Ch 23: Advising Buyers and Sellers Flashcards
What dates in the contract are of particular importance for buyers to watch?
Dates in the contract that pertain to inspection periods, appraisals, and mortgage financing
What forms must buyers fill out during the mortgage loan application process?
Permission to Request Credit Report
Uniform Residential Loan Application
Verification of Employment (VOB)
Verification of Deposit (VOD)
How is property value determined in a drive-by appraisal?
The value of the property is established through computer research on data provided through the real estate community and a large bank of computerized information available to appraisers.
What is important to tell you clients about general home inspections?
They do not always catch major problems.
Why do lenders require buyers to purchase property insurance?
So that their interest in the property is also protected
What does a CLUE Report do?
Insurance companies use the information to determine whether to insure a property and at what cost.
The report reveals major damage or repairs covered by insurance. In some cases, it reveals damages about which the owner contacted the insurance company but did not file a claim.
What are the two most requested surveys?
Spot and stake surveys are the two most requested surveys.
When should you schedule the final walk through of the property?
Schedule the walk-through the day prior to or the morning of closing. You really do not want to give the buyer too much time to nit-pick the property. You want the buyer to get in, do the inspection, and get out.
What is probably the most important item to keep track of for sellers so that they don’t miss the deadline?
Probably the most important item to keep track of for sellers is any designated time periods the sellers have for responding to inspection results and requests for repairs.
How can your sellers’ payoff amount be different from their current balance?
The current balance might not reflect how much they actually have to pay to completely satisfy the loan. The payoff amount also includes the payment of any interest the sellers owe through the day of closing.
When should sellers cancel their utilities and insurance?
Sellers should cancel their utilities and insurance to be effective on the date of closing.
The law requires brokers and companies to keep records for how long?
The law requires all qualifying brokers and companies to keep copies of all contracts, leases, listings, and other records pertinent to real estate transactions in their files for a period of three years.
The most basic homeowner policy is known as a:
HO-2 policy.
Home buyers are often required by a lender to get:
homeowners insurance.
On what criteria is the value of property determined when seeking a VA loan?
Certificate of Reasonable Value (CRV)
