November 2018 - BALBOA REAL ESTATE® | CALIFORNIA 100% COMMISSION REAL ESTATE BROKERAGE

What Real Estate Forms Are Required on a Transaction Checklist?

Any reputable California real estate brokerage is going furnish their agents with a closing checklist with all the documents needed to complete the file. It’s important to note that what a brokerage requires and what is legally required are two different things. The California Association of Realtors makes additional forms that are designed to get the seller to disclosure more and reduce liability. Many brokerages add excessive forms to their transaction checklist because they don’t know any better. This creates redundant forms and unnecessary amount of paperwork. It’s our opinion at Balboa Real Estate that the broker should seek to cover the broadest spectrum for their clients while utilizing the least amount of forms. Basically, to create a transaction checklist that is extremely efficient.

So What Forms Should Be On A Transaction Checklist?

RESIDENTIAL STANDARD SALE CHECKLIST

OPENING DOCUMENTS
Listing Agreement (When Listing Agent)Buyer’s Pre-Qualification or Pre-Approval Letter (Optional)
Purchase Agreement & Attached Forms (RPA- Including AD-2, PRBS, BIA) Seller Counter Offer (SCO) – When applicable
Buyer Counter Offer (BCO – When applicable
Addendum(s) – When applicable
MLS Sheet – Full Agent Sheet
Receipt of Initial Deposit from Escrow
FHA/VA Amendatory Clause (FVAC)- When applicable
Wire Fraud Advisory (WFA)

DISCLOSURES & REPORTS
Agency Relationship Disclosure (AD) – Listing Firm to Seller (When Listing Agent) Agency Relationship Disclosure (AD) – Selling Firm to Buyer
Lead Disclosure (FLD) *if built prior to 1978*
Natural Hazard Disclosure Report
Natural Hazard Disclosure Statement/Signature page (NHD)
Real Estate Transfer Disclosure (TDS)
Residential Earthquake Hazards Report Signature Page *if built prior to 1960* Qualified Substitute (QS) signed by escrow or FIRPTA form (AS)
Seller’s Questionnaire (SPQ)
Agent Visual Inspection Disclosure OR Agent Inspection Noted on Page 3 of TDS.
Water Conserving Plumbing Fixtures and Carbon Monoxide (WCMD)
Statewide Buyer & Seller Advisory (SBSA)
Affiliated Business Disclosure Statement
Statewide Buyer & Seller Advisory Addendum (Optional but highly recommended)

INSPECTIONS, REPORTS, CLEARANCES, REPAIRS, ETC.
Contingency Removal (CR) (When Applicable)
Property Inspection Report (If no inspection use waiver – BIW) Buyer’s Request for Repairs (RR)
Seller’s Reply to Request for Repairs (RRRR)
Physical Inspection Waiver – If Applicable (BIW)
Termite Inspection (If no inspection use waiver – BIW) Termite Completion (If applicable)

TITLE & ESCROW
Escrow Instructions (Unsigned OK)
Preliminary Title Report
Home Warranty Plan Confirmation (When applicable)

CLOSING DOCUMENTS, TASKS TO COMPLETE
Closing Statement
Verification of Property Condition (VP) AKA Final Walk Through
Copy of Commission Check
Local Disclosures (When Applicable)
Any Additional Documents Used in Transaction

If you have questions or comments then please contact info@balboateam.com

Limited Function Referral Office Certification or LFRO is a designation for real estate licensees that aren’t members of the association of realtors, but want to hang their license with a broker that is a full realtor member. The implication is that the non-member agents is considered a “referral agent” and they are not expected to operate as an active agent. Instead, they are expected to refer their clients to “active” realtors on the team.

Once a salesperson is licensed with the Department of Real Estate, the salesperson is not required to join an association of realtors. Some licensees maintain their license as NBA or no broker affiliation. Salespersons must be affiliated with a broker to conduct business.

So, a salesperson might go hang their license with a broker, this is where there may or may not be a requirement. A broker is very likely to be a full realtor member with an association of realtors. Now, the distinction is the the association requires the broker’s salespersons to be full realtor members as well. It has nothing to do with the state. It’s a stipulation of the broker’s membership with the association of realtors. If the salesperson doesn’t sign up as a full realtor member then the broker will get a notice that they must either pay a fine, or the agent can be moved to LFRO designation upon Limited Function Referral Office Certification, or the licensee must be terminated from the broker’s employment. The obvious choice is for the salesperson to be moved to the LFRO referral agent status.

Occasionally, agents will inquire with Balboa Real Estateabout the 100% commission program. They ask whether or not they are required to be a member of the association of realtors. Our answer is that the agent is not required because we can have their DRE license active with our company and move the agent to LFRO referral agent status. However, when an agent begins to get busy, it would benefit them to pay dues to access a MLS and professional real estate forms.