Imagine you are working with a buyer who has decided to write an offer on a listing that a realtor named Jane is representing. Much to your surprise, Jane has already uploaded the proper documents in the correct section of MLS: the HOA addendum, lead-based paint addendum, market conditions disclosure, SPDS, and 5-years of insurance claims history up to the current date have all been filled out and signed by the proper parties. You are pleasantly surprised, almost shocked to see everything done (even though you shouldn’t be). This agent has been well-trained and received the nickname ‘Amazing Jane’ for good reason.
Now Imagine you are working with a buyer who has decided to write an offer on a listing that an agent named Larry is representing. Much to your chagrin, Larry has nothing uploaded in the document section of MLS. You call Larry to get the HOA addendum only to find that his voicemail box is full. Frustratingly, he does not respond well through email either. You do get an accepted offer but you have to spend a lot of time chasing ‘Lazy Larry’ for the rest of the paperwork. He has rightfully earned his nickname, just like Jane.
Do This To Be A Better Agent
It’s obvious that we would all want to be more like Jane. She has it together and so can you. Here are 5+ documents you should have ready the moment a client makes an offer.
1. Seller Property Disclosure Statement
Per the AAR residential purchase contract, the seller only has three days to provide this to the buyer.
2. Insurance Claims History / CLUE
The seller’s insurance company can quickly provide a letter or a CLUE (Comprehensive Loss Underwriters Exchange) report. The insurance company is familiar with this process and there is no excuse for why they cannot provide this in a timely manner. The seller has five days to provide this to the buyer. If the listing has been on the market for over 14 days, an updated letter will be needed.
3. Lead-Based Paint Disclosure
This is a MUST have on file for homes built prior to 1978. The addendum cannot be in counterpart. The seller has five days to provide this to the buyer. The buyer then has ten days to do an assessment upon receipt from the seller.
4. HOA Addendum
This document is needed for a property in a neighborhood governed by a Home Owner’s Association. The seller is to fill out the information on page one of this document and has five days to provide it to the buyer. Page 3 is to be negotiated between the buyer and seller. Occasionally we’ll see a savvy seller fill out page 3 dictating who is to pay what fees.
5. Market Conditions Advisory
This is required in every file signed by our seller or our buyer.
*Bonus: More documents to have on your radar include but are not limited to a solar lease, airport notice disclosure, Sun City addendum, domestic water well/water use addendum, and on-site wastewater addendum.
Support to Succeed
The importance of having the completed seller documents uploaded before the listing goes live is paramount. No one wants to deal with the unproductive exercise of chasing documents down from the listing agent. Once an offer to purchase has been accepted by the seller, contractual timelines begin and many are extremely short. Not meeting these timelines is a potential breach of contract, subject to a cure, cancellation, and possible litigation.
At Tru Realty, we only employ real estate agents who are on top of their game. We also offer guidance, support, and continued education to keep our agents their very best. If you’re interested in working with one of our agents or would like to become a Tru agent, please contact me at email@example.com or call 602-752-5148.
Barry Nicholas is the Designated Broker at Tru Realty. He currently has active broker’s licenses in Arizona, Kansas, Missouri, and Oklahoma and is a graduate of the Realtor Institute. He also holds the Certified Residential Specialist Designation. Barry provides his clients with the expertise and acumen that addresses the ever-changing trends in home sales, property marketing, and real estate technology. As your Broker, he views customer service as his utmost priority.