REMERGE Transaction Coordinators

22691 Lambert St. #154

Lake Forest, CA 92630

Web site: www.remerge.com E-mail: info@remerge.com

Phone: 949-582-5812 Fax: 949-582-7885

REMERGE TC Gazette

February 2004

Welcome to the maiden issue of the REMERGE TC Gazette! Our goal in this monthly journal is to bring important subjects to your attention so that you are best protected in your real estate transactions. Save these issues in a REMERGE TC Gazette folder on your desktop for future reference. Soon you will be able to access archive issues on the web site at www.remerge.com

THE BASIC RULES OF CONTRACTS

It is important to review and understand all contractual documents so that you can explain them to your Client. Your local Board of Realtors continuously sponsors seminars given by experts in the field, on all matters relating to real estate transactions. Be a perpetual student. Attend seminars whenever you are notified that there is a revision to a contract document or an additional disclosure, no matter how trivial it may seem.

While REMERGE TC keeps you in compliance with disclosure paperwork after opening escrow, you the Agent are responsible for compliance in contract paperwork prior opening escrow. Remember that in real estate, if it's not in writing, if it's not signed and properly dated by the appropriate parties, it's not solid deal. You may have big trouble down the line if one of the parties becomes disenchanted. All your paperwork will be reviewed, starting with the contracts.

Follow these 3 Basic Rules of Writing Contracts

RULE #1: THE PURCHASE AGREEMENT DOCUMENTS AND COUNTERS MUST BE SIGNED BY BUYER(S) AND SELLER(S) PRIOR TO OPENING OF ESCROW. It is all too common that REMERGE TC receives an OPEN transaction with a Purchase Agreement signed only by the Buyer and Counter Offers signed only by one party. It is the Agents' responsibility to consummation the negotiations with dated signatures from the Principals. An Agent signing "per telephone conversation" for a Seller is totally unacceptable. Do not be so eager for a sale that you rush headlong into a lawsuit.

RULES #2: YOUR CLIENT MUST HAVE A COPY OF THE FULLY EXECUTED PURCHASE AGREEMENT DOCUMENTS AND COUNTER OFFER(S) IN HIS HANDS AS SOON AS IT IS AVAILABLE. Signed documents are the Buyers' and Sellers' written confirmation of the terms of the transaction. Signed documents are the references that Buyers and Sellers use to check contractually required activities of the transaction and the accuracy of the escrow instructions.

RULE #3: ADDENDUM TO THE LISTING OR PURCHASE AGREEMENT MUST BE PRESENTED AND SIGNED AT THE SAME TIME AS THE AGREEMENT. An Addendum is a page of the contract to which it refers eg Addendum to the Listing Agreement, Addendum to the Purchase Agreement, Addendum to the TDS etc. Company Addenda may seem harmless. However, most company Addendum contain disclosures and disclaimers that may make a difference in the way the Seller or Buyer negotiates the transaction. For example, The Seller or Buyer may try to negotiate a lower commission if he knows that their Broker has a benefit in referring specific affiliate services that will be used in the transaction. It is unethical to slip an Addendum to the Buyer or Seller after the contracts have been signed.

Does your office have required Addendum to any real estate document?

SELLER'S SIDE: Even if there are no other conditions or terms to negotiate, write a Counter Offer requesting the Buyer to agree to sign the company Addendum to the Purchase Agreement. Be sure that the Addendum is already signed by the Seller.

BUYER'S SIDE: Submit the company Addendum signed by the Buyer with the Purchase Agreemen

PAPER TRAIL : THE COMPONENTS OF THE LISTING CONTRACT

1. Disclosure Regarding Real Estate Agency Relationship, 2 pages: This was the second disclosure (TDS was first) introduced to the real estate transaction. It's the law. Disclosure Regarding Real Estate Agency outlines your duties as an Agent when you represent the Seller only, the Buyer only or both the Seller and the Buyer. Remember that you need to explain to the Seller that you do not know what your agency relationship is with the Seller until the Seller

has accepted an offer. The Agency Relationship must be signed PRIOR to signing a Listing Agreement (and Purchase Agreement) with your client.

2. Residential Listing Agreement (Exclusive Authorization and Right to Sell) 3 pages: Every contract must have a start and end date and be signed by client and Agent in order to be valid. If you are charging any fees in addition to the commission, the additional fee(s) and amount must be stated in the Listing Agreement. Eg. REMERGE TC fee / transaction fee $350. When escrow contacts us to verify payment from the Seller's proceeds, we fax the Listing Agreement as authorization. Otherwise, we invoice payment from the Agent's commission.

3. Seller's Advisory 2 pages: This is part of the Listing Agreement that contractually commits the Seller to duties in the transactions. It must be signed by the Seller.

4. Addendum to the Listing Agreement: An Addendum is a page of the contract to which it refers. If your office requires an Addendum to the Listing Agreement, it must be presented and explained as a part of the Listing Agreement and signed by the Seller at that time.

** REMEMBER THAT THE AGENT TOO MUST SIGN CONTRACT DOCUMENTS TO BE VALID!

TIP OF THE MONTH: SAVE TIME - CHECK YOUR FILES ON LINE!

The REMERGE TC web site was designed for Agents and Clients to access file information on line, 24/7/365. All received documents are logged in. Everything your Coordinator has done on your file is updated in real time and is on line. She will be reading from the same file as you.

"AT A GLANCE"

The At A Glance page is a current summary of the documents in your REMERGE TC transaction file. It is also the checklist order of the documents that make up the final transaction file that we send to your Broker. This page, as all others can be printed directly from the web site.

Go to: www.remerge.com

Click: Check My Files

Enter: Your password

Select: Status of the Files you wish to review

Click: At A Glance, the blinking red ball

Legend

N/A: NOT APPLICABLE for this file

N/P: NOT PROVIDED even though it is required and was requested

DATE: This document is signed and in the file.

NO DATE: This document is required and requested but not yet in the file

ESCROW: This document is being managed by escrow

REMERGE TC STAFF

REMERGE Transaction coordinators are happy to serve you.

Phone & Voice Mail E-Fax E-mail

Shelly Gorenstein: 949-582-5812 x 100 949-266-9664 shelly@crestc.com

Cindy Guss 949-582-5812 x 102 949-266-9904 cindy@crestc.com

Tatiana Flash 949-582-5812 x 103 949-266-9952 tatiana@crestc.com

Ashlee Tuttleman 949-582-5812 x 104 949-266-9129 ashlee@crestc.com