BINSR:  HOA RESPONSIBLE:  Q: We are at the BINSR stage and there are items on my BINSR that the HOA are responsible for that the Seller's agent is telling me should fix but that she cant get a hold of them to document. What should I do?  A: You should go ahead and submit all of your repairs to the seller.  In addition to repair requests for items that the seller will be clearly responsible for, buyer should write:  Due to the fact that Pest Control Services are administered by the HOA, Seller agrees to contact the HOA Immediately to request and schedule pest control/termite treatment for building x, unit x. "Seller to confirm, in writing, that these requests have been submitted to the HOA."   Any and all HOA Response including Scheduling and Confirmation Status for requested Repair services shall be immediately forwarded to the Buyers.  If seller is found responsible for any repairs or damages,  Seller agrees to assume all financial responsibility to either the HOA or Contractor.”  “The sellers response should /could include all repairs seller will make along with language such as the following:  "Seller states that x repairs are administered by the HOA.  Seller agrees to contact the HOA Immediately to request and schedule x repairs for building x, unit x. "Seller to confirm, in writing, that these requests have been submitted to the HOA."   Any and all HOA Response including Scheduling and Confirmation Status for requested Repair services shall be immediately forwarded to the Buyers.  If seller is found responsible for any repairs or damages,  Seller agrees to assume all financial responsibility to either the HOA or Contractor.”  You could also prepare an addendum with this language to make sure the parties are in agreement as to the sellers responsibility if it turns out the HOA is not responsible for a specific repair.

BINSR, IMPORPER SUBMISSION, ASK FOR MONEY:  SEE IMROPER BINSR SUBMISSION               REMEMBER, BINSR IS NOT USED AS ESCROW INSTRUCTIONS, ADDENDUM WILL CONTROL.

BINSR, LICENSE CONTRACTOR REQUIRED…?  SEE CASE STUDIES PLUS SEVERAL LEGAL HOTLINE ARTICLES ATTACHED TO CASE STUDY……...

BINSR, LICENSED CONTRACTOR NOT REQUIRED, AGREE TO REPAIRS, REMIND BUYER THAT LICENSED CONTRACTOR NOT REQUIRED if they wrote “all work to be completed by licensed contractors.” (Page 2 of BINSR) Write: “Courtesy Reminder” 1) Requesting a "licensed contractor" on the BINSR is an offer to Amend the Contract which the seller does not accept., 2) Neither party can unilaterally amend the contract, 3) Repairs will be completed in a workman like manner as agreed in the pc (see sect 6j(2)(b), line #s 278-280 of purchase contract, 4) Licensed Contractor not required for repairs costing less than $1000 (See Handyman exemption, ARS 32-1121), 5) See attached AAR articles Q&A plus case study exerpts,              5) Consider Writing: Seller agrees to repair all items requested by buyer   

 

BINSR:  REPAIRS, SELLER MADE THEIR OWN REPAIRS: Q: I am the listing agent and the situation is that Seller agreed to repair two things included on the BINSR. Buyer did not request licensed individual to perform repairs. Can seller perform the repairs without providing an invoice…?  A: If the repair costs in the aggregate are greater than $1000, a licensed contractor must be used. If less than $1000, the seller can complete the repairs by themselves or have a handyman complete the repairs.  The work must be completed in a workmanlike manner.  If the seller completes the repairs themselves, and there is no receipt, they should still write out a brief explanation stating that they completed the repair(s) themselves and provide the receipt to the buyer.

BINSR: (NEW FORM, ATTACHMENT TO THE BINSR) NOT ENOUGH ROOM TO LIST REPAIRSDO NOT USE AN ADDENDUM AS A CONTINUATION!  But, if  you do, you should state on the first line that “This addendum is being used only as a continuation of the BINSR and does not alter the terms and conditions agreed to in the purchase contract” OR “Addendum 1a is being used for BINSR Repairs, and is not to be considered an Addendum to the AAR Residential Purchase Contract.”     BEST: (On the BINSR write "See Attachment A", Then create a word document and give it a title "Attachment A to the BINSR"  Then write your repairs on the attachment and send along with BINSR.  Be sure to include signature lines for the parties to acknowledge that extra page.  Please call with any questions, Jeff.)

Q: I received a BINSR today where the buyer’s agent ran out of room listing repair items & continued the repair list on an Addendum form. I wanted to check with you about using an Addendum form for this purpose. I was always under the assumption that a word doc or something else was better to use as a continuation of the list of BINSR items versus an actual Addendum form.  A: We don't want to use an Addendum, that is reserved for changing the terms in the purchase contract.   The best was is to simply say "See Attachment A" (or something like that).  Then, create a word document, give it the title "Attachment A", list your repairs on this attachment.  Don't forget to include signature/date lines for both sellers and buyers.   OR    ADDENDUM #  instead of a number write  “ADDENDUM TO BINSR.”  This will re solve whether or not this page is part of the BINSR, which it is, or part of terms and conditions in the the Purchase Contract, which it’s not.

BINSR:  IF AGENT USED ADDENDUM, REPLACE WITH AMENDMENT/SUPPLAMENT/ATTACHMENT (Now lender wants a copy of addendum #2 which has repair language and which we don’t want the lender to see). This document replaces Addendum #X in it’s entirety.  Buyer and Seller agree as follows:   _________    Then, draft another addendum stating that “Addendum #2 was not signed and agreed to by the parties and is considered NULL & VOID, OR, draft an Addendum stating that “Addendum #3 was numbered incorrectly and is actually Addendum #2.”

BINSR:   ONE BITE AT THE APPLE (single notice) Section 6j of the pc reads as follows:

6i. 260.    Inspection Period Notice: Prior to expiration of the Inspection Period, Buyer shall deliver to Seller a signed notice of any items

     261.    disapproved. AAR’s Buyer’s Inspection Notice and Seller’s Response form is available for this purpose. Buyer shall conduct all

     262.    desired inspections and investigations prior to delivering such notice to Seller and all Inspection Period items disapproved shall be

     263.    provided in a single notice.

 

BINSR, PRE-PAY VENDOR, SELLER AGREES TO PRE-PAY VENDOR:  Seller agrees to pre-pay xyz roofing company (or vendor of buyers choice) $X at successful close of escrorw (see holdback account). 

BINSR: PRE-PAY VENDOR: SELLER AGREES TO PAY VENDOR AT COE:  “In lieu of repairs as agreed in the BINSR, seller agrees to pay $XXX at COE to contractor XYZ Co for repairs completed.”  OR:  Q: I represent a seller. We have received a BINSR with some repair requests from buyer. What has been decided is that seller will pay a contractor out of sale proceeds at COE and title will cut a check directly to contractor for work to be completed after COE at the direction of buyer.  What is the proper way to respond to the BINSR since seller will not directly be making the repairs before COE?  A: Hi Ashley, you'd just state that specifically as the Sellers Response on page 2 of the BINSR.  Something like "The parties agree that the Seller will not make any of the requested repairs.  Instead, the Seller will pay $2000 to John's Handyman Service at successful COE."  Then you would want the contractor to submit an invoice to title that will be paid by the Seller at COE.  Q: Will we need any type of an addendum to support the BINSR response?  A: If it were a concession or price reduction the answer would be yes to the Addendum, but in this case I think you should leave out the Addendum.  My concern would be the lender having issues with what the language would have to be in this situation.  I suppose if you chat with the loan officer to see if they'll have problems with something like this, and they say no, you'd be fine to have the Addendum drawn up.  I'd just verify with them first.

BINSR, PAY VENDOR AT CLOSING: Seller agrees to pay XYZ Roofing/Painting/Whatever Company $X at closing.  Figures shall be shown on settlement statement and invoice paid directly from title company.  PROOF OF PAYMENT:  IE, ROOF REPAIRS:  “Seller will provide evidence/documentation of payment in full to XYZ ___ company no later than x days prior to COE.”

BINSR, RESPONSE, FROM SELLER:  “Sellers response to the Residential Buyers Inspection Notice and Seller Response Form (BINSR) submitted by Buyer is documented and acknowledged on Addendum #1.

 

BINSR, RESPONSE, SELLER NOT RESPONDING:  Q:  What should buyer do if seller not responding to BINSR?  A: The buyer must act if the seller does not agree to all repair items. If the seller does not respond by the end of their 5th day, their response is deemed to be no.  The buyer then has the last 5 days to make a decision;  cancel, renegotiate or accept the sellers response.

BINSR, RECEIPTS:  SEE RECEIPTS:

 

BINSR:  Q:  Painting after roof repairs...Seller agreed to hire the buyers roofer to make repairs on the roof and rotted facia board based on the buyers roofers bid.  Work has been completed by said roofer and paid for.  Roofer replaced facia but did not paint it.  Painting it was not in the request nor worded in the BINSR as requested.  Buyers agent said that the house is not in substantially the same condition because it is raw wood.  Seller says he agreed to the roof repairs and there was no request for the facia to be painted.  Buyers agent said she is going to call it out on the final walk.  Sellers have already moved out.  Scheduled to close this Thursday.  Question- is she right and this constitutes not being in the same condition and the seller MUST paint it?  If seller refuses to paint it, what is buyers recourse?

A: Hi Toni, this scenario is a bit ambiguous, but I would say that the Buyer has a better argument than the Seller has.  What the other agent said is correct, when the house went under contract the fascia boards were painted so after the repair, they should be brought back to the same condition.  I can understand the Sellers thinking that it wasn't specifically pointed out in the request, but it can also be argued that painting to match is inherent to the repair.  If it's called out on the final walk through, and the Seller chooses not to fix it, the Buyer could possibly cancel the contract, or they could close the escrow and try to pursue the Seller after the fact.  Who knows what route they'll go, but those are basically their options.  It's not 100% black and white, but I think the Buyer would ultimately prevail if push came to shove.

BINSR, REPARIS:  Q: If repairs were agreed to in the pc, should I ask for them again in the BINSR?  A: NO!  That could be perceived as bringing those repair items back “into play”, ie, giving the seller the option to say yes or no to the repairs that the seller has already agreed to!  So no, don’t ask for a repair in the BINSR if it has been agreed to in the pc.

BINSR, SIGNATURE REQUIRED WHEN BUYER WAIVES INSPECTION?  Q: In the purchase contract the buyer waived their inspection period. That’s why I didn’t do a BINSR. Do you want me to have them sign one?  A: Yes, you should still submit the BINSR with the box checked premises accepted and signed on page one and signed at the top of page two notice Inspection Waived.

BINSR:  WAIVE INSPECTION IN PC:  Be careful when you negotiate your contract.  Buyer should not waive their inspection.  Even though the contract says as-is, don't include language such as “Buyer agrees to refrain from making any repair or replacement requests.”  While you could still cancel on the BINSR in this scenario, you could not request repairs, have the seller say no, you will lose your earnest money.”  (You will lose your right/ability to cancel if you do ASK and they say NO.

BINSR, PLEASE UPLOAD ADDENDUM:  BROKER NOTE:  Please upload the addendum in regards to seller concessions as per the BINSR.

BITCOIN, NAR ARTICLE:     http://realtormag.realtor.org/for-brokers/network/article/2016/09/bitcoin-s-future-in-real-estate

BITCOINS, 5 THINGS EVERY REAL ESTATE SHOULD KNOW ABOUT BITCOINS:     https://national.wfgnationaltitle.com/2017/12/13/5-things-every-real-estate-agent-should-know-about-bitcoin/

BLIMP:  OUR AGENT IS FAA LICENSED DRONE PILOT (DONBARAR), CAN HE FLY THE HOMIE BLIMP?  PROB OK, SEND EMAIL TO DB.

BLUEPRINTS:  Q: My clients are purchasing a home built in ‘72 and have requested blueprints.   I checked the county assessor’s office and only found the attached building sketch.  I think they are wanting to do some upgrades in the future and also are looking for the water shut-off valve and the sewer clean outs.  The listing agent inquired with the city of Glendale and they didn’t have anything useful. Can you provide any direction:  A: I was going to suggest the city planning/zoning/permitting dept to see if they kept a copy of the blueprints on file, although I'm not aware that is a common practice. But, you said you already tried that with no success. The only other thing I can think of at this point is to google the name of the builder and see if you can track anything down that way. Or, it's a longshot, looking through the chain of title/ownership on the assessors website and then try to locate the owner of the property at that point in time.  Take care, Jeff.

BONUS: LANGUAGE, USE ER OR LISTING CONTRACT ADDENDUM:  “Seller agrees to pay buyers agent a $X bonus at close of escrow if home (is under contract by or closes escrow by x date).  This bonus offer will also be displayed in the private remarks section of the MLS.”

BPO’s, CAN I DO A BPO FOR MY CLIENT TO REMOVE PMI INSURANCE…? Q; I have a past client looking for a BPO to remove PMI from her loan. Can an agent (myself)  do that or is that something that has to come from a broker?  A: Hi X, Typically official BPO's are completed utilizing the clients forms, documents and paperwork.  They have a very specific process for that. You can certainly prepare a CMA and share it with your past client, that would contain information on active, pending and closed activity in that subdivision for whatever period of time you choose. Whether or not the lender will accept that is up to them, but certainly worth a try.  I would also check with the lender to see if they have any specific requirements for that.  Take care, Jeff.

BPO’s:  Broker Price Opinion, HOW DO I GET INVOLVED?  Q: I am interested in doing BPOs. I was reading the BPO tutorial and will be registering with companies today. The tutorial also said to inform the broker and see if you had any info or tips for getting started. A: Typically BPO's are conducted for distressed properties, ie, bank owned properties, foreclosures, HUD, etc.  I would recommend that you  network with banks and financial institutions that are looking for brokers/agents to conduct BPO's.  There might even be some trade groups that you could network with as well.  You will be dealing with their loss mitigation dept.  Good luck with it, Jeff.

BPO, PROCESS: Updated 2/15/2021-- Q: What is the process, what are commission splits and how I would have them send payment to you etc if I do?  A: Hi X, They would make payment to HomeSmart and submit to the Corporate office, attention commission department. You would also complete and submit the HomeSmart form titled "BPO Check Processing Request Form" which is located on RSA in the downloads link. The form must be filled out completely and accurately so we can process in a timely manner.   Fees are as follows (From page 4 of the 2021 ICA). Jeff.

 

 

 

 

BRANDING, ALSO SEE TEAM BRANDING; BRANDING:  Agents are allowed to develop their own logo as a means to “brand” themselves.  This can be in addition to their team, or for an individual agent.  Email to broker@hsmove.com for broker approval. 

BRANDING, Q: I am looking into having a Logo designed for my real estate biz.  Does HomeSmart have any guidelines  or requirements I should know about?  A: You are allowed to have your own logo or "brand" so to speak, but it can't give the impression of being a separate brokerage or an independent real estate company or part of a team.  That being said, send your mock up's or whatever you would like us to consider to this email address for broker review and approval.  Some agents include the HomeSmart logo in the design, but that is not required.  Obviously the HS logo and Fair Housing logo are required to be displayed prominently in all of your advertising materials regardless.  Hope this helps, please feel free to reach out with any questions.

BROKER DISTRIBUTION:  Syndication:  The option to send listings to third parties has been renamed broker distribution in Flexmls.  See ARMLS Blog for more info...

SYNDICATION OPTIONS (click here)

BROKER TOUR:  Q: Had an agent just call and say that he just landed a big listing and the owner mentioned that he'd like a Broker tour to be set up.  I'm the worst person to ask about these things, but I figured you guys would know where to point him.  Anyone comfortable talking about tours?  A: Which branch is he with?  I would send him to his branch manager, I know they each have their own tours and schedules, plus I think one of the smart partners typically arranges the tour(s) on behalf of the branch...Also, he can contact his local board (go to their website) to find the RMS tours in his area.

BUILDER COMPENSATION:  Case Study:  Builder offered one commission in MLS - broker agreement offers a different amount.  Which amount prevails?  Did agent sign/acknowledge another agreement outside of MLS commission offered?  That's what I was thinking as well.  If they signed the registration "agreeing" to the lower compensation, it'll be tough to win an argument for the higher amount. 

BUILDER NON-PERFORMANCE:  Q; What specific document does the buyer need to use, explaining she's canceling the contract due to seller nonperformance?  A: Hi Myrtle, this is really something that the Buyer needs to seek legal counsel with.  I understand their desire to get out of the contract based on all the stories they've been told by the Builder, but these types of new build contracts are heavily weighted in the Builders favor.  If the Buyer is wanting to dispute that, they need legal counsel, not you or us trying to craft something to get them out with their EM back.

Burglaries:  Seller and Brokers Must Disclose Burglaries in Neighborhood Homes  AZ Rep Article 1/19/19 Chris Combs  https://www.combslawgroup.com/seller-and-brokers-must-disclose-burglaries-in-neighborhood-homes/

BUSINESS OPPORTUNITIES:  Q: My real estate license is current and active, and I am close to purchasing a business that is listed for sale on BizBuySell.  Does HS need to be involved in that process?                     A: HomeSmart does not allow our agents to list or sell business opportunities as we do not carry errors and omissions insurance for that. However, as a private investor you are free to pursue whatever business opportunities interest you.  Just remember that HomeSmart will not be listed in any of the documents, however you should still disclose in the contract that you hold an active AZ Real Estate License.

 BUSINESS CARD APPROVAL:  NEED: You will need to use the fair housing logo. The word "REALTOR" must be in all caps per NAR rules.  You do not need to have your license # on the card.  The language "Each brokerage independently owned and operated"  needs to be added.  You should also have your email address on the card.  If you have a website, that should be on the card as well.  Please show us what's on the back of the card if anything.

BUYER: ADD BUYER TO PURCHASE CONTRACT:  (ALSO SEE SIGNATURES FOR LANGUAGE): Q: I received a broker note stating “please have the new buyer sign an addendum and all contract documents.  What does that mean?  A: First of all, The added buyer needs to sign the addendum whereby they are added to the contract.  Second, you should have the new buyer go back and sign and initial all contract documents and addendums as well.  You don't need to upload those to the file, but you need to do that per the broker note.  We don’t want the  added buyer to come back and say they were unaware of the terms and conditions and the only way to assure that is to have them sign and initial all pages as if they were an original signer on each and every document. 

BUYER ADVISORY: ...DOWNLOAN THE BUYR ADVISORY...BUYER ADVISORY IN SPANISHLINK TO EMAIL CURRENT VERSION...

BUYER ADVISORY EMAIL LINK: Realtors, copy this link and paste it into an email to your buyer client:       https://www.aaronline.com/manage-risk/buyer-advisory-3/

BUYER ADVISORY:  Topics to research before purchasing real estate (ADRE)     http://www.azre.gov/PublicInfo/RealEstateResearchTopics.aspx

BUYER ADVISORY, OK TO SEND LINK TO CLIENT VIA EMAIL, SATISIFIES REQUIREMENT FOR HS TRANSACTION FILE:  LANGUAGE:  “Please reply with an email stating that the attached document was received and then please take the necessary time to review.  It is important to understand the various aspects of the home buying process to ensure that you are an informed consumer.  Thank you.

BUYER BROKER AGREEMENT, WHEN SUBMIT TO FILE…? Q: What do I do with the buyer broker and READE forms that I have just had signed?  Clients do not yet have property in mind and have just started looking but I recall in a meeting where Laurie said even absent a transaction we have to get the signed docs over in a timely manner?  A: Good morning X, Please hold onto those and submit to the file once you go under contract and create a sale transaction file in RSA. We do require that agents submit the 1) ER or EA Listing Agreement, 2) Residential Purchase Contract, and 3)  Residential Lease Agreement within 5 days of execution, however we do not yet have a process or require agents to submit only the signed Buyer Broker Agreement without an accepted contract. Please let me know if you have any further questions regarding this...Jeff  (Per Trudy 5/29/2020, this is contrary to what policy and procedures manual says...Trudy said she has discussed this with management)

BUYER BROKER AGREEMENT TIED TO ER LISTING AGREEMENT (COMMISSION ADJUSTMENT):  (Write in additional terms, line #39 of BBEEA)

“In conjunction with the Exclusive Listing Agreement between (agent) and (clients) for the property located at 123 Main Street, Phx, AZ:  Listing Agent agrees to reduce the Listings Agents commission from x% to y% which will be credited and applied upon the successful close of escrow of buyers replacement property which is scheduled to close on xx/xx/xxxx AND by the buyers acceptance and execution of this Buyer Broker Exclusive Employment agreement.”

BUYER BROKER AGREEMENT:  PROTECTION LANGUAGE:  YOU HAVE ONE SIGNED WITH YOUR BUYER. YOU FIND THE BUYER A HOME AND YOU ARE PAID BY THE LISTING BROKER--WONDERFUL!  BUT WAIT--THERE'S MORE!  ANOTHER BROKER CLAIMS TO BE THE PROCURING-CAUSE OF THESE BUYERS, HE HAS SHOWN THEM THE SAME HOME PRIOR TO THIS….HE or SHE FILES WITH AAR AND BEATS YOU UP AND YOU GIVE UP YOUR COMMISSION PLUS THE $500 FILING FEE. MAYBE YOUR BBA SHOULD HAVE BEEN AMENDED SOMEWHAT TO HANDLE THIS SITUATION! LIKE THIS:  (Write in additional terms, line #39 of BBEEA)  “If Buyers have viewed any property with another brokerage firm that they subsequently purchase through xxx and HomeSmart that forms into a “procuring cause” complaint at the Board of Realtors, all costs of this complaint and any awards of commissions that are lost to another broker shall be paid by the Buyers within 10 days of demand from xxx, Real Estate Agent with HomeSmart.”

BUYER BROKER AGREEMENT: PROTECTION LANGUAGE: (Write in additional terms, line #39 of BBEEA)  X% of the agents compensation shall be applied to buyers closing costs.  Buyer certifies that they do not have any business relationship or buyer broker agreement with another agent or real estate brokerage.  Buyer acknowledges that this buyer broker agreement with buyer’s agent is exclusive.  Buyer agrees not to enter into any buyer broker agreement or agency relationship with another brokerage firm during the term of this agreement.  Buyer represents to buyers agent that buyer is not presently a party to an existing buyer broker agreement with another brokerage firm.  In the event that buyer did sign a buyer broker agreement with another brokerage firm, buyer warrants that they have received written notification that they have been released from said buyer broker agreement.

BUYER BROKER AGREEMENET, NEW BUILD PROTECTION (LANGUAGE): Buyer understands that agent must be present and register on first visit to new construction home communities.  If buyer visits new build community without agent on first visit, compensation will be due to buyers agent directly from buyer if builder does not pay compensation.  (Representation does not necessarily mean Compensation).

BUYER BROKER AGREEMENT:  RELEASE:  (From Agent)  Buyer is hereby released from the Buyer Broker Agreement dated xx/xx/xxxx, EXCEPT for those homes that (AGENT NAME) has already shown to buyer, or has written/submitted offers.  Q: My wife and I have been contacted by an individual that wishes to use our services because of a recommendation from a previous client. This individual is under a buyer/broker contract with the Dan Rice Team out of the Keller Williams Realty in Tempe, AZ. She is extremely unhappy with their service and has not even seen a home yet. She just receives a MLS mailer that comes every few days.   A: She needs to get a release from them in writing, otherwise she will be obligated to pay them as per the terms of their buyer broker agreement if she closes on a home with another realtor.  It sounds like he "might" allow you to work with the client, but he wants you to contact him prior, and I'm sure that means negotiating some type of referral agreement whereby he will be compensated.  You can certainly reach out to him to follow up, but until you have something in writing otherwise, the client will be obligated to them.

BUYER BROKER AGREEMENT, RELEASE:  Q:  My buyer wants to cancel the BBA.  A: Hey, Brad. Thanks for sharing, but as you can see on Lines 67-69, the BBA can only be modified (or terminated) by both parties. In other words, like the listing agreement which is also an employment contract, the buyer cannot unilaterally terminate the agreement. I'm sure your broker can explain this to you further. That being said, if our agent wants us to terminate the BBA, we'd be happy to sign a mutual termination agreement. Thank you!  (Buyer needs to get with our agent to discuss the BBA, not through the “new” agent…)

BUYER BROKER AGREEMENT, DEMAND LETTER TO ENFORCE:  3/2/2021:  You should approach your buyer client as you have a binding contract with them.  You can also make “soft” contact with their new agent and let them know, ie, they have a fiduciary duty to their client too….just be sure you don’t interfere in their transaction.  LANGUAGE:  This is an urgent matter and we would appreciate you connecting with us as soon as possible.  We have a legally binding, enforceable, bilateral contract with you to represent you on your home purchase. This agreement can only be cancelled if all parties are in agreement to terminate in writing.  We expect to be compensated for our time and work and we are committed to work something out with you.  

BUYER CONTINGENCY ADDENDUM: MULTIPLE BCA’s in the same transaction LANGUAGE:  Please see the two attached buyer contingency addendums.  This offer is subject to both of the identified contingent properties being under contract and the close of escrow as outlined in the respective buyer contingency addendums.  Close of escrow may occur sooner with written, mutual agreement between the parties. 

BUYER CONTINGENCY ADDENDUM, AAR (updated 10/1/18)      https://www.aaronline.com/wp-content/uploads/2018/09/13/Buyer_Contingency_Addendum_October_2018-Final-REDLINED-VERSION.pdf

Q: Contingent buyer offers without an offer on current home.  What kind of closing date would you ask for in a situation like this?  A: There is no right or wrong, but line 10 of the Buyer Contingency Addendum is often 30-45 days from contract acceptance, and line 21 (which is the one where you're estimating the COE date for the Buyers current house) is generally 30-45 days after that.  That means that the COE date for the contract on the subject property is usually estimated at 60-90 days. (Generally, COE on line #24 of pc matches line #21 of the BCA).  Obviously that can be changed with an addendum if the circumstances change as these dates are speculative.  (Also use CCBS Status for Section One, UCB status for Section Two)

BCA: SECTION ONE USE NOTICE FORM FOR ALL NOTICES, OR DRAFT AN ADDENDUM IF REQUIRED…(CCBS STATUS)

*****UH-OH*****BUYER CONTINGENCY ADDENDUM:  NOTE:  If Buyer is Contingent, make sure that the “Accepted Offer” for their Contingent Property is further Contingent Upon Seller “Accepting/Approving” of Buyers Accepted Offer.  (See line #’s 12-14, and 18-19 in BCA).  Also, if our buyer, request seller put to UCB.  If our listing, recommend seller put to CCBS (seller wishes to make explicit that contract is contingent) 

ALSO, LINE #10 IS DROP DEAD DATE, LINE #21 IS COE DATE (OR CANCELS, SEE Line #22-23), LINE #33-39 IS KICK-OUT CLAUSE, Line #12-14 SELLER APPROVAL REQUIRED, LINE #18-19 SELLER MAY DISAPPROVE OF OFFER AND CANCEL.

CONTINGENT BUYERS ACCEPTANCE FOR HIS/HER SALE MUST INCLUDE THIS COUNTEROFFER LANGUAGE (BECAUSE SELLER OF HER/HIS REPLACEMENT HOME HAS TO APPROVE CONTINGENT BUYERS CONTRCT!) (See lines 18-19 of BCA)     

“This offer is subject to approval* by the Seller of XXX Main Street, Phx, Arizona within three (3) days of receipt of these accepted offer documents (see line #18-19 of BCA).  Offer documents to be delivered to seller for approval within three (3) days (or _____ days) of contract acceptance (see line #12-14 of BCA).  If seller does not approve, this contract shall be deemed cancelled and the Earnest Money shall be released to Buyer.  (Note: Approval required due to contingency addendum attached to an existing accepted contingent offer this seller has for that replacement property.)  (*Or “contingent upon approval..)

NOTE: Under what circumstances can seller cancel the contract according to lines 18-19 of the addendum? Seller may unilaterally cancel the contract within the three days for whatever reason the seller feels compelled to do so.

BUYER CONTINGENCY ADDENDUM, BUYER RECEIVED OFFER,  WHAT NEXT?  SECTION ONEBuyer must submit accepted contract within 3 days or X days of execution (line # 12-14) or by date on line #10, whichever occurs first.  Seller may, within 3 days of receipt of accepted offer documents (line # 18-19) cancel this contract and all Earnest Money shall be returned to Buyer.  Unless Seller cancels within 3 days of receipt of buyers offer documents, this contract shall become contingent on the closing of the PENDING SALE by xx/xx/xxxx (line #21).  (Line #21 on the BCA “generally” matches up with line #24 on the pc).

“NOTIFICATION AND ACKNOWLEDGEMENT OF BUYER SUBMITTING ACCEPTED OFFER TO SELLER” “Buyer hereby delivers notice to seller that buyer has accepted an offer for Buyers Contingent property located at XXX Main Street, Tempe.  Offer is Attached.  Seller has 3 days (or X days) from receipt of this notice to accept or reject Buyers accepted offer documents (See line #’s 18-19 of BCA).  If Seller does not cancel within 3 days, this contract shall become contingent on the closing of the pending sale of Buyers property by xx/xx/xxxx (See Line #21 of BCA).

“NOTIFICATION AND ACKNOWLEDGEMENT OF SELLERS APPROVAL OF  BUYERS ACCEPTED OFFER”   “Seller hereby delivers notice to Buyer that Seller accepts and approves the Buyers Purchase Offer for Buyers Contingent property located at XXX Main Street, Tempe, Arizona. This purchase agreement is now contingent on the closing of the pending sale of Buyers property by x date.  (See Line #21 of BCA).

“NOTIFICATION AND ACKNOWLEDGEMENT OF CANCELLATION, SELLER REJECTS BUYERS ACCEPTED OFFER:  “Seller hereby delivers notice to Buyer that Offer to Purchase Buyers Contingent Property is deemed unacceptable and Seller elects to immediately cancel this Purchase Contract as allowed in the Buyer Contingency Addendum (See line #’s 18-19 of BCA).  Title Company is instructed to issue written notice of escrow cancellation and immediately release Earnest Money to Buyer.”  (Unless EM was non-refundable). 

“NOTIFICATION AND ACKNOWLEDGEMENT OF CANCELLATION, NO ACCEPTED OFFER ON BUYERS CONTINGENT PROPERTY:”  USE NOTICE FORM: “Buyer hereby delivers notice to Seller that no offer for the sale of the Buyers Contingent Property was accepted by the Required Date of xx/xx/xxxx (See line #10 of the BCA).  As per line # 11 of the BCA, this Contract is now cancelled.  Title Company is hereby instructed to issue written notice of escrow cancellation and immediately release Earnest Money to Buyer.”  (Unless EM was non-refundable).  OR                                                                                                                                                                                                                         “Seller hereby delivers notice to Buyer that no accepted offer for the purchase of the Buyers Contingent property was delivered to Seller by the Required date of xx/xx/xxxx (See line #10 of the BCA).  As per line # 11 of the BCA, this Contract is now cancelled.  Title Company is instructed to issue written notice of escrow cancellation and immediately release Earnest Money to Buyer.”  (Unless EM was non-refundable).