Posts Tagged 'Off-Market Real Estate Transactions'

Off-Market Transactions – 2

Off-Market Transaction, again

by Steve Meyers

Writing up the Purchase and Sales Agreement in an off-market transaction is very risky and could result in lawsuits from multiple parties including; the Seller, the Buyer, family members, other real estate agents, etc.  You should consult with our Designated Broker and Lead Managing Broker prior to entering into this relationship to discuss how to best protect yourself and the agency from future legal action.

In this capacity, you’ll be acting as a DUEL Agent and must follow; the Revised Codes of Washington (RCW’s), the guidelines of the NWMLS, and the requirements of our agency.  At a minimum you’ll need to execute Forms 41A and 47 and receive a receipt of the Pamphlet of Agency, Mold, and Lead Based Paint from both parties along with the necessary Purchase and Sale documents.  You should also have receipt of delivery of an exhaustive CMA that you supply to both parties.  I personally recommend that an appraisal is done by an independent third-party appraiser and distributed to both the buyer and the seller.

Once all of the documents are executed, they must be uploaded onto Dot Loop within 48 hours for review by our agency.  Within 3 days of Closing, you’re required to enter all of the information on the NWMLS as a closed sale with details and a photograph of the exterior of the property and up to 24 additional photographs.

If you have any questions about this article, please contact me at smeyers@kw.com or call me at (206) 972-3328.  Steve Meyers, Managing Broker, Keller Williams Greater Seattle

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Off-Market Transactions

by Steve Meyers

June 23, 2017

Real estate brokers occasionally receive a request from sellers or buyers to simply “write-up” the transfer of real property on our state approved real estate forms.  This can occur between family members, friends and acquaintances, landlords and tenants, for-sale-by-owners, etc.  Unfortunately, simply “writing-up” the transaction on those forms is against Washington State Rules and Regulations and State Supreme Court Rulings.  This can expose the broker, and agency, to significant liability.  Additionally, the agencies Errors and Omissions Insurance may not cover the defense of, or judgement against, the broker or agency. This is considered the unauthorized practice of law.

Only as a continuation of providing “significant or substantial real estate services” to the seller or a buyer can a broker complete the proper forms for the transfer of real property.  “Significant or substantial real estate services” are not clearly defined by the State.  I encourage you to perform several of these services, at a minimum;

  • Prepare a thorough Comparable Market Analysis (CMA) and deliver it to the buyer and/or seller.
  • Encourage and document your recommendation to have a full Home Inspection of the real property. If there is a full Home Inspection, work closely with the buyer and seller to resolve any issues that may be identified.
  • Work with the seller and the Title Company to resolve any issues that come up with the transfer of the title. Conference call with the seller and the Title Officer.
  • On behalf of the seller, confirm with the buyers’ lender that the buyer has been properly pre-approved for the loan.
  • Provide a Net Sale Proceeds Worksheet to the seller and the buyer.
  • Properly complete the NWMLS Form 47 – Seller Representation Agreement (No Marketing – Sale to Identified Buyer).

As the broker involved, you should provide as many services as possible to the seller and/or the buyer to protect yourself and the agency from future liability.

If you have comments or questions about this article, please email me at smeyers@kw.com.

If you would like to read other real estate articles I’ve written, go to my web site at www.ourseattlehome.com and click on the “Articles I’ve Written” tab.



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