What is included in the Buyer Requisition Letter
Requisition must be done as earliest as 30 days before and no later than 5 days before the requisition date
1. Declaration that seller is a non resident
2. Declaration that seller possessed the property during ownership period
3. Seller's direction for pa
Explain Title Search
Buyer's Lawyer performs the title search to verify that title is good and marketable condition
Gap or error in chain is called Cloud on Title
Title Searches: outstanding encumbrances, restrictive covenants, non-resident status of sellers, expropriations,
Describe the actions of Undertaking from a Title Search
Undertaking is given through the lawyer on behalf of the client, but can be given just through the client
EX/ Seller has agreed he will pay this special assessment prior to closing and his lawyer added this personal promise
If Commission account is missing how is it then paid?
Funds from Real Estate Trust Account get transferred to Brokerage General Account
Four Operational Levels of Teranet
Search
Create Update
Complete/Approve
Release/Registration
Title Insurance
Different from property insurance
may not cover all issues related to the title
does not cover personal problems of the property owner
two duties
1. Duty to Indemnify (cover actual loss) and Duty To Defend (cover legal costs)
Two Policies
Owner Policy and
Disbursement of Commission
Listing brokerage MUST receive a Noficiation of Completion of Sale from Solicitor
Seller signs a direction tot eh solicitor for use of funds from Real Estate Trust Account for payment of commission
The deposit in Real Estate Trust Account is first transfe
How Should a Listing Representative Address an Offer being received from another brokerage
1. rejected
2. countered,
3. accepted
A counter offer can be formed by
- amending the original offer
- using a counter offer form
- drafting a new offer
if made by the seller, it can be referred to as an offer to sell
If A seller counters a Buyer's offer, what must the buyer do?
Initial all changes made by the seller and sign the Confirmation of Acceptance
What practice must be done when a trade record sheet is prepared for a specific trade
Saleperson(s) must sign trade record set along with broker of record
Multiple Competing Offers
Offers must be presented in order they are received
Listing brokerage must
- list number of competing offers
- and not display the content of each off r
Three Options that Seller has when they receive an Offer
- Rejected all offers and do nothing and the offer turns null and void
- Counter 1 offer before irrevocable time
or
- Accept 1 offer before irrevocable time
What does the Seller Do Once stye accept the Original Offer
Seller initials at the bottom of all pages
Seller inserts signature on signature page
Salesperson witness the signature
Confirmation of Acceptation is signed by one of sellers
All these actions must be completed before Irrevocable Time
Counter Offer
Usually made by seller, buyer turns to seller in Irrevocable category and seller may extend irrevocable period
Three options
1. amend current offer and initial all changes
2. use counter offer form and seller signs the counter offer form. Confirmation of
When Seller Counters the Offer
Seller does not sign the Confirmation of Acceptance
Offer is sent to buyer with seller initialing all changes
Buyers initial all changes assuming they accept offer
Confirmation of Acceptance is signed by One of the Buyers (the last party to accept the off
Acknowledgement of Acceptance
Last party to accept offer signs Confirmation of Acceptance also signs the Acknowledgement section
Lawyers information may be completed at this time or at a later date
BOTH salespersons sign the Commission Trust Agreement
Trade Record Sheet
Mandatory as per REBBA 2002 for every transaction
Signed by both salesperson or broker or Broker of Record
Each transaction is assigned a sequential trade number
File is kept open until the time of completion of transaction (closing date)
Transaction repo
Notice to Remove Conditions
Sent by seller if there is an Escape clause (typically in Sale of Buyer's Property) to remove all conditions. If buyer does not respond within given time, offer becomes null and void
Notice of Fulfillment of Conditions
Can be used for True Condition Precedent and Condition Precedent
Sent by buyer before expiry of conditional date to notify the seller about fulfillment of conditions
This makes agreement a legally binding contract
Waiver
this form is used by buyer to remove all conditions before an expiry of conditional date
THIS CANNOT BE USED WITH TRUE CONDITION PRECEDENT.
It is not required in Condition Subsequent
Termination of Agreement by Buyer
When buyer initiates the termination of a firm agreement. n
This is accompanied by Mutual Release - agreement fails due to non-fulfillment of conditions and when parties want to terminate a binding agreement. This form authorizes listing brokerage to with