Required Disclosures
Whether you are a new agent or a veteran of many markets, it is still easy to feel overwhelmed by the abundance of disclosures required in a California Real Estate transaction. These documents are prepared and delivered by the sellers to the buyers during their contract contingency period, usually 17 days.
Keep in mind though, that the various disclosure obligations with which you must comply have been created for good reason. These obligatory disclosures help to ensure that the buyers purchase the home with full understanding of what they are getting for their money. Well-informed buyers tend to be satisfied buyers. And that is a good thing for both listing and selling agents.
The abundance of disclosures may also be overwhelming for the sellers, who may find completing them exhausting and somewhat invasive. However, expedient and accurate completion is necessary in order to comply with the RPA-CA, section 14a which states the seller must deliver all reports, disclosures, etc to the buyer within 7 days. Yet more often than not, we, as Transaction Coordinators, find ourselves scrambling to meet this goal, and sometimes finding the sellers somewhat blindsided about their obligations.
Below are three schools of thought regarding the preparation and completion of disclosures by the sellers:
1. Have sellers complete them at the time of the listing. Many agents find the sellers have already dedicated time to a listing presentation and discussions regarding listing price and marketing strategy, that they don’t mind spending a little more time completing the disclosures.
2. Make a second appointment with sellers to discuss and complete disclosures. Other agents find sellers a bit exhausted after the listing presentation and feel they might be more alert and prepared for the task two or three days later.
3. Have sellers complete them at the time of the offer, so that information is current and accurate. This usually works better in a slow market. If you choose to go this route, your sellers should be made aware of their obligations in advance, so it does not surprise them.
How we can help:
Your Key TC has access to all required disclosures, and we can prepare a sellers’ packet for you.
The disclosures can be delivered to you blank or with your name and/or sellers name on them.
This will save you time and effort in preparing your Mandatory Seller's Disclosure Packet.
September 2010