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Hand-in-Hand Teaching Guide to key in Trec Form 1

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Trec Form 1 Demand Assistance

this video is about the 1 to 4 family.residential resell contract promulgated.by the Texas real estate commission you.have to know that Trek revises these.contracts from time to time but the good.news is is that I also provides this.video to keep up with those changes it's.just that I'm a few months delayed.behind tricks changes because I'm I'm.running a real estate brokerage company.here in the North Fort Worth area you.should Google me if you are looking for.a broker I'd love to talk with you but.the the changes that I make are all the.significant changes that they make to.these contracts there are plenty of.changes that they make that are.completely and significant and I believe.that you just don't care about them at.all I don't care about them.there are comas that are changed little.little nuance II pieces of terminology.and dates and that sort of thing that.that really are insignificant let me.give you an example one time they.revised the way that they refer to real.estate agents they change the term it.used to be we were called licensees well.now they revised it to say that real.estate agents are now referred to as.license holders so it's the difference.between licensees and license holders I.just don't believe anybody cares too.much about that kind of change also.you'll see in the bottom right corner of.physical trick contract that there's a.version number in this video you might.find the version number to not reflect.the current day version number and just.because if that particular screenshot.did not include a major revision then I.didn't replace that screenshot it would.just take a really long time to go back.and replace all those little minor.changes something top right of the.contract you'll see a date that date.will let you know if you're using a.contract that's up to date if you're a.realtor you better be using the most.up-to-date version of the contract in.practice but in this video you're gonna.you're gonna see the old date in a few.places just forgive me on that I want to.just say thank you so much for watching.the video the past videos have got so.many views.many people reach out and told me that.they appreciate it I just want to let.you know that I appreciate you guys.please like the video comment below I'd.love to answer any questions and feel.free to subscribe to the channel and I.wish you the best enjoy the video first.we're gonna cover when to use this.contract and when to not use this.contract then we'll begin with some.conceptual topics and as we continue.we'll drill down into some more nuts and.bolts topics so first the the high level.we'll go over why it's important to.learn these contracts then we'll go over.the mindset that you and I must have.when we're going through these in the.mindset that people have as they're.interacting in a transaction next we'll.go into how to actually use the contract.how to make offers and counteroffers.we'll discuss why words matter and we'll.talk about some general information.about the contracts we'll go over a an.overview of the contracts themselves and.then we'll drill down and go through the.entire nine page contract one paragraph.at a time as we're doing that I'll.discuss what to put in the blanks from.the perspective of the buyer and the.seller and I'll also go over the.pre-printed black and white text along.the way we'll discuss best practices.let's get started when to use this.contract and when not to use this.contract so we'll go over the wind to.use it first if you're purchasing or.selling a residence of one to four units.in Texas you should use this contract.meaning if it's a single-family home a.duplex a triplex or a quad place then.you should use this this form is the.form that you'll use most often when.you're representing buyer's or seller's.in a traditional real estate transaction.I even recommend investors use this.these trick contracts for many reasons.that I won't really go into but if you.want to know just let just give me a.call you're gonna use these contracts if.the property is one acre or under even.if it's a short sale if it involves.owner financing if it's a contingency.offer if it's a backup offer if you're.assuming a loan if it's in wetlands or.coastal area if it's in a homeowner's.association or not whether it has.mineral rights are not whether it has.lead based paint or not or whether.you're even using a reverse mortgage to.purchase the home and all those.scenarios you would still use this.contract the time you would not use the.contract is if it is an improved.property like raw land or vacant land.just a lot if it's new construction you.wouldn't use this if it is a considered.a farm or ranch meaning most of times if.it's one over one acre then this would.not be the best contract to use you'd.actually use the farm and ranch contract.but some other properties that maybe.have you know two to five acres there.might be some circumstances you would.use the one before family residential.resell contract but for the most part if.it's over an acre you wouldn't use this.you would not use this contract if it is.a condominium if it is over four units.or if it's a commercial property now.let's discuss the importance of learning.these contracts you must be intimately.familiar with this contract in many ways.this is your business all we do is help.people come to an agreement to purchase.and sell real estate this contract is.the agreement expect for your client to.read this contract and if your client.reads this contract and ask you.questions and it becomes clear that you.don't know what you're talking about.the client begin to view you as an.obstacle or as useless you'll turn into.an order-taker or paper pusher.this is the area you're supposed to be.an expert so be an expert take this.training serious learn this contract.inside and out you must know more than.your client as a general rule of thumb.whether it's this contract or another.contract you should always at a minimum.carefully and slowly read through each.line of the contract before you get into.any transaction involving any document.and so this is what you're gonna get out.of the training if you learn these.contracts and you become very.knowledgeable and an expert in this area.then you're gonna feel more confident.we're just gonna make you happier your.negotiating skills are gonna improve.you'll be looked at as more of an expert.and inside the transaction you will gain.authority which will cause the other.agent and the other the parties involved.to just comply they'll understand that.you know what you're talking about.they're just gonna they're just gonna.follow behind you.clients will trust you more.and it'll lead to less headaches and.clients will refer you more business the.trust will will leverage into into more.business for you and you're gonna end up.making more money so it's not a magical.process it's just what happens when you.become an expert now I want to discuss.my mindset as I enter into a transaction.and as I learning about these contracts.and working with the contracts and the.mindset of everybody else involved so my.focus is first and foremost to serve my.clients best interest and and usually.I'm hoping that that means that they.they're interested in reaching an.agreement so my focus really is serving.my clients Beckett best interests and.reaching an agreement it's important to.aim for a win-win agreement because the.contracts aren't the end-all solution.the contractor only as good as the.people writing them they don't work if.the parties involved decide not to.follow through on what's been agreed.upon if someone doesn't feel like.they're in a fair agreement they may.decide not to follow through so that's.why when a conflict occurs I focus on.coming to an agreeable conclusion and I.try not to focus on who's right or wrong.when the focus becomes who's right or.wrong.the objective changes from getting.something accomplished and coming to an.agreement and it changes into who's.going to win the debate or win the fight.and if it's escalated fighting really.costs a lot of time and money if we end.up in a courtroom I promise you the only.people that'll be winning are the.attorneys it's important to know who's.actually right or wrong so that we can.have a better perspective on how to.reach an agreeable conclusion who or.what is actually wrong isn't always as.relevant as what the other person thinks.is right or wrong because at times it.can be counterproductive to try and.convince someone else that they're.actually wrong regarding a specific.issue so if we know these contracts.inside and out we can accomplish more.avoid conflicts and because we'll have.the ability to be more deliberate in our.actions.and communicate with greater clarity we.will actually close more deals and and.with with greater ease it'll just have a.better result all around again we.learned this stuff so we can be experts.server and serve our clients well most.people just want a fair shake and expect.for eachother to do is we've agreed.putting all this stuff in writing.provides specific and accurate.communication so everybody's on the same.page and we all work towards the same.conclusion our goal is not to take these.contracts into court but it's just so.everybody can understand what we've.agreed on let's go over how to use the.contracts first the first step is.usually just for the buyer to write an.offer so what does an offer an offer is.made by simply filling out the contract.to fit the terms you would agree to and.then you send that contract over to the.seller so after the buyer has done that.they send it over to the seller if the.seller likes what the buyer proposed.then the seller can just initial and.sign the contract and then we'll have an.agreement.now if the seller isn't happy with the.terms proposed by the buyer for instance.if the buyer proposed say a $300,000.purchase price but the seller didn't.like 300,000 the seller wants to three.hundred and ten thousand dollars then.the seller can make a counteroffer this.is done by striking through the terms.that they don't agree to and then.writing in the new terms that they would.like to propose so in this case the.seller would draw one line through three.hundred thousand and they right beside.it they would write three hundred and.ten thousand dollars and then the seller.would just initial any changes made so.then and then send that that contract.the the altered contract back over to.the buyer so now the sellers initialed.and signed everything they've initialed.the changes and so then next if the.buyer agrees to the changes that the.seller is proposing then the buyer will.just initial those changes then we'll.have an agreement then we'll move on if.it doesn't happen like that then this.just continues we just keep going back.and forth until it becomes clear that.the two parties won't reach an agreement.or until an agreement is made.just a note it is acceptable to respond.to an offer or counteroffer verbally to.help expedite the negotiations just.realize that the verbally negotiated.terms can't be enforced until they are.reduced to writing and agreed-upon sign.initialed and the contract is executed.before you make a verbal offer keep in.mind how that will serve your strategy.sometimes speed is very important so.verbal offers are good idea but.presenting a counteroffer in writing can.convey a message that might be taken.more seriously so just do whatever is.best for your situation in your strategy.also don't be surprised if you verbally.agree on something and then the seller.decides to take another higher offer.keep in mind verbal negotiations they.just can't be enforced next let's talk.about why words matter so this is.interesting to me a contract all it is.is just a bunch of words that put.together form ideas and those words have.definitions and so the meaning of these.words matters a lot and and that's what.attorneys get paid the big bucks because.they are masterful at using words and.they understand the fullness and and.maybe even a deeper meaning of the words.that we're using so just carefully.consider the definition of the words on.the contract and what the words really.really mean so real quick I want to.define just a few words for you before.we get into this too deep the word shall.is a word that you're gonna see a lot.and you can just substitute the word.must for the word shall if that helps.you better understand the sentence.something else that you're gonna hear me.talk about and see in the contract is.the word addendum and the word amendment.I want to talk about the differences.between these both of these documents.are used to change the terms of the.agreement the real difference comes in.the real difference between them is when.those documents are used an addendum is.used at the same time you're coming to.agreement in this main contract this one.for family residential resell contracts.sometimes you'll have an addendum or two.that will accompany it.and you'll sign those at the same exact.time you're signing the main contract an.amendment would come into play later.let's say you've agreed to everything.you've signed contracts and addendums.and everything you've got a solid.agreement well if the the buyer and.seller decide to change the terms of the.contract after the fact they would fill.out an amendment so some circumstances.where you might amend the contract would.be if you were changing for instance a.deadline or trying to negotiate repairs.also I want to just go over what the.word promulgated means I promulgated in.short it just means to publish or to.make widely known or to put into effect.and make up official proclamation so.when we say that this is the Texas real.estate commission promulgated contract.then it's just Texas real estate.commission is the one that's putting it.out there basically now let's start.talking about the contracts themselves I.want to go over a little bit of an.overview these documents so these.documents were drafted to clarify common.issues and they're drafted to be fair so.it's not to favor the buyer or the.seller it's really what you put in the.blanks that gives one party on an.advantage over the other potentially the.contracts are also updated once in a.while and you just want to make sure.that you have the most recent copy of.the contracts that the board of realtors.can actually find real estate agents or.Realtors if we're using an outdated form.so if someone if you're a realtor and.someone sends you an offer on an.outdated form all you have to do is just.politely ask them to redo it on one of.the most recent forms and it's really.not that big of a deal also if there's a.trek promulgated form for a specific.area or specific purpose then you want.to use that form.we're actually required to use the trek.promulgated forms unless our client.insists on us using something different.for instance let me just give you an.example let's say you wanted to include.some personal property in the sale in.the transaction of the of the the real.estate transaction so let's say the.buyer wanted to keep the sellers.refrigerator well then.you wouldn't write seller buyer.retainers refrigerator or buy our.refrigerator shall convey on closing you.wouldn't write that in special.provisions you'd actually get the.personal property addendum this.promulgated by Trek to notate that it's.also a good idea to take a picture of it.so that you can make sure that you're.actually gonna get what you want if you.said I want to keep a patio chair and.there's three or four patio chairs then.you I just want to make sure you're.actually getting the one that you're.most interested in also if another.document is useless say your client.insists on some other kind of document.being used you likely won't have the.authority to even assist them or answer.too many questions or help fill out the.contracts just because the authority.given to you through your license it.just doesn't give you the ability to.help out with any other contracts you.haven't had any adequate you haven't had.adequate training for those contracts.and and doing so may be considered.practicing law without a license doing.that could get your license revoked in.the contract all timelines and deadlines.are meant to include all calendar days.not just business days and it even.counts weekends and holidays so if you.get a five-day deadline and that five.days straddles a weekend and a holiday.the weekend and holiday still counts.against your five days the entire.contract is a total of nine pages the.first eight pages are the agreement.between the buyer and the seller and the.ninth page is for receipts and it's to.notate which brokers are involved in the.transaction the first seven pages have.initials at the bottom of the page and.then pages two through eight has an.address field at the top so you want to.make sure that your clients are.initialling every blank and you're.filling in the address address blank at.the top of each page filling out the.address helps to identify the page in.case the page is misplaced and one final.note on how to fill out the contracts.unless you have a reason to deliberately.leave a field in the contract blank and.putting some kind of text in the field.is a great way to avoid making errors.even if the text is just n/a.which is the abbreviation for not.applicable this also lets other people.in the transaction know that you have.seen that field you didn't skip over it.you've given it careful consideration.and it wasn't unintentionally left blank.so alright that's it for the.introduction and all of the background.and overview and everything let's go.ahead and dig into the next part which.is the nuts and bolts were going over.the contracts one paragraph at a time.paragraph one the parties the simplicity.of this paragraph leads to mistakes this.section introduces you to the parties of.the contract the seller and the buyer.you are not a party to the contract.you're just an agent we're licensees.we're not an attorney our client can do.just about anything that they want to do.even if it doesn't serve their best.interests and by the way it's not up to.us to determine what their best interest.is it's up to them to determine their.best interest so just an example is if.the buyer insists on talking to the.seller if the buyer and the seller are.complicit in that they've they're okay.with it then by all means the agents.should step out of the way and let the.buyer and the seller talk as much that.gives me the EVG viiay if they feel like.that's in their best interest then they.have full authority to do that in the.first Mike you put that you put the.sellers name second blank you put the.buyers name use the correct spelling of.the legal name of each party no.nicknames no middle don't don't use the.middle name as the first name you know.if they happen to go by their middle.name but their full name no.abbreviations and find out if they're a.junior or a third or if there's some.kind of suffix or prefix you need to.include in there the easiest way to do.this is just a sure client to spell.their full legal name for you and also.the way I write it I like to write their.full names out I don't like to write.Tracy and John Smith I like to write.Tracy Smith and John Smith as a.purchaser I don't know if there's any.kind of legal reason for that I don't.know why I just feel like that's the.complete way to do it so that's the way.our company does it and this is an.opportunity for you to head off problems.in advance.this gives you an opportunity to verify.their driver's license to make sure that.their name matches and that can help you.avoid a potential conflict with the.notary at closing because if the if the.driver's license doesn't match the.contract and doesn't match the lender.documents you could have a problem which.brings me to the lender documents this.gives you an opportunity to verify how.their name appears on the loan documents.to ensure that you're not going to have.to file an amendment to reconcile the.differences between the contract and and.the the loan documents if the name.appears different on each then you're.gonna have to amend the contract also.don't leave the sellers name blank if.you're the representing the buyer making.the offer and you don't know what the.sellers name is try your hardest not to.leave it blank do everything you can.look at the bottom of the MLS listing to.see if you can find the the sellers name.there if you can't find it there then.look at the central appraisal district.website if you can and if you need help.finding the Central District website.just google see ad in the county name so.for instance Tarrant CAD or whatever and.then also it'd be a great idea just to.call the agent and ask them what the.sellers name is and and include that.question in just your normal standard.pre offer phone call that you should.probably be making anyway.one other note here is if there's any.kind of question as to how the title.should be vested or the kind of legal.structure between multiple parties on.the contract then you might need to.specify so for instance if you've got.two people on the contract but they're.not married but they're like buying it.both both as purchasers then you might.need to say something like I don't know.it'd be kind of weird I guess but John.Smith a single man and Jane Doe a single.woman or right there that their tenants.in common or it certainly if it's a.company then you'd want to put the legal.structure of the company so if it's a.corporation or an LLC make sure.that if you're the listing agent then.this is a good opportunity for you to.just verify and make sure that there.isn't anything weird going on with the.ownership if the husband and wife are.not talking each other sending you mixed.signals you might want to just check and.see if they've filed for a divorce or.something I don't know how you have that.conversation but just find out if.there's anything weird going on with the.ownership any any deaths that have.happened if you're selling it out of an.estate if you anything that could.fracture the ownership somehow if.there's multiple buyers or sellers and.for some reason they won't be able to be.present at the same time for closing.then find out now so you can start.working on getting a power of eternity.together and because sometimes it takes.a little time to get the power of.attorney approved by the title company.or the buyers lender so it's good to.find out about that ahead of time in the.side note just for the investors if you.want to put something like and/or a sign.do you think you might assign the.contract there's really no need to put.Endora signs on the contract all.contracts are gonna be assignable unless.they specifically say that they're not.assignable but I don't believe our.company is gonna be dealing with any.contract the signing anytime soon so.just I guess that's just a bonus point.ok paragraph 2 this is the property this.is the item that the buyer is agreeing.to purchase and sellers agreeing to sell.paragraph a here a of property you've.got the land B as improvements these.accessories D as exclusions and so.diving into a here the land we've got.the legal description and then what the.property is known as so legal.description you'll see that described.one in one of two different ways in this.contract it lines out the lot and block.description legal description of the.property another way that it could be.described as using metes and bounds.you're typically not gonna see meets and.balance unless it's an over house or.include some acreage in which case you.might use an unimproved property.contract or maybe farm and ranch.contract so most the time it's going to.be Lawton block if.you were to run out of room and you.didn't have enough room to write the.entire legal description you can use the.special provisions to continue the legal.description there or an attached sheet.of paper I would actually probably just.prefer an attached sheet of paper let's.say the improvements section this these.are generally things that are.permanently installed or built into the.house itself so it includes Windows.screen shutters awnings carpet mirrors.ceiling fans mailboxes TV antennas the.mounts and brackets used to hang.flat-screen TVs on speakers so the.surround sound speakers air-conditioning.units smoke detectors wiring plumbing on.none garage door openers shrubbery.landscaping outdoor cooking equipment.and that sort of thing so these are.things that are actually attached to the.property see is the section for.accessories these are items that are not.permanently installed or attached but.they still convey they're still part of.the legal agreement here and it includes.things such as the curtains and rods.fireplace screens blinds window shades.draperies rose door keys mailbox keys.above ground swimming pool keys.maintenance s accessories and that sort.of thing so D in the exclusions blank.this is where you would write something.that is either an improvement or an.accessory either a B or a see here that.is not going to be conveyed with the.sale of the property so let me just read.this the following improvements or.accessories will be retained by the.seller and must be removed prior to.delivery of possession so one thing that.you can't really do that this paragraph.is not intended to do is for the seller.to retain their mineral rights in this.section here so and and there's a couple.reasons why.number one is mineral rights are neither.an improvement or an accessory and you.can't really the seller can't really.remove them prior to possession.so the the function of the paragraph.just clearly doesn't work with mineral.rights another reason why is because.Trek promulgated an addendum.specifically to allow this seller to.retain the mineral rights and so.whenever Trek does that unless somebody.and unless at a party to the contract.specifically mandates that we don't use.those than we need to use that addendum.the specifically for that purpose.another thing to do here if you're a.buyer's agent you need to look on the.MLS to see if they've noted ahead of.time that there are any exclusions that.they want to note in the contract and.don't want included in sale if there are.then you'd want to list those out here.so items that would be great to list.that you commonly see are items such as.rose bushes I've had several clients.want to keep their rose bushes the.surrounds surround sound speakers the.curtains and draperies the window.treatments that sort of thing those are.those are items that you would include.in the exclusions if the seller wanted.to retain them to e reservations all.this line talks about is that if you.want to reserve the mineral rights or.any other type of rights you'll need to.use a separate addendum let's talk about.paragraph three paragraph three is one.of those paragraphs that was revised.when treck redid all the forms and and.they became effective November 2nd 2015.and so what they did is they took what.was the old paragraph four and they.combined it with what paragraph three.was and so now we have a new paragraph.three paragraph three describes the.sales price and it also describes begins.to describe the kind of financing that's.going to be used to purchase the.property so the way that it works here.is line C is the total sales price.that's gonna be the number that the.seller cares the most about because.that's the amount of money that's the.total purchase price that's the amount.of money that the seller is gonna.actually receive what this contract does.is it divides it up so that the first.line here line a that's going to be the.down payment amount line B is going to.be the amount financed the loan amount.and then you just total those together.to get line C so.in a plus B is always gonna equal C no.matter what so if you've got a deal.where there's no down payment at all.zero down payment then in line a for the.cash portion of the sales price there's.no down payment so there's no cash so.you would put zero on that first blank.there on line a my B would be the total.financed amount well if there's zero.down payment that means the entire.amount of the sales price has to be.financed let's say it's $100,000 sales.price that means that $100,000 is gonna.have to get financed so $100,000 it goes.in line B line C will be the total sales.price in this case it's gonna be.$100,000 because 0 was the down payment.a hundred thousand was the financed.amount in line B and then so line C is.$100,000 same thing would happen if it.was a cash deal only it would be.reversed so if 0 if no financing was.taking place if the buyer was using come.just total cash to buy the house then.the all of the the entire sales price.would be in cash form so in that same.example a hundred thousand dollars would.go in line a there would be no financed.amount so line B would be blank or you'd.put a zero in there and then line C.would be a hundred thousand dollars okay.all that stuff is the same as it used to.be the only thing that's really.different here in paragraph three is on.line B where it's talking about the.financing you have three different.options this gives you the option to.select the type of financing that's.going to be used and it it references a.an addendum that's going to correspond.with that type of financing that you.need to attach to the contract that.describes that type of financing in.details so the one that you're going to.use the most of and it's gonna happen on.any almost any transaction that's that.it contains financing like a mortgage it.you'll have to check this box that says.third party financing addendum.okay now Trek did go in and totally.revised the third party financing.addendum and basically what they did is.they took all the language that was.as was in paragraph four before they.revised this trek contract and then they.just added that to the third party.financing addendum and they took out the.reverse mortgage stuff out of that third.party financing and did them but we're.gonna get into detail on that third.party financing addendum in a different.video for the purposes of this all.you're gonna need to do is just make.sure you understand 30 party financing.means any type of financing that is from.a bank or from a from a third party from.i if it's from mom and dad if you're.getting a loan from mom and dad if.you're getting a loan from joe bob at.church and he's got a bunch of money and.he wants to lend it to you so you can.buy a house or if you're going to Wells.Fargo or Bank of America or one of those.typical conventional yeah regular.lenders then you're gonna check third.party financing and make sure that that.third party financing Intimus filled out.completely one last word on this.paragraph is that if something happens.in the course of the transaction where.you go and have to amend or you.negotiate the purchase price that's.that's done fairly often and so if you.change the purchase price and amend that.in the contract and the buyers using.some financing make sure that you also.amend the financed amount okay it's.because what's going to happen is if.there are certain protections that the.buyer is given they're spelled out and.that their party financing addendum and.if you don't amend the financed amount.to make sure that matches up with the.third party financing addendum and to.reflect the new changes of whatever.y'all whatever their negotiated you know.new changes are then you're you you you.may lose some of your protection there.that that third party financing addendum.offers so that is it for paragraph 3 I'm.gonna move on to paragraph four.paragraph four this is where you.disclose if you have a real estate.license and you're buying the property.or you have a real estate license and.you're selling the property yourself.like you're gonna be the buyer or you.are yourself the seller.and if you have that real-estate license.you must disclose that and that's what.this paragraph is for it gives you the.space available to disclose that your.license holder it also is is where you.would disclose if you have some kind of.close relationship with the buyer or.seller and then it spells out all the.different types of relationships that.you might have in different scenarios.where you would need to disclose that.you are a license holder and you have.some kind of relations so it goes into.whether if you're if the buyer or seller.is your spouse if they're your parent.your child on and on and it goes into.detail here so that's this is where you.would disclose that you have a real.estate license plain and simple.paragraph five deals with the earnest.money earnest money is just a deposit.made upfront by the buyer to indicate.that they're serious about purchasing.the house and this amount can be.anything that the buyer is comfortable.with I always advise my buyer that the.seller is more than likely expecting the.amount to be somewhere in the ballpark.of about one percent of the purchase.price and it's typically rounded to the.nearest 250 dollar increment this 1%.rule of thumb has just become what's.what's decently common but there's.nothing set in stone that says it has to.be any certain price point if you see a.really low end property or a property.with a really high purchase price you're.gonna see this 1% rule of thumb.deviation quite a bit it could be as.high as 2 5% you know the sky's the.limit.there's it doesn't matter how high it is.on the low end it could be anything.Builders will also deviate from this.ballpark pricing quite often just.because the Builder is gonna be putting.a lot of money at risk and really.sticking their neck out there but the.builders also likely going to be using a.completely different contract if it's a.seller's market meaning there are more.buyers than there are houses then that.means the buyers are gonna be competing.against each other quite a bit trying to.make their offer look more and more.attractive than the next buyer in line.and so you'll see the the 1% rule of.thumb get exceeded quite a bit I always.explain to my client exactly when their.earnest money becomes at risk because.there are several areas in the contract.that protect.them and protect that rhiness money so.that if they needed to get out of the.contract they get a full refund on their.earnest money let's see the paragraph 23.the termination option paragraph.protects them if you terminate the.contract before that deadline and you've.you've satisfied all the other areas of.the contract then you should get your.entire earnest money deposit back.there are several addendums that protect.you the third party financing addendum.the HOA addendum and it just goes on and.on so I've had clients that feel really.comfortable putting down a sizable.amount and that earnest money blank and.and they they do put a huge amount down.if they want to convey a really strong.message so 10-15 percent on the high end.is what I've seen you can go the sky's.the limit there is no limit on the on.the higher side on the low end if you've.got a client a buyer that's doesn't.really care whether or not they get the.property maybe they're an investor and.they just say hey look I don't want to.get spread too thin by writing a bunch.of checks for earnest money and I'm.gonna put out a Elian offers or.something then let's go ahead and put.zero in they're honest money blanket and.if I don't get the contract if I don't.if I don't get it accepted no big deal.they can do that too there's there's no.reason there's it's actually not.required to make this a valid contract.if you're a real estate agent you're.representing the seller and you have one.of those buyers that we all love that.comes and gives you an offer and there's.no earnest money in the blank I'm still.gonna present that offer to my seller.just because it's a valid offer unless.my seller has instructed me not to.present any offers that have no earnest.money just to be on the safe side if.there's anything attractive about the.offer I probably still present it just.just cover my matéo but yeah if it's if.your clients instructed you not to.present offers under certain conditions.you don't have to otherwise you better.present it let's talk about the first.little phrase in this paragraph and.let's talk about the last little phrase.in this paragraph it says within three.days after the effective date of this.contract the buyer must deliver earns.money very last comment here if phrase.says time is of the essence for this.paragraph that phrases knew it didn't.always say.in this paragraph it was revised to say.time is of the essence I think it's a.really good thing that they did say that.did include that but the the within.three days after the effective date.let's break this down for a second this.says three days after the effective date.so that means that let's say if the.contract was executed on Monday then you.would start counting after the effective.date so you'd start counting on Tuesday.so it would be Tuesday Wednesday.Thursday Thursday would be the deadline.for this earnest money being due okay so.that's how you count that but this.timeline gets thrown out of whack if the.if the the third day ends up being on a.weekend or a holiday if you just kind of.skip to the middle of this paragraph you.see the word if right there the.beginning of the sentence it says if the.last day to deliver the earnest money.falls on a Saturday Sunday or legal.holiday the time didn't to deliver the.earnest money is extended until the next.day that is not a Saturday Sunday or.legal holiday so let's just say for.instance if the contract was executed on.a Friday then you would count Saturday.Sunday and Monday so Monday would be the.day that the earnest money is due and.last Monday is a holiday then it's gonna.be dude the next business day it'll be.due Tuesday let's say if the contract.was executed on Monday and Monday is a.holiday that's irrelevant it's still you.would you don't card start your counting.on Tuesday because it's three days after.the executed day so it'll be Tuesday.Wednesday Thursday earnest-money be due.Thursday now you might want to know what.happens if the buyer doesn't deliver the.earnest money within that amount of time.well then the race is on.if the buyer does not deliver earnest.money then the seller now has the right.to terminate the contract by delivering.to the buyer a notice of termination.however if the buyer deposits that.earnest money it's the title company.before that termination letter is.delivered to the buyer then you still.got a deal it's got to be that that.termination notice if though if the.seller wants to terminate it has to be.in the buyers hands before.they deliver the earnest all of this.delivery and timeline issue can get real.sticky if we start getting right down to.the the nitty-gritty of it all because.you just say okay so who can we deliver.this to does it have to be the title.company or could it be the seller and.how do we know when these things are.delivered what if the what if the buyer.delivers the earnest money and the.seller sends their termination then you.know what if it's like within the same.hour like how do we know which ones.received first whatever we're just not.gonna get into the splitting hairs too.much however I guarantee there are gonna.be some situations that the Texas real.estate commission is gonna be made aware.of where those little hair splitting.events happen one thing that they do.incorporate to try and clear some of.that up is on the earnest money receipt.page it's gonna be page ten of the.contract this is where you can write a.receipt for all the money that's.received in the transaction there's.actually a little space on there for the.date and time of that receipt and so.that's that's a brand-new line and.that's essential for the title company.to fill out they need to fill out the.actual date and time so that it's really.clear exactly when they receive that and.if we're getting into a little bit of an.argument to figure out who who's if they.if the termination was sent before that.or not and they can just kind of Duke it.out and figure that out but at least.that adds a little bit more of a time.specificity to to that portion of that.paragraph and while I'm at it here I.might as well mention that there's now a.separate receipt for the contract itself.and so if you're thinking oh hey I'll.get this earnest money delivered soon.but I'll go ahead and deliver the.contract delivering that contract does.not satisfy the requirement for.delivering the earnest money it's the.actual earnest money this stuff sounds.really simple I know but people will try.and get away with that now there's a.separate receipt for each - just to make.it really clear the earnest money is the.earnest money and it's not the contract.but get it in on time you don't have.anything to worry about let's talk about.the rest of the blanks in this paragraph.it says the buyer must deliver blank as.earnest money to blank so you're.obviously going to put the.of the earnest money in that first blank.there and then the escrow agent named in.that second blank and then it says at.blank address and so obviously you're.gonna put the address of the title.company or the address of the attorney's.office or whatever in that second blank.pretty self-explanatory the buyer shall.deliver additional earnest money of.blank to escrow agent within blank days.after the effective date I haven't used.those two blanks very often somebody.that might want to use them would be for.instance a builder who's building a home.they reach another stage of construction.if the Builder being the seller is at.risk even more than they might want to.see the buyer become at risk even more.or make more of an investment into the.transaction as they reach certain stages.I guess if there's a really long closing.deadline you might see a seller find it.advantageous to require the buyer to put.additional earnest money at risk or the.buyer may want to do that to make their.offer a little bit more attractive if.they're asking for a really long closing.deadline but I will typically put in a.in those blanks meaning not applicable.and and and really use them so that is.it for paragraph five paragraph six.title policy and survey this paragraph.begins on page two and it doesn't end.until page four it's pretty lengthy.there are five sections in this.paragraph then section a is the title.policy B is the commitment C is the.survey D are objections and E is the.title notices section so let me just.describe what a title policy is real.quick it's actually would be more.accurately called a title insurance.policy since that's what it really is.this is insurance that protects the.homeowner and the lender against.financial losses from defects in the.title it insures that you're actually.buying the property that you think.you're buying it's it's so that the.money that you're paying so that you'll.know that that money is actually going.toward ownership and that the seller.actually had the right to sell the.property and they're actually selling.the entire property and so.it really just ensures that the homework.that the title company did in.researching the chain of ownership was.good accurate homework and there wasn't.something that they missed if there was.something that they missed or somebody.files a lawsuit sticking claim to the.property and that's where the title.insurance would come into play but just.like any quote good insurance there's.gonna be exceptions to the coverage so.just like the old style of health.insurance if there are pre-existing.conditions that aren't gonna be covered.and there are certain things that might.be considered maybe too risky that.aren't gonna be covered and things that.just don't make sense that aren't gonna.be covered and so that's what numbers 1.through 8 here go into detail on are the.exception so let's just back up for just.a second and talk about the practical.application of this paragraph a little.bit more ok first line is says that the.seller shall furnish to the buyer at the.seller or the buyers expense one of.these policies the the seller is usually.who is negotiated to pay for the total.policy and in most traditional.transactions and but the Byrant.certainly can the the total policy cost.is going to be somewhere in the ballpark.of about 1% and I'm sure if somebody.from its auto company is listening that.would probably just kind of cringe at.the thought of me saying that because.that is actually a pretty horrible.estimation it gives you some kind of.general ballpark but the best way to.find out the actual cost of the.insurance is to go to the title.company's website that's issuing the.insurance and they usually have an.automated calculator where you can go in.and plug in your numbers and determine.the actual cost of the total policy that.you're gonna get it's the best way to do.it so what we do for all of our sellers.and then so here's this next blank is.this this is for you to put in who the.title company actually is you're.probably gonna use the same exact auto.company that using the earnest money.blank I haven't ever seen an exception.to that but so you're gonna use the same.title policy that company is issuing the.title policy and usually the seller is.gonna pay for it so let's get down to.number eight here and talk about one of.the exceptions.thing that isn't covered in the total.policy and going to detail about some of.the options you have for this paragraph.before I go into number eight too much I.need to talk about what a survey.actually is a survey is a sketch of the.property lines and boundaries and of the.easements on a property it shows how.much property the purchaser is buying.and so normally errors on the survey are.not insured by the title policy because.of its a it's an exception to the.coverage so number eight allows you to.insure against errors on the on the.survey so where this would come into.play is if you're not actually ordering.a survey if you're using an existing.survey then the surveyor who drew that.survey they owe you no obligation.because you weren't their client you.didn't pay them whoever paid that.surveyor was guaranteed a certain.quality of work by the surveyor and so.if there was an error that surveyor.would probably cover he probably had at.least errors and omissions insurance or.something that would cover the any.errors made on that survey so if you're.not getting a new survey then it's.really good idea to go ahead and get.this coverage if you are getting a new.survey then you are gonna be that.surveyors client and so there are gonna.be extra protections in place and so.there may not be as strong of a reason.to get the insurance here so you can.either amend the exception to say that.it would cover shortages in area in.other words if the surveyor drew the.line a little too far in and it shorted.the homeowner of land that the homeowner.really wanted then it would cover an.error like that and then you can say.that the buyer or the seller pays for.that insurance either way no matter the.cost of the insurance is gonna be.anywhere from 5% to 10% of the cost of.the insurance policy the title insurance.policy so just for instance if the title.insurance policy is about 1% then the.cost of this is gonna be somewhere in.the ballpark of 5% of one percent of the.total policy it's really not much money.it's a good idea to get if you're using.a an existing survey all right section B.here is the commitment what this really.is is.the title insurance company's commitment.to ensure the property under certain or.ensure the title under certain.conditions and since they can't actually.provide the insurance until they get.paid the insurance doesn't kick in until.closing but this is their commitment to.insure it and so the the title.commitment is a document that it's.several documents that shows everybody.under what conditions they're willing to.insure the title it's the and the.conditions are there their covenants.meaning their promises to insure it or.their conditions or restrictions that.are going to limit their coverage and.they have to deliver that bundle of.paper to the buyer within 20 days of.receiving the executed contract okay and.the place that they're going to deliver.that bundle of you know paper is gonna.be to the address the contact.information that we're gonna list in.paragraph 21 which is where we're gonna.list the the purchasers contact.information for all the notices to be.sent so if the title company doesn't.send it in time then they've got all.sorts of little ways that they can.extend it they can extend it up to 15.days or three days before closing and if.something happens and for whatever.reason they're just not able to issue a.commitment and nobody's really.preventing them from doing so then the.buyer will have the option to terminate.the contract and earnest money will be.refunded to the buyer I've seen it.happen on like foreclosure type deals.where there was some kind of weird.ownership chain there but I haven't ever.seen that a deal not go through on a.just a traditional sale section see the.survey okay this is a actually a pretty.interesting section here and I'm gonna.just nerd out on it a little bit first.let's set up the easy sections first the.easy options that you've got three.different options to choose from option.3 says that the seller is going to pay.for a new survey option 2 says the buyer.is gonna pay for a new survey and then.you've got to select how many days they.have to deliver the survey.the title company is almost always going.to be the one to actually order the.survey and and the the box they should.check here either two or three that's.gonna depend on whose side of the.settlement statement that fee ends up on.so I just want to make sure that the.survey is not ordered prematurely.the surveys gonna take maybe about five.days to complete you want to make sure.you get it at least five to seven days.before the closing date but you want to.make sure that you're not ordering it.inside the option period because if the.deal falls apart you don't want to have.to have that extra expense hanging.around so you just pick your your date.there according to those those.parameters okay so let's just go back up.the top and I'm just gonna read through.this and kind of nerd out on it okay the.survey must be made by a registered.professional land surveyor no problem.acceptable to the title company and the.buyers lender okay so it's got to be.acceptable to the title company and.buyers lender all right.let's say that we're checking box number.one within blank days after the.effective date of this contract the.seller shall furnish to buyer and the.title company the sellers existing.survey of the property and a residential.real property affidavit promulgated by.the Texas Department of Insurance okay.so you get a lot of things that are.already happening here within a certain.amount of days I'm gonna always put that.amount of days to be at least the first.portion of my option period so maybe if.I've got a seven-day option period I.might put a deadline of three days in.there and and I'll typically ask for the.survey right up front and my pre offer.phone call that I make to the to the.listing agent so a lot of times I'll.just have that in my possession already.but there you go so the seller shall.furnish it to the buyer and the title.company so if the seller doesn't furnish.it to the buyer and the title company.they haven't completed their obligation.here and they've got it they've got to.submit the survey and the t47 affidavit.and it's.specific t47 affidavit i think if you.google 247 f of david you're probably.gonna be okay you're probably gonna find.the one for the Texas Department of.Insurance but just to make sure go ahead.and just google Tex Department earnest.t47 affidavit all right so you got to.deliver both those instruments to both.those people if the seller fails to.furnish the existing survey or affidavit.within time prescribed by or she'll.obtain a new survey at the sellers.expense no later than three days prior.to closing so if they don't do it then.the sellers paying for this thing okay.if the existing surveyor affidavit is.not acceptable to the title company or.the lender then the buyer shall obtain a.new survey here's your option at the.seller or buyers expense oftentimes I.see buyers selecting that the buyer.would pay for if it's not acceptable and.I think that's kind of a mistake because.on that t47 form it doesn't say that.there haven't been any changes made.since the survey was drawn it's just an.affidavit guaranteeing or allowing the.seller the ability to either say that.there weren't any changes or to list.whatever changes were made since the.survey was drawn so let's just say a.pool was installed since the survey was.drawn okay and the seller knows full.well that a pool was drawn and that.survey is probably not any good now.morals aside that's a totally different.issue that we probably should discuss if.we're involved in the transaction but.morals aside let's say that seller says.all right the buyer is asking for my.existing survey and they're saying that.the buyer is going to pay for if it's.not acceptable so the seller might take.that t47 form and write in that no no.changes have been made to the property.except the swimming pool is put in well.if the seller delivers that survey in.the t47 to the buyer and the total.company within the time prescribed.they've upheld their obligation well.there's a good chance that in that.scenario the lender is going to require.a new survey to be drawn and if that.happens then all of a sudden the the the.buyer is going to be the one having to.up the money for that survey so it's.just kind of sticky there's a lot of.moving parts there I just wanted to kind.of go into detail about it and explain.the risk if I'm ever a buyer making an.offer if I'm selecting option one first.of all I'm an ex I'm gonna get the extra.coverage that read shortages in area and.then I'm gonna say if it's not.acceptable the sellers paying for it and.that's probably the way I'm gonna stall.my offer if my if my client is just open.to whatever so there you go.moving on section D objections all right.if the title commitment reveals that.there's a problem with the title some.kind of defect or encumbrance to the.title then you can object to it here you.can also object to certain activities.that you find out are prohibited or.let's say you just want to ensure that a.certain activity is allowed at the.property then you you would put that.activity here so that if it is.disallowed or not allowed then you have.a way to you're voicing your objection.to that so some examples here well let.me tell you what an example is not an.example is not single-family residential.or SFR that's not what should be put in.this blank if you cannot live in the.house if the house is not it it just.doesn't make any sense a single-family.residential real estate contract there's.a house there obviously the real estate.is allowed and you don't have to put.that the home has to be allowed there it.just doesn't make sense that's not the.intention of this paragraph the.intention here is if you wanted to have.like an exotic pet for instance like a.pet pig inside the city limits I know.there was a instance of that in Keller.at some point there was some lady wanted.to have a pig as a pet pig she just.moved to town and and Keller had a.ordinance at the time probably still do.where they don't allow swine pets swine.in the mid-city limits so that would be.something that you would put there.if your folks if the buyers wanted to.install a swimming pool at some point.they might want to put that a swimming.pool would be allowed to be installed on.the property so that if they find out.later that it is not allowed than they.can object to that if if they want to.install a carport or any kind of.buildings or if they're they wanted to.have some kind of business use in the.house like for instance an in-home.daycare then those are things that you.would put in this blank way to find out.what your client is planning to do to.the property if there's something you.should be putting this blank is you just.simply ask them hey what what are you.planning to do with the property what.are your plans here and just they'll.tell you so that's it all right moving.on this is one area where I.strategically leave a blank empty and.it's for this little timeline here it.says that the buyer must subject the.earlier of the closing date or blank.days after the bar receives the.commitment so and then it says if ok the.earlier of the closing date or blank.days after the bar receives a commitment.what if I'm representing the buyer I.don't want to put any additional.constraints on my client just acting on.their best interest I want to give them.as much time as possible so I feel like.it's to my clients advantage to not put.anything in the blank that might shorten.that timeline if I'm the seller then I'd.probably want a certain number of days.in there but I've just never seen this.be a big issue if there was an activity.that was mentioned then it might become.more of an issue but so I would.strategically leave that blank and move.on section II title notices this is the.last section inside paragraph six and.there are nine subsections inside this.section all right one if I could say.section again all right so we've got.section II is title notices the word and.notices is a very specific word and it.carries a unique meaning in the confines.of this contract and it relates to.paragraph 21 paragraph 21 is the.designated location that all the notices.are supposed to be.delivered-to and the notices carried.certain meaning I don't want to get into.trying to define what constitutes a.notice but in the contract if it says a.notice just realize that is a specific.thing that must be delivered to that.whatever location it mentions in.paragraph 21 all right so let's go.number one.abstract or title policy this is.something I learned about in real estate.school as a licensee I'm supposed to.recommend to every client that they get.a abstract or a title search in or a.title policy and if I don't then I get.in big trouble well thank goodness Trek.just made it as standard print in their.in their contractor if you're not using.a trick contract though you need to make.sure that you're recommending that your.client and get a title policy okay.section 2 membership in a homeowner's.association either is or is not subject.to mandatory membership and a.homeowner's association HOA if it is you.need to include the homeowners.association addendum to company this.contract one thing that it mentions that.here is that if the house is in an HOA.and you don't pay your dues then the the.homeowners association could put a lien.on the property and even possibly.foreclose at some point next is a.statutory tax district this is basically.just an area that they've kind of.cordoned off and decided that they are.going to tax uniquely it's just a like I.don't know the political area or a an.area that they've decided that is a.special area that they're gonna tax.unique maybe there were certain services.that were offered to this area and so.now there's a special tax rate or a.certain bond or indebtedness that.they're gonna have that the area is.concerned with anyway you're going to.get a notice if you're in one of those.areas number four tidewaters this really.just has to do with coastal properties.oceanfront properties number five.annexation this is if the property is in.the etj or the extraterritorial.jurisdiction area outside of the city.limits of a.and it's likely to be swallowed up by.the town this is just serving those that.notice that that that area could be.annexed at some point maybe you'd have.certain taxes that would be due if it is.indexed and so just kind of be aware if.you're in one of those areas and the.urban sprawl situation then you could.get some extra taxes at some point if.you're swallowed up all right.number six property located in a.certified service area of a utility.service provider okay this is maybe if.you're in a rural area and the utility.area the utilities haven't quite reached.you.and yet the utility companies need to go.ahead and plumb those areas then the.they could install water lines and sewer.lines and really tear up your property.and maybe cost you some damages or cost.you some some some fees to maybe access.your property or something I'm not.really sure but if you're affected by.that you're gonna get a notice number.seven is a public Improvement District.I'm actually currently sitting adjacent.to a public improvement district in.North Fort Worth area there's a.subdivision called the Heritage.subdivision that is a public Improvement.District this is basically an area that.is offered additional services by the.city and so the city actually maintains.certain common areas like parks and that.sort of thing provides extra services to.the community and so they're charged a.little bit of an extra tax and so if.you're in one of those areas you're.gonna be made aware of the additional.tax that you're you're being charged and.and you'll get a notice for that number.eight is a heritage very nice area by.the way and so whatever public.improvement is going on there it's.paying off because it's a it's a really.nice area all right number eight.transfer fees this is something that.developers were doing and it was all the.rage a while back and I think some laws.were passed and this is kind of calmed.down some but maybe there are some areas.that still have private transfer fees.but it was stuff that was a fee that was.imposed by the developer it said if you.sell your property then.you've got to pay the developer a fee.every time it sells no matter what and.so if you're in one of those areas.you're gonna get a notice it's kind of a.sketchy deal but maybe they've kind of.found a place who knows all right.propane gas system service area there's.actually a trek promulgated addendum for.this if you're in an area that is.serviced by a once one singular propane.gas company then there's an addendum you.need to fill out it's gonna just be for.a rural type situation if you're in that.area you're gonna get a notice and it's.just not gonna apply to many folks so.I'm gonna move on.the notice of water level fluctuations.this is a brand new section inside this.paragraph this is one of the paragraphs.that were added whenever trich revise.the contracts and so here's the reason.why they added this texas passed a law.that says that sellers must notify.buyers if the buyer is buying a piece of.property that has water a body of water.on it that whose water level fluctuates.for various reasons maybe it's due to.drought maybe it's because somebody's.using a massive amount of the water but.for whatever reason if the water level.fluctuates then the seller must notify.the buyer that's what the law says so.trek is smart they Pat they went ahead.and just amended the contract to.disclose this notice to give notice to.every single buyer buying every single.piece of property whether it has water.or not that if they are buying a.property that has water a body of water.on it and that body of water happens to.fluctuate now you've been given notice.that that's a a potential risk here and.so now the the law that was passed is.being adhered to the seller is hereby.giving notice to the buyer because it's.going to be in every single real estate.contract and so now that law is.completely pointless again thank you.government thank you laws thank you.tract.and I don't know it's kind of funny but.that's what that progressed all about.paragraph seven property condition this.paragraph is broken down into seven.different parts and they are a access.inspections and utilities B sellers.disclosure notice see sellers disclosure.of lead-based paint D the acceptance of.property condition e lender required.repairs and treatments F completion of.repairs and treatments G environmental.matters H residential service contract.so let's start off with a access.inspections and utilities the seller.must let the buyer in the door at.reasonable times the buyer may have the.property inspected the seller must.immediately turn on the utilities and.the utilities must remain on until the.deals closed trek amended paragraph.seven a to say this any hydrostatic.testing must be separately authorized by.the seller in writing so everything else.in this paragraph stays exactly the same.they just added this one thing here.because what what a hydro static testing.is is that that's testing that's done to.see if there's going to be a water leak.in the plumbing system of the property.and that kind of inspection that kind of.test I assume is a little bit more.invasive than just a traditional.inspection and so it has to be.authorized by the seller prior to.getting that actually doesn't say prior.but it has to be authorized by the.seller separately in writing in order to.approve that kind of testing side note.if the utilities are not activated.during the option period and the buyer.wants to extend the option period even.though the seller might be in default.here the it would still be a good idea.for the buyer to pay an additional.option fee if they're gonna extend the.option period so that to make sure that.that option period is valid so kind of.crazy there you go.Section B the sellers disclosure.notice we've got three different options.here option one is that the belt the.buyer has received the notice I'm going.to skip to number three number three is.that the seller is not required to.furnish the notice and it's because of.the type of seller that it might be.there are a few types that aren't.required for instance builders are not.required to give a seller's disclosure.notice a lender is not required to give.a seller's disclosure if they just.foreclose on a property if it's an.estate selling a property they're not.required to give a seller's disclosure.notice I believe there's a couple other.folks that aren't required but for.number two this is for folks where where.the seller did not provide the sellers.disclosure notice before the contract.was executed then they're going to a lot.a certain number of days that the seller.has to deliver that to the buyer it's a.good idea for the buyer to fill out this.and say maybe three days or so but for.the seller it's a very bad idea to let.number two here come into effect because.of the second sentence here it's this is.crazy okay.the third sentence actually if the.seller if the seller delivers the notice.the buyer may terminate this contract.for any reason within seven days after.the buyer receives the notice or prior.to closing whichever occurs and the.earnest money will be refunded to the.buyer that's nuts that's almost like a.second option period so let's just say.that the option period is five days and.let's say that the deadline to get this.notice delivered from seller to buyer is.on day three so then let's say on day.three they deliver it then seven days.from that point the buyer could back out.for any reason it says so that could be.on day let's see seven plus C day.depends on how you count at day nine or.day ten this this buyer could back out.for any reason that's kind of spooky to.me so if you're a seller you want to.make sure to COFF that notice up right.up front the best thing to do if the.seller is complicit on this is to.get the sellers code the sellers.disclosure notice the survey and the t47.form and just upload them to the MLS and.have them as the Supplemental documents.and that way most people will get those.on their own most agents will but if.even if they don't get it on their own.if they call you and ask for it then you.can at least just say hey yeah uploaded.those they're in the Supplemental.section in the MLS go ahead and just.grab it yourself and please do me a.favor and check box number one here on.the sellers disclosure notice area okay.next is the sellers disclosure of.lead-based paint and lead-based paint.hazards if the house is built before.1978 in most circumstances you're going.to have to disclose this and provide the.disclosure to provide the pamphlet there.are circumstances where you don't have.to provide this this notice but.exceptions where you don't have to.deliver the lead based paint notice or.the course properties that are built.after 1978 properties that are sold at.foreclosure properties where the living.area is not separated from the sleeping.area such as like efficiency apartments.dormitory housing or individual rooms.that you're I guess renting out and then.the fourth exceptions now shocking is.housing for elderly or disabled.residents where no child under the age.of six is expected to reside and those.circumstances you do not have to provide.the lead based paint disclosure if.you're with my company we're probably.going to try and provide that lead-based.paint disclosure regardless of the.circumstances if at all possible.Section D acceptance of property.condition easiest way to read this is to.skip down here to your two choices and.start by reading those so first it says.that the buyer either accepts the.property as is or the buyer accepts the.property as is provide the seller at the.sellers expense complete the following.repairs and you're not supposed to.insert in general phrases such as.subject inspections and that sort of.thing supposed to be specific repairs.the types of repairs that you would list.here are not repairs that you would find.out about in a home inspection these.would be things that you can naturally.observe by walking through the house.like torn up carpet a broken window who.knows things like that but people.sometimes get a little nervous about.checking the as-is box because they they.want to they think that it might prevent.them from being able to do an inspection.well that's where you jump right back up.here towards the top it says as is means.the present condition of the property.with any and all defects and without.warranty except for the warranties.buh-buh-buh-buh-buh.it does not preclude the buyer from.inspecting the property under paragraph.7a from negotiating repairs or.treatments in a subsequent amendment or.form terminating this contract during.the option period so go ahead and check.box 1 if there's nothing you know that.you want to negotiate upfront do your.inspection then if you've got some other.items you want to negotiate go for it.but that's that's how you attack that.section E is lender required repairs and.treatments the interesting thing is that.if the lender requires some repairs to.be made neither party is obligated to.pay for those lender of required repairs.and if if neither party pays for the.repairs then the buyer the contract will.terminate the earnest money will be.refunded to the buyer and that's it and.then it gives a second scenario here.that just it seems like it's.contradictory or redundant but it's.really not it says if the the repairs.the cost repairs exceeds five percent of.the sales price the buyer can terminate.the con.tract and the earnest money can be.refunded to the buyer at first glance.it's like why would they put that second.sentence in there seems like the first.one pretty much covered it well it.doesn't really what if the cost of.repairs is say 10% of the purchase price.and the the the seller is willing to.complete the repairs then it seems like.okay well then we don't have a problem.here.then we're gonna proceed with a sell but.I can tell you having represented buyers.before in a situation like this.sometimes when the cost of repairs.exceeds a certain amount it really can.freak out that buyer and the buyer just.say no no there are too many repairs.that need to be made here and I'm not.interested in pursuing a house that has.had that many repairs that needed to be.done it makes me think there could be.something else so what that's saying is.even if the sellers willing to repair it.if the cost of those repairs exceeds 5%.the buyer can still back out and receive.their earnest money section II the.completion of repairs and treatments.first of all all the repairs must be.made before the closing date secondly if.the repair involves something where a.permit should be pulled.then the permit must be pulled and.licensed professionals must complete all.the work if for instance there is not a.license governing the kind of work that.is agreed upon to be done then the.professional for that industry must be.the person that goes out and does the.the repair work so somebody that's.commercially involved in actually that.industry so let's say like a roofer I.don't know a roofing license but if you.are getting roof work done then it's got.to be a actual roofer that's doing the.repair let's see here if their.warranties involved with the the work.that need to be transferred then the.buyer can transfer those warranties from.the seller to the buyer at the buyers.expense and let's just say if the.repairs aren't done then the seller is.going to be in default of the contract.they're breaking their agreement the.buyer can either exercise their remedies.that impair.fifteen which is the default paragraph.we'll get to that here in a second or.they can extend the contract five days.and allow a little extra time to.complete the repairs section G.environmental matters if there's.something going on with the property or.the land that's environmentally.hazardous then that could affect the.buyers ability to enjoy the property the.government could come in and wreak some.havoc because you're about to get cancer.or something and so just be aware of.that if that's a concern then there's a.trick promulgated addendum that concerns.this area that you probably ought to use.and the final section section H the.residential service contract otherwise.known as the warranty it's not really a.warranty it's more like extra insurance.for different components and systems.inside the house and the reason why.there's more like insurance is because.there's a premium up front which is.gonna be the amount in this blank which.the seller is gonna pay for if the.amount is in that blank and it's usually.about a four hundred dollar minimum if.you get the base package and the house.isn't too big there's things like like.square footage will increase the cost of.that you can always buy additional.coverage if it has if the helm has a.sprinkler system a swimming pool or.anything else that you want them to.check it may be a septic tank then the.cost of that home warranty is going to.go up significantly we're always gonna.recommend that you get a home warranty.and the reason why is because it helps.prevent lawsuits it helps everybody stay.just a little bit happier if there's.something wrong with the property that.you find out about after closing then.typically it's it's better to call.somebody before you call it an attorney.and so if you can call a home warranty.company to hopefully fix the actual.problem rather than go on an attorney.that's a good thing.so we're typically trying to negotiate.that into the contract as long as the.buyer and seller are agreeable which.most cases they are.[Music].let's see sometimes you'll find that the.brokers are in cahoots with these.companies now I can't personally.recommend any company unequivocally.because none of these companies have a.spotless record I mean it's just like an.insurance company there's exceptions to.the coverage and when that happens when.that exists people are gonna get pissed.if their stuff isn't covered and in the.companies they don't make money by.paying out claims they make money by not.paying out claims now companies also.understand they have reputations uphold.but that's just all to say that there's.not one company that just completely.stands out among the rest they're kind.of streaky.but there are some brokers that I guess.that they earn money from these.companies by recommending them because.track has an addendum for that and if.the brokers got a some kind of tight.relationship with the company and maybe.they're earning some money from it then.that's gonna be disclosed right upfront.and everybody's gonna sign an agreement.for it and so if you see that that's.what it is.paragraph a brokers fees the parties.meaning the buyer of the seller.if they agree to pay the brokers a fee.then those contracts are done outside of.this agreement there is no agreement.between the brokers or agents and the.buyer or seller in this contract now on.page nine there's a section where it.talks about how much money the listing.broker is gonna pay the other broker but.that's kind of different paragraph nine.the closing paragraph this is broken up.into two different sections let's talk.about section a section a is the date.that this thing needs to be closed by.it's usually gonna occur 30 to 45 days.after the effective date of the contract.just because that's about how much time.it takes for the lender to get all their.stuff done but it doesn't happen it can.happen at any moment as long as.everybody's ready to close that's it but.this is actually the deadline for that.deal to close so some people call it the.closing date it's actually not the.closing date it's just the closing.deadline you want to try and get it.closed before this day.you don't wanna aim for the date because.if you aim for it and you have a little.hiccup then your ended up closing.afterwards after the date and you know.in my mind that's a big no-no and in the.legal nutty land here it's I don't know.if it's that big a deal really I'm gonna.always act like it is but the time is.not of the essence for this paragraph so.if the buyer was doing everything under.their power to close on town but they.missed the deadline by a day or two and.this thing were to show up in court then.the judge may look at that buyer and say.well he did everything he possibly could.time isn't of the essence for the.spirograph so we're gonna go ahead and.give him the house and say he was within.you know the terms of the contract then.you know that that's just that's just.weird to me but that's a possibility so.anyway you just want to avoid that if at.all possible.I'm never going to treat that as a.relative date if you think you're gonna.go beyond that date you need to get out.an amendment and extend the contract.okay be is those are all the things that.must happen at closing you got to.deliver the property free and clear to.the buyer the buyers got to pay their.money and so on and we're done.paragraph 10 possession this is broken.up into two different sections the.buyers possession and leases let's go.over buyer's possession okay.the buyer can either gain possession.upon closing and funding or according to.a temporary residential lease if it's.upon closing and funding just realize.closing and funding are two different.actions two different events closing.could actually happen meaning that the.client could go and sign all the.documents but if it happens that lets.say like 4:00 p.m. on a Friday evening.afternoon then funding may not happen.till Monday and I've actually had that.happen before preparing your client for.that in advance will help avoid a.freakout if the client is going to use.the temporary residential lease then.first of all the lease can't be more.than 90 days you have to use the Texas.real estate commission promulgated.leases and another thing is.you just I I never recommend for my.client to get involved in this I know it.helps convenience wise but it also.exponentially increases the possibility.of a complicated situation and the.reason why is that is because what's.gonna happen is the one party is going.to turn into the tenant and another.party's going to turn into the landlord.and so here you've got the a buyer and a.seller that are now going to be Landlord.and Tenant and it may not be that big a.deal to most people that but to me it's.kind of freaky because I've been a.landlord before and I know what kind of.folks you know what kind of situations.could happen you can have a situation.where well here's the thing no screening.has taken place.there's been no credit check no deposit.no background check we don't know who.your tenant is and the same kind of.horde landlord stories can happen in one.of these temporary residential leases.that could happen in any other kind of.lease and so if the client isn't.interested in becoming a landlord I.typically wouldn't encourage them to do.this now if they insist on it I'm going.to be happy to oblige and we'll just go.along with it and I'll just make sure.that they understand the situation in my.concerns I'm not gonna freak them out.too bad I'm gonna serve their best.interest but anyway those are my.thoughts now on to be leases okay after.the contract is executed the seller.can't execute any additional lease so.this means that the seller can't lease.out the mineral rights and collect a big.signing bonus without telling anybody.they can't lease it out to tenant and if.the property has a lease already on it.then the sellers got to tell the buyer.about it and the sellers got to give.copies of the leases and if there's an.actual tenant that's involved then they.have to deliver the property condition.and inventory checklist to the buyer and.everything and just a side note here.let's say that there is backup to a if.there is a temporary residential lease.that happens and let's say that the.sellers hanging out.after closing but the buyer just bought.the house the sellers still should give.keys to the house to the buyer even.though the buyer isn't allowed to go.into the house the the seller now turns.in to the tenant the seller has the.right to occupy the property but the.buyer still is entitled to a set of a.copy of the keys so that would make me a.little weird if I was the seller and.somebody now has copies of keys to my.house and I don't know them from Adam.then they just bought my house anyway.all right moving on paragraph 11 special.provisions all right this is a.hot-button little paragraph if you'll.notice as the trek contract keeps.getting revised this section keeps.getting smaller and smaller and there's.a reason for that.Texas real estate commission doesn't.like us writing stuff in this blank.because real estate agents tend to write.crazy stuff in the blanks they want us.to stick to just factual statements or.statements that clarify maybe terms of.the contract or different details of the.contract however principles the buyer's.or seller's can write whatever they want.in these blanks it doesn't matter they.you can write something on your own.behalf but as a Realtor I don't have any.authority to write stuff here if-then.statements would be practicing law.without a license for instance if you.don't respond to the contract within a.certain amount of time then the contract.becomes void or whatever so you should.have to be careful about that because if.you're practicing law without a license.you could lose your real estate license.also if you want to say something here.that there's already been a trick.promulgated addendum for then that's.absolutely prohibited you cannot do that.so just a couple of bad ideas of things.to write bad ideas would be personal.property is conveying that's not a good.idea for one reason there is a personal.property addendum secondly it's not just.factual statements and so if you're.using that addendum just kind of a side.note.good ideas to take photos of the.personal property that you want to.convey when you're using one of those.add in them so that was a bad idea a.good idea of something to put in this.blank would be if you've got a buyer.whose name is super super long then you.can just say and maybe the buyers name.blank see paragraph 11 and then here in.paragraph 11 you could write out the.full buyers name or if the legal.description was too long maybe had a.metes and bounds labeled legal.description or just for whatever is too.long you can continue it here another.acceptable section thing would be if an.attorney draft some language for you.you're more than welcome to enter it.there if you find that this little.section is too small to fit everything.you want then you can always use the.trek promulgated special provisions.addendum to continue all of your free.writing.paragraph 12 settlement and other.expenses this section or this paragraph.is broken down into two main parts.you've got a which is expenses that must.be paid at or prior to closing and then.you've got B which is a way that the.contract can be terminated because of.some fees inside a you've got two.sections you've got one section for the.seller fees seller expenses and then.you've got another section here number.two is for buyer expenses so let's dive.into section a 1 which is the seller.expenses that are to be paid at closing.and then that is broken up into two.parts so you've got 12 a 1 a this is.actually something to pay attention to.because at closing everybody's looking.at the settlement statement and there.are so many fees that are paid off of.each side and sometimes you're many.times actually your client will ask why.is this fee on my side of the settlement.statement well it's because of 12 a 1 a.releases of liens including prepayment.penalties which isn't all that often but.recording fees release of sellers loan.liability tax statements certificates.preparation of deed one half of the.escrow fee and other expenses paid by.seller under the contract are in this.section that covers a lot of stuff.that's gonna clear up some mystery for.you there when somebody started asking.why he isn't is on my side all right B.is a pretty fun little blank here you.can do a lot with this B is for the.seller to pay for an amount not to.exceed blank to be applied in the.following order I'm just gonna read this.because I have to the buyers expenses.which buyers prohibited from paying.through FHA and VA or the Texas veteran.Lance Board or other governmental loans.and then whatever money's put in that.blank after all that stating care of.then it's applied to buyers expenses as.allowed by lender that's a really broad.statement there on that second half you.can cover a whole lot of stuff anything.that the lender.allows you can be covered out of this.and the winter allow more than you might.imagine so a couple of notes here first.of all the numbers in this blank they.tend to be quite large into the several.thousand dollar range and so you just.want to make sure that you're not going.to exceed the lenders loan limitations.FHA allows for up to six percent of the.purchase price to be included in this.blank so what that is is six percent of.the buyers closing costs to be paid for.by the sellers so you also have to.realize if you're adding money to the.sellers side of the settlement statement.then that's just however much money you.add to the sellers side that's that much.money that that seller is going to lose.or not make that's going to reduce the.sellers and net so if you're a buyer.you're making an offer putting money in.this blank you might wanna consider.increasing your offer amount to.compensate for whatever money you're.putting in that blank if you're the.seller and then you want to make sure.that you flip to this page here and page.five to make sure that you see how much.money is in that blank so that you just.automatically subtract that from the.total purchase price which a good.realtor will do right off the bat we're.not gonna be fooling anybody about.putting any money in this blank.everybody just makes their decision.based on what the net of the you know.proceeds are but still it could be an.oversight if you don't watch out one.thing that I like to do is I like to if.I can at all and I'm representing the.buyer I like to not put any money in.this blank and and do my best on.purchase price because that's where a.lot of negotiation is going to come from.and then that way if I am using some.financing that allows for seller pay.closing costs then I'll go ahead and.proceed into the deal get into the.option period do my inspection find out.what repairs need to be negotiated then.if I've got some repairs that I get the.seller to agree to pay for then I may.instead of actually getting money for.those repairs or maybe it's just some.upgrades that I want done to the house.all I really need is the mud.so that I can do those myself so what I.would do is if I was the buyer what I.would do is I would ask the seller to.give me X amount of dollars providing it.fits within the lent my lenders loan.parameters and ask for it in this blank.and so by not putting anything in this.blank ahead of time it gives you that.room to add the money later on amend the.contract and either negotiate repairs or.upgrades and include it in this blank.because if you start trying to negotiate.repairs like specific itemized repairs.then it could cause questions and the.lender might take something that's.really pretty harmless repair item and.and cause you know want to investigate.it further and get an additional.inspections and cause the contract to.kind of wobble a little bit and fall.into jeopardy and falling apart whatever.okay.I know it says it right here but I just.have to repeat if your buyer is using.FHA or VA count on something being in.that blank because their expenses that.they're gonna have that they just can't.pay so don't look at it as all that bad.it's just a fact of life if they're.using that kind of financing all right.now what's going down to two it says.buyers expenses again I'm not gonna read.through this whole thing but it just.goes through a lot of really helpful.things to know when you're biros it and.they're looking at the settlement.statement and they see those that.itemized list of charges and they're.gonna ask them why is there a final.compliance inspection fee on my side or.why is there a wire transfer fee on my.side why didn't the seller paying for.that was because it lists it right here.in this section all right moving down to.B this is kind of interesting if there's.an expense that has been agreed upon in.the terms of this contract and the.expense ends up being much greater than.what was what everybody thought it was.going to be then this is saying that the.the party can get out of the contract.the contract can be terminated if.expenses end up being more than what.they expected.chapter 13 probations this is just the.only fair way to do it this is saying.that whatever expenses there are is.they're just gonna be paid by the party.that incurred the expenses so property.tax is the biggest sticking point here.there's only gonna be one property tax.bill cent per year and it's cent at the.end of the year so the new owner is.gonna get stuck with the entire property.tax bill for the entire year however the.new owner will have only lived there for.a portion of the year so the way that.the title company makes sure that the.new owner isn't having a foot the entire.bill is for the entire year is by.collecting an estimated amount of what.they think the property taxes are gonna.be at the end of the year they collect.that pro-rated amount estimated prorated.amount from January 1st through the day.of.posing and they get that amount from the.seller and the seller pays that to the.buyer that way at the end of the year.the buyers got that money in their.possession then they go ahead and just.pay the entire tax bill there's.something here that I haven't ever.personally encountered but it is this.proration amount is based off of an.estimation of what they think the taxes.are going to be what the taxes changed.drastically then that might mean that.the amount that they collected from the.seller up front was either drastically.higher or drastically reduced from what.it should have been and so this.paragraph says that they'll actually I.guess come back together and adjust.whatever amount it should have been and.either collect money or give money to.the appropriate party.well after closing that's what I.interpret this to be it's kind of freaky.chapter 14 if the property has burned.down or damaged by flood or something.then they can either terminate the.contract or buyer can extend the time to.allow the the seller to fix up the house.or the buyer could accept the property.and it's as is condition and accept.remedy some of the way.finally paragraph 15 the default.paragraph this is the paragraph that you.need to become familiar with because if.anybody is not upholding their.obligations and agreements in this.contract then they're going to be in.default of the contract and this is.where you're going to come to read what.kind of remedies are available for the.defaulted situations so let's say if the.buyer fails to comply with the contract.the buyer will be in default the seller.can enforce specific performance or am-6.seek such other relief as may be.provided by law or both or they could.terminate this contract to receive.earnest money as liquidated damages.thereby releasing both parties from the.contract if the seller fails to comply.with this contract the seller will be in.default and the buyer may either in for.specific performance seek other such.relief.about law or both or terminate this.contract and receive the earnest money.thereby releasing both parties from the.contract so you see each party has the.same exact options on how to remedy if.the other one defaults but it's really.not very equal because the specific.performance thing I think would be a.little harder to enforce on a buyer I've.seen a bunch of attorneys recommend that.the seller always scratch out the.perfect specific performance clause here.and and leaving only I guess other.relief provided by law and possibly the.termination option here to get their.earnest money back but the interesting.thing to me is if the contract is.terminated and somebody gets a hold of.that earnest money then that ends it.according to this that says that that.releases everybody and the deal is done.so paragraphs 16 mediation I love this.little paragraph even though the thing.is kind of silly it's just saying that.the if there's some kind of conflict.that arises as a result of this contract.then everybody's agreeing to go to.mediation.however it also says down here that this.paragraph does not preclude a party from.seeking equitable relief from a court of.competent jurisdiction so basically it's.just hopefully setting the expectation.in everybody's mind that we're gonna go.to mediation and not go to court and try.and litter eight each other we'll try.and actually solve the problem instead.of just fighting all that much but if we.really just wanted to fight then we can.ignore that paragraph altogether and.just go fight and go to court so there.you go and if we do go to court let's.talk about paragraph 17 you got.attorneys fees basically just saying.whoever wins is entitled to recover.reasonable attorney fees paragraph 18.escrow this paragraph is broken up into.five different sections you have a.escrow be expenses see demand D damages.e notices a just says the escrow agent.is not going to be held liable for.anything even if they lose the earnest.money as long as they can blame the.earnest money being lost on the bank.that they deposit the earnest money with.and B is talking about the expenses the.earnest money that the escrow agent is.holding is gonna first go to the down.payment of the buyer and then any.expenses that are incurred by the buyer.and if the closing doesn't occur then.they're gonna use that earnest money to.pay any kind of expenses that have been.occurred if they if there aren't any.expenses then they're gonna give that.earnest money to the buyer and if.there's not enough earnest money to.cover the expenses then the title.company is gonna demand are all the.expenses for the deal be paid so.expenses would be things such as the.survey and that that would be fairly.common to happen if the deal falls apart.late in the game but there probably be.enough earnest money to cover the survey.mmm sedum and this is a fun little.paragraph and this is something that you.hope you don't have to encounter but if.you just close enough deals I guarantee.you will encounter it at some point or.another so let's just say that the deal.falls apart and because somebody's in.default they didn't uphold their.obligation well in that situation a lot.of times there's gonna be a dispute as.to who the earnest money is owed to well.the title company is unbiased third.party hey God knows no reason to favor.one side to the other so the title.company is gonna ask for a release to be.signed by everybody.well somebody doesn't sign that release.then what can happen is any any party in.the transaction can actually send a.demand letter to the title company.demanding for that earnest money to be.released what's going to happen is title.company's gonna let everybody in the.deal know that.demand was made for the earnest money if.nobody responds that demand then whoever.made the demand gets the earnest money.if somebody responds to the demand then.I'm really not sure what happens but it.just gets drugged out and it kind of.gets nasty but here's what happens.D damage it paragraph D is a fun one.damages if you got to get into paragraph.D and figure out exactly what this thing.says then you're in the middle of a.hairy deal and because what this is.involving is if somebody wants that's in.the deal once they get out of the deal.what they have to do is they have to get.everybody in the transaction to sign a.release that releases that person out of.the deal and that's all fine and good.but it can kind of be a trick you can.imagine if somebody's bailing out on a.deal that somebody in else in that.transaction the odds are there may not.be too happy about the fact somebody's.bailing out now here's the problem with.somebody getting too unhappy is if one.person wants to bail out of the deal and.they have the right to bail out then.they send that release out to everybody.else in the deal if another party in.that transaction doesn't sign that.release but then later it's found out.that they actually should have signed.that release then if that goes to court.then the person that should assign that.release is gonna be in big trouble and.this progress spells out what kind of.damages they can get for not signing.that kind of release within seven days.it says that whatever damages there are.whatever earnest money there was all the.attorneys fees and the cost of the suit.all has to be paid by the person that.wrongfully fails to refuses to sign the.release.okay that's it now paragraph e talks.about notices all of the notices that.must be delivered to the buyer or the.seller are not going to be considered.sent.unless they're sent to the person that's.outlined in paragraph 21 below here so.whatever contact information is in.paragraph 21.that's the contact information that's.going to be used by the escrow officer.the title company to send all the.notices involved into the deal and and.it when the title company sends those to.the to that that contacts information.that's when the notice is going to be.considered since so it's important which.I'm going to cover here in a minute it's.important to make sure you have good.contact information in paragraph 21.paragraph 19 representations this is.just saying that if the seller.represents the property or something.being a certain way that even after.closing they can be held liable for.whatever they said those representations.survive past closing.and then also also says that the seller.may continue to show the property and.receive and negotiate back up offers so.if your buyers under contract and they.just see people coming in and out all.day long that's perfectly well within.the sellers right to keep showing that.property paragraph 20 federal tax.requirements if the seller is a foreign.person and the title company may.withhold some proceeds from the sale to.make sure that all the taxes that need.to be paid are gonna get paid paragraph.21 we've heard so much about you here we.are I notice this all notices from one.party another must be in writing and are.effective when mail to hand-delivered or.transmitted by affects that assembly or.electronic transmission to these.following locations if it's blank then.let's get that sucker filled out.whatever it takes let's get it filled.out if it's blank and I'm not able to.get the other party good I'm probably.just going to fill in the other party's.information as best I can.if they don't agree to it and they need.to put a line through it and change it.but I'm going to want to make sure some.kind of contact information is in those.blanks and it's not a good idea to just.put the agents information in the blank.if specially if you're that agent.the reason why is because if you go on.vacation or something and even long.after the deal is over there's there a.couple notices in here that it still may.be delivered depending on a circumstance.or two that could happen but anyway if.your contact information is the only.information in there then it's gonna.cause some kind of delay between the.time you get it and the time you relay.it to that client and that delay could.cause a problem that you probably don't.want to and shouldn't be held.responsible for so I always put the.clients information and they're.perfectly acceptable to say copy me copy.the agent on this correspondence here.just a few more mentions here time is of.the essence in almost all of the trek.contracts notice provisions and some of.the notices required time-sensitive.action by the party receiving the notice.for example the sellers notice to the.buyer of the acceptance of another.contract under the addendum for sell of.another property by the buyer remains.which is a contingency contract requires.action by the buyer and if the notice.was sent to the parties agent then the.agent would need to relay that.information it his or her client the the.additional step could cause a delay that.might result in the client losing a.time-sensitive reply option or right and.also the word notices in this paragraph.it has a contractual meaning giving.notice to a party can affect the party's.rights and obligations in several parts.of the contract such as say paragraph 23.the termination option and the third.party financing addendum and therefore.care needs to be given and taken to.provide methods of notice that don't.cause needless delay some agents are.reluctant to put the buyers and the.sellers contact information in paragraph.21 because they think that direct.contract with contact with the other.party is forbidden however as long as.you're using the contact information to.provide notice to the other party you're.not really crossing a boundary.soliciting another agents client or.doing anything that's going to.jeopardize the contract paragraph 22.agreements of parties some agents.actually start filling out their.contract by turning directly to this.section first and marking off all the.boxes that way they just don't forget.and it's just kind of a reminder to help.jog their memory of possibly an.additional addendum that needs to be.included that they weren't considering.before so that's a pretty good idea so.here you're just checking off the boxes.of all the other denims that are gonna.accompany this contract if you had an.addendum that wasn't listed here such as.a sale of personal property or whatever.then you would check off the other box.and list it in that blank one thing that.you would not put in here is the.information about brokerage services.form that's that's not a an addendum.that's just a disclosure disclosure it's.not a part of any kind of agreement so.that's it all right the termination.option paragraph this paragraph allows.the buyer to be able to get out of the.contract within a certain amount of time.for a small amount of money there are a.lot of little ins and outs hidden buried.in this paragraph so I'm just gonna kind.of tiptoe through it and go through it.one step at a time for nominal.consideration that means for a small.amount of money the receipt of which is.hereby acknowledged by seller means that.the receipt of the money is actually.acknowledged by the seller it's it's.it's actually attached to this contract.the receipt is attached to this contract.I'll show you here in a minutes on page.nine and the buyers agreement to pay.seller blank amount of money as the.option fee the amount of money here it's.a nominal fee so it really it runs the.gamut the more the purchase price the.more money I would expect to see in this.blank personally especially if I was the.seller so just kind of a rule of thumb.that I've come up with there's really no.rhyme or reason.for this I've just kind of noticed where.people gravitate to and the number in.this blank tends to be about one tenth.of one percent of the purchase price and.the way the math looks like on that is.is let's say there's a $250,000 house.you do two hundred and fifty thousand.dollars times point zero zero one and.that equals two hundred and fifty bucks.so that'll put you in the ballpark it's.you know give or take you can put twenty.five bucks you can put five dollars in.that bank or you can put as much as you.want.but it is designed to be a nominal fee.so anyway moving on buyer's agreements.if a seller X amount of money as the.option feet within three days after the.effective date of this contract okay so.this is kind of the beginning of where.some confusion could come in with within.three days after the effective date of.this contract so the effective date of.this contract is going to be the date.that you put in this blank see their.effective date okay and it says three.days after the effective date so by my.math that means if the effective date is.v I'm gonna count that to be one would.be the six to be the seventh three would.be the eight but it doesn't specify an.actual time and I've actually talked to.an attorney about this and it hasn't.really been defined by the court as to.what time is reasonable or mandatory or.whatever and it's not defined in the.contract here so the way I interpret.that as I actually would count that as.midnight on at the end of the third day.so in this case it would be midnight of.the 8th to avoid this whole problem we.tend to actually specify an hour that it.ends since there's this paragraph carry.so much weight I don't want any.ambiguity as to win this thing in so in.the special provisions I might further.specify an hour that it ends of course.talk to an attorney.as to what kind of specific language you.would need to use to do that but that.really clears it up and.that also if say if you put that the the.hour of the termination option period.ends at 4:00 p.m. on the last day of the.option period then that prevents you.from a situation where you might end up.trying to negotiate some repair items or.something at 11 p.m. on the night that.this thing terminates so there you go.that's how I count the days okay so the.seller the seller grants the buyer the.unrestricted right to terminate this.contract by giving notice of termination.so the the seller can't back out but the.buyer can and and the buyer has to give.notice of the termination within a.certain number of days and you can put.any number of days in that blank that.you want to put however I say that.anything less than five days is really.really probably not realistic because.you have to assume that in most cases.it's there's going to be at least one.day of a weekend involved in that time.period and I want to make sure that.we've got enough time to verify that the.utilities are on coordinate schedules.with an inspector because that's usually.what's going to be done during the.option period I get the results of the.inspection back draft the repair.amendment if if some repairs need to be.negotiated or if the buyer wants the.seller to address some repair items then.they'll need to draft that repair.amendment and then send that over to the.seller and then you want to make sure.that you're giving it to them in enough.time and a prior to the deadline of this.option period to give them time to.respond so that you don't end up in a.situation where the buyers waiting to.hear back from the seller on the repair.amendment that they just sent in and.kind of watching their the clock and.wondering if the sellers are going to.respond and if that seller doesn't.respond the the buyer freaking out and.thinking that they've got to send in the.termination of the contract because they.don't get any.anything in response because you're.trying to negotiate this thing at 11.o'clock p.m. on the night of the the you.know the last day of the option period.so anyway five days would be the minimum.for me anything longer than 10 days gets.to be a little ridiculous for me a lot.of questions will start to ask questions.as to why they're asking for more than.10 days 10 days is really about the max.that you're gonna want to see 14 days.absolutely anything longer than that and.I'm gonna want a pretty decent.explanation after the effective date of.this contract which would be called the.option period so we're calling this.period whatever period is outlined to.this number of days we're calling that.the option period if no dollar amount is.stated in the option fee or if the buyer.fails to pay the option fee to the.seller within the time prescribed this.paragraph will not be a part of this.contract and the buyer shall not have.the unrestricted right to terminate this.contract so that tells me it's this has.got to be at least $1 and the option fee.must be delivered to the seller within.the time prescribed so when is the time.prescribed the time prescribed is three.days okay so this money has got to get.to the seller within three days or that.actually what's got to happen is the.receipt has to be signed within three.days and I've talked to an attorney on.that they're kind of gotten down to the.nitty-gritty on who's allowed to sign.that receipt and when is it actually.received here it says it must be.received by the buyer or by the seller.but really you're probably handing it to.the sellers broker anyway just get that.get that receipt sign and you're good to.go this paragraph will not be a part of.the contract will not have the.unrestricted rights for me if buyer.gives notice of termination within the.time prescribed which would be the time.period in this Mike the option fee will.not be refunded so whatever amount is in.this blank you can just guarantee your.buyer that.are not gonna get that money back if.they back out for any reason that.money's gone the only way they'll get.that back is if they check the right box.on the next line so the option fee will.not be refunding earnest money will be.refunded to the buyer and that's kind of.the whole goal of this paragraph is to.allow your buyer the opportunity to back.out of the contract and get their.earnest money back because the earnest.money is not a nominal amount of money.it's probably gonna be a pretty decent.amount of money maybe on a $250,000.house maybe $2,500 or so the option fee.will or will not be credited to the.sales price at closing I have never seen.a seller throw too much of a fit on.which one of these boxes is checked so I.always check that the option fee will be.credited to the credit at closing time.is of the essence for this paragraph and.strict compliance with time with the.time for performance is required this is.interesting to me and this is kind of an.eye-opening you know phrase here that.time is of the essence for this.paragraph in strict compliance with the.time for performance is required it's.crazy to me that time is not of the.essence for the entire contract what.that means is is that if if you are an.hour late a minute late shoot a secondly.on any of these deadlines then you you.can be held accountable for not obeying.the terms of this you know of the time.prescribed here and what you've got to.do during the time prescribed and so.then the if you don't do what what's.required during that time then this.paragraph won't be in effect for most of.the rest of the contract time is not of.the essence so what does that mean are.those deadlines and the rest of the.contract just kind of relative maybe I.don't know I guess it kind of depends on.the excuse really it just depends on.what the buyer and seller are agreeing.to and just is that if everybody's kind.of heading in the same direction.everybody still wants to buy and sell.the house then go through with the.transact.then whatever other timelines are in the.rest of the contract is probably not.gonna be that big a deal okay so what.happens if the buyer of the buyer's.agent delivers this option fee outside.of that three-day period well I'm not.exactly sure what happens if that seller.accepts that money it may be construed.as a renegotiation of terms or if you.just read the language here in the.contract it can be construed as it.doesn't matter if they accepted it after.that three-day period then this.paragraph isn't on in effect I would.just say if I'm on the seller side or.I'm I'm maybe part of the admin staff on.the solar side I am not accepting any.money after that three-day period unless.I've talked with my client made sure.that they're ok with it and still even.at that I'm gonna feel a little uneasy.about it because I'm gonna be going.directly against what it says here this.is this paragraph is something that's so.important that as soon as you get an.executed contract you've got to be.preparing your client for getting that.option fee you've got to be driving it.to their office this is not a situation.where it's ok to if you're rupturing the.buyer to take that option fee and.deliver to the title company that does.not cut it here the only time that you.let go of that option fee is if the.person that has the authority to sign.the receipt page let's go and take a.look at it now it's standing right in.front of you they've got a pen in hand.and they're ready to sign this thing and.so here is the option fee receipt let's.just look at this thing.receipt of blank amount of money which.is the option fee that nominal fee in.the form of blank meaning don't accept.cash just for a you know just as a.normal protocol of doing business just.don't accept cash and real estate deal.take cashier check money order personal.check if you want to just keep in mind.that it may not clear within a couple of.days especially.if you're getting on a weekend but.whatever in the form of a check or.whatever is acknowledged and then here.says the seller or the listing broker.can sign it's kind of interesting.because this paragraph it has so much.specific language that it makes me.wonder it made me wonder if the listing.agent was allowed to sign well the agent.acts on behalf of the listing broker so.I'm perfectly comfortable in my office.for an agent to sign for this but the.seller is definitely also authorized to.sign this and in my office actually if.you if you run it up to the reception.she's gonna know whether or not she has.the authority to sign on this and in in.our office everybody's got a license so.it works out but in your office you may.want to just kind of have a little.meeting about who's allowed to sign this.and when if you're representing the.seller and the buyer's agent shows up on.day four with this check you might want.to make sure that your receptionist.knows not to sign this thing if it's.outside of that time period so that's.gonna require an extra level of.communication inside your office there.so that's it that's the option option.option ation the option fee and option.paragraph the receipt page they if the.buyer gives this amount of gives a.certain amount of money delivers it.within three days gets the receipt sign.and they back out within whatever amount.of days they they enter here if they.decide they want to back out during that.amount of time or during that time.period then they can absolutely back out.and they just don't even have to have a.good reason they can back out just.because they feel like it as long as.they're okay losing that money and not.pursuing the deal then that's it so.let's move on woo that paragraph 23 was.a beast to record so I've got to change.this one thing.cuz Trek came back to this paragraph and.said you know what some of the problems.that people were noticing is a problem.that they wanted to do something about.so when they change the contract in.November 2015 they added a line that.said if the buyer wants to back out.within the option period then the buyer.has to back out by five o'clock on the.day that the option period ends in this.this prevents a situation where the.buyer tries to give notice at like 11:45.p.m. and causes a big problem for.everybody so they just put this in the.hard language of the contract says.option period ends at five o'clock and.it's not just anybody's five o'clock.it's the five o'clock in the time zone.that the property is in so if the buyer.or seller are you know on the East Coast.West Coast that doesn't matter if the.house is in central time zone then it's.five o'clock Central Time there you go.so everything else I said about.paragraph 23 is correct that's the only.change that happened whenever they went.in and revise those contracts paragraph.24 consult an attorney before signing.the contract here remind you that Trek.does prohibits real estate licensees.from giving legal advice I would take it.a step further and say just don't get.any legal advice from anybody except for.a licensed attorney not just a realtor.and then it reminds you to read this.contract carefully so here's what you.need to do you need to read the entire.contract so that you can get to.paragraph 24 and read the sentence that.tells you to read the contract carefully.so that you can know to read the.contract carefully it's kind of funny.anyway moving on if there is an attorney.involved in the deal you want to list.the attorneys information in these.blanks I would include them on all the.correspondence carbon copy of them on.the emails and then just realize that.the attorney is probably going to have.more authority in the con and the.the transaction then a realtor would and.the attorney can do anything that a.realtor would do in the in the contract.you want to talk to your broker about.how the Commission's might be split up.if the attorney wants a piece of the.Commission's then they're certainly.entitled to it but there could be some.extra rules or circumstances that would.come into play that you want to just.deal with on a case by case scenario now.one thing about the intimidation factor.of an attorney just because they're an.attorney doesn't mean they're some kind.of big bad crazy dude that has more.authority than God or something I mean.that they can't do anything more than.what the client could do for themselves.really the attorneys just has the.authority to act on behalf of their.client so if the attorneys involved in.the deal and they're inserting crazy.clauses and the special provisions or.attaching additional addendums or.whatever for telling you what to do just.kind of tap the brakes for a second and.sure give that attorney plenty of.respect but you don't have to just lay.over and let the attorney rule the roost.here you've still got to look out for.your clients best interest and you got.to make sure that things are heading in.the right direction for the transaction.so I think it's always a good idea just.to include your broker make sure your.broker knows when there's an attorney.involved because there gonna be some.extra dynamics involved in the.transaction that you're not gonna be.accustomed dealing with because the.funny thing is that attorneys are.generally not involved in the.transactions under save the six hundred.thousand dollar mark or so and it's.still just not very common for attorneys.to get involved in these residential.real estate transactions for some reason.I'm not sure why but anyway there you go.moving on okay let's look at the box.right above the signature lines they're.the one that says executed the blank day.of blank the effective date one that.says broker fill in the date of final.acceptance so for some reason this box.is overlooked quite a bit people just.forget and neglect to put the date in.there but that's a big mistake.now the contract can actually be a valid.contract if everybody signs it.it's legit and it's done but without the.date in there you're just setting.yourself up for inevitable confusion and.a possibly a conflict because nobody's.gonna know what date to begin all the.timelines from and what kind of counting.to begin you know when certain things.come into effect and when certain.deadlines in that sort of thing so it's.absolutely important to fill in the date.of this contract now we've got to talk.about when as a contract actually.executed it's not as simple as you would.think it's it's let's just run through a.scenario let's say the buyer initials.everything sons the offer sends it over.to the seller seller decides they don't.like it exactly the way it's written so.they strike through one or two things.initial those changes initial every page.of the contract sign the contract so now.they send it back over to the buyer so.now the buyers got a completely signed.an initial contract except for one.change basically and all they've got to.do is initial that one change and then.they think they have a deal which they.might but it didn't over yet so let's.say that buyer now initials the change.now how's that seller supposed to know.that they have a deal the seller hasn't.seen the contract so it doesn't know so.it's not actually a done deal until that.seller finds out that the deal has been.accepted so the buyer can't really.execute the contract they they should.send it back over to the seller than the.seller executes the contract now I'll.tell you that in practice that's just.not very practical so the way that we.handle it in our office is we just want.to make sure that everybody understands.that the contract is final it's all.agreed upon and it's executed and so.let's say in that situation if I was.representing the buyer's agent I would.get my client to initial that one last.change then I would just pick up the.phone and call the other agent and just.say hey we just accepted your contract.do you mind if I put the executed date.here on the contract and then go ahead.and send it over the title company nine.times out of ten they're gonna say yes.that that solves any kind of issue that.you're gonna have if they say yes then.you're good to go.and that's how you execute the contract.now just below the executed box you'll.see where the buyer and seller sign this.seems pretty self-explanatory your.client needs to sign the contract there.are gonna be circumstances where this.isn't quite as clear-cut for instance.when we're going over the contracts in a.contract training everybody wants to.pretend that we're all just everybody's.you know gonna tow the line on.everything that's right and wrong and.that's primary objective but in the.transaction the objective is serving.your clients best interest and reaching.an agreement so if one party or the.other is an available assign and.sometimes the question will come about.well who really has the authority to.sign this contract does if you've got a.husband and wife and the husband can't.be there can the wife sign for the.husband I'm just not going to touch that.in this contract training this is kind.of a basic contract training but that.topic needs to be addressed and how the.signature needs to appear whether it's.the same kind of signature that's on the.loan documents or that's on the driver's.license and let's say if it's a power of.attorney or a company how to actually.sign the contract it may make a.difference so just realize the situation.that you're in get specific advice for.your situation and make sure that the.the blanks are signed and we'll leave it.at that and that's it that's all eight.pages of the contract that's actually.the entirety of the agreement between.the buyer and the seller now let's move.to page nine and nine is kind of unique.there there's actually been some.conversation as to whether page nine.should be it should even be included in.the contract and I think it's a good.idea that it is although it doesn't.really contain any kind of agreement.between buyer and seller what it does is.it just make sure that all the pertinent.information is in one spot so here's.page nine what we have here is.the area for each real-estate agent each.real estate agents firm to put their.information other broker firm would be.the buyer agent and in his company or.her company their license number and you.would just select the appropriate box.here sub agent would be somebody that is.still on the sellers side of the.transaction but they're just involved to.help facilitate the transaction I've I.don't think I've ever been a part of a.transaction where there was an actual.sub agent I think that that happened.more and before the year 2000 must have.because that's when I got into real.estate early 2000 so anyway whatever.moving on.you've got the company names here name.of associates license supervisor that's.kind of a new blank if the supervisor is.different from the broker then you would.put that there the listing agents name.listing brokers address listing the the.email address associates name if you'll.notice here there's not a signature line.for either agent that's not required.anymore okay and in this blank is now.we've got where the listing broker has.agreed to pay the other broker blank of.the total price when the listing.broker's fee is received okay and then.it authorizes the escrow agent to pay as.directed now.since neither broker or agent signature.is on this contract I'm kind of.questioning as to whether or not this is.the actual place where the agreement is.made on how much one party is supposed.to pay the other or if it's whatever's.disclosed in the MLS I'm really not.quite sure but since there aren't any.broker signatures on this the question.comes up I would still just make sure.that this is accurate okay one other.thing is if there's a bonus involved or.some other form of compensation then.it's Commission you know any.compensation earned in the deal by a.broker or agent is going to be.considered Commission I don't care.really what form it takes that's what it.is.and so you'll just want to make sure you.put that in the blank in my gosh if it's.a you know a cruise or something.sometimes there are a flat-screen TV.there are some situations where things.that have monetary value but they're not.necessarily just money are involved then.you would want to just kind of probably.address where those things should be.documented at but it needs to be.disclosed at closing I'm not sure if.this is the appropriate blink or not.just handle that specific unique.circumstance with the direction of your.broker if it is just cold hard cash and.it's a bonus go ahead and add it in and.put the total amount of the Commission.in this blank if at all possible.congratulations you made it to the final.page of the contract here we go let's do.the option fee receipt we've already.talked about this one let's just go.ahead and talk about the earnest money.receipt this one is a brand new.paragraph or new revision I talked about.a little bit when we talked about.paragraph 5 so they've changed this.receipt to allow the escrow agent to be.named and then input the date and time.right there on the far right since time.is of the essence for delivering that.earnest money they have date and time.down there notice that it says escrow.agent in the blanket doesn't say seller.or listing agent or anybody else like.that so if it's me I'm not delivering.that earnest money until I've got.somebody at the title company with pen.in hand ready to sign this receipt I.can't tell you how many times if I'm.representing the buyers the buyer and.then I take the option fee to the.listing broker which is completely okay.as you'll see the receipt right above.there it says that the seller or listing.broker can sign for it well that.sometimes that listing broker will say.hey I'm bosom buddies with the title.company we're gonna be going over there.later this afternoon I'll be happy to.deliver that earnest money for you I.always refuse it I just say hey you know.you know it's okay I'm heading over.there myself right now so it's really no.big deal if they insist you know I put.the brakes on it I say hey man I'm so.sorry I've just got to make sure that I.get to sign bye that's.right now and or else you know I'm.really not serving my client well so I.really appreciate it but I'll go ahead.and take it and so that's it let's see.it next one it says contract receipt.this is a brand-new receipt this this.receipt is just saying that the the.escrow agent received the actual.contract itself believe it or not some.people will deliver the contract without.delivering the earnest money let's say.the contract was emailed and the earnest.money was sent overnight mail then those.are going to be two separate times.well the satisfaction of delivering that.earnest money is not made when the.contract is delivered the earnest money.has to be delivered in order to satisfy.the earnest money delivery requirements.so anyway they've got a separate blank.therefore the contract receipt then.there on the bottom you've got an.additional earnest money receipt and.that one's rarely gonna be used just.because we rarely use additional earnest.money but there you have it you have.done it that is all ten pages of the.contract.[Music].you.

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  6. Design your signature and put it in the document where you pick.

After putting your e-sign, email your document or share with your team members. Also, CocoSign proffer its users the options to merge PDFs and add more than one signee.

How to create an electronic signature for the Trec Form 1 in Gmail?

In these days, businesses have transitted their way and evolved to being paperless. This involves the signing contract through emails. You can easily e-sign the Trec Form 1 without logging out of your Gmail account.

Follow the instructions below:

  1. Look for the CocoSign extension from Google Chrome Web store.
  2. Open the document that needs to be e-signed.
  3. Press the "Sign” option and design your signature.
  4. Press 'Done' and your signed document will be attached to your draft mail produced by the e-signature application of CocoSign.

The extension of CocoSign has made your life much easier. Try it today!

How to create an e-signature for the Trec Form 1 straight from your smartphone?

Smartphones have substantially replaced the PCs and laptops in the past 10 years. In order to made your life much easier, CocoSign give assistance to flexible your workflow via your personal mobile.

A good internet connection is all you need on your mobile and you can e-sign your Trec Form 1 using the tap of your finger. Follow the instructions below:

  1. Navigate to the website of CocoSign and create an account.
  2. Follow this, click and upload the document that you need to get e-signed.
  3. Press the "My signature" option.
  4. Draw and apply your signature to the document.
  5. View the document and tap 'Done'.

It takes you in an instant to put an e-signature to the Trec Form 1 from your mobile. Load or share your form as you wish.

How to create an e-signature for the Trec Form 1 on iOS?

The iOS users would be gratified to know that CocoSign proffer an iOS app to make convenience to them. If an iOS user needs to e-sign the Trec Form 1 , make use of the CocoSign application relivedly.

Here's advice put an electronic signature for the Trec Form 1 on iOS:

  1. Place the application from Apple Store.
  2. Register for an account either by your email address or via social account of Facebook or Google.
  3. Upload the document that needs to be signed.
  4. Select the section where you want to sign and press the option 'Insert Signature'.
  5. Type your signature as you prefer and place it in the document.
  6. You can email it or upload the document on the Cloud.

How to create an electronic signature for the Trec Form 1 on Android?

The giant popularity of Android phones users has given rise to the development of CocoSign for Android. You can place the application for your Android phone from Google Play Store.

You can put an e-signature for Trec Form 1 on Android following these instructions:

  1. Login to the CocoSign account through email address, Facebook or Google account.
  2. Open your PDF file that needs to be signed electronically by clicking on the "+” icon.
  3. Navigate to the section where you need to put your signature and design it in a pop up window.
  4. Finalize and adjust it by clicking the '✓' symbol.
  5. Save the changes.
  6. Load and share your document, as desired.

Get CocoSign today to make convenience to your business operation and save yourself a lot time and energy by signing your Trec Form 1 online.

Trec Form 1 FAQs

Here you can acquire solutions to the most popular questions about Trec Form 1 . If you have specific doubts, press 'Contact Us' at the top of the site.

Need help? Contact support

How do I fill out Address Line 1 on an Online Form?

Your question is unclear. That said …. Generally, Address Line 1 refers to the house/building number and the street on which it is located, and may include an apartment/suite/unit number, though that can also be on Line 2. (Line 3 is typically the city, country and postal/ZIP code.)

How many people fill out Form 1099 each year?

There are a few different ways of estimating the numbers and thinking about this question. Data from the most recent years are not available—at least not from a reliable source with rigorous methodology—but here is what I can tell you: The most popular type of 1099 is Form 1099-MISC—the form used to report non-employee income including those for self-employed independent contractors (as well as various other types of “miscellaneous” income) Since 2015, there have been just under 16 million self-employed workers (including incorporated and unincorporated contractor businesses). And the data from the BLS seems to suggest this number has been largely consistent from one year to the next: Table A-9. Selected employment indicators Now, the total number of 1099-MISC forms has been inching up each year—along with W-2 form filings—and may have surpassed 100 million filing forms. RE: Evaluating the Growth of the 1099 Workforce But this data only goes to 2014 because, again, it’s hard to find reliable data from recent tax years. In terms of the total number of Form 1099s, you’d have to include Interest and Dividend 1099 forms, real estate and rental income, health and education savings accounts, retirement accounts, etc. I’m sure the total number of all 1099 forms surely ranges in the hundreds of millions. Finally, not everybody who is supposed to get a 1099 form gets one. So if you’re asking about the total number of freelancers, the estimates range from about 7.6 million people who primarily rely on self-employed 1099 income and 53 million people who have some type of supplemental income. If you’re someone who’s responsible for filing Form 1099s to the IRS and payee/recipients, I recommend Advanced Micro Solutions for most small-to-medium accounting service needs. It’s basic but very intuitive and cheap. $79 1099 Software Filer & W2 Software for Small Businesses

How do you know if you need to fill out a 1099 form?

It can also be that he used the wrong form and will still be deducting taxes as he should be. Using the wrong form and doing the right thing isnt exactly a federal offense

How do we know the eligibility to fill out Form 12 BB?

Every year as a salaried employee many of you must have fill Form 12BB, but did you ever bothered to know its purpose. Don’t know ?? It is indispensable for both, you and your employer. With the help of Form 12BB, you will be able to figure out how much income tax is to be deducted from your monthly pay. Further, with the help of Form 12BB, you will be in relief at the time of filing returns as at that time you will not have to pay anything due to correct TDS deduction. So, before filing such important form keep the below listed things in your mind so that you may live a tax hassle free life. For More Information:- 7 key points which must be known before filling Form 12BB

Can I get my earnest money back in Texas?

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Do military members have to pay any fee for leave or fiancee forms?

First off there are no fees for leaves or requests for leave in any branch of the United States military. Second there is no such thing as a fiancée form in the U.S. military. There is however a form for applying for a fiancée visa (K-1 Visa)that is available from the Immigration and Customs Service (Fiancé(e) Visas ) which would be processed by the U.S. State Department at a U.S. Consulate or Embassy overseas. However these fiancée visas are for foreigners wishing to enter the United States for the purpose of marriage and are valid for 90 days. They have nothing to do with the military and are Continue Reading

How long does it take to become a real estate agent in Tennessee?

Real estate, eh? First of all, yes I am Canadian. Secondly, I have been mentored by some of the greatest real estate agents in the world. Becoming a successful real estate agent is actually simpler than anyone thinks 1. Problem-Solving You need to be able to react to problems that arise (and they will) with a confident decision that results in an effective solution. This advanced skill requires timing and judgement to be successful. 2. Legal You don’t have to be an attorney or be able to recall every real estate code on the books. But you do need to have familiarity and comfortability with legal term Continue Reading

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