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PAPERWORK PROCESSING, HOMESMART: I was looking fir a broker signature, but I'll just submit in agent portal with my sellers signature approving extension?? What do you mean Greg? KF Good Morning Greg, we don’t process documents that come into our email. You can either upload your paperwork directly into your file by logging into the RealSmart Agent Panel locating your transaction and clicking the upload button to the left of the property information, fax it in with the barcode cover sheet as the first page to 602-889-2121, or you can email it saved as one attachment with the barcode cover sheet as the first page to paperless@hsmove.com. PATHWAYS TO PROFESSIONALISM: (SEE PDF IN DOCUMENTS) Send to problematic agents! Dear xxx, Some years ago the NAR Professional Standards Committee developed the attached list of professional courtesies for use by REALTORS on a voluntary basis. I think each of us should review the list from time to time, in particular section III titled "Respect For Peers." We all have our own priorities, but I feel it is important to show courtesy, trust and respect to other real estate professionals and to avoid the inappropriate use of endearments or other denigrating language. I also think it's important to remember that real estate is a reputation business. What you do today may affect your reputation, and business, for years to come. Take Care, JT. PAY ANOTHER AGENT: HOMESMRT FORM: (9/3/2020, Note to MarT on MM): Hi X, agents can pay another agent using the form on RSA called "Instructions to pay another HS Agent." Showing a buyer homes on behalf of another agent or opening a home for another agent would be good applications for this. The HS transactdion fee is $25 which can be paid by either agent (normally paid by agent requesting the service from another agent) and the payment would be processed immediately as soon as the agreed upon amount is remitted through our closing department so the other agent doesn't have to wait until the transaction closes, especially since a transaction may or may materialize in the first place. The last thing HS wants is agents gaming the system by adding each other as TC's when HomeSmart has a payment process in place for that plus Transaction Services is not what they are being paid for...they could also be added to the file as an in house agent and be paid at COE. The agent requesting the service can then pay the HS transaction fees. AAR pay another agent for sitting open house: https://www.youtube.com/watch?v=EtzJiH5RC1g&feature=youtu.be&ct=t%28The_SAAR_News_Nov+29_2020%29 PDF COMBINED PDF: https://combinepdf.com/ + SAVE EMAILS TO PDF TOO! PEARL CERTIFICATION: (See Smart Partner) PER DIEM: COE to occur on xx/xx/xxxx. Per Diem of $X per day starting xx/xx/xxxx applies through COE date and shall be credited from buyer to seller on settlement statement at COE. OR COE to be xx/xx/xxxx. Buyer agrees to credit/pay seller a daily fee of $X at close of escrow for every day after xx/xx/xxxx that the property has not closed escrow. If transaction fails to close for any reason, other than sellers breach, buyer shall still pay seller the per diem fee through the close of escrow date, to be distributed from buyers earnest deposit. PERCOLATION: Percolation test. A percolation test (colloquially called a perc test) is a test to determine the water absorption rate of soil (that is, its capacity for percolation) in preparation for the building of a septic drain field (leach field) or infiltration basin. PERMITS: City of Scottsdale Fence Authorization Form: http://www.scottsdaleaz.gov/Asset498.aspx PERMITS: PERMITS NOT PULLED FOR JOB, WHAT NEXT? Q: Buyer requests that the plumbing in a home be replaced AND the line from the house to the sewer as well. Seller agrees, and completes the work BUT doesn't have the permits pulled. Can the Buyer cure for that and cancel or no? I spoke with her as well. She said a licensed contractor WAS used but no permits were pulled. I asked that same question as I assumed the same thing. I can't see a licensed contractor doing that kind of work without pulling the necessary permits, but apparently that didn't happen. My hang up is that the actual repair was done, and apparently done properly with the exception of the permit. A: Without permits and the city's final sign off I think the buyer could argue that it is "incomplete", ie, the physical work is done but the required paperwork/permits are not yet satisfied...? Just talked to legal hotline and they said that's tied into "workmanlike"... since permits should be part of this repair, it wasn't done in a workmanlike manner... PERMITS: CONFIRM NOT ONLY PERMIT ISSUED BUT CONSTRUCTION COMPLETED, HERE: By Chris Combs, Arizona Republic, June 21, 2020 PERSONAL PROPERTY/DEBRIS: “Seller and Buyer Acknowledge and Agree that any personal property seller chooses to leave behind will become the property of the Buyers at the earlier of COE or possession.” PHOTOS, WHO OWNS? http://realtormag.realtor.org/daily-news/2018/04/10/two-ways-reduce-your-firm-s-liability-risk?om_rid=AAFBp8&om_mid=_Ba2PxPB9nMOrK8&om_ntype=NARWeekly PHOTOS, REMOVE FROM MS….SEE CASE STUDY…... PHOTOS: SEE ARMLS RULES AND REGS: 8.23. (Photos, video, etc). Except for Media independently licensed by ARMLS for the benefit of all Subscribers, a Subscriber may not copy and use for any purpose any Media from another Subscriber’s Listing without specific permission from the Listing Participant. It is permissible, however, for a Subscriber to purchase and use Media being used by another Subscriber so long as the Media is purchased from a third-party owning rights to such Media and having the legal capacity to license the Media. PISSED OFF: BETTER PISSED OFF THAN PISSED ON! PLANO: MLS Plano, listing detail sheet. Q: Does this plano look correct? A: Generally speaking it appears to be formatted correctly...Please have your client confirm the details for accuracy. Please upload either 1) the seller signed MLS data input pages along with a copy of the plano or 2) a copy of the plano signed by the sellers. LLC: https://info.legalzoom.com/article/definition-llc-member PLLC: What Makes an LLC Different from a PLLC? https://www.legalzoom.com/articles/what-makes-an-llc-different-from-a-pllc LLC, NOT VALID FOR LICENSE: Q: Please find the remaining documents needed to establish a formal LLC. I'm looking to run transactions through that LLC via HomeSmart instead of just my single agent name. Please let me know what else I need to do to make that happen. Hi Toni, we are only allowed to pay you in the way that your license is held with the Az. Dept. of Real Estate, and unfortunately, that can't be as an LLC. It can be a PC or PLLC, but not a straight LLC like you have here. I would go to www.azre.gov and in the upper right search bar type PLLC. That will bring up result for how to create a PLLC and have your license changed to to that type of entity. (Kyle, 8/26/2020) PLLC & LLC Differences in AZ http://www.keytlaw.com/azllclaw/2011/07/arizona-pllc-vs-llc/ How to form an LLC/PLLC in AZ http://www.nolo.com/legal-encyclopedia/arizona-form-llc-31869.html How to dissolve/windup/terminate LLC/PLLC in AZ: http://www.nolo.com/legal-encyclopedia/how-dissolve-llc-arizona.html https://www.keytlaw.com/azllclaw/terminating-llcs/how-to-terminate-an-az-llc/ PLLC, COMMISSION PAYMENTS: PLLC, commission will be paid to the PLLC immediately once the PLLC is set up with HomeSmart. Even for escrows that have been open or pending for a while...Per Kyle. PLLC: NAME OF PLLC MUST MATCH NAME ON ADRE LICENSE …..SEE CASE STUDIES…..5) NAME OF PLLC MUST MATCH NAME ON ADRE LICENSE PLLC SIGNING REQUIREMENTS (ADRE), DO NOT PLACE ANYWHERE! ADRE***Please note: processing time through the message center is currently 2-10 business days. If you decide to come in and submit the paperwork, please be here before 4pm and please make sure you have all required documents so that everything is ready to be processed. Thank you very much for your patience as we review/process each application and answer each inquiry on a first come first serve basis. Q: Hi, I read on ADRE that I am not to put "PLC" on advertising. Does this include business cards? I was under the impression that PLC needed to be beside my name in contracts, biz cards, and all marketing to 'keep' the corporate veil associated with my name? I read that I cannot pay anyone through my PLC. What happens if I want to grow a team and hire someone? Do I then form an LLC? How would a PLC agent working under a broker grow team? Last question: I noticed that my name with DRE is Dennis Brian Carr. My PLC says "Dennis Carr PLC." Does this mean I have to go back to AZ Corp Commision and amend the PLC to "Dennis Brian Carr PLC" before ADRE will accept it? Thank you, A: It’s a tax strategy! Mr. Carr, The PLC should not be placed anywhere. It is only a way for your broker to pay you, that's it. The only place it should be visible is when you print your license. If you want to start a team, that is something completely different, and you need to ask your designated broker about it, they are the ones who regulate teams. You do not have to amend it. PLLC, PLEASE SEE ATTACHED LICENSE CHANGE PLLC, SET UP: Q: Hi! I met with my accountant yesterday and discussed setting up an LLC for tax purposes. She said to check with the broker on whether an LLC would work, or if it has to be a PLLC so that my checks from HomeSmart get paid to the corporation, and not me personally. Thanks in advance. A: “Leah, you would set up a PLLC, not an LLC. Once you are approved through the Corporation Commission, you will change your license with ADRE and apply for your tax identification number through the IRS. Once license is changed, let HomeSmart know and send us your new W9.” X, I am copying Agent Services on this. Please submit your W9 along with your updated license to Agent Services. They will make the necessary changes. After that all of your commissions will be paid to your PLLC. Q: Please assign commissions to my LLC. A: This is not the proper entity for your real estate license. A PLLC is the correct entity. See ADRE INSTRUCTIONS, FORM Ll-231. Please call to discuss. Please review ADRE requirements for forming a PLLC, here is a link to ADRE FAQ's regarding PLLC's: https://azre.gov/faq#faq-each-qna-187 Here are the general steps to form a PLLC. (ADRE advises that an agent should not use their PLLC status for marketing/advertising purposes, it should not be on their business card or yard sign and they should not include PLLC in their signature block on contracts. It’s a strategy for limited liability and tax purposes only) Step 1: Reserve PLLC name with corporation commission (it will be your name followed by PLLC); Follow online instructions for processing, publishing, etc. Step 2: Change name on your RE license with ADRE (form LI-231, needs to be signed by Designated Broker; Complete Form, get DB’s signature, submit to ADRE for approval and new license showing PLLC) https://azre.gov/sites/default/files/Forms/Licensing/Form_LI-231_App_for_Lic_as_Pro_Corp_or_Pro_LLC.pdf Step 3: Apply for tax identification number through IRS and/or your tax adviser Step 4: Let us know once your license is changed with ADRE and send us your W9 for our accounting dept Step 5: We will begin paying commissions to your entity/PLLC Please call with any further questions. Jeff. (Q: Yes, I have hired an attorney and considered between a pllc and an llc. This would be separate from me representing clients. A: Good Morning Janel. I just want to be sure you're understanding of the fact that we can only pay commission dollars to an agent in the way your license is held. If you mean that you want to create a PLC or PLLC for your license, that route is ok as long as its simply Janel Dunham PLLC or Janel Dunham PLC. Those are the only ways you can add the entity to your license and be paid that way. Hopefully that makes sense. Basically you just can't create Premier LLC, and then start advertising yourself that way along with being paid that way. Q: Yes, I wasn't necessarily wanting to be paid through my llc for any client representation, and I was not going to advertise as an agent that way, it would be for flipping on the side. Do you mind if I give you a call just to be sure.) What if I have already formed an LLC but need to change to PLLC? · If you are seeking to change your LLC to a PLLC, you can amend your LLC Articles of Organization with the Arizona Corporation Commission. As a minimum, the name must be amended to substitute PLLC for LLC. There may be additional items to amend depending on how the entity was set up. Follow the directions on the form.
· After filing the amended Articles of Organization, another Notice of Filing must be published in a newspaper of general circulation. · Submit the completed https://azre.gov/sites/default/files/Forms/Licensing/Form_LI-231_App_for_Lic_as_Pro_Corp_or_Pro_LLC.pdf and all required documents. · For any questions concerning processes and forms, see the Arizona Corporation Commission website and/or consult professional advice. PLLC, LLC, PC, HOW TO DISSOLVE: Q: I would like to close out my S corp, how do I make this happen? A: You need to do several things to terminate your s corp. 1) Terminate your s corp with the IRS (contact your legal/professional tax advisor) (Form 966, Corporate Dissolution or Liquidation, Final Tax Return) 2) Terminate/dissolve your pc with the corp commission (File Articles of Termination) 3) Change your license status with ADRE removing pc (Form Ll-231) 4) Notify HomeSmart once license status changes with ADRE (agent services plus accounting) Please reach out to ADRE to confirm their process for this. I believe form Ll-231 will be used for the change, but please check with them to confirm. POCKET LISTING DEFINITION http://realtormag.realtor.org/sales-and-marketing/briefs/article/2013/05/what-pocket-listing POLICE REPORT: Listing Broken into, appliances stolen: 1) Notify sellers, 2) Sellers file police report, 3) Sellers most likely file insurance claim, 4) TOM until resolved. POLICY AND PROCEDURES MANUAL: At minimum a broker should review the policy and procedures manual every year to allow for the creation of new content, the removal of outdated information or procedures, and to edit or improve upon existing content. TRUE: The ADRE model broker’s policy and procedures manual provides an outline of important policies to be included in an office manual. A broker may choose to utilize computerized systems and third party software to help manage and supervise more efficiently and to help prevent and detect violations.
POLICY AND PROCEDURES, CHANGES FOR 2020,,,SEE CASE STUDIES…POLICIES AND PROCEDURES, CHANGES FOR 2020.
POOL ENCLOSURE: 36-1681. Pool enclosures; requirements; exceptions; enforcement https://www.azleg.gov/ars/36/01681.htm POPULATION, PHX: http://www.bizjournals.com/phoenix/news/2017/03/24/phoenix-s-trump-card-222-people-move-here-each-day.html https://magazine.realtor/daily-news/2018/12/20/the-states-that-grew-the-most-this-year?ct=t(The_SAAR_News_10_07_18_COPY_01) SCOTTSDALE TOP CITY FOR GROWTH! PORTFOLIO LOAN: A portfolio loan is a loan that is serviced by the lender that issued the money. Here are the basics of the portfolio loan and how it works. http://www.mortgage101.com/article/what-is-portfolio-loan POSSESSION: COPIED FROM PC: Purchse Contract sect 1e. Possession: Seller shall deliver possession, occupancy, existing keys and/or means to operate all locks, mailbox, security system/alarms, and all common area facilities to Buyer at COE or ________. Broker(s) recommend that the parties seek independent counsel from insurance, legal, tax, and accounting professionals regarding the risks of pre-possession or post-possession of the Premises. Q: A Seller does not have to have move out of the property until the day before the COE date, is that correct? Nothing was included in the contract suggesting that personal property would be out at a different date. A: Line #32 of the pc "Possession" says that seller shall deliver possession at COE or _________. COE occurs once the deed is recorded. So, the seller gets to stay in the home right up to the point of when it records. Seller does not have to be out one day early unless there was some agreement regarding that in the contract. AND THERE IS NO PROVISION IN THE PC THAT SAYS THE HOME MUST BE VACANT FOR FINAL WALKTHROUGH!
POSSESSION: SAME DAY, LATE IN THE DAY LANGUAGE: Sellers and buyers agree that the sellers have until 10pm on (day), xx/xx/xxxx to move out of the subject property at no cost to the seller. Seller will keep utilities on in their name through the xx/xx/xxxx. POSSESSION: GARAGE OCCPANCY ONLY: LANGUAGE FOR ADDENDUM: Q: The Buyers have requested to store some items in the Seller’s garage for a few days prior to close of escrow. My Seller has agreed, and I would like to protect his interests in this matter. I could not find any verbiage to cover this event, so here is what I have come up with for an Addendum. Does this sound ok? This Addendum is an attachment to the Agreement for Buyer to Occupy prior to close of escrow (the agreement) and is not to be considered an addendum to the purchase contract. The items in this addendum take precedence over the agreement where there is a conflict between the two. 1) The buyer will not occupy or take possession of the property prior to COE. 2) This agreement is only intended to grant storage of household goods in the garage of the property described herein to Buyer prior to close of escrow pending the completion of this sale, and is not intended to establish a Landlord/Tenant relationship. The Landlord/Tenant laws of Arizona shall not apply. 3) OCCUPANCY PERIOD: Upon execution of this agreement, the Seller hereby grants permission to the Buyers to store limited household items in the garage of 123 Main Street, Tempe, AZ beginning on xx/xx/xxxx until Close of Escrow on xx/xx/xxxx. 4) HOLD HARMLESS: The Buyers shall hold the Seller and all Real Estate Brokers and Agents in this transaction harmless from any claims, liability, damages or injury to Buyers, or any other person or to any property, which occurs on the premises or arises out of Buyer’s occupancy and use of property, or under the terms and conditions of this agreement. Seller shall hold harmless all Real Estate Brokers and Agents from any damage or loss occurring as a result of Buyers storage of said property in Seller's garage. All other terms remain the same. POSSESSION: PRE/POST OCCUPANCY/POSSESSION LANGUAGE for line #34 of pc, plus Addendum to go with it. Q: Im the seller. The buyers want to move in to the house few days earlier. COE 12/24. They want to move in today. I talked to the lender and he said the CD is ready and the buyers signed all paperwork What other things I would need to worry about? A: Lines 34-35 of the purchase contract state the following: Broker(s) recommend that the parties seek independent counsel from insurance, legal, tax, and accounting professionals regarding the risks of pre-possession or post-possession of the Premises. Obviously there could be issues if the buyers possess the home and the transaction fails to close. Theoretically, you might have to go through an eviction process in order to take back possession of the home. That being said, it is up to the parties whether or not to allow this and to understand the associated risks. POST CLOSING MATTERS (EXAMPLE FROM TALLMAN PURCHASE): “Seller & buyer agree that the refundable security deposit of $1095 for the lease dated 3/15/09 will be handled and paid by seller to buyer outside of escrow by appropriate cash payment (check) at COE. Seller & buyer agree that escrow company and broker are relieved of any responsibility for said refund.” POST CLOSING MATTERS LANGUAGE FROM RESIDENTIAL INCOME PROPERTY ADDENDUM: The parties shall promptly adjust any item to be prorated that is not determined or determinable at COE as a post closing matter by appropriate cash payment to the other outside of the escrow when the amount due is determined. Seller and Buyer agree that Escrow Company and Broker(s) are relieved of any responsibilities for said adjustments. POST OCCUPANCY, POST POSSESSION, WHAT IS IT? This is called a "post possession" whereby the seller will remain in the home for a certain period of time post closing. There is a form for this on your RSA portal titled "Post Occupancy Agreement" which is used for this purpose. Take a look at the form and let me know if you have any questions, it can be used for up to 29 days, anything longer than that will require the AAR Residential Lease Agreement. Here is language to consider for the security deposit. Give me a call at 602-889-2114 to discuss further. Thx, Jeff. POST OCCUPANCY, DEPOSIT, LANGUAGE FOR SECUTITY DEPOSIT: Seller and Buyer Acknowledge and Agree that title shall withhold $X from seller proceeds as a security deposit for the post occupancy at COE. Security deposit to be immediately released to buyer. Security deposit to be refunded to seller at move out, subject to property being in the same condition as at final walk through (or contract acceptance). OR ‘Funds will be held at title and upon buyers written instructions shall be released to seller upon seller vacating premises.”
OR Seller and Buyer Acknowledge and Agree that seller shall deposit $X with title co at COE as a security deposit for the post occupancy at COE. Security deposit to be immediately released to buyer. Security deposit to be refunded to seller at move out, subject to property being in the same condition as at final walk through (or contract acceptance).
POST OCCUPANCY COMPENSATON AND DEPOSITS….SEE CASE STUDIES…….12) POST POSSESSION COMPENSATION AND DEPOSITS
PRIOR OCCUPANCY: CASITA ONLY: (Attach this to the Prior Occupancy Agreement). This Addendum is an attachment to the Agreement for Buyer to Occupy prior to close of escrow (the agreement) and is not to be considered an addendum to the purchase contract. The items in this addendum take precedence over the agreement where there is a conflict between the two. This agreement is not intended to establish a Landlord/Tenant relationship. The Landlord/Tenant laws of Arizona shall not apply. 1) The buyer will not occupy or take possession of the property prior to COE. 2) Prior to COE the buyer will be allowed to: A) Store his personal effects in the casita, B) Store clothing in the closets in the main house, c) Store food in the refrigerator in the main house. 3) Access to the main house will be granted buy the buyers agent and only during brief intervals of moving in personal effects. 4) The buyers agent will be present while the buyer is moving personal effects into the main house. 5) The buyer will have a key to the casita and return it to the buyers agent when the move-in of personal effects is complete. 6) The seller wil keep the utilities on until COE. 7) During the period of xx/xx/xxxx until COE, the buyer and any of his friends, family or associates will not enter the property unless authorized in writing by the seller. 8) All other terms and conditions in the agreement remain the same. “Broker(s) recommend that the parties seek independent counsel from insurance, legal, tax and accounting professionals regarding the risks of pre-possession or post-possession of the Premises.” (Don’t just write an addendum, in the future please use the prior/post occupancy agreement. Q: I am new to HomeSmart so I wanted to double check. I've done PRE-POSSESSION for clients in the past. Does HomeSmart have any problems with it? Are there specific forms we need to use? Let me know. Thanks! Hi, A: HomeSmart does not suggest pre or post possession. If the buyer and seller wish to enter into this type of agreement there are forms in the agents portal. They are called prior occupancy and post occupancy agreement - please advise you client to seek proper counsel before entering into one of these agreements. JR (purchase contract lines 34-35) “In a pre or post possession situation it's smart to be cautious. This isn't something that you should be convincing the Seller/Buyer they should do, as they really need to seek the advice of outside parties to see if they're comfortable with the situation. The contract spells it out on lines 34 and 35 which should be pointed out to your Seller/Buyer so that they can contact the appropriate parties to get the information they need. These questions on liability etc. are not something that you or I could answer for your clients.” Q: After receiving a low appraisal, the seller wants to push coe. till 2018 for tax reasons. Our buyer needs to move asap. as we are closing on her current home on 12.15.17 The sellers agent suggested a pre possession and offered the attached agreement. Please review and confirm it is correct and ill have our client sign. I have never done a pre possession so I want to confirm I am doing it correctly. Any docs missing? Any verbiage to be added? Please confirm, thank you!! A: I am sorry, but reading through and approving a pre possession agreement is outside of our scope, it is considered legal advice. There are legal and tax consequences along with their issues that can arise from a pre or post possession agreement. The buyer will need to have their legal counsel look over this. Q: Jeff, you have been helping me with this one the last couple days. I am having a hard time getting the seller to sign the lease agreement. He wants separate earnest, security, pet insurance, ect. Buyer is considering signing the pre possession agreement. We understand the buyer needs to get legal advice on this and I have advised her that. Just want to know if this looks correct in your opinion? I have never done a per possession, so I am triple checking. The sellers agent is also pushing to sign the pre possession. Stating its just easier. Thank you. A: “We can't give legal advice regarding this. I will say that as far as a pre-possession agreement goes, it appears to be fairly standard in nature and the terms are similar to what we normally see in a pre-possession agreement. It's up to your client as to whether they agree with and accept the terms of the pre-possession agreement.” Q: Hi. We have a new listing and got an offer today. The offer included post possession, I will attach what they sent with the offer. Is this Ok? Our seller is fine with it. Also do we need a covid addendum? Thanks A: Heather, this seems to be fairly standard in nature and is similar to our HomeSmart post occupancy agreement which I have attached for your review. I am ok with your client signing if they are in agreement with the terms. As a note, this is the maximum amount of time we recommend for a post occupancy agreement, 30 days or longer will require the AAR Residential Lease Agreement. POA, SON HAS POA BUT FATHER HAS DIED...POA IS NO LONGER VALID!....SEE CASE STUDIES…….ALSO SEE LISTING, POWER OF ATTORNEY POA: INVALID SIGNATURE BY POA FOR TRUST: Q: Title said that there needs to be language in the trust that states a POA may sign for the trust, and the language is not there. A: Need 1) Listing contract addendum with the following language: “Seller X is signing as herself and agrees to terms of the listing agreement, originally signed by Y (POA) signing as attorney in fact for X.” 2) Addendum to pc with the following language: “Seller X signing for herself agrees to contract and addenda terms executed by Y as Attorney in Fact for X. X will sign seller closing documents.” POWER OF ATTORNEY: Q: Can a broker review and approve a power of attorney? A: Hi X, NO. We are not qualified to determine the legal validity of POA’s or any type of similar documents which give legal authorization for one party to act on behalf of another. You should get the opinion of an attorney and/or share this with your preferred title co and have them confirm as ultimately they will review and approve POA's and other enforceable legally binding documents. A POWER OF ATTORNEY is a legal document that gives someone you choose the power to act in your place. In case you ever become mentally incapacitated, you'll need what are known as "durable" powers of attorney for medical care and finances. In case you ever become mentally incapacitated, you'll need what are known as "durable" powers of attorney for medical care and finances. A DURABLE POWER OF ATTORNEY simply means that the document stays in effect if you become incapacitated and unable to handle matters on your own. Can you appoint two people power of attorney? Yes. You can appoint more than one person to serve as your POWER OF ATTORNEY representative. However, you should be sure to specify whether they can act individually or whether they must act jointly. http://www.nolo.com/legal-encyclopedia/durable-power-of-attorney-health-finances-29579.html Power of Attorney Scenario: Trudy, Interesting circumstance i wanted to run by you. HomeSmart agent has POA for his elderly father and has signed liting agreement and contracts as POA. He has been told that we can not allow this because of conflict of interest. How can we handle this? Janette RESPONSE: If it is already done and it is his father - let it go - but treat as an owner/agent transaction. Trudy POWER OF ATTORNEY: HOMESMART AGENTS NOT ALLOWED: Power of attorney for HomeSmart agents is not allowed for ANY other parties real estate related activities. Not Even family members. Q: will be listing my daughter’s home this week and she is planning on entering a 30 day treatment program. Can we get a signed power of attorney so I can sign all transaction documents for her? She will sign closing documents at title as she will be out by then. A: Unfortunately it's our policy that our agents can not be a Power of Attorney for their clients- Is there another family perhaps? I will forward this email to our Designated Broker Laurie McDonell to see if it's possible for her to make an exception given the circumstances—-AA: Unfortunately, you cannot be a POA for your client. They will want to have a family member, friend, attorney, etc., sign on their behalf. LM 4/1/19 PRE-FORECLOSURE: SPECIAL LISTING CONDITION IN ARMLS What Is Pre-Foreclosure? Pre-foreclosure refers to the legal situation a property is in during the early stages of being repossessed. Reaching pre-foreclosure status begins when the lender files a default notice on the property, which informs the property owner that the lender will pursue legal action toward foreclosure if the debt isn't paid. The property owner can pay off the outstanding debt at this point, she can reverse the default status by making up the late payments so the home is no longer in pre-foreclosure, or she can sell the property before it goes into foreclosure. PREINSPECTION: SHOULD SELLER CONDIDER A PRE-INSPECTION? However, you can explain to your clients that the inspection can identify key repair and maintenance needs before they become an issue. A Pre-Inspection can minimize face to face meetings or the number of people walking through their home. Spending a little money now to make the inspection process easy will save a lot of grief and cash later. When seller orders an inspection before listing the home, we will carefully look at the plumbing, heating & electrical systems to ensure they are updated and functioning well. We evaluate the condition of the roof & foundation.
PRELIMINARY TITLE REPORT: Also see “cloud on title.” and/or “title commitment” (See Bottom of Page) Section 3c, Title Commitment and Title Insurance: Escrow Company is hereby instructed to obtain and deliver to Buyer and Seller directly, addressed pursuant to 8s and 9c or as otherwise provided, a Commitment for Title Insurance together with complete and legible copies of all documents that will remain as exceptions to Buyer’s policy of Title Insurance (“Title Commitment”), including but not limited to Conditions, Covenants and Restrictions (“CC&Rs”); deed restrictions; and easements. Buyer shall have five (5) days after receipt of the Title Commitment and after receipt of notice of any subsequent exceptions to provide notice to Seller of any items disapproved. Seller shall convey title by warranty deed, subject to existing taxes, assessments, covenants, conditions, restrictions, rights of way, easements and all other matters of record. Buyer shall be provided at Seller’s expense an American Land Title Association (“ALTA”) Homeowner’s Title Insurance Policy or, if not available, a Standard Owner’s Title Insurance Policy, showing title vested in Buyer. Buyer may acquire extended coverage at Buyer’s own additional expense. If applicable, Buyer shall pay the cost of obtaining the ALTA Lender Title Insurance Policy.
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1. Understanding the title and escrow process helps you serve your clients better2. Look for errors in the details (names, loan amounts, sales price, typos, etc).3. Understand what's in the deal & the liability as outlined in Schedule A4. Confirm there's nothing "extraordinary" in Schedule B - Section I (requirements that must be met, things that should happen).5. Careful consideration to Schedule B - Section II which includes exceptions to the policy & what is not covered nor insured. |
Can your agent explain what's in the Preliminary Title Report Schedule A? Schedule B - Section I? Schedule B - Section II? Do they know what to look for in the title report review? |
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Just so we're clear when agents ask, creating an entity in the form of a PLLC is a tax strategy for the agent when they file their taxes and also offers limited liability protections which means that as the owner of a limited liability company, your personal assets will not be placed at risk because of the actions of your company, as long as the company is kept separate from your personal assets. It is not a marketing or advertising tool and should not be included on any advertising including business cards, yard signs, etc. It also should not be part of an agents signature block when they sign documents. |
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POPULATION NO UNAUTHORIZED POSSESSION |
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5 reasons why we believe every agent should read this important document: |