module 12 Flashcards
Data sheet information
It is a best practice to ask the sellers to provide
documents to support any information on their
property, as you and the brokerage are ultimately
responsible for verifying the accuracy of the
information
Legal description and confirmation of owners
source documents,
such as a deed or survey. You will also be required to
indicate if there are major easements affecting the
property, because the existence of an easement must
be disclosed as it could affect the use of the property.
For confirmation of ownership,
you can get verification by consulting the property deed or GeoWarehouse® report.
Lot size
As a salesperson, you will need to confirm the size of a
property lot by using a source document such as a
survey, property tax bill (not all municipalities), or
GeoWarehouse® report
Age of principal structure(s)
Knowing the age of principal structures is useful for
buyer inquiries. Buyers would want to know the age of
a structure as it can impact obtaining insurance and
can indicate what materials may have been used
during construction.
The actual age could be available from the seller,
original owner, builder, or sometimes through the
municipality’s records, such as a building permit
and/or a GeoWarehouse® report
Assessment/taxes
As a salesperson, you will have to verify the seller’s most
recent assessment and property tax notices. Brokerages
could have an electronic link to tax information,
otherwise you could obtain the information directly
from the seller while ensuring to check source
documents for verification.
Zoning
As a salesperson, you may have to confirm current
zoning by contacting the zoning department of the
local municipality. You can also review a municipality’s
website or request a consultation with them. You
should be aware that there may be site-specific
variances.
For example, in a municipality, “R1” could represent a
single-family residential dwelling. “R” means residential
and the number represents density. This changes per
municipality. To get this information, you will need to
call the municipality and give them the address.
For example, in a municipality, “R1” could represent a
single-family residential dwelling. “R” means residential
and the number represents density. This changes per
municipality. To get this information, you will need to
call the municipality and give them the address.
As a salesperson, you will have to seek professional
guidance from a certified electrician or home
inspector, as needed.
Plumbing
As a salesperson, you will have to be able to distinguish if
the plumbing is copper, PVC, Kitec, or sometimes
galvanized in older properties. You will need to know the
type of plumbing system because it is thought that some
types are problematic, such as, galvanized or Kitec.
Heating, ventilation, and air conditioning (HVAC)
As a salesperson, you will have to specify the type of
heating and cooling system, and fuel source the
property contains. Knowledge of these systems is
important as some systems are more efficient or more
expensive to operate, and this could impact the
saleability of the property or the price a buyer is willing
to pay.
As you learned earlier, there are various types of
heating and air-conditioning units that can be found in
a residential property. Information about the age and
condition of the heating and air conditioning units is
important to a buyer, as systems older than 15 years
are more likely to become increasingly unreliable and
may need to be replaced.
Chattels/fixture
As a salesperson, you will have to clearly identify
chattels included and fixtures excluded. Chattels are
moveable possessions and personal property that can
be removed without causing any harm to the property.
On the other hand, fixtures are permanently attached
to a property.
Rental equipment
Rental equipment
A la Carte/Fee-based Listings
Another fee structure could be an a la carte or fee-based listing. This structure means there are flat rates for various
services, which you will need to complete to list the property. For example, you could require the seller pay a fee to
list the property and then additional, separate fees to complete various services that the seller can select. This is
often called a “limited service listing”, since the brokerage is not offering the full range of services that are typically
associated with a listing, such as advertising or hosting open houses
Special Remuneration Agreements
There can also be special arrangements regarding remuneration. One example is identified as a collateral
agreement
This is a second rate of commission identified in the listing agreement, which would take effect under
certain circumstances. The collateral agreement provides for a reduction in the remuneration paid if there is no cooperating brokerage involved in the transaction and the listing brokerage sells the property to a buyer
Another situation where a special arrangement can occur is if the seller was selling their home privately and had an
interested potential buyer.
The seller then decides to list the property and signs a representation agreement with a
brokerage. The seller can request to have the potential buyer excluded from the agreement.
If agreed to, the listing salesperson can place a time-frame (for example, one week) for the potential buyer to return
and purchase the property privately from the seller; thereby no remuneration would be payable to the listing
brokerage. The name of the potential buyer would be noted on a schedule attached to the listing agreement.
