Common Mistakes to Avoid

Avoid Common Mistakes

1. Include Buyer's social security numbers.

2. The Buyer's name must match exactly on pages 1, 2, and 13.

3. All signatures must be in BLUE INK.

4. Initials on line 12 acknowledging the earnest money policy.

5. Asset Manager Sales Package Correction Notice (see pdf below)

6. HUD SALES CONTRACT

*Line 3: EMD to be held by HUD

*Line 9: days to close is 45

*Line 11: OTHER Addendum box should ALWAYS be checked (other addendum is always attached); LBP addendum box should be checked is when property was built in 1978 or before OR checked NOT if property is built after 1978. DO NOT LEAVE EITHER BOX BLANK.

*Line 12: buyer(s) MUST initial

*Line 13 Certification of Purchaser: Buyer must include his social security number, address, printed name, and signature. This line must also be dated.

***Buyer(s) should print/sign their name(s) the same way on all documents (i.e. don't switch between Bob and Robert or Kate and Katharine)

****Certification of Broker: Broker should include full agency name, address, phone, and NAID number. Selling agent's name and phone should be typed/printed beneath the broker's signature.

***Please note that YOU , not the purchaser will need to initial the appropriate financing choice on this document. Make sure the purchaser initials ALL acknowledgment statements (the ones that appear AFTER the financing choice section, typically pg 2 or 3) and you initial the selling broker acknowledgement.

PLEASE BE SURE BUYER INITIALS PAGE 3 OF CONTRACT TITLED "CONDITIONS OF SALE."

LEAD BASED PAINT ADDENDUM

If the property was built prior to 1978, you will need to complete the attached Lead-Based Paint Addendum; the completed document will become part of the sales contract.

OWNER-OCCUPANT CERTIFICATION

(When applicable) Be sure buyers and broker signs, dates, and PRINTS NAME where indicated.

NOTICE TO PURCHASER ADDENDUM

Applicable only if the accepted bid exceeds the appraised value of the property at the time the offer was submitted. Typically, if the bid is below the listed price this form is not needed.

NOTICE TO PURCHASER AND ACKNOWLEDGEMENT

Slightly revised version of our old General Addendum (now obsolete and not accepted). This form contains a great deal of information to answer most questions.

RADON GAS AND MOLD NOTICE

Buyer to sign, print name, and date

OTHER DOCUMENTS

If title will be held in the name of an LLC, documentation must be provided showing that the person signing for the LLC has the authority to do so. When providing bank statements as proof of funds, statement should be dated no more than 30 days from today's date and the buyer's name and the bank's name should be printed on the statement.

If you hand-write do so neatly and LEGIBLY as these are legal documents!

Important Note:

If your purchaser is obtaining FHA financing, a Lead Based Paint inspection will be ordered for properties built in or before 1978. Closing may not occur until this inspection and a Clearance Certificate have been obtained (203b) or a proper credit for stabilization of deteriorated Lead Based Pain has occurred (203k). This process may take weeks to complete. Please follow up with your Marketing Specialist before scheduling your closing to get confirmation that the proper procedures concerning Lead Based Paint have been completed.

For OFORI:

*KEEP A COPY OF THE CONTRACT DOCS YOU SUBMIT - being in a hurry is no reason to skip this step as it

can cause unnecessary extra work if you do not make a copy for your records.

*EMD payable to the Listing Broker, money orders only -personal checks will be rejected Line 3 of the contract you will need to write in the name of the listing broker or agency to match the check payee

*ORIGINAL signatures of BOTH BUYER AND BROKER on the contract, no exceptions!!! Do yourself a favor and use blue ink so there is no question on whether they are originals! Color copies or signature stamps will be rejected.

*The NOTICE TO PURCHASER AND ACKNOWLEDGMENT 4 page addendum MUST be the Buyers Select version DO NOT USE THE OLD FORM!

*Docs should be ONE SIDED and on letter size paper, not legal

*Pre approval letters from a lender should state the dollar amount of the approval

*If your buyer is an Investor/LLC we will need the executed Operating Agreement stating who is authorized to sign on behalf of the company

*READ THE INSTRUCTIONS AND FOLLOW THEM. Almost all errors I see would be avoided if this was done.

*Lead Based Paint requires the BROKER to initial for financing type, not the buyer. ALL acknowledgments must be initialed by buyer or broker as indicated.