6.6 Paperwork Procedures for Residential and Commercial Purchase Transactions

Associates must provide and perform the following actions to complete a purchase file:

1. Once any agency relationship is established, casual or formal, a communication and activity log needs to be completed and any PDF’s of any showings you conduct with that buyer need to be saved with the log. Any other relevant information pertaining to the buyers needs to be saved with that file. A log of activity can be kept using Skyslope by adding your client in your contacts and making “comment” under their name. Once your client goes to escrow, you may upload all the documents pertaining to the client into the file under the Documents Section.

2. Within 24 hours of writing any purchase contract, the Agent will email a copy (including all signed documents) to Skyslope. Each state has a unique email address. For example California is ca-aare@skyslope.com . If the offer is accepted, the file must immediately be uploaded into Skyslope.

Handling Offers Recap:

If the offer is NOT accepted: Initial the proper boxes on the purchase agreements and email the Reviewer.

If the offerIS accepted: The Agent notifies his/her TC. and the Reviewer of the acceptance. The TC. will then set up a file in Skyslope and send out a completed contact sheet and a timeline to all third parties.

General types of documents required for a preliminary purchase package so the TC can start to build a complete file include:

a. Agency Disclosures

b. Statewide and Other Disclosures

c. Purchase and Sale Agreement

d. Buyer’s Inspection Reports

e. Any Other Reports or Disclosures

f. Seller’s Disclosures (if received)

g. Counter Offers/Addendums/Trust Advisory/REO Advisory/Short Sale Addendum – if applicable to contract

h. MLS Printout (signed by your client) & Tax Record

i. Pre-approval Letter & Proof of Funds

The Agent/Loan officer will be responsible for scheduling inspections and must confirm with the TC and cooperating agent the date and time of any inspections. The TC will provide an inspection document to fill out for the Agent to complete during the inspection, if requested and mandated by that State. The TC will additionally create any additional forms needed for file through the Agent’s transaction software (i.e. Zip Forms, Transaction Desk, Lone Wolf or similar type of software) if requested.

Agents/Loan Officers must fill in and complete all the broker #’s, license #’s, office addresses, phone numbers, fax numbers, and email addresses on all documents. All documents must be fully executed and the confirmation of receipts must be properly filled out.

The Company highly recommends that a home warranty be purchased on ALL transactions. Even if the seller or bank refuses to pay, the Company highly recommends that the buyer obtain one or the Agent should consider offering to pay for the home warranty from the Agent’s commission. The Company recommends that the Agent requests the maximum coverage. If a client refuses to purchase a home warranty protection plan, a waiver must be signed by the client.

Always verify the correct amount of coverage is obtained for the home warranty order and you may add a specific brand of warranty to help reduce the Company’s E&O insurance deductible, in the event of a claim. Check with the E&O company to see if this is an option.

Always request that a “claims loss history report” is provided as well as the natural hazard disclosure report.

The TC is responsible to send the Reviewer and the Agent a “file review” email a week prior to the close of escrow alerting them for any assistance necessary to obtain paperwork or disclosures to complete the file. Once the file is complete, the TC will request a final review from the Auditor. The Auditor will conduct a final review, approve the document in Skyslope, and change the status from “Pending” to “Closed”. Some TC’s will then mail a compact disc (CD) or flash drive of the completed file to the client if that is part of the agreed upon service.

A complete checklist of all the documents required to be signed in order to complete a purchase file can be found on the checklists in Skyslope. Agents/Loan Officers will not be paid until the file is complete and reviewed.