Thanks so much,
Trina Hunt
(408) 823-6831
(408) 904-7118 fax
Friday, September 11, 2009
California Bill Allowing REO Escrow Selection May Soon Become Law
http://www.dsnews.com/articles/california-bill-allowing-reo-escrow-selection-may-soon-become-law-2009-09-10
Tuesday, September 8, 2009
Do REO's need to complete disclosures if they've never lived in the house?
Yes! REO's (bank owned properties) must disclose. Even if they've never occupied the property, they are still required by CAR to provide certain disclosures to the buyer.
Many bank's do not like the back and forth of paperwork that goes on in a real estate transaction, and most will not complete the disclosures upfront like we do with traditional sales. So the best way to handle this, is to have your disclosures ready for the bank and submit with the buyer's offer to purchase. This way they have everything upfront and sign them all at once.
Please visit CAR's website for the most current list of REO requirements. However, here is a hit list we've provided:
-REO Listing Disclosure
-REO Sale Disclosure
-Agency signed by seller and listing agent, by buyer and buyer's agent, by seller and buyer's agent
-AVID (some banks will not sign these)
-Lead Based Paint (sometimes built into the bank addendum)
-Smoke Detector and Water Heater Statements of Compliance
-NHD Report, with signed NHD
-FIRPTA
The following are not required BUT still very good to have if you represent the buyer on an REO transaction:
--Receipt for Enviro Booklet
--Market Advisory
--Disclosure and Consent RE: More Than One Principle
--Statewide Advisory
Please note, it may be difficult to get the bank to sign these state mandated disclosures. It's important to document your file on your requests to the bank. Some brokers may waive the need for this paperwork if you can provide documentation of your attempts to collect the signatures from the bank. Always check with your broker beforehand:)
Many bank's do not like the back and forth of paperwork that goes on in a real estate transaction, and most will not complete the disclosures upfront like we do with traditional sales. So the best way to handle this, is to have your disclosures ready for the bank and submit with the buyer's offer to purchase. This way they have everything upfront and sign them all at once.
Please visit CAR's website for the most current list of REO requirements. However, here is a hit list we've provided:
-REO Listing Disclosure
-REO Sale Disclosure
-Agency signed by seller and listing agent, by buyer and buyer's agent, by seller and buyer's agent
-AVID (some banks will not sign these)
-Lead Based Paint (sometimes built into the bank addendum)
-Smoke Detector and Water Heater Statements of Compliance
-NHD Report, with signed NHD
-FIRPTA
The following are not required BUT still very good to have if you represent the buyer on an REO transaction:
--Receipt for Enviro Booklet
--Market Advisory
--Disclosure and Consent RE: More Than One Principle
--Statewide Advisory
Please note, it may be difficult to get the bank to sign these state mandated disclosures. It's important to document your file on your requests to the bank. Some brokers may waive the need for this paperwork if you can provide documentation of your attempts to collect the signatures from the bank. Always check with your broker beforehand:)
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