Closing the Deal the Al Sinclair Way

Real Estate Made Easy

Al Sinclair

• Editore: G&D Media
• Anno: 2018
• ISBN:
  9781722520496
• Argomento: Negocios y empresa
• Categoria: Propiedad inmobiliaria

Closing the Deal is a handy tip book for anyone looking to buy, rent or sell their place. With tips that others won't share with you, Al gives you advice and ideas to educate you on how to get things done effectively. For instance, baking cinnamon buns before you have an open house gives your property a very pleasant and homey feel. Home staging for cheap can get you more money for your property, and having bad credit, doesn't mean you can't get a mortgage! Al will take you through the DOs and DON'Ts of buying, renting or selling property, including what to be aware of when looking for the best real estate agent.

FORMS

Analyzing forms and contracts which make up offers, listings and contracts should help clarify a very complex procedure.

Forms are created with a view to identify and satisfy general needs. The preset portion of any form is complex and can be difficult to understand. Everyone involved in a real estate transaction should be encouraged to seek and obtain professional advice to ensure a complete and accurate understanding of any form, and not rely on the explanations contained herein.

Basically there are three types of forms you will have to deal with in real estate: listing forms (which deal with listing a house or commercial property), purchasing forms (which deal with making a purchase of a house or commercial property), and lastly, representation forms (which deal with the relationship between buyers and sellers with real estate agents and companies).

LISTING FORMS

Listing Agreement: Sale

GENERAL USE: This form is a contract between a seller and a real estate company, and gives the real estate company permission to act on the seller’s behalf when they offer their home for sale in the open market. A written agreement is necessary in order to secure commission and to ensure compliance with the REBBA Code of Ethics.

TOP SECTION OF THE AGREEMENT: The section at the top identifies the parties involved in the agreement and sets the timeframe for which the contract is valid. Ontario’s governing body for real estate salespeople, RECO, requires the seller(s) to initial if the listing period extends beyond six months.

1. DEFINITIONS AND INTERPRETATIONS: The following section defines who will be referred to as the buyer and seller for the remainder of the document.

2. COMMISSION: The following section declares the total fee that the seller has agreed to pay to the real estate company if they are successful in selling the property. It also indicates a period of days after the expiry of the contract that the real estate company is entitled to their fee if the seller ends up selling the property privately to a buyer, who was introduced or shown to the property within the contract period. This is known as the “holdover period”.

3. FINDER’S FEES: This provides consent for the salesperson to accept any finder’s fee that a mortgage company may offer to them. It also states that this fee would be collected by the salesperson in addition to the stated commission. It should be noted that a specific consent will be required at the time a finder’s fee arises.

4. REPRESENTATION: The following section confirms that the salesperson has explained the different types of agency relationships that may occur in a real estate transaction. It also authorizes the real estate company to co-operate with any other real estate companies to market the seller’s property, and breaks down the commission sharing structure between the parties.

5. REFERRAL OF ENQUIRIES: The following section requires the seller to work with the real estate company for the length of the contract, and states that they must inform their salesperson of any enquiry on the property that comes to the seller. If they do not inform the salesperson of an enquiry that results in a successful private sale of the property within the listing period or the holdover period, the set commission is still owed to the salesperson.

6. MARKETING: In the following section, the seller gives permission for the real estate company to place a “For Sale” and “Sold” sign on the property, and for the company to advertise it according to company policy. The seller will not be held liable for the advertising efforts of the company.

7. WARRANTY: This confirms that the people signing this agreement are all the individuals necessary to give authority to sell the property.

The provision goes on to confirm the disclosure of third party claims such as easements, mortgages, encumbrances, and so on.

8. INDEMNIFICATION: The following section provides that salespeople cannot be held liable for the condition of the property or damages that may occur while prospective buyers view the property.

9. FAMILY LAW ACT: The following section states, in the form of a warranty, that if spousal consent was required, then the spouse has signed.

10. VERIFICATION OF INFORMATION: The following section gives the salesperson the authority to obtain and use any reasonable information regarding the property to help market the property (i.e. mortgage details, tax information).

11. USE AND DISTRIBUTION OF INFORMATION: The following section gives salespeople the right under the Privacy Act to use personal information provided to them by the seller in order to assist in making the transaction happen. It also assures the seller that this information will not be distributed to third parties (i.e. pool or moving companies).

Because of the privacy laws, salespeople have to ask the seller if the property is not sold, would the seller give permission for other companies to call regarding the re-listing of the property after the expiry of this contract. Seller’s initials are required.

12. SUCCESSORS AND ASSIGNS: This states that heirs, estate trustees or any other party legally acting on behalf of the seller must also abide by the terms of this agreement.

13. CONFLICT OR DISCREPANCY: If there are other schedules (additional information) added to this agreement by the parties involved, which contain something specific that contradicts what is in the text of the form, the information on the attachment supersedes what is on the form.

14. ELECTRONIC COMMUNICATION: This agreement, if necessary, may be sent via electronic means and still be binding on all parties.

15. SCHEDULE(S): If a specific form or document has been added to this agreement, it should be indicated here. This section states that the listing company will market the property on behalf of the seller and will endeavour to obtain an offer acceptable to the seller.

The salesperson must sign on behalf of the company.

The Declaration of Insurance is signed by the salesperson stating that they carry insurance as required by the Real Estate and Business Brokers Act (REBBA).

Listing Agreement—Commercial: Authority to Offer for Sale

GENERAL USE: This form is a contract between a seller and a real estate company that gives the real estate company permission to act on the seller’s behalf when they offer their property for sale in the open market. A written agreement is necessary in order to secure commission and to ensure compliance with the REBBA Code of Ethics.

TOP SECTION OF THE AGREEMENT: The section at the top identifies the parties involved in the agreement and sets the timeframe for which the contract is valid. Ontario’s governing body for real estate salespeople, RECO, requires that the seller(s) initial if the listing period extends beyond six months.

1. DEFINITIONS AND INTERPRETATIONS: The following section defines who will be referred to as the buyer and seller for the remainder of the document.

2. COMMISSION: The following section declares the total fee that the seller has agreed to pay to the real estate company if they are successful in selling the property. It also indicates a period of days, after the expiry of the contract, that the real estate company is entitled to their fee if the seller ends up selling the property privately to a buyer who was introduced or shown to the property within the contract period. This is known as the “holdover period”.

3. REPRESENTATION: The following section confirms that the salesperson has explained the different types of agency relationships that may occur in a real estate transaction. It also authorizes the real estate company to co-operate with any other real estate companies to market the seller’s property, and breaks down the commission sharing structure between the parties.

4. REFERRAL OF ENQUIRIES: The following section requires the seller to work with the real estate company for the length of the contract, and states that they must inform their salesperson of any enquiry on the property that comes to the seller. If they do not inform the salesperson of an enquiry which results in a successful private sale of the property within the listing period or holdover period, the set commission is still owed to the salesperson.

5. MARKETING: In the following section, the seller gives permission for the real estate company to place a “For Sale” and “Sold” sign on the property, and for the company to advertise it according to company policy. The seller will not be held liable for the advertising efforts of the company.

6. WARRANTY: This confirms that the people signing this agreement are all the individuals necessary to give authority to sell the property.

The provision goes on to confirm the disclosure of third party claims such as easements, mortgages, encumbrances, and so on.

7. INDEMNIFICATION: The following section provides that salespeople cannot be held liable for the condition of the property or damages that may occur while prospective buyers view the property.

8. FAMILY LAW ACT: The following section states, in the form of a warranty, that if spousal consent was required, then the spouse has signed.

9. FINDER’S FEES: This provides consent for the salesperson to accept any finder’s fee that a mortgage company may offer to them. It also states that this fee would be collected by the salesperson in addition to the stated commission. It should be noted that a specific consent will be required at the time a finder’s fee arises.

10. VERIFICATION OF INFORMATION: The following section gives the salesperson the authority to obtain and use any reasonable information regarding the property to help market the property (i.e. mortgage details, tax information).

11. USE AND DISTRIBUTION OF INFORMATION: The following section gives salespeople the right under the Privacy Act to use personal information provided to them by the seller in order to assist in making the transaction happen. It also assures the seller that this information will not be distributed to third parties (i.e. pool or moving companies).

Because of the Privacy Laws, salespeople have to ask the seller if the property is not sold, would the seller give permission for other companies to call regarding the re-listing of the property after the expiry of this contract. Seller’s initials are required.

12. SUCCESSORS AND ASSIGNS: This states that heirs, estate trustees, administrators or any other party legally acting on behalf of the seller must also abide by the terms of this agreement.

13. CONFLICT OR DISCREPANCY: If there are other schedules (additional information) added to this agreement by the parties involved, which contain something specific that contradicts what is in the text of the form, the information on the attachment supersedes what is on the form.

14. ELECTRONIC COMMUNICATION: This agreement, if necessary, may be sent via electronic means and still be binding on all parties.

15. SCHEDULE(S): If a specific form or document has been added to this agreement, it should be indicated here.

This section states that the listing company will market the property on behalf of the seller and will endeavour to obtain an offer acceptable to the seller. The salesperson must sign on behalf of the company.

The Declaration of Insurance is signed by the salesperson stating that they carry insurance as required by the Real Estate and Business Brokers Act (REBBA).

Listing Agreement—Commercial: Authority to Offer for Lease

GENERAL USE: This form is a contract between a landlord and a real estate company, which gives the real estate company permission to act on the landlord’s behalf when the property for lease is in the open market. A written agreement is necessary in order to secure commission and to ensure compliance with the REBBA Code of Ethics.

TOP SECTION OF THE AGREEMENT: The section at the top identifies the parties involved in the agreement and sets the timeframe for which the contract is valid. Ontario’s governing body for real estate salespeople, RECO, requires that the landlord(s) initial if the listing period extends beyond six months.

1. DEFINITIONS AND INTERPRETATIONS: The following section defines who will be referred to as the tenant and landlord for the remainder of the document.

2. COMMISSION: The following section declares the total fee that the landlord has agreed to pay to the real estate company if they are successful in leasing the property. It also indicates a period of days after the expiry of the contract that the real estate company is entitled to their fee if the landlord ends up leasing the property privately to a tenant, who was introduced or shown to the property within the contract period. This is known as the “holdover period”.

3. REPRESENTATION: Th...