Achieving Agreements through Transaction Analysis Part 1

Question 1

What are the fiduciary (statutory) duties?

Answer 1

Obedience
Loyalty
Disclosure
Confidentiality
Accountability
Reasonable Care

Question 2

General roles of the attorney in a transaction

Answer 2

Lawyers conduct the negotiations of and write the purchase agreement + conduct the closing

Question 3

What are purchase agreements/contracts/contract of sale?

Answer 3

Contracts in which the seller promises to convey title to real property to a buyer in exchange for the purchase price.

Typically, it is the final product of negotiations between attorneys representing buyer and seller

Question 4

Purchase contracts typically serves this purpose (5)

Answer 4

1. It’s the buyer’s initial offer (and subsequent counteroffers)
2. It’s the receipt for any earnest money deposit
3. It’s the contract between the buyer and seller
4. It establishes the terms and conditions of the sale
5. It’s the document that communicates the details of the transaction to the mortgage lender, title company, and any other party to the transaction

Question 4

Purchase contracts typically serves this purpose (5)

Answer 4

1. It’s the buyer’s initial offer (and subsequent counteroffers)
2. It’s the receipt for any earnest money deposit
3. It’s the contract between the buyer and seller
4. It establishes the terms and conditions of the sale
5. It’s the document that communicates the details of the transaction to the mortgage lender, title company, and any other party to the transaction

Question 5

Goals of listing appointments (5)

Answer 5

• understand the seller’s needs
• show the seller how you can meet those needs
• create a business relationship between the broker and the seller
• negotiate an appropriate listing agreement that will turn that seller customer into your seller client
• come away with a signed listing agreement

Question 6

During the listing appointment, typically the broker (5)…

Answer 6

• establishes a rapport with the seller
• starts to get an idea of the seller’s needs and expectations
• inspects the seller’s property, noting positive selling points and/or obvious problem areas
• gets a feel for the neighborhood and how this specific property fits into the neighborhood
• gathers any other data necessary to form an initial marketing sttrategy

Question 7

PreQualification

Answer 7

is an estimate of a mortgage loan based on income, debt and assets

• helps establish how much money the borrower could obtain under a loan
• is accomplished by asking questions about the buyer’s income, available cash for down payments, as well as their housing requirements and desires

Question 8

PreApproval

Answer 8

• requires completing the mortgage loan application and undergoing a more thorough credit check.
• states the specific loan amount and interest rate the lender is willing to offer the borrower.