Buyer’s Agent Informational Disclosure
REO/Bank-Owned Properties
Please Note: All communication/negotiations will be conducted via email. Please check your inbox/spam folders daily. Email for transactions: closer@showcaserealty.net
RIO Genesis:
RIO Genesis is a centralized web-based transaction management platform that we use to better assist our clients and manage our listings. We ask that all property offers be entered into RIO Genesis through the appropriate link provided in agent remarks on MLS. If no link is provided please email closer@showcaserealty.net for further instruction. The following must be uploaded to RIO for your offer to be reviewed:
□ Residential Real Estate Contract. Use your Standard State Contract.
□ Copy of Earnest Money Deposit. . **For your client’s protection, you must white out account numbers
□ Pre-Qualification Letter or Proof of Funds – Must be dated within 30 days of offer. **For your client’s protection, you must white out all account numbers or other sensitive information.
Property Condition: Property sold “As-Is”. Seller will NOT make or warranty any repairs. All properties are marketed under the assumption that repairs will be needed. Some properties may not qualify for FHA/VA loans. Review property condition with your lender before submitting an offer.
Addenda: All REO properties have their own addenda. They supersede our state purchase agreement. Do NOT make changes to the bank’s addendum. Many of our clients require original signatures, please be prepared to deliver original documents. Do not use electronic signatures. Some are legal size and need to be returned as such. **Seller signatures can take time to receive. Start loan & inspection process immediately.** Once you are informed that your offer is accepted, it is. REO departments and Asset Managers give the “okay” and then go to their managers for signatures.
Inspections: Be sure inspector knows that property is listed in “as-is” condition (unless otherwise noted on the listing). Seller will not guarantee that utilities will be functional for inspections. Seller won’t authorize repairs for the purpose of the inspection unless agreed to in writing. Some sellers will provide de-winterization, but in most cases the buyer is responsible for de-winterization and re-winterization, at their expense, by a licensed plumber or by one of our approved contractors. De-winterization will not be approved unless heat is operational. You must get approval from our office before de-winterizing a property. On VA owned properties, the inspection must be completed prior to writing the offer. There can be no inspection contingencies on VA properties.
**Please begin your inspections as soon as you receive word that your offer has been accepted. Delaying inspections can hold up closing and cause your buyer to be responsible for the per diem charge. Electrical service, gas service, and water service are all buyer’s responsibilities if not already on in our company’s name.
Do NOT email us the inspection report!** inspection reports sent to us will be “Discarded Without Reading”
Disclosures: Seller is exempt from property disclosures.
Seller Name: “Owner of Record” may be used for initial offers. Seller’s name will be indicated on the purchase addendum and must be updated on the offer to purchase after acceptance.
Title: Property will be conveyed via Special Warranty Deed. This must be changed on the OTP and have buyer initial.
Earnest Money: 10% of the Sales Price with a $1,000 minimum is required on Cash Transactions. It is recommended that the same formula be followed for transactions when financing is involved. Earnest Money is to be made payable to the seller’s closing attorney or Showcase Realty, LLC and must be in certified funds at time of executed contract.
Commission: Many corporate sellers may counter that they are paying commission based on the NET sales price which is the gross sales price minus any seller paid concessions for the buyer such as closing costs, etc. This is something that the seller dictates in the when responding to your offer. We have no control over this.
Buyer’s Agent as Principal: Some corporate sellers will not pay a commission to a selling broker if the buyer’s agent is one of the principals buying the property, again, please ask before you write an offer.
Proof of Funds/Pre-approval: Seller will not respond to an offer without this. Pre-approval must state the amount the buyer is qualified for, type of loan, all lender contact information, and be dated within the last 30 days. Most of our clients require direct lender contact information and will not accept a mortgage broker for the contact. Cash offers must have a proof of funds or copy of a statement showing funds available in excess of the purchase price.
Multiple Offers: If more than one offer comes in on a property before an offer is accepted, buyers MAY be asked to provide their highest, best and final offer by a pre-determined time for sellers consideration. You must complete the Multiple Offer Form.
HOA Info/Docs: It is the buyer agent’s responsibility to obtain any HOA documentation on our listings. If we have it, we will give you any contact information available. Please ask for documents in writing before writing an offer.
Liens: Some properties may have liens that have not been recorded. Title insurance only covers recorded items. It is the buyer agent’s responsibility to check for any liens that may be on the property. It is your buyer’s liability once the property is closed.
Per Diem: This is the amount the bank charges for every day the transaction does not close past the original closing date. There are some exceptions, but assume that it will be charged if delay is the fault of the buyers, their agents, lender or anyone on the buyer’s side of the transaction. Typically this is a $100 per day charge.
Close Date: No closings last two days of the month. Recommend that you select a close date at least 1 week after you anticipate closing so your contract won’t expire. We can always shoot for an earlier close.
Personal Property: May not be included in the contract. Personal Property section on the OTP must read “n/a”
Due Diligence Fee: $0 The bank addendum will control.
Offer Acceptance: Once terms are accepted verbally, the complete contract package must be returned within 24 hours.
All Terms Subject To Corporate Approval
