Sales meeting on understanding the various deadlines that are contained within the Pennsylvania Association of REALTORS Standard Agreement of Sale and what role REALTORS play in assisting their clients with meeting them.

1. CHAMBERSBURG OFFICE
SALES MEETING
October 20, 2015
1

2. Jesse Thomas
Phone: (610) 780-4131
E-mail: jesse.thomas@axa-advisors.com
Dergalis Associates
Providing Financial Services & Health Insurance for the Real Estate Professional
2

3. Dergalis Associates
3
www.agentbenefits.net/homesale
Click on the ‘Agent
Benefits’ tile in
Homesale Center
1 2- - - - OR - - - -

4. PA Continuing Education
4

5. PA Continuing Education
 Licensees need 14 hours
worth of continuing
education by May 31, 2016
 This renewal period there are NO required course
except for agents who received their license
between December 1, 2013 and November 30, 2015
 New licensees must take a General Module (7 hrs.)
and a Residential Module (7 hrs.)
5

6. Nobody Cares How Hard You Work
6
https://youtu.be/Eg56pjV4jvE

7. 7

8. Keeping Track of Deadlines
8

9. Fiduciary Duties
 Care
 Obedience
 Accounting
 Loyalty
 Disclosure
 Confidentiality
9
Know what
you’re doing

10. PAR Agreement of Sale
10
Consumer’s Guide to
Agreement of Sale is
available on PAR’s
website
PARealtor.org

11. Deadlines in the Agreement of Sale
There are at least 14 different deadlines in the PAR
Standard Agreement for the Sale for Real Estate
11
Issues with Deadlines:
1. Keeping track of them
2. Ramifications of
missing them

12. 1. Earnest Money Deposit
 Initial deposit must be in Broker’s
possession within five days of
agreement’s execution date, provided
an alternate date is not agreed upon
 Seller may terminate agreement under
Paragraph 26 if Buyer does not meet
critical date
 Broker is responsible for depositing money in escrow
by the end of the next business day following receipt
12
Paragraph 2. (A) 1.

13. 2. Settlement Date
 May only be extended by mutual written
agreement between the Buyer and Seller
 If all other contingencies have been met by the
Buyer and Seller (i.e. mortgage, inspections, title,
etc.), the aggrieved party may pursue remedies
under paragraph 26
13
Paragraph 4. (A)

14. 3. Written Acceptance
 Buyer and Seller are only bound by real estate
agreements that are in writing and agreed upon by
the parties to the contract
 Real estate
contracts may be
withdrawn at any
time prior to acceptance
14
Paragraph 5. (A)

15. 4. Mortgage Commitment
 Buyer is obligated to deliver a copy of the mortgage
commitment to the Seller upon receipt
 Only the Seller may terminate the agreement if the
commitment date is missed
 Mortgage commitments
may not be conditioned
upon receiving a
satisfactory appraisal
15
Paragraph 8. (B)

16. 5. Interest Rate Lock
 Buyer is bound by the agreement of sale if they
were given the opportunity to lock in their interest
rate during the course of the contract
but chose not to lock in their rate and
the rate is now higher than the
terms stated in the Mortgage
Contingency
 Buyer would be in default
according to
Paragraph 6.(F)
16
Paragraph 8. (D)

17. 6. Mortgage Application
 Buyer is responsible to make a mortgage application
within seven days of executed contract unless
another time frame is agreed upon
 An application fee needs to be paid
 Buyer would be in
default according
to Paragraph 26.(E)3
17
Paragraph 8. (E)

18. 7. Lender Required Repairs
 Buyer must immediately notify Seller in writing if
Lender requires repairs on property
 Seller has five days to respond to request in writing
 If Seller does not respond or refuses to make repairs,
Buyer has five days to accept or reject Seller’s
decision in writing
 If Buyer fails to respond, they
must proceed with sale
18
Paragraph 8. (H)

19. 8. Inspection Contingency
 Buyer must have inspections completed within ten
days of execution date of agreement unless another
time frame is agreed upon
 Buyer must respond to
Seller in writing during
contingency period whether
they will accept, reject, or
request corrective action
19
Paragraph 13. (A) & (B)

20. 8. Inspection Contingency (cont’d)
 If corrective action is requested, Seller has five days
to respond in writing if they will accept, reject, or
negotiate corrective action(s)
 If no acceptable resolution is arrived at, Buyer must
respond in writing how they will proceed within two
days
 If no written response from Buyer following the
negotiation period, Buyer is deemed to have
accepted property
20
Paragraph 13. (A) & (B)

21. 8. Inspection Contingency (cont’d)
 NOTE: Time frames for negotiating septic concerns
are different
 Ongoing negotiations do not automatically extend
the negotiation periods
 Missed deadlines have serious consequences
21
Paragraph 13. (A) & (B)

22. 9. Public/Private Assessments
 If assessment is received by Seller after agreement
has been signed, they will notify Buyer in writing
within five days
 Notification must state whether Seller will comply
with assessment or not
 If Seller chooses not to comply,
Buyer must respond in writing
within two days of intent to
proceed or not
22
Paragraph 15. (A)

23. 10. Municipal Requirements
 If Seller receives notification from municipality that
there are uncorrected defects in/on property, they
must notify Buyer in writing within five days of
their intent to correct
 If Seller chooses not to
correct, Buyer must respond
in writing with five days of
their intent to proceed
23
Paragraph 15. (B)

24. 11. Resale Certificate
 Seller must request a resale certificate from
association within fifteen days of execution of
agreement
 Association has ten days to fulfill request or they
are in violation of the Uniform Planned Community
Act
 Buyer has five days to examine
certificate and proceed or
terminate in writing
24
Paragraph 16. (B) 1.

25. 12. Title Insurance
 Seller must be able to convey good and marketable
title to Buyer
 If Seller cannot convey good and
marketable title, Buyer may
terminate contract anytime
prior to settlement and
receive earnest money
deposit and any costs for
inspections and
certifications
25
Paragraph 17.

26. 13. Property Damage
 If any part of the property is damaged prior to
settlement, Seller needs to notify Buyer in writing of
their intent to repair item
 If Seller chooses not to repair, Buyer has five days
from notice to respond in writing of their intent to
proceed with sale
 Buyer accepts property if
no notification is produced
26
Paragraph 18.

27. 14. Communications
 Buyer must promptly deliver the Loan Estimate and
Closing Disclosure to Agent for Buyer
 In virtually all cases, delivering documents to the
Agent for Buyer or Seller constitutes notice to their
respective clients
 Time is of the essence
27
Paragraph 30. (A) & (B)

28. Don’t Be ‘Foggy’ With Deadlines
28