A reference for explaining paperwork to your clients! If you're not sure about something, look it up here! It will be added to as explanations are needed.
- Seller Compliance Checklist: This is for you to use to help remember the steps and what is needed paperwork wise.
- Showing Status and Lockbox Input: This is for agent use only. Basic info about your listing. PLEASE mark if there are tenants or not, if you want a sign (and special placement if necessary), and any other info you can. Admins need contact info on this sheet and it needs to be typed. Handwritten is not accepted. We need EVERYONE'S contact info on here. Spouses, tenants, business partners. It's so much easier to give the admins this info up front so they can problem solve for you. When an offer gets accepted, there are steps you don't need to be involved with that can be handled if we have contact info. Also stating any tricky doors, special instructions about lights, who confirms showings, etc makes life easier. Utility information should be put on there as well (specific companies! Not just "public").
- Consumer Notice (CN): This is a huge fine if not signed. PA state law. You learned about it in classes and it's MANDATORY before any real estate communication can begin. Legally, at first meeting they need to sign it and you need to give them a copy of it. It details the different types of agency that you can have.
- Standard Exclusive Listing Contract (List Contract) (WPML Version): This is how you get paid as a listing agent. You need this signed to legally be able to market the property for sale. It's illegal to advertise anywhere without this signed, including on Facebook or email. Make sure the address/Parcel ID is correct, the commission is correct on line 74. We have pre-filled in "7% or $4500, whichever is greater, plus $750 admin fee". While there is some wiggle room on commission above $250k to go to 5% (or 2.5% each side, plus the admin fee, minimum commission for the team is $4000 and a $350 admin fee, so don't go below that. If the property is listed below $66k, you should be writing in "$4500 plus $500 admin fee" because 3% is lower than that. If your client doesn't want to pay that, then don't work with them. You are working hard, and deserve a good commission. Don't be greedy, but don't be a pushover. This is a business and we need to make a profit of some sort. Let the client know that admin fees are collected once every calendar year. If they have a few transactions, they have to close within the same CALENDAR year. So one closing in December and another closing in January is not exempt from this rule.
- WPML Input Statement (RES): this is for properties that are considered residential use (1 to 4 units), but usually used for a single family form. PLEASE calculate the taxes by hand so they are accurate. Room sizes, the neighborhood/area, and remarks are also important. Feel free to just email the remarks later, since it's not a large box. Agent remarks are what agents on the MLS see only. That's for special info, income info, etc. Admins will edit out from the regular remarks to keep it legal with the MLS. Fill it out as best you can! Most of the time, admins aren't going to the property and cannot fill in the blanks. Do you job and fill it out.
- WPML Input Statement (MUL): This is for multi-unit properties/ 1 to 4 units is considered residential, so also fill out a RES input form, 5 and up is considered commercial so fill out a COM input form too. Make sure to put in the unit breakdowns (IE how many bedrooms and bathrooms in each unit) and rents because you’ll get that asked a ton. Taxes, average expenses, vacancy, and garage/laundry income are also important.
- KW Policies and Disclosures (KW): This is an Affiliated Business Disclosure that is team specific. Lets the client know the team and our offices has business relationships with people like Movement Mortgage, TA Title, The Full House, AJM Mortgage, Elite Title, and HSA. It's a $300k fine if it's not signed. Also states our admin fee again, and the authorization to negotiate.
- Seller's Estimated Costs (SEC): This should be signed when you list the property at the list price so they know what to expect. This should be filled out again for each offer that you get so they know what they are walking away with. This must be signed before closing with the purchase price according to RESPA (aka a big fine if not signed).
- Residential Lead Based Paint Hazards Disclosure (LBP): This is a federal law for all houses built before 1978. There's a lot of old houses in PGH so pretty much everyone needs to sign one. Based on where the sellers initial (either line 12 and 18 or 13 and 19), they are disclosing what they know about lead based paint in the house. You sign the bottom of this, and it's put on the MLS for the buyer to also sign. Most people don't know about any lead based paint, but it's a health hazard so it has to be disclosed if they know about it. The buyers just initial on line 29 and 30 t o say that they got the "Protect your Family From Lead in Your Home" pamphlet, the reviewed the seller's disclosure, and received records if there is Lead Based Paint. They also initial line 33 OR 35 to say they accept the opportunity to inspect for LBP or they waive the opportunity to inspect for LBP. Listing and buyers agents both sign it too.
- Mold Disclosure and Waiver (Mold): This is just stating that you recommend they get a mold inspection, especially if they think mold is present in the house. They are also signing that you cannot be sued over mold in the house because you told them to get a mold inspection. This does not mean there is mold in the house. You are not qualified to tell someone if there is, and you are recommending they get a professional to identify if there is any. DO NOT TRY TO IDENTIFY MOLD since it is a major health hazard. Don't miss the initial in the middle of the page, since sometimes it's hard to see.
- HSA Home Warranty Brochure (HSA): If you don't offer a home warranty, your Errors and Omissions insurance will not protect you. This is proving you offered. It's totally the client's choice if they want to offer one. We like HSA because they do a good job, but they can pick a different company if they want. They can also change their mind in either direction if they want. They are not locked into it.They pay at closing, but get some coverage during the listing period. There's two boxes at the bottom: accept or decline. They must sign one of them. Please also select what coverage they want. We just do the cheapest one if it's not filled out. If you want to include coverage for a pool or hot tub, select it. I will not assume they want coverage for it, even if I know there is one on the property.
- Seller's Disclosure (SD): DO NOT FILL THIS OUT. Don't even put their name or the property. Just hand it to them and say "please get this back to me as soon as possible" in order to prevent a lawsuit if things go bad. This must be signed (and initialed on the top of each page) before closing. Just get it ASAP because people will be asking for it. It's just to state what they know about the property. Again, DO NOT FILL IT OUT. Buyers will read through and sign (and initial on the top of each page) when putting an offer in on a house.
- Green Addendum: Another thing for the seller to fill out. Pittsburgh doesn't have a lot of green homes, so it's useful if they have some Green/eco-friendly features. They can fill out what they know, but it's not mandatory so don't make them fill it out.
- Oil, Gas, Mineral Rights: The one you should be using is a PAR document and the code is OGMD. There's at least 3 versions of similar documents, so please be sure to use the correct code. It's just to disclose any rights to the oil, gas, and mineral rights the property might have on it. The other version just have a place for the seller to sign, but the correct one has the seller and buyer initial spots. This will go on the MLS.
- Price Escalation Addendum to Agreement of Sale (PEA): This is used when there are multiple offers already submitted. Some agents won't allow them, so be sure to ask. There is a price cap that states the max price your clients will go, but it states your client will pay $X more than the next highest offer. Be sure you have a price cap on there if submitting!!!
- Agreement of Sale (AOS): This is the MOST IMPORTANT DOCUMENT. The code is the ASR if you're looking it up in the PAR documents. Sometimes called the PSA (Purchase Sale Agreement). We call it the AOS. Make sure you know the ins and outs of this contract. You must have a Time is of the Essence date (line 52). You must pick financing (starts on line 92), and if they are getting a loan, you need a date in line 114 (usually a week before settlement). On the inspection contingencies, client has to initial on the left to elect or on the right to waive. They must initial on every one. Line 696, Change that box to 15 days. Line 719, check off that box to ensure the seller cannot sue for anything more than the hand money.