Cheers for Clean Closings!
This year the inventory of Active Residential listings in the ARMLS system has decreased dramatically. This is fantastic!!
The majority of the reduction is the result of Short Sale and REO properties closing. Along with the Short Sale and REO properties come some special circumstances which agents must be aware of, must research, and understand. Knowing what the documents contain and how they affect the transaction is the Agents’ responsibility and job.
At the point where the Financial Institution becomes involved (either listing side or sale side) there will be several documents (addenda, counters, notices, etc.) sent to the Listing and Buyers agents. Don’t be intimidated by these documents. It is your job as a knowledgeable, professional agent to know what the documents say and the ramifications if they aren’t followed explicitly! These documents make reference to almost every major item in the AAR Residential Purchase Contract. In so doing they usually modify the terms of the AAR contract and become the overriding terms and conditions for the transaction. Some of the more common changes (this is not an all inclusive list.) are:
1. Payment of Closing Costs: Don’t let your Buyers get to the closing and find out that they are paying several of the Sellers’ closing costs.
2. Close of Escrow date change (and per diem charge if not extended).
3. Automatic cancellation of the contract and forfeiture of the earnest money if the transaction doesn’t close on time and no extension has been executed (IN WRITING!).
4. Inspection period and notifications in conjunction with the inspection.
As I’ve said, these are a few of the items in the addenda, etc. Every Financial Institution has a different form so don’t assume that the terms are the same, even if the paragraph headings look or sound the same. It is your responsibility to read and understand what is in the addendums, etc for your transactions.
The Brokers here at PRRG and AzDRE make a very concerted effort to be knowledgeable and aware of most of the pitfalls in the addendums, notices, etc; however, we certainly cannot know each and every term or condition in all addenda. So please consult with us on any item you do NOT understand in all of these documents—BEFORE THEY ARE ASSIGNED!— and we’ll try to sort it out together. As is always the case, CYA, and keep those clean closings coming!
