In the last 10 years it has become common for real estate agents to use a Transaction Coordinator (TC).  This is someone that may or may not have a real estate license that is paid a fee to make sure that all the documents get out to all principles and are fully executed.  The fee for this can be anywhere from $300 to $500.00 and some real estate agents actually pass this cost to their Clients.

It makes some sense for volume driven real estate agents to use a transaction coordinator, but the majority of agents have plenty of time to manage the transaction and by doing so they are much more on top of what has been done, and what needs to be done.  A few paper challenged agents should clearly use a transaction coordinator.

From a real estate brokerage perspective the management wants to make sure that a certain standard of care is used across all transactions.  Many brokerages hire agents that are not experienced or don’t like to do paperwork.  In order to protect their company and E&O insurance many will require the associate agent to use the transaction coordinator.

In my practicle experiance of managing for many years and doing file reviews, too many times the transaction coordinators are asked to prepare contracts and addendums without the experiance or full knowledge of the complete transaction.  This is very dangerous and should be of concern for the Client that is paying the agent a great deal of money.

The more involved your real estate agent is in your transaction the better.  They should be preparing and reviewing all contracts, addendums, buyer request forms, and contingency releases.  With the advent of software to write the contracts, digital signatures, and cloud storage solutions there is no reason not to.

Photo courtesy of Rian Castillo via Flickr

Confidentiality is key to your succes.

One of the many advantages of being a small closely held real estate brokerage is my ability to deal with sensitive Clients and confidential real estate dealings. If the Client is a celebrity or public figure having the ability to sign confidentiality agreements and deal in a confidential manner is crucial.

Because I work without staff or assistance in my personal real estate business I know that someones identity can be assured. In fact I am quite prepared to sign a confidentially agreement before taking on the client and their real estate needs.  I am the only one that reviews the file and I don’t have staff or transaction coordinators working on any files.

In California transfer of real estate is recorded by the County which the sale is in and is available to the public.  While many multiple listing systems do not release sold information to the general public there are plenty of sources to find out purchase prices and the names of the purchasers.  One can visit the County Recorders office, pay for a service like Data-Quick, or subscribe to a business related publication that publishes sales.

For many years clients would ask that the sales price be withheld from the multiple listing system when it closed escrow.  This resulted in some wide spread deception up in Los Angeles of flippers and shady investors to hide the sales price from potential buyer.  Many multiple listing systems had fairly ridged procedures and costs for excluding the sold price on the MLS.  This practice has been discourage by the California Association of Realtors for obvious reasons and now each case is normally dealt with on a case by case basis.  Even with this practice someone could go down to the County records and find the transfer fee tax stamped on the back of the document.

So not releasing a sales price is very problematic but not impossible depending on the individuals reasons.

The second big consideration is the name or names of the person holding title and is normally overcome with forming an Limited Liability Corporation (LLC) or a blind trust.  With a little leg word you can find out who is in a LLC normally, but a blind trust is more difficult as the “Trustee” would not easily be connected to the client.

According to an article on Zillow’s Blog here are a few examples of celebrity holdings:

For instance, when Jennifer Aniston purchased her new penthouse digs in New York, pictured above, it was reportedly under “Norman’s Nest Trust.” Norman was the actress’ beloved terrier-corgi mix that died recently at age 15.

According to The Arizona Republic, Sarah Palin’s Scottsdale home, above, was purchased by Safari Investments LLC, a company created the day before the deal for the home closed. The name Safari is thought to be taken from Alaska’s Safari Lake where the Palins own two large cabins.

And when Britney Spears and Kevin Federline bought their piece of Malibu real estate together in 2007, pictured above, they made the purchase through “The Love Shack Trust.”

Many celebrities often go a step further to ensure their privacy and have their real estate agents and everyone else involved in the purchase sign a non-disclosure agreement.

Most larger brokerages will not sign confidentiality agreements.  They have too many people that are touching the file including staff, transaction coordinators, branch managers, and may not keep files secure.  While it is not often that the REALTOR® or brokerage is guilty of leaking information, it certainly can happen.

I use a standard California Association of Realtors confidentially agreement for most cases.  Celebrities or public figures will likely have Attorneys that will prepare custom agreements.  You can view a sample of that document at the end of this article.

At the end of the day you need to hire a REALTOR® or Broker that you have a great deal of trust in and has fiduciary duty only to you and not be in a “Dual Agency” situation.  I take my fiduciary responsibilities very seriously and give all my Clients the privacy and confidentially that they deserve.  We live in a connected world where privacy is being challenged every day and anyone with a name and Google can find out a great deal about most anyone.

Yesterday we showed you how to log into your complementary Box.net account.  This next video will show you some of the basics of our transaction management system and some features of Box.net.

http://www.youtube.com/watch?v=v0gDNldY7co

http://www.youtube.com/watch?v=KaRx-rWbx2k

Continuing on with our series on understanding the California Residential Purchase Agreement we look at page six.  Please understand this series was done for the State of California.  Residential Purchase Agreements are different in each state and I would encourage you to consult a REALTOR® licensed in your state.  I am not an attorney but a Real Estate Broker able to advise on real estate issues in the State of California.  This video is very general in nature and is in no way complete, so consult your REALTOR® for any specific questions.

Page six of the California Residential Purchase Agreement includes the following:

• Selection of service providers.
• Multiple Listing Service.
• Equal Housing Opportunity.
• Attorney fees.
• Definitions of acceptance, close of escrow, days, days after and before, delivery, electronic copy or signature, law, repair, and signed.
• Broker compensation.
• Joint escrow instructions to escrow holder.

If you have any questions or would like to speak with me personally just send me an e-mail or give me a call at 619-800-8312.  I hope this series gives you some education and the importance of understanding the Residential Purchase Agreement before writing an offer.

The California Residential Purchase Agreement is the kingpin of all contracts in residential real estate transactions.  Using a REALTOR® that has a full understanding and experience may result in a more successful transaction.  While the video may appear overall to be very simple, it is the experience of your REALTOR® to know what best to fill in for your unique situation.

View or download page six of the Residential Purchase Agreement by clicking image below:

http://www.youtube.com/watch?v=BSE8zSo9SKI

Continuing on with our series on understanding the California Residential Purchase Agreement we look at page five.  Please understand this series was done for the State of California.  Residential Purchase Agreements are different in each state and I would encourage you to consult a REALTOR® licensed in your state.  I am not an attorney but a Real Estate Broker able to advise on real estate issues in the State of California.  This video is very general in nature and is in no way complete, so consult your REALTOR® for any specific questions.

Page five of the California Residential Purchase Agreement includes the following:

• Time periods.
• Removal of contingencies.
• Cancellation rights.
• Repairs.
• Final Verification of Condition AKA walk through.
• Prorations of property taxes and other items.

If you have any questions or would like to speak with me personally just send me an e-mail or give me a call at 619-800-8312.  I hope this series gives you some education and the importance of understanding the Residential Purchase Agreement before writing an offer.

The California Residential Purchase Agreement is the kingpin of all contracts in residential real estate transactions.  Using a REALTOR® that has a full understanding and experience may result in a more successful transaction.  While the video may appear overall to be very simple, it is the experience of your REALTOR® to know what best to fill in for your unique situation.

http://www.youtube.com/watch?v=QwYT85Kx1xM

Continuing on with our series on understanding the California Residential Purchase Agreement we look at page four.  Please understand this series was done for the State of California.  Residential Purchase Agreements are different in each state and I would encourage you to consult a REALTOR® licensed in your state.  I am not an attorney but a Real Estate Broker able to advise on real estate issues in the State of California.  This video is very general in nature and is in no way complete, so consult your REALTOR® for any specific questions.

Page four of the California Residential Purchase Agreement includes the following:

• Condition of property – present condition or “as is”.
• Buyer’s investigation of property and matters affecting property.
• Attached Seller Disclosures, addenda, advisories, and other terms to the Residential Purchase Agreement.
• Title & vesting – importance of holding title.
• Sale of buyer’s property.

If you have any questions or would like to speak with me personally just send me an e-mail or give me a call at 619-800-8312.  I hope this series gives you some education and the importance of understanding the Residential Purchase Agreement before writing an offer.

The California Residential Purchase Agreement is the kingpin of all contracts in residential real estate transactions.  Using a REALTOR® that has a full understanding and experience may result in a more successful transaction.  While the video may appear overall to be very simple, it is the experience of your REALTOR® to know what best to fill in for your unique situation.

View or download page four of the Residential Purchase Agreement.

http://www.youtube.com/watch?v=sUSmJGaQa4A

Continuing on with our series on understanding the California Residential Purchase Agreement we look at page three.  Please understand this series was done for the State of California.  Residential Purchase Agreements are different in each state and I would encourage you to consult a REALTOR® licensed in your state.  I am not an attorney but a Real Estate Broker able to advise on real estate issues in the State of California.  This video is very general in nature and is in no way complete, so consult your REALTOR® for any specific questions.

Page three of the California Residential Purchase Agreement includes the following:

• Closing and possession.
• Tenant occupied property.
• Statutory Disclosures including Real Estate Transfer Disclosure Statement, Natural Hazard Disclosure Statement, and Lead Based Paint.
• Natural and environmental hazards.
• Withhold taxes.
• Megan’s Law database disclosure.
• Condominium and planned unit development disclosures.
• Items included or excluded from purchase price.
• Fixture definition.

If you have any questions or would like to speak with me personally just send me an e-mail or give me a call at 619-800-8312.  I hope this series gives you some education and the importance of understanding the Residential Purchase Agreement before writing an offer.

The California Residential Purchase Agreement is the kingpin of all contracts in residential real estate transactions.  Using a REALTOR® that has a full understanding and experience may result in a more successful transaction.  While the video may appear overall to be very simple, it is the experience of your REALTOR® to know what best to fill in for your unique situation.

View or download page two of the Residential Purchase Agreement.

Go to lesson 4.

Residential Purchase Agreement Video — Page Two

http://www.youtube.com/watch?v=P1e1di0yHw8

Continuing on with our series on understanding the California Residential Purchase Agreement we look at page two.  Please understand this series was done for the State of California.  Residential Purchase Agreements are different in each state and I would encourage you to consult a REALTOR® licensed in your state.  I am not an attorney but a Real Estate Broker able to advise on real estate issues in the State of California.  This video is very general in nature and is in no way complete, so consult your REALTOR® for any specific questions.

Page two of the California Residential Purchase Agreement includes the following:

• Verification of closing costs and downpayment.
• Verification that buyer has provided an application to a lender who has reviewed their credit report.
• Time frames for loan and appraisal contingency.  The boiler plate of the Residential Purchase Agreement is 17 days.
• Who will pay for inspections and reports including Pest Control Report.
• Any Government requirements or retrofits that are required.
• Escrow holder and how the costs are split between the Seller and Buyer.
• Title insurance policy and who pays for it.
• Other costs including county transfer tax, HOA documents, HOA transfer fees, and private transfer fees.
• Home warranty programs including what options.

If you have any questions or would like to speak with me personally just send me an e-mail or give me a call at 619-800-8312.  I hope this series gives you some education and the importance of understanding the Residential Purchase Agreement before writing an offer.

The California Residential Purchase Agreement is the kingpin of all contracts in residential real estate transactions.  Using a REALTOR® that has a full understanding and experience may result in a more successful transaction.  While the video may appear overall to be very simple, it is the experience of your REALTOR® to know what best to fill in for your unique situation.

View or download page 2 of RPA.

Go to Lesson 3. 

San Diego, CA.  On-line offers in pilot program for Fannie Mae Homepath homes for sale.

Fannie Mae has announced a pilot program for it’s bank owned properties (REO) in San Diego where the listing or selling agent can make an offer on-line.  The purpose of this on-line offer program is to provide some transparency to the REO process which is full of games.  The selling agent (buyer’s agent) will now know for sure that there Clients offer has been received by Fannie Mae and not have to rely on a less than ethical listing agent to make sure the offer has been presented.

Your real estate agent or company needs to be registered in the system to make an offer.  The process is fairly simple with the following information required from the buyer.

1. Full name and address of buyer.
2. Purchase offer amount offered, ie $450,000.
3. Any seller contributions for buyer’s closing costs.
4. Any other seller contributions.
5. Net proceeds to seller not including commissions.
6. Any request repair amounts.
7. Financing type including cash, loan, etc.
8. Is the buyer an owner occupied or investor?
9. Any public funds usage?
10. Buyer’s representation – dual agency or has own representative.
11. Has the buyer been pre-qualified?
12. How much “good faith deposit” or earnest funds are provided with the offer?
13. Any other contingencies.

Your agent will submit your on-line offer to Fannie Mae for the Homepath property and confirm the offer details.  They will also have an opportunity to review the transaction terms of use.  Once satisfied that the offer is complete the agent must confirm the following:

1. Have read and accept the HomePath Online Offer Transaction Terms of Use.
2. Have received a signed Fannie Mae Addendum.
3. Have received a signed sales contract.
4. Have permission for the Buyer to submit the Buyer’s information through HomePath.com.

Once the offer has been submitted an offer success page will open.  An e-mail will be sent to the Fannie Mae listing agent notifying them of a new offer. This certainly takes all doubt away from if Fannie Mae is presented with you offer.

If you would like to search for Homepath homes for sale in San Diego you can do so at Fannie Mae’s website.  You can choose to sign up for e-mail alerts here.  Additionally REO HomePath properties are included in the Sandicor Multiple Listing System which populates consumer sites like Realtor.com, Zillow, and Trulia.

The HomePath program offers some special financing incentives.  I will be writing a full post on the program but here are some of the highlights.

• Low down payment and flexible fixed rate, adjustable rate, or interest only terms.
• Might qualify even if your credit is not perfect.
• Available to both owners and investors.
• 3% Downpayment (at least) can be funded by your own savings, a gift, grant, or loan from non-profit.
• No mortgage insurance – ask your lender for for cost details on loans without mortgage insurance.
• No appraisals fees.
• Also eligible for HomePath renovation mortgage.
• HomePath is available from both local and national lenders.

Find out more about the Fannie Mae HomePath Program here.

One of my standard of care for Clients has been to get them to approve my Sandicor Multiple Listing Input form.

At the end of the day, you the Seller, are responsible for the content of the information your agent inputs.  It makes perfect sense to see the completed product to make sure it is accurate and presents the property in the best possible light.

Here are a few tips:

• Make sure the agent inputs as many photographs as allowed.  Moments after a listing is inputed it is distributed to the internet and pictures make a huge difference is someone wanting to view your home.  Personally I think it is so important that I have the photographs professionally done.
• Check to make sure the square feet of the property is accurate and what the source was.  The safest way is to use the accessor information from the County unless you have some really reliable source.
• Make sure the comments cover the most important amenities of your property and that everything is spelled correctly.
• The easier your property is to show the better.  Clear showing instructions and an electronic lock box really help.
• Make sure that any unique features of your home are imputed on searchable fields.  For example if you have a guest house make sure this field is selected so someone searching will find it.

After I prepare the listing I send it via e-mail to my clients for review and electronic signature via Docu-Sign.  It takes a little bit of extra effort but always helps to have everyones input.

Does your agent do this for you?

Image courtesy of Seattle Clouds on Flickr