BITCOIN, NAR ARTICLE:     http://realtormag.realtor.org/for-brokers/network/article/2016/09/bitcoin-s-future-in-real-estate

BITCOINS, 5 THINGS EVERY REAL ESTATE SHOULD KNOW ABOUT BITCOINS:    

https://national.wfgnationaltitle.com/2017/12/13/5-things-every-real-estate-agent-should-know-about-bitcoin/

BPO’s:  Broker Price Opinion:  Q: I am interested in doing BPOs. I was reading the BPO tutorial and will be registering with companies today. The tutorial also said to inform the broker and see if you had any info or tips for getting started.

A: Typically BPO's are conducted for distressed properties, ie, bank owned properties, foreclosures, HUD, etc.  I would recommend that you  network with banks and financial institutions that are looking for brokers/agents to conduct BPO's.  There might even be some trade groups that you could network with as well.  You will be dealing with their loss mitigation department.

BROKER:  Definition. A selling broker participates in facilitating a real estate transaction along with the listing broker who listed the property. Often, the cooperating broker is the agent who locates a buyer for the property and represents the buyer's interests during negotiation (while the listing agent represents the seller).

BROKER DISTRIBUTION:  Syndication:  The option to send listings to third parties has been renamed broker distribution in Flexmls. 

SYNDICATION OPTIONS (click here)

BROKER TOUR:  Q: Had an agent just call and say that he just landed a big listing and the owner mentioned that he'd like a Broker tour to be set up.  I'm the worst person to ask about these things, but I figured you guys would know where to point him.  Anyone comfortable talking about tours?  A: Which branch is he with?  I would send him to his branch manager, I know they each have their own tours and schedules, plus I think one of the smart partners typically arranges the tour(s) on behalf of the branch...Also, he can contact his local board (go to their website) to find the RMS tours in his area.

BUILDER COMPENSATION:  Case Study:  Builder offered one commission in MLS - broker agreement offers a different amount.  Which amount prevails?  Did agent sign/acknowledge another agreement outside of MLS commission offered?  That's what I was thinking as well.  If they signed the registration "agreeing" to the lower compensation, it'll be tough to win an argument for the higher amount. 

BUYER ADVISORY:  Topics to research before purchasing real estate (ADRE)

http://www.azre.gov/PublicInfo/RealEstateResearchTopics.aspx

BUYER BROKER AGREEMENT TIED TO ER LISTING AGREEMENT (COMMISSION ADJUSTMENT):                                      (Write in additional terms, line #39)

In conjunction with the Exclusive Listing Agreement between (agent) and (clients) for the property located at 123 Main Street, Phx, AZ:  Listing Agent agrees to reduce the Listings Agents commission from x% to y% which will be credited and applied upon the successful close of escrow of buyers replacement property which is scheduled to close on xx/xx/xxxx AND by the buyers acceptance and execution of this Buyer Broker Exclusive Employment agreement.

BUYER BROKER AGREEMENT:  YOU HAVE ONE SIGNED WITH YOUR BUYER. YOU FIND THE BUYER A HOME AND YOU ARE PAID BY THE LISTING BROKER--WONDERFUL!  BUT WAIT--THERE'S MORE!  ANOTHER BROKER CLAIMS TO BE THE PROCURING-CAUSE OF THESE BUYERS, HE HAS SHOWN THEM THE SAME HOME PRIOR TO THIS.  

HE or SHE FILES WITH AAR AND BEATS YOU UP AND YOU GIVE UP YOUR COMMISSION PLUS THE $500 FILING FEE. MAYBE YOUR BBA SHOULD HAVE BEEN AMENDED SOMEWHAT TO HANDLE THIS SITUATION! LIKE THIS: 

“If Buyers have viewed any property with another brokerage firm that they subsequently purchase through xxx and HomeSmart that forms into a “procuring cause” complaint at the Board of Realtors, all costs of this complaint and any awards of commissions that are lost to another broker shall be paid by the Buyers within 10 days of demand from xxx, Real Estate Agent with HomeSmart.”

BUYER BROKER AGREEMENT RELEASE:  (From Agent)  Buyer is hereby released from the Buyer Broker Agreement dated xx/xx/xxxx, EXCEPT for those homes that (AGENT NAME) has already shown to buyer, or has written/submitted offers.

BUYER CONTINGENCY ADDENDUM, AAR   (updated 10/1/18)

https://www.aaronline.com/wp-content/uploads/2018/09/13/Buyer_Contingency_Addendum_October_2018-Final-REDLINED-VERSION.pdf

Q: Contingent buyer offers without an offer on current home.  What kind of closing date would you ask for in a situation like this?

A: There is no right or wrong, but line 10 of the Buyer Contingency Addendum is often 30-45 days from contract acceptance, and line 21 (which is the one where you're estimating the COE date for the Buyers current house) is generally 30-45 days after that.  That means that the COE date for the contract on the subject property is usually estimated at 60-90 days. (Generally, COE on line #24 of pc matches line #21 of the BCA).

Obviously that can be changed with an addendum if the circumstances change as these dates are speculative.

*****UH-OH*****BUYER CONTINGENCY ADDENDUM:  NOTE:  If Buyer is Contingent, make sure that the “Accepted Offer” for their Contingent Property is further Contingent Upon Seller “Accepting/Approving” of Buyers Accepted Offer.  (See line #’s 12-14, and 18-19 in BCA).  Also, if our buyer, request seller put to UCB.  If our listing, recommend seller put to CCBS (seller wishes to make explicit that contract is contingent)

CONTINGENT BUYERS ACCEPTANCE FOR HIS/HER SALE MUST INCLUDE THIS COUNTEROFFER LANGUAGE (BECAUSE SELLER OF HER/HIS REPLACEMENT HOME HAS TO APPROVE CONTINGENT BUYERS CONTRCT!) (See lines 18-19 of BCA)     

“This offer is subject to approval* by the seller of XXX Main Street, Phx, Arizona within three (3) days of contract acceptance.  If seller does not approve, this contract shall be deemed cancelled and the Earnest Money shall be released to Buyer.  (Note: Approval required due to an existing contingent offer for that property.)         (*Or “contingent upon approval…)

BUYER CONTINGENCY ADDENDUM, BUYER RECEIVED OFFER,  WHAT NEXT?  (TOP HALF OF FORM)  Buyer must submit accepted contract within 3 days or X days of execution (line # 12-14) or by date on line #10, whichever occurs first.  Seller may, within 3 days of receipt of accepted offer documents (line # 18-19) cancel this contract and all Earnest Money shall be returned to Buyer.  Unless Seller cancels within 3 days of receipt of buyers offer documents, this contract shall become contingent on the closing of the PENDING SALE by xx/xx/xxxx (line #21).  (Line #21 on the BCA “generally” matches up with line #24 on the pc).

“NOTIFICATION AND ACKNOWLEDGEMENT OF BUYER SUBMITTING ACCEPTED OFFER TO SELLER” “Buyer hereby delivers notice to seller that buyer has accepted an offer for Buyers Contingent property located at XXX Main Street, Tempe.  Offer is Attached.  Seller has 3 days from receipt of this notice to accept or reject Buyers accepted offer documents (See line #’s 18-19 of BCA).  If Seller does not cancel within 3 days, this contract shall become contingent on the closing of the pending sale of Buyers property by xx/xx/xxxx (See Line #21 of BCA).

“NOTIFICATION AND ACKNOWLEDGEMENT OF SELLERS APPROVAL OF  BUYERS ACCEPTED OFFER”   “Seller hereby delivers notice to Buyer that Seller accepts and approves the Buyers Purchase Offer for Buyers Contingent property located at XXX Main Street, Tempe, Arizona. This purchase agreement is now contingent on the closing of the pending sale of Buyers property by xx/xx/xxxx. (See Line #21 of BCA).

“NOTIFICATION AND ACKNOWLEDGEMENT OF CANCELLATION, SELLER REJECTS BUYERS ACCEPTED OFFER:  “Seller hereby delivers notice to Buyer that Offer to Purchase Buyers Contingent Property is deemed unacceptable and Seller elects to immediately cancel this Purchase Contract as allowed in the Buyer Contingency Addendum (See line #’s 18-19 of BCA).  Title Company is instructed to issue written notice of escrow cancellation and immediately release Earnest Money to Buyer.”  (Unless EM was non-refundable). 

“NOTIFICATION AND ACKNOWLEDGEMENT OF CANCELLATION, NO ACCEPTED OFFER ON BUYERS CONTINGENT PROPERTY:”  “Buyer hereby delivers notice to Seller that no offer for the sale of the Buyers Contingent Property was accepted by the Required Date of xx/xx/xxxx (See line #10 of the BCA).  As per line # 11 of the BCA, this Contract is now cancelled.  Title Company is hereby instructed to issue written notice of escrow cancellation and immediately release Earnest Money to Buyer.”  (Unless EM was non-refundable).  OR                                                                                                                                                                                                                         “Seller hereby delivers notice to Buyer that no accepted offer for the purchase of the Buyers Contingent property was delivered to Seller by the Required date of xx/xx/xxxx (See line #10 of the BCA).  As per line # 11 of the BCA, this Contract is now cancelled.  Title Company is instructed to issue written notice of escrow cancellation and immediately release Earnest Money to Buyer.”  (Unless EM was non-refundable). 

CANCELLATION OF BUYER’S ACCEPTED OFFER: 

CANCELLATION OF ACCEPTED OFFER FOR BUYER’S PROPERTY: If Buyer’s Accepted Offer cancels for any reason, Buyer shall deliver notice to Seller within three (3) days of Buyer’s receipt of cancellation and provide evidence of cancellation. 

Notice to Seller shall state Buyer’s election to either:  1) Immediately cancel this Contract and all Earnest Money shall be released to Buyer; or Proceed with the Contract by removing this Buyer Contingency and provide: (i) written documentation from Buyer’s Lender that Buyer can close escrow by the COE Date without the sale and closing of Buyer’s Property; or if this is an all cash sale (ii) evidence of Buyer’s financial ability to close escrow by the COE Date without the sale and closing of Buyer’s Property.  Should Buyer elect to proceed with this Contract, Seller and Buyer agree that all other contingencies shall remain.

“NOTIFICATION AND ACKNOWLEDGEMENT OF CANCELLATION OF BUYERS ACCEPTED OFFER AND BUYERS CANCELLATION OF PURCHASE CONTRACT”  “Buyer hereby delivers notice to seller that buyers accepted offer for the property located at XXX Main Street, Tempe has been cancelled.  Evidence of cancellation is Attached.  (See Line #’s 24-26 of the BCA).   Therefore, Buyer elects to immediately cancel the purchase contract for the for the property located at XXX Main Street, Tempe and requests that Earnest Money be immediately released back to Buyer per line #27 of the Buyer Contingency Addendum.”  Title Company is hereby instructed to issue written notice of escrow cancellation and immediately release Earnest Money to Buyer.”  (Unless EM was non-refundable).

“NOTIFICATION AND ACKNOWLEDGEMENT OF CANCELLATION OF BUYERS ACCEPTED OFFER, BUYER ELECTS TO REMOVE CONTINGENCY AND PROCEED WITH PURCHASE CONTRACT”  “Buyer hereby delivers notice to seller that buyers accepted offer for the property located at XXX Main Street, Tempe has been cancelled.  Evidence of cancellation is Attached.  (See Line #’s 24-26 of the BCA).  Buyer hereby informs Seller that Buyer is Removing the Buyer Contingency from the Purchase Contract dated xx/xx/xxxx and will proceed to close escrow, notwithstanding the terms and conditions agreed to in the Purchase Contract (see line #28-30 of BCA).  Lender Pre-Qualificaton (or LSU or proof of funds if cash) is attached with the Box on Line #8 (Line #14 LSU) checked that “Buyer is not relying on the sale or lease of a property to qualify for this loan.’  “Home Sale Requirement” provision is now removed.  This Purchase Contract shall continue in full legal force and effect.” 

 BUYER CONTINGENCY ADDENDUM, SELLER ACCEPTS BACKUP OFFER(Note:  Back up Offer Cannot “Kick Out” Offer when contingent on COE only (Section 2 of form or accepted/approved offer on Section 1 of form).  Scenario, Buyer submits BCA with purchase contract, contingent on Accepted Offer For Buyers Property (Section 1).  Seller accepts.  During escrow, Seller accepts backup offer.  Buyer has two choices:  1) Remove contingency and continue with transaction, or 2) Cancel transaction.

Seller first delivers notice to buyer, buyers responds with number one or number two below.  Use an Addendum, both parties sign.

“NOTIFICATION AND ACKNOWLEDGEMENT THAT SELLER HAS ACCEPTED BACKUP OFFER”   “Seller hereby delivers notice to Contingent Buyer that Seller has accepted a backup offer for the property located at XXX Main Street, Tempe.  See line #’s 33-39 of BCA.  Buyer now has 3 days or X days to deliver written notice to seller that Buyer elects to either Remove Contingency and proceed to close or this contract shall be deemed cancelled and Earnest Money shall be released to the Buyer.  If Buyer elects to proceed to close, notice from Buyer shall include written documentation from Buyers Lender (Pre-Qualification or updated LSU with Home Sale Provision removed), or if all cash, evidence of Buyers Financial Ability to close escrow by the COE date  without the sale and closing of the Buyers Property.” 

 

1) “NOTIFICATION AND ACKNOWLEDGEMENT OF BUYERS CONTINGENCY REMOVAL”   Buyer received notice on         xx/xx/xxxx that Seller has accepted a backup offer for the property located at XXX Main Street, Tempe.  As per line #’s 33-39 of the Buyer Contingency Addendum, Buyer hereby informs Seller that Buyer is Removing the Buyer Contingency from the Purchase Contract dated xx/xx/xxxx and will proceed to close escrow, notwithstanding the terms and conditions agreed to in the Purchase Contract (see line #40-41 of BCA).  Lender Pre-Qualificaton (or LSU or proof of funds if cash) is attached with the Box on Line #8 (Line #14 LSU) checked that “Buyer is not relying on the sale or lease of a property to qualify for this loan.’  “Home Sale Requirement” provision is now removed.  This Purchase Contract shall continue in full legal force and effect.”   OR

2)  “NOTIFICATION AND ACKNOWLEDGEMENT OF BUYERS CANCELLATION”  Buyer received notice on xx/xx/xxxx that Seller has accepted a backup offer for the property located at XXX Main Street, Tempe, Arizona.  As per line #’s 33-39 of the Buyer Contingency Addendum, Buyer hereby informs Seller that Buyer is unable to remove the Buyer Contingency and elects to immediately cancel the Purchase Contract dated xx/xx/xxxx.  Earnest Money to be immediately refunded to the Buyer.” 

BUYER CONTINGENCY FAILED, BUT KEEP CONTRACT IN FORCE, EXECUTE REPLACEMENT BCA OR EXTEND:                                                                                                                                                                 “Seller & Buyer acknowledge and agree that the Buyer Contingency which was attached to and made a part of the PC dated xx/xx/xxxx has failed due to the cancellation of the buyers accepted offer.  Contrary to any language otherwise in the PC, Addenda or other related documents, Seller & Buyer agree that this PC will not be cancelled and will remain in full legal force and effect and both parties hereby agree to execute the attached, Revised/Amended Buyer Contingency Addendum simultaneously along with this Addendum.”

 

Q: We have a buyer contingency offer on the new home for our seller and our buyer just cancelled.  Per the 2nd section of the contingency addendum we need to give notice to the seller that we have lost our buyer and the contract be deemed cancelled.  The seller we are under contract with is willing to convert the contingent offer to a section 1 contingent offer still keeping us under contract and allowing us the opportunity to get the house back under contract… my question is, can we write an addendum to change the original contingency addendum or do we need to cancel the entire contract and re-write it using a new contingency addendum with section 1 checked instead of section 2 checked?

 

A: XYZ,  you could do it on an Addendum, say something like "Buyer has notified Seller that their Contingent Offer for the property located at 123 Main Street has been cancelled.  Contrary to any language otherwise, either in the PC or any related documents or Addenda, this Purchase Contract dated xx/xx/xxxx shall not be cancelled.  Buyer and Seller agree to execute an Amended Buyer Contingency Addendum (attached).  The Purchase Contract dated xx/xx/xxxx shall remain in full legal force and effect.  All other terms and conditions shall remain the same."  OR

“Contingency Period to have Buyers property at 123 Main St, Tempe, AZ under contract is hereby extended to xx/xx/xxxx.”

Be sure to check your COE date on your PC to see if that needs to be amended as well.

BUYER CONTINGENCY, OFFER CANCELLEDSection 2 of BCA:  (CONTINGENT ON SUCCESSFUL CLOSING): 

NOTIFICATION AND ACKNOWLEDGEMENT OF CANCELLATION OF BUYERS ACCEPTED OFFER AND BUYERS CANCELLATION OF PURCHASE CONTRACT  

Buyer cancelling purchase due to cancellation of their sale where they are sellers:  “Buyer hereby gives notice to seller that buyers accepted offer for the sale of their property located at 123 Main Street has been cancelled.  (See attached).  Therefore, as per ine #55-57, 58 of the Buyer Contingency Addendum, Buyer hereby elects to cancel this contract and requests that earnest money be immediately refunded to buyer.” 

OR (Section 2 of form)

“Buyer hereby delivers notice that the Accepted Offer for XXX Main Street, Scottsdale, AZ has cancelled.  Evidence of cancellation is attached. 

As per line #’s 55-57, 58 of the Buyer Contingency Addendum the buyer elects to cancel the purchase contract for XXX State St, Scottsdale, AZ.

XYZ Title is hereby instructed to issue written notice of escrow cancellation and immediately release Earnest Money back to Buyer.”

 

NOTIFICATION AND ACKNOWLEDGEMENT OF CANCELLATION OF BUYERS ACCEPTED OFFER AND BUYERS REMOVAL OF CONTINGENCY:

 “NOTIFICATION AND ACKNOWLEDGEMENT OF CANCELLATION OF BUYERS ACCEPTED OFFER, BUYER ELECTS TO REMOVE CONTINGENCY AND PROCEED WITH PURCHASE CONTRACT”  “Buyer hereby delivers notice to seller that buyers accepted offer for the property located at XXX Main Street, Tempe has been cancelled.  Evidence of cancellation is Attached.  (See Line #’s 55-57 of the BCA).  Buyer hereby informs Seller that Buyer is Removing the Buyer Contingency from the Purchase Contract dated xx/xx/xxxx and will proceed to close escrow, notwithstanding the terms and conditions agreed to in the Purchase Contract (see line #59-61 of BCA).  Lender Pre-Qualificaton (or LSU or proof of funds if cash) is attached with the Box on Line #8 (Line #14 LSU) checked that “Buyer is not relying on the sale or lease of a property to qualify for this loan.’  “Home Sale Requirement” provision is now removed.  This Purchase Contract shall continue in full legal force and effect.” 

BUYER CONTINGENCY IS NOW WAIVED/SATISFIED:  Q: I have a buyer who no longer needs to purchase contingent on the sale of his property. He would be completely removing that contingency. Do I just use an addendum to state the contingency is removed?

 

A: Hi XYZ, while not required, you could certainly create an Addendum stating that "the buyers home sale contingency has been satisfied and is hereby removed as a condition of this purchase contract dated xx/xx/xxxx."   Totally up to you.   OR

 

In connection with this agreement, Buyer and Seller executed a Buyer Contingency Addendum providing that Buyer’s obligation to complete the purchase of the property was contingent upon Buyer’s closing of the sale of other real property owned by Buyer (defined in the Buyer Contingency Addendum as the “Contingent Property”).  By signing below, the parties acknowledge and agree that buyer hereby waives and releases the contingency described in the Contingency Addendum, agrees Buyer’s obligation to purchase the property is no longer contingent on the sale of any other real property and agrees Buyer has no further right to terminate this Agreement under the Buyer Contingency Addendum.                           Buyer _______Date _______Buyer ________Date________ Seller________Date________Seller_________Date__________

 

BUYER CONTINGENCY ADDENDUM, DELAY INSPECTIONS UNTIL OFFER 1) RECEIVED,  OR 2) APPROVED, IF MY BUYER)  (Use language from back up offer/short sale addendum)  1) “The date of Buyer’s written notice to Seller that Buyer has accepted  an offer for Buyer’s property shall be deemed the date of contract acceptance for purposes of all applicable contract time periods.  Buyer shall promptly open Escrow and deposit Earnest Money as described in the Contract upon delivery of written notice of Contract Acceptance to Seller.”  OR

 

2) “The date of Sellers written notice to Buyer that Seller has Approved of offer for Buyer’s contingent property shall be deemed the date of contract acceptance for purposes of all applicable contract time periods.  Buyer shall promptly open Escrow and deposit Earnest Money as described in the Contract upon receipt of written notice that Seller has Approved of Buyers Offer on his/her Contingent Property.”

 

BUYER CONTINGENCY ADDENDUM:  SHOULD THE OFFER BE CONTINGENT, OR NOT?  CASE STUDY AND SOLUTION FROM BROKER EMAIL.

Q: I'm representing the seller on this one  She accepted an offer – the offer was not contingent according to pre-qualification and the BCA was submitted with the purchase contract.  AFTER contract is fully executed, buyer's agent tells me that the buyers are selling their current home to Open Door and they want it to close on the same day as my seller's COE.

So, I called the lender and he assured me that their loan is not contingent upon the sale of their home to Open Door and that a same day closing will be just fine.  I probed further and told lender that they must then have the funds to close on OUR transaction whether or not their sale with Open Door closes?  He said no, they do not have the funds, but that they are far enough along in their sale to Open Door to issue a pre-qual with no contingency. He says buyers are well-qualified.  I'm uneasy.  I'm thinking I should send them an addendum making their earnest deposit hard.  Not sure what else I can do at this point. Any thoughts on this?  

A:  Kerry, do you have the pre-qual showing not contingent?  If it is, and they are not being truthful, they are committing a fraud.  That could lead to serious consequences if the deal blows up.

Q: I'm very concerned.  My gut tells me that they are committing fraud.  The pre-qual shows not contingent.  When I spoke with the lender, he said they "didn't need to close on their home to qualify."  So I said, "Ok, then they have funds from somewhere else you're pulling from...like a 401K or something?"  He said no, they don't have the funds.  Then he said, "Technically, it IS contingent then."  But the other agent got pushy...told me not to talk to the lender.... please see texts attached.  I'm still new at this and need help.  Very worried.  Thank you.

A:  Tell the other agent you talked to your broker and that you are requesting an updated LSU immediately showing that this sale is NOT contingent.

If they do not send the updated LSU immediately, send them a cure notice regarding that.

Remind the other agent that a home sale contingency is an extremely material matter and failure to disclose that, by either the buyer or their agent (if the agent has that knowledge) would be considered intentional misrepresentation and would have severe consequences for both the buyer and the agent.

You absolutely have every right to speak with the lender regarding the buyers qualifications, that is routine communication that happens in every transaction.