER APPROVAL STILL REQUIRED!   Q: The lender has asked for a letter from my broker for this acceptance if you could please provide?  A: Complete the form titled "Commission Reduction Instrucions" and email that to this email address for a brokers signature. We will sign and send a copy back to you to forward to the lender if required. You will enter this information directly into the commission section of your transaction file for the credit to be applied.  A: There is a form in downloads titled “Commission Reduction Instructions.”  Complete that form and forward it to broker@hsmove.com for a brokers signature.  Brokers will send a copy to the closing department after they sign.  HomeSmart Commission Instructions (OTPC) will will reflect the credit to the buyer.  Keep in mind, it will be subject to the lender’s approval.  Be certain you obtain the lenders approval prior to offering this to your Buyer as there are some loan programs that do not allow contributions to the Buyer, or that have a cap of contributions that the Buyer can receive.  You don’t want to be in a situation where you’ve promised to contribute money to your clients costs only to be told by the lender that you won’t be allowed to.

COMMISSIONS, COMMISSION REDUCTION INSTRUCTIONS:  Q: I am selling and purchasing a new home for myself.  I would like to waive my co-broke on the purchase.  Would it be appropriate to include the language in the contract or should it be done separately?  Also, are there any savings in the fees owed to Home Smart since it is my own sale and purchase?  A: Hi Chad.  It is never appropriate to include any language in the purchase contract referencing commissions.  That should be done outside of the purchase contract by separate written agreement I have attached a form that you might be able to use to address waiving your commission in lieu of a lower sales price.  Please call with any questions regarding this.

CRI:  HEY! NO LONGER REQUIRED: Simply enter this information in the commission section of your transaction file.  This is where you show that you are giving a credit to your client (or seller or buyer).  We will then include this information when we prepare and send our Order To Pay Commission Instructions (OTPC) to the title co approx 5 days prior to COE.  You will also be able to confirm that when you receive notice to approve your commission instructions also approx 5 days prior to COE.  There is also a form in your RSA Portal in the downloads link titled commission reduction instructions for this if you need something in writing.

 

 CRI, NEW PROCESS APRIL, 2019Q: How do I pay for the home warranty for my client…?  A: Hi X, Simply enter this information in the commission section of your transaction file.  This is where you show that you are giving a credit to your client (seller or buyer).  We will then include this information when we prepare and send our Order To Pay Commission Instructions (OTPC) to the title co approx 5 days prior to COE.  You will also be able to confirm that when you receive notice to approve your commission instructions also approx 5 days prior to COE. Please let us know if you have any further questions.  JT

COMMISSION, WAIVE COMMISSION:  (see ARMLS WAIVER form)  LANGUAGE:  I have attached a commission waiver form.  Remember, you must have at a minimum your HomeSmart transaction fee's.  It is against policy to include and verbiage in the contract regarding commissions, so use a form such as the one attached to accomplish that.  Also remember it is up to you to ensure that your contract price reflects your commission adjustment.

COMMISSION REDUCTION INSTRUCTIONS: CRI     Hi Patti, I can't sign this one either.  You cannot pay or allocate commission dollars to anyone other than your client or another licensed agent.  In this case you're saying to pay AZ Fence Company, which we can't allow.  What you'll want to do is simply credit the $1000 toward your clients closing costs, and that will leave the $1000 in their pocket to pay the fence company.  Sorry that it needs to be revised again, but unfortunately we can't do it this way.

CRI:  NEW:  December 2019, SIGN IF LENDER REQUESTS: Q: The lender is requesting that I "provide an addendum stating the $10,000 (I'm) giving towards buyers closing cost".  I didn't think an addendum was needed for this, how should I proceed?  A: Doug, we don't need an addendum for that since an addendum is used to modify the contract between buyer and seller and this has nothing to do with that.  There is a form that is no longer required by us that you could use to document this credit to your client, it is titled commission reduction instructions.  You can find this form in the downloads tab of your RSA portal.  There are three versions, get the version that says you are crediting to your buyers closing costs or down payment.  You can send that to this email address for a brokers signature and then forward to the lender as documentation that this is approved by your broker.  Please remember you still have to input this information into the commission section of your transaction file so it can be reflected on the OTPC. Also, as an FYI, and just to be clear, you will be 1099'd and owe taxes on the entire amount.  Take care, Jeff.  NOTE: If they require something in writing, you can use the commission reduction form which is located in the downloads link on your RSA portal.  There are three versions of this form, make sure you find the one that says you are crediting the buyer towards their closing costs or down payment.

COMMISSION, WAIVE, BUYER WAIVING COMMISSION:  I am personally buying this home and will pay for the $300 transaction fee at closing.  Thanks for approving, and please call with any questions.  Here you go Debbie, please make sure that you instruct the Escrow Officer to put the $300 as commission on the Settlement Statement as a Buyer cost.  I made that change on the form.  That way it's going thru the title company.  Kyle.  XXX, this is not allowed.  Commission instructions cannot be zero.  Please contact title and have them add $595 as a cost to you at closing to satisfy your HomeSmart transaction fees.

COMMISSION:  BUYER WANTS TO WAIVE COMMISSION:  CASE STUDYQ: I am the Buyers agent for the purchase of my spouses home and taking -0- commission. Can you please sign and email this form back to me.  Quick question, so will the $595.00 come as an invoice? Or will it be added to closing costs? Thanks again, Jenn  A: You should instruct the title co to create a line item on the settlement statement and charge the buyer.  We prefer that you add it back to the sales price.  We just can't sign anything that says zero dollars coming to HomeSmart.

Q: As predicted the Listing agent is saying her Broker will not sign a commission addendum saying they will pay Homesmart $645 even though I told her it would be charged to either myself or buyer on settlement statement  A: OK, Write this language at the bottom of the commission waiver form:  Yes, do the asterisk that you will be responsible to pay the $645 at COE.  Q: Title told me that it can only appear on the buyer or seller side of the settlement. She suggested I pay it prior to COE and you could sign that it was paid? Those were her instructions is that ok?  A: Yes we could have had her pay in advance as long as we have commission instructions from title reflecting that.

COMMISSION:  Crediting Commission To Your Buyer is a Taxable Event: (From regional presentation January, 2020)  You are allowed to credit your client with lender approval, but remember, the IRS say’s these funds must first pass through your pocketbook, and you will be 1099’d by HomeSmart for the total commission amount.  Your accountant or tax advisor might be able to help you structure some or all of your credit as some type of business or marketing expense.  TWO WAYS TO MAKE YOUR CREDIT A NON-TAXABLE EVENT: 

1. Waive a portion of your commission, reflect this amount as a reduction on the pc sales price, (TAX FREE, See ARMLS Waiver Form)

2. Waive a portion of your commission, request this amount as a seller concession to buyer in pc, (TAX FREE, See ARMLS Waiver Form)

(#2 is better in my opinion, less out of pocket cash required at closing vs amortizing the same $ amount over 30 years= short vs long term).

COMPENSATION: COOPERTIVE COMPENSATION, YOU CANNOT CHANGE COMPENSATON ONCE AN OFFER HAS BEEN MADE, : NAR ARTICLE:  ARTICLE 3, SOP 3.2,                                           (SEE COMMISSION DISPUTE CASE STUDY, JUDYXGILLIUM)       https://magazine.realtor/law-and-ethics/ethics/article/2016/03/understanding-cooperative-compensation    However, it’s worth keeping in mind that sharing commissions, as opposed to the details of cooperation, is not itself an ethical obligation. Article 3’s duty requires that “REALTORS® shall cooperate with other brokers except when cooperation is not in the client’s best interest. The obligation to cooperate does not include the obligation to share commissions, fees, or to otherwise compensate another broker.”

Article 3 (Case Interpretations for Article 3)

· REALTORS® shall cooperate with other brokers except when cooperation is not in the client’s best interest. The obligation to cooperate does not include the obligation to share commissions, fees, or to otherwise compensate another broker. (Amended 1/95) [listen]

· Standard of Practice 3-2:  Any change in compensation offered for cooperative services must be communicated to the other REALTOR® prior to the time that REALTOR®
submits an offer to purchase/lease the property. After a REALTOR® has submitted an offer to purchase or lease property, the listing broker may
not attempt to unilaterally modify the offered compensation with respect to that cooperative transaction. 
(Amended 1/14)

· Standard of Practice 3-3:  Standard of Practice 3-2 does not preclude the listing broker and cooperating broker from entering into an agreement to change cooperative compensation. (Adopted 1/94)

 

COMPENSATION PAID FROM BOTH BUYER AND SELLER LANGUAGE  All parties acknowledge that buyers agent is being compensated by both seller and buyer in this transaction.”     Q: I have a question in regards to one of the review items…Receiving compensation from both Buyer and Seller. I am not.  YES YOU ARE!  A: It does appear that you will receive compensation from both buyer and seller.  The MLS co-broke offering is 2.5%.  Your buyer broker agreement is for 3%.  That means the buyer will make up the half point difference (see line #29 of Buyer Broker Agreement).  Let us know if this is not the case.

 

COMPENSATION: PAID FROM BOTH BUYER AND SELLER, ARTICLE 7 CODE OF ETHICS STATES THE FOLLOWING: In a transaction, REALTORS® shall not accept compensation from more than one party, even if permitted by law, without disclosure to all parties and the informed consent of the REALTOR®’s client or clients.  (Also See Case study in docs tab Duane Fouts): .Article 7 Code of Ethics, we must disclose in writing to all parties that we are receiving payment from more than one party in the transaction and all pirates must consent  to that in order for us to receive that referral compensation. 

 

COMPENSATION & COMMISSIONS:  KEEP OUT OF CONTRACT!   LANGUAGE: FYI, Any commission agreement other than what is offered in the MLS is between the listing and selling broker and 1) should be by separate written agreement and 2) signed by the agents and their brokers outside of the purchase contract. (see sect 8f of the purchase contract, Compensation.) Please contact a broker if you have any questions. Thank you.  OR   FYI (NO ACTION REQUIRED) - Per lines 398-403 of the purchase contract, "Seller and Buyer acknowledge that Broker(s) shall be compensated for services rendered as previously agreed by separate written agreement(s)" That separate written agreement is typically the MLS offering of the co-broke fee. If either agent is altering the commission that they have previously agreed to, or that has been offered to, then it needs to be by a separate written agreement between the agents - and NOT part of the purchase contract. In addition, the Designated Brokers should also sign agreeing to the changes. (Please reference Addendum 1)  OR  “Any and all references to broker commissions in the purchase contract are hereby removed from the purchase contract.”

COMPENSATION:  KEEP OUT OF THE CONTRACT!  BROKR REVIEW NOTE:  FYI (NO ACTION REQUIRED) - Per lines 398-403 of the purchase contract, "Seller and Buyer acknowledge that Broker(s) shall be compensated for services rendered as previously agreed by separate written agreement(s)" That separate written agreement is typically the MLS offering of the co-broke fee. If either agent is altering the commission that they have previously agreed to, or offered, then it needs to be by a separate written agreement between the agents - and NOT part of the purchase contract. In addition, the Designated Brokers should also sign agreeing to the changes.  

COMPENSATION ADJUSTMENT:  “Contrary to any offer of compensation offered through the Arizona Regional Multiple Listing Service (ARMLS), the total compensation due to the Selling Broker upon successful close of escrow for the above transaction shall be X% or X$.”

 

COMPENSATION:  “OTHER COMPENSATON”  Q:  I plan to create and sell online video tutorial courses directly to U.S. home buyers and sellers. Is this something I can do while with HomesSmart?

A: I emailed Trudy and she responded that this would be acceptable and that "the money doesn't need to flow through HomeSmart."  Obviously this would be a separate business venture from your HomeSmart real estate business and there would be no connection or mention of HomeSmart, this would be completely separate.  Give me a call with any questions.  Jeff.  

 

COMPENSATION:  WHO GETS PAID?  You must be licensed at the time the compensation is earned (defined as the point in time that the contract is/was entered into, ie, signed and delivered).  Also, the employing broker at that time (also true for earning a referral fee).

 

COMPENSATION OFFERED IN MLS:  If a buyer’s agent does not ask that the compensation be changed prior to an offer being submitted, they must accept whatever compensation was advertised.  Use my ARMLS compensation change form to increase/decrease compensation.

 

COMPENSATION:  Q: I have clients who have decided to purchase land and build a home on it.  They liked a floor plan of a small builder and I was able to put them together.  The builder said he would be willing to compensate me for bringing him a buyer for one of his homes.  Since the house will be built on my clients land.  How would it work for me to receive compensation? The builder isn’t a licensed broker.  He will be building the home but the land isn’t his.  Anyway I’m trying to figure out how I would receive compensation legally.  A: I think you will be able to use the Unrepresented Seller Compensation Agreement (zipForms), the same form we use with FSBO's.  You might want to look it over and possibly make any changes you feel are appropriate or required...maybe even add an additional page for additional terms.

COMPENSATION, FEES:   SEE ARTICLE 26 OF THE AZ CONSTITUTION:  Q: When selling my own property and the BUYER declines representation, can I charge a fee to prepare all of the documents and document that fee on the ER?  A: As you know, you cannot represent the buyer on your own property.  Taking money for doing paperwork is against Article 26 of the AZ constitution.  If you are being paid, there must be representation, which obviously in this situation you cannot do.

COMPENSATION, EARNED, WHEN IS COMPENSATION EARNED?  Q: Agent asked if her newly licensed husband who just joined HomeSmart two days ago could be paid on a closing she has coming up next week? A: NO. The rule is that you must be licensed when the commission is earned, which is at the time of contract acceptance.  LAURIE:  I completely agree.  He wasn't licensed when the commission was earned. 9/19

COMPENSATION, AGENT MINIMUM COMPENSATION REQUIREMENTS:  Q: If I am working with a buyer and he wants to view a home for sale, BUT the buyer's agent commission in the MLS is very low, do I have the option to tell him that due to the low commission I cannot show him the home or represent him on this particular transaction? For example, let's say I have been working with a buyer for many months and he finds a property that is marketed to investors and only pays a $1,000 commission. After subtracting broker and TC fees, the net commission to me barely covers my time and gas over the last six months. A: As a licensee you are allowed to share your minimum compensation requirements and let buyers know upfront that your policy is to have your buyer clients sign a buyer broker employment agreement to make up any difference between the cooperative compensation offered in the MLS and your minimum requirement (if any).  You have to be very transparent upfront about this as it can obviously get into a gray area. Documenting all discussions concerning this would be highly recommended.  

NOTE:  2 Attachments: 1) Minimum Commission Requirements, Code Comprehension: Article 16 — Commissions Are Negotiable...2) Minimum Compensation, why an agent might refuse to show a house…ALSO….remember, we must put our clients interests ahead of our own, see code of ethics.

 

COMPENSATION: RESTRICTIONS ON COMPENSATION NOT ALLOWED: Please remove the language from the additional terms section of the ER and in the Private Remarks on MLS- It is an MLS violation to put conditions on commissions- You might consider offering a 'Flat Fee" instead- Thank you!

COMPENSATION:  See legal hotline article, commissions:  Standard of Practice 3-4, REALTORS®, acting as listing brokers, have an affirmative obligation to disclose the existence of dual or variable rate

commission arrangements.  Standard of Practice 16-16, The Buyer’s Agent (BA) cannot condition an offer in an attempt to modify the commission being offered.

 

CONCESSIONS: BUYER WANTS TO PAY REAL ESTATE COMMISSIONS FOR SELLER:  This will be a Buyer to Seller Concession.  “Buyer agrees to credit $X to Seller at close of escrow which may be used at Sellers sole discretion.”  Always best to check with buyers lender as well.

 

CONCESSION:  WHAT TO SAY WHEN ASKING FOR ANY CONCESSION?   We entered into this transaction in good faith, and we hope you guys did too!  

CONCESSIONS:  WHAT ARE SELLER CONCESSIONS?  http://www.quickenloans.com/blog/what-are-seller-concessions-or-contributions-5096

 

Q: When you write a BINSR that the seller responds that they will give a credit at closing to the buyer in lieu of doing requested repairs (and you also do an Addendum that states only the credit by seller to buyer)…..does this then count on the listing in the MLS as seller concessions?  I always thought that seller concessions were what was negotiated when the offer was made.  When it is a seller credit in lieu of repairs, the seller could have done repairs and then it would not be counted as a seller concession.  So this is confusing to me.  What is the broker’s office stance on this issue?  A: Giving a credit in lieu of repair(s) is considered a seller concession, and is treated as such on the settlement statement.  Depending on how that addendum is written, it may or may not have the same restrictions as Seller Concessions outlined in sect 2j of the purchase contract.  Regardless, it is still considered a seller concession.

 

CONCESSIONS: EXCESS CONCESSIONS, SEE HOW EXCESS CONCESSIONS

 

CONCESSIONS:  CLOSING COSTS, SELLER TO BUYER CREDIT LANGUAGE + overrides language in contract that limits WHAT items can be credited). 

1) NO LONGER.  BURNED BY TITLE CO 11/24/2019 “Seller agrees to credit buyer $x at COE which may be applied to any and all borrower closing costs including loan costs, title fees, escrow fees, pre-paids, appraisal, HOA fees, capital improvement fees, home warranty or any other closing cost approved by lender at buyers sole discretion.”     However should the total buyer closing costs be less than the agreed amount of $4,500 both parties agree to a principle price reduction by the amount of the remaining balance.”  Seller agrees to credit buyer $x at COE. Credit may be used at buyers sole discretion with lender approval.

 

2) YES: Seller concessions may be used for any buyer closing cost approved by lender at buyer’s sole discretion.  However should the total buyer closing costs be less than the agreed amount of $4,500 both parties agree to a principle price reduction by the amount of the remaining balance.”

 

3) “Seller agrees to contribute a total of $x towards buyer closing costs which include but are not limited to pre-paids, appraisal fees, loan costs, title and escrow fees, home warranty and any other closing cost approved by lender at buyers sole discretion.  Any unused portion or amount disallowed by lender shall remain with the seller.”

4) “Concessions shall include any of buyer’s acquisition costs, including but not limited to items listed in section 2j of the purchase contract along with any other cost approved by lender at buyer’s sole discretion.”

5)  “Should funds remain from section 2j of the Residential Purchase Contract, the Lender, at buyers and lenders sole discretion, may use those funds to pay for additional HOA fees, Home Inspection, Home Warranty, or any other fees that the lender deems reasonable and acceptable.”

CONCESSIONS, TOTAL:  “Seller to credit buyer an additional $X at close of escrow, bringing total seller concessions to $Y.”              OR   “Seller to credit the buyer and additional $X.  Total concessions to be $X.  This is exclusive of any other mutually agreed amounts in the Additional Terms of this contract.”

CONCESSIONS, REMOVE CONCESSIONS DUE TO LOW APPRAISEL (or any reason).  “Seller & Buyer acknowledge and agree that contrary to line #x of the PC, seller concessions shall be a total of $0 (or, shall read $0).”  OR  “New Sales Price shall be Appraised Value of $x.”  “New Sales Price is $x” or “Sales Price is hereby Reduced to $x.”  “Seller concessions are hereby reduced to $x (or x% of new or existing sales price).” 

 CONCESSIONS, BACKGROUND--Pre Qual or LSU says buyer relying on concessions but concessions removed, REVISE LSU

CONCESSIONS REMOVED, COUNTER OFFER LANGUAGE:   "Buyer to provide an updated pre qual or LSU within 48 hours of contract acceptance with seller concessions removed as a requirement."

CONCESSIONS:  Q: Prequalification says no but buyer is asking for concessions in purchase contract.  A: They don’t need the concessions.  Probably submit a counter offer removing concessions.You would need to know 1) amount of commissions seller agreed to pay, 2) proof of buyer cash to close, and 3) whether or not lender will approve (if there is a lender).

CONCESSIONS:  RAISE PRICE SO CAN ASK SELLER FOR CONCESSIONS?  Q: I am representing the buyer and we are within the 10-day home inspection period.  We offered full price and didn't ask for closing costs as my buyer thought she would roll her closing costs into her loan. She now doesn't want to do that because her interest rate will go from 4% to 4.5 or 4.625. 

The home was priced on the low end of the comps so I asked the listing agent if we could raise the price 5k and sellers give 5k for CC's. The listing agent is worried about that flagging the appraiser.  My questions are. If seller is willing to do this could we just give them a new pg one with the new price and a new pg 3 with the 5k CC's or would we have to cancel this contract and write a new one?  A: You cannot just replace pages within a contract -   the buyer and seller can formally cancel the contract and escrow and re enter into a new agreement.  Jenny

CONCESSIONS:  Buyer Pay Commissions: My Buyer would like the option of paying for either the Buyer Broker commission fee or both sides of the commission fee (buyer and seller).  A: This would be a "Buyer to Seller Concession" for the amount of the commissions.  You would note this on page 8 of the purchase contract under additional terms and conditions...ie, "Buyer agrees to credit Seller $X at COE."

CONDEMNED PROPERTY:  (MOISES): Q: I have a referral asking me to list one of their properties for sale. I noticed it was condemned by the city. Are there any restrictions that I should follow when listing this property? Should I allow people to enter at their own risk?  A: A condemned property is both unfit and unsafe and should not be entered unless special precautions are taken by the seller.  You will not take responsibility as that is outside your scope. Talk to the seller about how they are going to manage that.  The liability will be on them, not you or HomeSmart. At the end of the day it's all about reducing liability by managing and reducing risk.

CONDITION, PROPERTY CONDITION:  Once the buyer owns the property, any problems with the property condition are the buyers responsibility (unless fraud, misrepresentation by seller).

CONDITION:  SEE “PREMISES IN SUBSTANTIALLY THE SAME CONDITION”

CONDO CERT:  (Also see warranted/non-warramted) WHAT IS IT?  Condo Certificate is required by the buyer's lender and is provided by the Homeowners Association (HOA).  It assesses the financial status of the HOA and also provides information regarding the number of units that are owner and/or non‑owner occupied in the community, notices regarding pending litigation, and notices of pending and current assessments and reserves. The lender is looking for minimal risk in lending on a condo in an HOA.  The lender/underwriter reviews this information to ensure that the property meets the lenders underwriting standards so the loan is eligible to be sold to Freddie Mac or Fannie Mae.                                                                                                                                                                                                                                                                    CONDO CERT:  Q:  I attached the HOA Addendum that was in the docs section of the listing.  There is a condo cert fee listed.  Is this common on a single family residence?   A: Many single family subdivisions are also governed by HOA restrictions...community pool, tennis, clubhouse, common areas, etc.  So the condo cert would apply, they are going to ensure that the property meets the lenders underwriting standards so the loan is eligible to be sold to Freddie Mac or Fannie Mae.

CONDO FINANCING, SEE FHA.

CONDOMINIUM:  Arizona Condominium Act:  See ARS 33-1228   Buyer can force sale if acquires 80% interest.  (SEE THE FOLLOWING)  ARS 33-1228:  Q: If you don't know could you possibly direct me to someone that could clarify. The president of the association sent this to me for my opinion.  A: Hi XYZ, that is true.  I have only heard of it happening once or twice, but it can happen.  The Arizona Condominium Act (ARS 33-1228) allows for an HOA to disband if 80percent of the members agree to it.  

Here is the link to the ARS website and ARS 33-1228:  https://www.azleg.gov/ars/33/01228.htm

CONDOMINIUM,  IS A TYPE OF OWNERSHIP:  condominium is a form of property ownership involving multiple unit dwellings where a person owns his or her individual unit, but the common areas are owned in common. All members share in the costs and maintenance of the common areas. A perfect example of a condo is a large apartment building where you own your individual apartment, but also share in the maintenance of the building's roof, hallways, lobby, elevators, driveway, landscaping, pools, fitness center, and other amenities.   https://study.com/academy/lesson/condominium-ownership-definition-considerations.html

CONDOMINIUMS AND COOPERATIVES:  https://legal-dictionary.thefreedictionary.com/Condominium+Ownership      https://www.nolo.com/legal-encyclopedia/buying-condo-what-property-will-you-actually-own.html