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September 2024 Newsletter: Assisting All Agents

Writer's picture: melissa-gilbertmelissa-gilbert




What sets us apart is attention to detail. Not only do we pay attention to the details of your contract, but we aggregate and analyze the data from hundreds of contracts. The resulting information gives us insight into market trends, which we delight in passing along to you.

 



GAR Form of the Month

F-255 Instructions to Closing Attorney


When to Use F255: Now that we have a new compensation exhibit to the contract, some brokers are no longer requiring the Instructions to Closing Attorney unless there is additional information to be shared with the closing attorney, such as rebates (like a Buyer Agent paying for a home warranty).

Be careful that you don't accidentally change the compensation terms with this form! Read it carefully!


Who Signs the F255? The new form released 7/1/2024 requires a Seller signature WHEN the Seller is paying the Buyer Agent Compensation directly. (the compensation is not passing through the Seller Agent's Brokerage)


Issues we are seeing with this form: The buyer is not a party to the F-255 Instructions to Closing Attorney. Make sure you don't agree to receive compensation on this form that your Buyer did not authorize in the Buyer Brokerage Engagement Agreement.


Is your Buyer Paying Compensation? Don't wait to notify their lender!! It became common practice for Seller agents to wait to send the F-255 Instructions to Closing Attorney until after the end of due diligence. If there is no F-259 in the contract to send to the lender (showing the buyer is paying compensation), the lender will need to be notified of the Buyer's obligation to cover all or part of your compensation as soon as possible!



Note: The information provided in this newsletter is for general informational purposes only and should not be construed as legal or brokerage advice.





SS 416 SECURITY DEPOSIT FROM SELLER FOR TEMPORARY OCCUPANCY OF PROPERTY AFTER CLOSING

Seller shall pay Buyer at Closing a security deposit of $_____________ which shall be held by Buyer to cover any damage done to the Property during the Temporary Occupancy Period (excluding normal wear and tear and damage existing in the Property prior to the Temporary Occupancy Period). Buyer shall send notice to Seller of any deductions for damage done to the Property for which Seller is responsible under this Exhibit. Buyer shall not deduct any amount from the security deposit without first providing Seller with notice of either a repair estimate for the cost to correct the damage or a receipt for such repair. The security deposit, or that portion remaining after permissible deductions, shall be returned to Seller within ten (10) days after possession of the Property has been returned to the Buyer at the following address of Seller after the end of the Temporary Occupancy Period or such other address of which Seller may give notice to Buyer. [Buyer may owe additional duties regarding the security deposit if the Property is

professionally managed during the Temporary Occupancy Period or if Buyer owns multiple properties.]




Monday, October 14, 2024

Columbus Day


Monday, November 11, 2024

Veterans Day


Thursday, November 28, 2024

Thanksgiving Day

(Note : Most attorneys and RHRE also close Friday Nov 29, which is a state, not federal holiday)




Using Google Drive to easily share Compensation Agreements

If the Seller wants to advertise compensation in advance of showings, agents can easily use Google Drive to hold any pre-filled, compensation forms, such as the GAR F258 Pre-showing Compensation Agreement or the GAR F259 Broker Compensation Agreement Exhibit. Reminder: These forms cannot be uploaded to the MLS or Showing Time after August 17th.

(If the video is not showing up on your phone, click this link to watch it. https://www.loom.com/share/1c4d5832bacc4a068875cf5c9dbfaeb0?sid=e0bc4315-31f9-4be8-b214-9c0816b3258d)



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