As the Designated Broker of Tru Realty, I field quite a few questions from agents, varying from policy and compliance to contract and legal questions. We keep track of the questions asked in order to see trends in what obstacles agents are running into. We then work to implement this information into education and training. Here are the top five most recent frequently asked questions:
What are the advertising guidelines for social media?
When advertising property or your personal brand on social media such as Facebook, Instagram, etc, the name of the employing brokerage must be stated. When advertising property or your personal brand on text messages, “tweets”, and other short form platforms, where stating the name of the employing broker firm is not practical, the advertising information that is linked to said content must include the name of the employing broker.
How does the seller issue a “credit in lieu of repairs” when negotiating the BINSR (Buyer Inspection Notice and Seller Response)?
If the seller is to provide a credit in lieu of repairs, the seller is to respond on the BINSR regarding the credit as: “In lieu of repairs, seller agrees to credit the buyer at close of escrow. See Addendum one” (or subsequent numbered addendum) The seller is to transfer this verbiage to the addendum including the amount of the credit. The seller must sign, date and deliver both the BINSR and addendum to the buyer. Caution: Don’t mention “repairs” on the addendum if a lender is involved. The credit should be used for closing costs or price adjustments.
When should I advise the client to issue a Cure Period Notice?
A Cure Period Notice can be given the day immediately following the potential breach, or at any point thereafter, pursuant to sections 7a, 8h, and 8i of the AAR Residential Resale Purchase Contract regardless if the date stated on the Cure Period Notice is a prior date. The delivery of the notice is the key element. Section 8m of the Residential Resale Real Estate Purchase Contract states: “unless otherwise provided, delivery of all notices and documentation required or permitted hereunder shall be in writing and deemed delivered and received when: (I) hand-delivered; (ii) sent via facsimile transmission; (iii) sent via electronic mail, if addresses are provided herein, or (iv) sent by recognized overnight courier service.
What is a backup contract?
A backup contract is a fully executed contract that is in second position to a primary contract. If and when the primary contract unravels, the backup contract slips into first position as the new primary contract. A backup contract is negotiated as a separate purchase agreement from the primary contract. The price and terms may differ. As an example, the accepted contract may be for cash and at a different price but the backup contract may allow for financing. A seller may accept more than one backup contract, all with different terms and conditions. Multiple backup contracts are becoming common in this market. The order in which the seller accepts these contracts is the order in which they would be entitled to purchase the property
How do I navigate multiple offers?
When countering two or more offers, the seller MUST use the Seller Multiple Counter Offer form. The seller may counter each offer the same, differently, or not at all. Each buyer has the option to either accept, counter or walk away from the seller’s multiple counter offer. If one or more buyers accept the seller’s counteroffer, the seller may choose which contract to proceed with BUT the contract is not binding until the seller signs and dates the final acceptance section of the Seller Multiple Counter Offer form. Additionally, the seller should send the notice/disclosure form to any other accepted counter offers and withdraw the seller counter offer.
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.