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How soon or late can a notice to perform be sent?

A common question that I get asked is when can a seller send a notice to perform to a buyer. if this usually comes up when a buyer’s agent receives a notice to perform from the listing agent prior to the expiration of a contingency period.  Contained inside the residential purchase agreement is verbage that basically says a seller can send a notice to perform to a buyer prior to the expiration of the contingency, but no more than two days prior to the expiration. This means that if a buyer does not remove their contingencies in riding on the day of the expiration then the seller can cancel the transaction the following day. This usually happens in situations where the seller is eager to end the transaction, likely because there is a higher backup offer oh, so the seller puts pressure on the buyer to perform as soon as possible. the alternative is when the seller waits for the expiration of the contingency date to arrive, and then sends a notice to perform, which means the buyer has two additional days to remove their contingency in which the seller must wait. After that, the seller can then cancel after waiting the 2 days.

What happens if a buyer does not close escrow on time?

Sometimes I see real estate agents send a notice to perform if the buyer isn’t closing on time. For example,  let’s say you’re the listing agent and the date of closing has arrived, but the buyer isn’t ready. Well, occasionally I see a notice to perform sent from the listing agent to the buyer’s agent asking the buyer to close. However, this is not the correct real estate form for this scenario. The correct form is actually a demand to close.  similar to a notice to perform, a demand to close has a waiting period. That waiting.. Is 3 days as opposed to the two days of a notice to perform. This means that if a listing agent Waits until the closing date to send a demand to close, then the seller has to wait three more days after the close of escrow date in order to cancel. If there is any doubt that the buyer may not close on time, I highly recommend the seller send a demand to close to the buyer 3 days prior to the close of escrow. Again, like the notice to perform, the notice or demand can be sent prior to the expiration or closing date. However, it’s important to remember that these notices cannot be sent earlier than 2 days for a notice to perform and 3 days for demand to close, that is the earliest. The two and three day waiting periods are explicitly outlined in a residential purchase agreement, and therefore cannot be changed once the offer is signed. I should mention, however, that while an offer is drafted the number of days in that waiting. Can be modified, but I’ve noticed that and agents never do that. In summary a notice to perform can be sent 2 days prior to exploration of buyers contingencies. A demand to close can be sent 3 days prior to the closing date.

If you find yourself in a position of the listing agent and you want to pressure the buyer to adhere to strict timelines then it’s a good idea to send the nurse to perform 2 days prior to any contingency expiration, and if you have any doubt that the buyer may not close on time then to send a demand to close 3 days prior to close of escrow. And of course, these notices can be sent after the expiration or after the close of escrow date, Because unless the seller delivers one of these notices, the seller cannot cancel. The residential purchase agreement obligates the seller to deliver this notice to a buyer in order to correct their breach before cancelling. if you have any questions about a notice to perform or a demand to close please feel welcome to email info@Balboateam.com

California Real Estate Seller Disclosure Timeline

In some cases, HOA document orders exceed buyer contingency periods. Below is a quick summary of the implications as they relate to seller disclosures.
*This is based on default California residential purchase agreement timelines.
The seller has 3 days  from acceptance to request (order) HOA docs (This is usually done by escrow).
The seller has 7 days from acceptance to deliver all disclosures to the buyer.
The buyer has a 17-day investigation period.
OR 
The buyer has 5 days from receipt of any outstanding seller disclosures listed in RPA Para. 14A
Whichever date is later – to remove all contingencies.
The purchase agreement is contingent upon HOA disclosures.
Buyer’s approval of CI (HOA) Disclosures is a contingency of this agreement…Para. 10.F.3.viii.

What happens when HOA docs have been ordered but take too long to arrive?

If all the other seller disclosures (outlined in Para. 14.A) have been delivered to the buyer, then the seller can still request a contingency removal form (CR) that can request any or all other contingencies be removed except for the HOA disclosures.
This extracts the HOA disclosure from the other seller disclosures so that the seller can duly enforce contingency removal for everything else.
Questions? email info@balboateam.com

100% commision real estate is a name for a low cost real estate brokerage model for agents. Instead of the traditional percentage fee of a real estate agent’s commission paid to the broker, also known as a commission split, a nominal flat fee or annual fee is paid instead.

As an example, an agent earns a $9,000 commission. In a traditional commission split the agent might pay 30%  to the brokerage ($2,700), but in a 100% commission model they would pay a flat fee, such as $600.

To put it a very simple way, a 100% commission real estate brokerage charges agents less of the commission they earn. Agents typically pay a flat fee, sometimes a monthly fee in addition, or sometimes a simple pre-paid annual fee, instead of a broker split.

The 100% commission model has become very popular in the last 10 years, but the concept is actually decades old.

So why has 100% commission real estate become such a mainstream brokerage model?

The answer is technology. Paperwork is done through services like Docusign or, at the very least, scanned and sent through email. In the past, listings weren’t accessible online, whereas now MLS data is accessible from a multitude of websites. Given that all the tools for agents and their clients need are online and can be accessed remotely, there is less of a reason to have an office to go for client meetings. More agents work from home offices and don’t need to contribute a large percentage of commission for office-related overhead that they don’t use.

Find out more about Balboa Real Estate’s 100% Commission Model HERE

 

 

Be in business for yourself.

Be in business for yourself.

So you’re interested in selling homes and making a career for yourself in real estate. Sounds pretty easy right? It is if you know the right way to navigate this saturated industry. The key topic that people seem to forget with real estate is that you’re essentially working for yourself, not the brokerage nor the broker. You’re in business with yourself and if you want to succeed you’re going to do all it takes to market yourself and your business to turn this job into a career.

To succeed in your real estate business, you need to first formulate a business strategy. How many homes do you intend to sell in a year? When will you be ready to handle commercial property sales? Should you get a broker’s license after a few years in the real estate industry? These are some questions that you should be asking yourself as not only a real estate agent but also a business owner. Be mindful of your finances. Set aside a budget for marketing and advertising expenses. It’s good to set aside funds to invest back into your business to ensure that you can grow and thrive.

Secondly, you need to define what kind of business you will be conducting. It’s better to specialize in a location and type of property sale (residential, commercial, rental real estate), then to stretch yourself thin. In the real estate business, defining what your company is about and having a niche market is crucial to your success and longevity.

Another important aspect to consider when in business for yourself is that you always need to continue educating yourself and keeping up to date with new technology to assist your real estate business. In real estate there’s a lot of paperwork involved; make it easy for yourself and your clients by going green and keeping your transaction paperless. Streamline the way you do your transactions by using electronic signature technology. Be in the real estate loop by signing up for newsletters. Continuously search for new articles about the real estate industry, if there are changes to any real estate forms, make sure your know about it.

The last aspect to never forget when doing real estate and owning your own business is that you need to be accessible to your clients and your agents if you’re a broker. Having accessibility,  and a good phone plan will help towards your success in real estate.

Join Balboa Real Estate if you’re ready to start a career where you are your own boss. Work with us to keep 100 percent of your commission and grow your real estate business.

Click here to read more about marketing strategies.


100 commission real estate100 percent comission, but is it really? Avoid additional and hidden fees with Balboa Real Estate.

Real Estate firms have adopted to the trend of offering agents 100 percent commission but through research of competing agencies in California there seems to be few that truly stand by their 100 percent commission tagline.

100 percent commission serves as a motivational strategy to keep agents and brokers engaged because this ideally works to ensures that the agents get the most out of their hard work. However, many of the leading firms in California have other fees that agents, new and seasoned, should be aware of. There is usually a start-up fee, a key charge for using the office, plans requiring monthly or quarterly fees and payments for E&O. Many firms will charge you unneccesary fees going towards benefits that are rarely used by agents. Don’t be fooled by firms stating 100 percent commission. The list of additional fees seems never ending and not even near the 100 percent commission mark once everything is calculated.

At Balboa Real Estate we won’t ask you to pay for services you don’t need or services that should be provided without additional costs. We believe that you should keep all of the commission that you earn and we are a firm that wants to make sure our agents are taken care of. There is a reason why Balboa Real Estate is one of the few true firms that stick as close to the essence of 100 percent commission as possible. Balboa Real Estate wants you to keep as much of the commission at possible and avoid charging our agents all the hidden fees that many other real estate firms charge. Our 100 percent commission plan is as simple, easy and the best in the industry!

Contact us to join and get the 100 percent commission you work hard to earn!