Step 1: Seller's Representation and Multiple Listing Service
- When you are ready to accept a listing, log in to the transaction management system and add the listing transaction along with the relevant checklist for additional guidance.
- Fill out and obtain the seller's signature(s) on the following forms:
- LISTING AGREEMENT
- SELLER'S ADVISORY/DISCLOSURES
- DISCLOSURE REGARDING REAL ESTATE AGENCY RELATIONSHIPS
- Install a lock box and take pictures of the property.
- List the property for sale in the local MLS. If it is "Short Sale", "Bank Owned/REO" or "Selling Agent Owned Property" transaction, disclose this fact in the property description. Note: When listing a Short Sale you will need to disclose if the Short Sale Lender reduces the commission how the reduction will be split among agents.
- Place "for sale" signs on property. Consult with the Home Owners Association (HOA) about any existing sign and open house regulations.
- When a listing is uploaded on MLS, you have to report the new transaction in your iprore.com profile within 48 hours.
Start uploading the executed transaction documents and forms to the transaction file now at http://tms.iprore.com. Upload any executed documents and forms you have (not only those that are required in the checklist) at this time. For any questions please contact us at email@example.com.
Step 2: Marketing and changing the listing status
- Hold an open house and use other marketing tools and avenues to attract a buyers.
- If the seller elects to purchase a termite inspection prior to receiving offers, you may order it at this time. Note: Remember that the termite report expires after 90 days.
- Update the listing status as the transaction proceeds
Step 3: Receive Offers From The Selling Agent
- When receiving offers some documents you may receive:
- PURCHASE AGREEMENT
- DISCLOSURE REGARDING REAL ESTATE AGENCY RELATIONSHIPS
- Pre-approval letter from the lender
- Copy of earnest money deposit check
- Proof of down payment funds
- Offer letter (click here for a sample)
- The Seller can reject or accept the offer or send their counter offer. During the negotiation period you may use:
- COUNTER OFFER
Step 4: Open Escrow/Title
- When all parties agree with the purchase terms, return the fully executed contract with all counter offers and addenda to the Selling Agent. The choice of escrow is normally reflected in writing in the purchase contract.
- The Escrow/Title Officer or Selling Agent must provide you with information about the file (the escrow/title officer's name, escrow file's number, contact information, etc.) and give you a receipt (copy) for the earnest money deposit.
- Do not forget to change the listing status to "Pending" on the MLS. The delay can result in a penalty charge (check MLS regulations).
Step 5: Inspection/Disclosure Period
- Use the correct checklist for your transaction type and forward required disclosures and reports to the Selling Agent within seven (7) days of acceptance. The local disclosures may vary by State, City and County.
- Escrow/title will send to both agents and the lender a preliminary title report. You must confirm that the Selling Agent (Buyer's) receives the report within seven (7) days of acceptance of the offer.
- Depending on the transaction type, the buyer may conduct different types of inspection (termite, general home inspection, septic system, roof, plumbing, etc.) and use your state's form to put their request in.
- Refer to the transaction's checklist in the Transaction Management System and/or your form library to confirm if any disclosures should be performed.
- If the property is in Common Interest Developments, the seller has to provide the HOA report and CC&Rs for the buyer. Usually the escrow officer orders this report (ask them about it), but if not, complete the form applicable in your state to obtain the information.
- Keep in touch with the escrow/title officer. Make sure that the escrow/title officer has all fully executed transaction forms and documentation. Ask the officer to provide a preliminary closing statement (HUD) for the seller.
- You must receive the following forms/documents from the buyer:
- Preapproval letter from the lender (Within 7 days)
- Proof of funds for down payment (Within 7 days)
- CONTINGENCY REMOVAL (Within the limits stated in the contract)
- If the buyer removes all contingencies, but fails to execute the contract, the seller is typically entitled to full or part of the deposit made by the buyer as liquidated damages. If any of the required forms are not received, send the buyer a notice to perform. If the buyer fails to perform the action by the date given in the NBP, you may cancel escrow using your states appropriate form.
You must upload all signed documentation on the transaction including the fully executed cancellation form to http://tms.iprore.com.
Step 6: Closing Process
- Only the iPro Broker can sign the commission distribution instructions. Ask the escrow officer to prepare the instructions and email them to firstname.lastname@example.org. The Broker will sign the instructions, fax them back to escrow/title company and upload a copy to the transaction file. There is a penalty for an agent who signs the commission instructions. Please check your Independent Contractor Agreement for information regarding penalties. Note: If you're providing a credit to your client from your commission it has to be disclosed on the HUD. In your transaction file you will need to state if you are paying the taxes associated with the credit or if your client will complete and sign a W-9 form.
- Ensure that the seller is ready to vacate the property. Moving to a new place could be challenging for the seller. Provide as much support to your client as you can. We have observed that this step is very important to receiving referrals.
- You must receive from the buyer any verification of property's condition as required by your state.
- Escrow/Title will provide the closing package for the seller. The seller has to sign the deed, the estimated closing statement and other closing documents. Assist the seller with any questions they may have regarding the documentation.
- It's a good idea to give clients a gift following the sales. The best gift is a household, long-term usable item with your name and contact information on it. It can be a new barbecue, TV, patio table, poker chips set or anything you can put your creative mind to.
Step 7: TRANSACTION MANAGEMENT SYSTEM
Sign in to our transaction management system at http://tms.iprore.com. Please upload fully executed documents as they're received. Tutorials and checklists are in the Transaction Management System to help get you familiar and guide you during the process of your transactions.