Redfin's Free Contract Class - Irvine, CA


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  • Great presentation, thanks for the info, easy to understand. BTW, if anyone needs to fill out a form wpa, I found a blank form here
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Redfin's Free Contract Class - Irvine, CA

  1. 1. Real Estate Contracts: Making an Offer November 4, 2013 Presented by: South Coastal OC Team at Redfin Irvine, CA Follow: @Redfin Like:
  2. 2. South Coastal Orange County Team Katrina Jauregui South Coastal Orange County Minni MacFarlane South Coastal Orange County Courtney Rice South Coastal Orange County
  3. 3. A Little Bit About Redfin Redfin has refunded more than $100 Million to customers and reaches $8 Billion in home sales; 97% would refer us to a friend. ● Customers, not commissions ● Informed decisions ● Right home for the right price  No obligation  Commission credit
  4. 4. Partners in the Process AGENT Responsible for your success Writes your offer Handles negotiations TRANSACTION COORDINATOR Prepares paperwork Works with escrow TOUR COORDINATOR Schedules tours Prepares paperwork ASSOCIATE AGENT Takes you to see homes Sees 50+ homes a week
  5. 5. Benefits of a MLS Powered Site  All the homes for sale: 30% more listings  You see what the agent sees: 4x the data  Real-time market data: photos, details of just-sold homes
  6. 6. To Buy or Not to Buy
  7. 7. Why You Should Buy a Home ● ● ● ● ● You have a family and need room to grow You expect to stay put for 5 or more years You want a home that is difficult to rent You’re handy & and ready to invest You’ve saved up a down payment
  8. 8. Making an Offer
  9. 9. Completing the Offer Wizard
  10. 10. Completing the Offer Wizard
  11. 11. Completing the Offer Wizard
  12. 12. Completing the Offer Wizard
  13. 13. Offer Documentation To submit an offer we need to include several documents:      Pre-approval Letter Proof of Down Payment Funds Copy of an Earnest Money Deposit Check Optional: FICO (credit) Scores Other forms: RELO Addendum; REO Addm. etc.
  14. 14. Offer Forms
  15. 15. Offer Forms Disclaimer: The scope of this class is to discuss the process for drafting an offer to purchase a home, the documents involved and the strategies for getting an offer accepted. The presenter is not a real estate attorney. Questions pertaining to the legal ramifications of the following contracts should be directed to a real estate attorney.
  16. 16. Offer Forms Redfin Buyer Representation Agreement (RBRA)  Establishes the representation relationship between you (Buyer) and Redfin  Documents expectations of Redfin and you, the Buyer  Protects Redfin’s claim to a commission  Establishes the buyer’s Redfin refund policy Who signs this document:  Buyer and Buyer’s Agent (Selling Agent)
  17. 17. Offer Forms Disclosure And Consent For Representation Of More Than One Buyer Or Seller (C.A.R. From DA)  Discloses that the Broker (Redfin) may represent both the Buyer and Seller in a transaction.  An individual Redfin Orange County agent will NOT represent both the Buyer and the Seller in any one transaction. Who signs this document:  Buyer and Buyer’s Agent (Selling Agent)
  18. 18. Offer Forms Market Conditions Advisory (C.A.R. Form MCA)  Advises Buyer about determining the price to offer  Warns Buyer about the importance of contingencies  Warns Buyer about the risk of writing multiple offers Who signs this document:  Buyer and Buyer’s Agent (Selling Agent)
  19. 19. Offer Forms Disclosure Regarding Real Estate Agency Relationship (C.A.R. Form AD)  Defines agency representation and relationships  Describes the fiduciary duty expected of real estate agents Who signs this document:  Buyer and Buyer’s Agent (Selling Agent)  Seller
  20. 20. Offer Forms Residential Purchase Agreement (C.A.R. Form RPA)  Main offer form that contains terms including:  Offer price and terms  Closing cost splits  Contingency periods  Etc… Who signs this document:  Buyer and Buyer’s Agent (Selling Agent)  Seller and Seller’s Agent (Listing Agent)
  21. 21. Offer Forms Buyer’s Inspection Advisory (C.A.R. Form BIA)  Advises Buyer to conduct thorough home inspections  Outlines the importance of proper inspection of many different parts of the home and it’s surroundings Who signs this document:  Buyer  Seller
  22. 22. Offer Forms Wood Destroying Pet Inspection And Allocation Of Cost Addendum (C.A.R. Form WPA)  Outlines who is responsible for procuring and paying for a Wood Pest Report  Establishes who is responsible for correcting conditions discovered by Wood Pest Report  Section 1 & Section 2 conditions Who signs this document:  Buyer  Seller
  23. 23. Other Forms
  24. 24. Other Forms Contingency for Sale or Purchase of Other Property (C.A.R. Form COP)  Used when buyer has a home to sell  NOTE: seller has 72 ‘right of refusal’  Used when seller is purchasing a home  Seller must remove their contingency – 17 days or less  Timetables (contingencies) do not start until seller removes their COP
  25. 25. Other Forms Request For Repair (C.A.R. Form RR)  Used to ask the Seller to fix or credit Buyer for conditions discovered during the inspection period  Seller is NOT obligated to fix items other than as required by local law  RPA states property is sold in ‘As-Is’ condition
  26. 26. Other Forms Contingency Removal (C.A.R. Form CR)  Removes some or all of Buyer’s contingencies and commits Buyer to the purchase  If Buyer cancels transaction after removing contingencies deposit may be at risk  Should not be signed until Buyer is confident in their ability to close and satisfied with any terms agreed upon during negotiations
  27. 27. Short-Sales & Bank-Owned
  28. 28. Offer Forms REO Advisory (C.A.R. Form REO)  Informs Buyer of Seller exemptions in a bankowned transaction  Establishes what is still required of the Seller  Recommends Buyer have any addendums or amendments provided by Seller be reviewed by legal counsel Who signs this document:  Buyer  Seller
  29. 29. Offer Forms Short Sale Addendum (C.A.R. Form SSA)  Establishes timelines regarding short sale approval and contingencies  Outlines expectations of Buyer and Seller regarding short sale approval period Who signs this document:  Buyer  Seller
  30. 30. Offer Forms Short Sale Information And Advisory (C.A.R. Form SSIA)  Defines short sale  Informs Buyer and Seller of the alternatives to a short sale  Discloses the difficulties that may arise during a short sale transaction Who signs this document:  Buyer and Buyer’s Agent (Selling Agent)  Seller and Seller’s Agent (Listing Agent)
  31. 31. Offer Forms Bank Addendums / Amendments / Counter Offers  Often added to bank owned (REO) transactions  Modify terms of the RPA and may limit the bank’s liability  Often add daily per diem if Buyer closes late  Redfin can’t provide guidance or opinion on bank addendums, attorney review is strongly encouraged
  32. 32. Questions? Writing Class March 27, 2012 – Irvine, CA
  33. 33. Thanks for Coming! Questions? Get in touch: Katrina Jauregui Minni MacFarlane Courtney Rice Check out our upcoming classes:
  34. 34. Thank you!