Completing the Buyer Forms
Contracts & Disclosures for a typical transaction
- Note: if a time period falls on a weekend or holiday, then it must be extended to the next business day. For example, if the standard buyer contingency removal time period of 17 days falls on Saturday or Sunday, then the date moves forward to Monday, the next business day. If Monday is a holiday, then the date moves forward to Tuesday, the next business day.
Steps to Offer
Step 1 – Always prior to the Residential Purchase Agreement – complete the mandatory Agency Disclosure (form AD) and mandatory Possible Representation of More Than One Buyer or Seller disclosure and consent (form PRBS).
- As the selling agent, you must use the Selling Firm to Buyer AD form. This form must be signed/dated by you, the selling agent, and the buyer on page 1.
- If Realty Benefit is not the listing broker in the transaction, then the RB selling agent must also ensure that the seller sign on page 1 of the Selling Firm to Buyer AD form in the box called "Agency Disclosure Compliance."
- If Realty Benefit is both the selling and listing broker in the transaction, then the seller does not have to sign the "Agency Disclosure Compliance" box.
- Again, the selling agent must also execute a PRBS form with the buyer.
Step 2 – Complete the mandatory Residential Purchase Agreement (form RPA) including the Buyer’s Inspection Advisory (form BIA).
- As the selling agent for an investor, you must confirm whether or not the property has received a Notice of Default (NOD) prior to making an offer. In such case, you must use the Notice of Default Purchase Agreement (form NODPA) to make your client's offer. This is mandatory. The NODPA is used when an "investor-buyer" offers to purchase an "owner-occupied" residential dwelling against which a notice of default has been recorded. This is a safeguard for the distressed seller when an investor is involved.
- Please note that if there is not a meeting of the minds in the offer regarding Liquidated Damages and/or Dispute Resolution, then you must counter-out that section. For example, the selling agent advises his/her buyer to initial these sections and then submits the offer to the seller. The seller may not agree and elect not to initial one or both of these sections. If so, the listing agent must include a counter-offer (form CO) along with the acceptance of the offer indicating "no agreement" as a condition of full acceptance.
Step 3a. – If a Short Sale, complete the mandatory Short Sale Addendum (form SSA) – must be signed/dated by the buyer and provided with the offer.
Step 3b. – If a Foreclosure Sale (bank-owned), complete the mandatory REO Advisory (form REO) – must be signed/dated by the buyer and provided with the offer.
Step 3c. – If a Trust Sale, complete the mandatory Trust Advisory (form TA) – must be signed/dated by the buyer and provided with the offer.
Step 3d. – If a Probate Sale, complete the mandatory Probate Advisory (form PAK) – must be signed/dated by the buyer and provided with the offer.
Step 4a. – If applicable, complete the Buyer Counter Offer (form BCO) – as many times as necessary.
Step 4b. – If applicable, complete the Addendum (form ADM) – as many times as necessary.
Step 4c. – If applicable, complete the Buyer Inspection Waiver (form BIW).
- Inspection waivers typically pertain to the following: home inspections & wood destroying pest inspections.
Step 5 – If applicable, complete the Contingency for Sale of Buyer's Property (form COP) - any questions, please contact the business office.
Step 6 – Wood Destroying Pest Inspection and Allocation of Cost Addendum (form WPA) – discontinued form. Instead, Section I and II repairs must be requested on the Request for Repair (RR form) as desired.
Steps after Acceptance
Step 7 – Complete the Agent’s Inspection Disclosure section IV. (broker obtaining the offer) on Page 3 of the mandatory Real Estate Transfer Disclosure Statement (form TDS) provided by the seller side – also have your buyer review and then initial pages 1 & 2 and sign/date page 3.
- As the selling agent, you must fill out the Agent’s Inspection Disclosure section IV. on page 3 of the TDS. You must check the box “See attached Agent Visual Inspection Disclosure (AVID Form)" and then fill out an AVID. This is a mandatory broker requirement. Also, the TDS must always be signed-off by all parties (seller, buyer and agents) on page 3 before escrow closes.
- Please note that the seller is not required to sign if the transaction is a Foreclosure (REO), Probate or Trust sale. However, even though the seller is exempt from filling out and signing the TDS, the selling agent is still required by the broker to ensure a TDS is completed by the listing agent without seller signature(s) stating "Seller Exempt" on the form.
- Both agents (listing agent and selling agent) must sign twice on page 3 - see sections III. & IV. & V.
- The listing agent does not need to fill out a WHSD form regarding water heater and smoke detector disclosures, as the TDS already includes a section (section II.C.) that covers these disclosures. However, a WHSD is mandatory if the transaction is a Foreclosure (REO), Probate or Trust sale and the seller is exempt from signing the TDS and elects not to fill one out.
Step 8 – Complete the mandatory Agent Visual Inspection Disclosure (form AVID).
- An AVID must be filled out by ALL Realty Benefit Agents (both listing and selling agents) on ALL residential transactions. This is a mandatory broker requirement. You must list everything wrong with the property noticed through a reasonably competent, diligent agent visual inspection – everything you see, hear and/or smell. And remember, two signatures are required by the Agent on page 3 of the AVID (one following & affirming the agent's listed disclosures, and one at the bottom of the same page as the agent's overall acknowledgement).
- Both listing and selling agent AVIDs must always be signed-off by ALL parties (seller, buyer and agents) before escrow closes. If the transaction is a Foreclosure (REO), Probate or Trust sale, the seller may be exempt from signing the AVID.
- Flip property sellers are not exempt.
Step 9 – Provide the mandatory Homeowner’s Combined Info Guides booklet to the Buyer – and have the Buyer complete the Consumer Acknowledges Receipt of Booklet “To Whom It May Concern:”
- Click here for Consumer Info Acknowledgement Receipt of Booklet form
- The receipt of booklet form is not a C.A.R. form and cannot be found in zipForms, but instead can be found in the Homeowner's Combined Info Guides booklet (see "Free Publication Download" section below).
- Please note that typically the provider of the Natural Hazard Zone Disclosure report will also include links to the Combined Info Guides booklet and receipt form in the email containing the report attachment. These links can be easily forwarded to your client. The selling agent may request that the seller side forward the report and links directly to the buyer.
Step 10 – Complete the mandatory Carbon Monoxide Detector Notice (form CMD).
Step 11 – Complete the Risk Management Escrow Payment Request Form and ensure it is provided to Escrow - Click here
Step 12 – If applicable, ensure that the buyer completes a Property (Home) Inspection and provides a copy of the inspection report to the seller upon request or as a reference to the buyer's request for repair.
Step 13a. – If applicable, complete the Request for Repair (form RR) – as many times as necessary.
- The seller can respond to the Request for Repair with the Seller Response and Buyer Reply to Request for Repair (form RRRR).
- Note that it's not uncommon to provide a list of repairs on a separate attachment to the RR form if space is limited (simply check the box to indicate a list is attached, and reference the date on the list).
- You may also elect to include a copy of the Home Inspection report along with your request for repair.
- Please Note: never allow unauthorized repairs by your buyer before close of escrow when your buyer insists on them. Call the business office ASAP for guidance!
Step 13b. – If applicable, complete the Seller Response and Buyer Reply to Request for Repair (form RRRR) – buyer's reply to seller's response to buyer's Request for Repair. Please note that the seller does not have to respond to the RR, if desired.
Step 14 – If applicable, complete the Notice to Seller to Perform (form NSP) – as many times as necessary.
- This form should be used when the seller has not satisfied contractual requirements within the agreed upon contingency time period (e.g., 7-days); it's a notice to the seller to complete required contractual actions asap. This notice also requires that the seller provide a contingency removal declaration in response to the notice to perform.
Step 15 – If applicable, complete and submit the Contingency Removal (form CR) to the seller side – as dictated by the Notice to Seller to Perform.
Step 16 – If applicable, complete the Cancellation of Contract (form CC).
Step 17 – If applicable, complete the Demand to Close Escrow (form DCE).
Step 18 – Complete the Verification of Property Condition (form VP) - also known as the buyer walk-through prior to close of escrow (should be completed at least 5 days before closing).
- Form VP is strongly recommended by the broker.
Any questions, please feel free to contact the business office!
Standard Buyer Time Periods
Buyer has 3-days (business days) after Acceptance to Deliver to escrow:
- Initial deposit (i.e., earnest money deposit)
Buyer has 7-days after Acceptance to Deliver to the Seller:
- Written verification of down payment and closing costs
- Loan pre-qualification or pre-approval letter
Buyer has 17-days after Acceptance to Deliver to the Seller:
- Complete all Buyer Investigations (e.g., home inspection, etc.)
- Approve all Disclosures, Reports, and Other Property Information received by the seller/listing agent (e.g., Termite Inspection report, Natural Hazard Zone Disclosure report, Preliminary Title report, TDS, AVID, SPQ, NHD Statement, WHSD, FLD, HOA information, etc.)
Buyer has 21-days after Acceptance to:
Free Publication Download
- Click here for Homeowner's Combined Info Guides (published by Disclosure Source - takes a few moments to render due to being a large file); or
- Go to https://www.disclosuresource.com/downloads.aspx
Offers to Purchase
Remember, with all contracts, you must obtain all parties' signatures. If a party signs on behalf of another, you must have evidence of that person's authority to do so in writing. If the Selling Agent must present an offer missing a signature, he/she must disclose this fact to the seller and Listing Agent. Be sure to condition the offer on obtaining any missing signature(s).
If your client receives a counter offer, be sure the terms are clear and complete. Be sure to review it against the offer to purchase. Remember, if there is no meeting of the minds, generally, there is no contract.
- You must adhere to all time requirements stated in the purchase agreement and escrow instructions unless all parties agree in writing to the contrary.