Completing Buyer Forms
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.
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 (aka buyer's agent), you must use the Buyer's Brokerage 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 selling agent (aka buyer's agent) must also ensure that the seller sign on page 1 of the Buyer's Brokerage 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) and Buyer’s Inspection Advisory (form BIA).
- As the selling agent for an investor-buyer, you must always confirm whether or not the property has received a Notice of Default (NOD) prior to making an offer. In such case, you must use a special purchase agreement called the Notice of Default Purchase Agreement (form NODPA). 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. However, if the property has already been foreclosed on and taken back by the bank, then use the standard purchase agreement (form RPA).
- As the selling agent for a probate-buyer, you must use a special purchase agreement called the Probate Purchase Agreement (form PPA).
- Please note: if there is not a meeting of the minds in the offer regarding Liquidated Damages and/or Dispute Resolution, then you must counter-out each respective section. For example, if 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 respond by also including a counter-offer (form CO) along with the acceptance of the offer indicating "no agreement" as a condition of full acceptance. The buyer can always counter back, if insistent on desiring agreement for those items. Those items may or may not become a deal breaker. Again, there must always be a meeting of the minds before an offer is fully accepted.
Step 3 – Complete the mandatory Disclosure Information Advisory (form DIA).
Step 4 – If applicable, complete the Representative Capacity Signature Disclosure – Buyer Representatives (form RCSD-B).
Step 5 – If a Trust Sale, complete the Trust Advisory (form TA).
Step 6 – If a Foreclosure Sale (bank-owned), complete the REO Advisory (form REO).
Step 7 – If a Probate Sale, complete the Probate Advisory (form PA).
Step 8 – Complete the mandatory California Consumer Privacy Act Advisory (form CCPA).
Step 9 – Complete the mandatory Wire Fraud and Electronic Funds Transfer Advisory (form WFA).
Step 10 – Complete the mandatory Statewide Buyers and Sellers Advisory (form SBSA).
Step 11 – If applicable, complete the Buyer Counter Offer (form BCO) – as many times as necessary.
Step 12 – If applicable, complete the Addendum (form ADM) – as many times as necessary.
Step 13 – If applicable, complete the Buyer Inspection Waiver (form BIW).
- Inspection waivers typically pertain to the following: home inspections & wood destroying pest inspections.
Step 14 – 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 (aka buyer's 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 (form AVID)" and then fill out an AVID form. 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 15 – 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 even 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. However, if the transaction is a Foreclosure (REO), Probate or Trust sale, the seller may be exempt from signing the AVID.
Step 16 – 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" form:
- The receipt of booklet form is not a C.A.R. form and cannot be found in zipForm, but instead can be found in the Homeowner's Combined Info Guides booklet.
- Please note: 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. The selling agent can request that the seller side forward the report and links directly to the buyer.
Step 17 – Review all disclosures provided by the seller side with your buyer, and then have the buyer acknowledge/accept all by signing and initialing, as appropriate. Seller disclosures may include: TDS, SPQ, AVID, NHD, WCMD, FLD, etc.
Step 18 – Once escrow instructions are created/received, the selling agent must ensure that the Commission Instructions (aka Commission Authorization form) is signed by the broker and returned to Escrow as soon as possible.
Step 19 – Review the Preliminary Title report with your buyer and acknowledge/approve through escrow.
Step 20 – Review the Termite Inspection report and Section I - Clearance with your buyer and acknowledge/approve through escrow.
- The selling agent must ensure that Section I repairs are completed and certified, as per agreement.
- Please note: lenders typically require Section I work to be completed and certified before a loan will be approved and funded. Before the seller and buyer agree not to have a termite inspection completed, please consult with the Broker.
Step 21 – If applicable, ensure that the buyer completes a Property (aka 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.
- The selling agent should review the Property Inspection report with the buyer to ensure reasonable repairs are requested. Typically, the buyer should not request repairs for all call outs by the inspector. Please note: requesting repairs is a highly negotiable stage of the contract process. Call the business office for guidance, as needed.
Step 22 – If applicable, complete the Request for Repair (form RR) – as many times as necessary, in conjunction with form RRRR.
- 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 cross 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, highlighting those call outs by the inspector that the buyer desires to be repaired by the seller.
- Please Note: NEVER allow unauthorized repairs by your buyer before close of escrow when your buyer insists on them. Call the business office for guidance, as needed.
Step 23 – 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.
Step 24 – 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 25 – If applicable, complete and submit the Contingency Removal (form CR) to the seller side – as dictated by the Notice to Seller to Perform.
Step 26 – If applicable, complete the Demand to Close Escrow (form DCE).
Step 27 – If applicable, complete the Cancellation of Contract (form CC).
Step 28 – 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!
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.