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(314) 849-6300 office
(314) 403-7715 fax
(314) 277-1152

8460 Watson Rd
Suite 112
St. Louis, MO 63119

Open 9am - 6pm

Frequently Asked Questions

 

OVERVIEW

AN OVERVIEW OF THE  HOME BUYING AND SELLING PROCESS

A brochure designed to acquaint prospective home
Buyers and Sellers with the customs and proceedures
of the local real estate market

St. Louis Association of REALTORS®
St. Louis, MO 63141
12777 Olive Blvd.

Agency is for your protection. A Buyer’s or Seller’s first contact in the home buying or selling process should be with a REALTOR® of choice to establish a relationship. The Missouri State Law requires that a REALTOR® provide a Buyer or Seller with the Missouri Broker Disclosure Form . This form explains the types of relationships available and will assist the Buyer and Seller in determining which relationship best fits their particular needs. Should a Buyer or Seller desire professional representation, the REALTOR® will require a signed agreement.

Pre-Approval means that a Buyer has consulted with a lender of choice and has provided the necessary information to complete the process, including social security number. The lender reviews the information, including a credit report, and then issues a pre-approval or approval letter. Some lenders even state in the letter that credit has been reviewed. Many lenders provide this service at no charge, others charge a fee. Buyer should meet with a lender of choice to be pre-approved before investing time into looking for a home.

Pre-Qualification means that a potential Buyer has spoken to a lender of choice and the lender states that the Buyer can purchase a home within a certain price range, based upon the information provided at that point in time. This is NOT the same as a pre-approval, as the credit report has not been reviewed. This does NOT position the Buyer as well as pre-approval.

Seller’s Disclosure Statement is the Seller’s written statement about any defects, pertinent facts, or other known conditions regarding the subject property that could affect the buying decision. The Buyer should carefully read this statement and address any concerns within the terms of the contract.

Lead Based Paint Disclosure identifies any known presence of lead based paint hazards in the subject property. Seller should provide it to the Buyer prior to the writing of the contract. Be sure to read the “Protect Your Family From Lead In Your Home” brochure.

Residential Sale Contract is a preprinted form , approved by The Counsel for the ©St. Louis Association of REALTORS® and by the Bar Association of Metropolitan St. Louis for the exclusive use of their members. It is the controlling instrument reciting all of the terms and conditions of the purchase/sale.

In order to become familiar with its contents, it is prudent to secure, read and understand the Residential Sale Contract at the beginning of the process.

Missouri law does not require the use of an attorney in a real estate transaction. You may wish to consult an attorney, however, if you have any questions about the transaction or the forms.

The Earnest Money Deposit is provided for in the Residential Sale Contract . Earnest money is part of the cash consideration and represents a “good faith” commitment and the earnest intent to perform on the part of the Buyer. The larger the earnest deposit, the stronger the offer appears in the eyes of the Seller. Inclusions and Exclusions are to avoid any misunderstandings. The parties involved in a real estate transaction are urged to list as “included” or “excluded” any items which may be subject to question. Many of these items are already printed in the Residential Sale Contract . If there is any question whether or not an item is to convey with the property, it should be written into the Residential Sale Contract .

Inclusions and Exclusions are to avoid any misunderstandings. The parties involved in a real estate transaction are urged to list as “included” or “excluded” any items which may be subject to question. Many of these items are already printed in the Residential Sale Contract . If there is any question whether or not an item is to convey with the property, it should be written into the Residential Sale Contract .

Contingencies are contained in the Residential Sale Contract including financing, inspections, and title and survey. These contingencies are for the benefit and protection of the Buyer, but they serve both the Buyer and the Seller. When satisfied, these contingencies serve to reduce the risk associated with the scheduled transfer of ownership and possession. Accordingly, it is important that sufficient time be allowed between the satisfaction of all contingencies and the scheduled closing date.

The Financing Contingency contains a provision that allows the Buyer to apply for and attempt to secure specific financing as a part of the Residential Sale Contract . This clause requires the Buyer to proceed in good faith and cooperate fully with the lender, including a timely loan application with payment of required fees to the lender. It is recommended that the Buyer who intends to borrow money for the purchase has a bona fide loan pre-approval from a reputable lender before beginning the house hunting process.

The Inspection Contingency provides the opportunity for the Buyer to have independent, qualified inspectors inspect the property and improvements and provide the Buyer with written reports at the Buyer’s expense. Professional inspections are always recommended. An Inspection Contingency brochure describes the intended purpose and process in more detail. The Environmental Concerns brochure is also available.

The Title and Survey Contingency provides the opportunity for the Buyer to investigate the condition of the title to the property. Title insurance and a boundary improvement (stake) survey are always recommended in order to protect the Buyer against liens and other defects affecting the property. The Title and Survey Contingency Explanation brochure further explains this process.

Riders are preprinted forms approved by the Counsel for the ©St. Louis Association of REALTORS® and by the Bar Association of Metropolitan St. Louis for the exclusive use of their members. Some examples are the “House Sale Contingency“, the “Condominium Rider to Sale Contract“, and the “Appraisal Rider“, which can be incorporated in the Residential Sale Contract as needed.

Gas Appliance Inspections are an obligation of the Seller. Seller must provide a certification to Buyer that all gas appliances are in safe condition and good working order from an appropriate gas company dated within thirty (30) days prior to closing. Please read paragraph 7 of the Residential Sale Contract for specific details.

Code Compliance and Occupancy Permits are required by many municipalities in the area. Governmental jurisdictions vary in their code compliance and occupancy requirements. Generally, a Seller requests any required inspection (s). Upon satisfaction of the inspection (s) and prior to closing, Buyer obtains an occupancy permit. A nominal fee may be charged for inspections and/or permits.

Homeowner’s Hazard Insurance is required by the lender. The actual policy and paid receipt for the first year’s premium are generally required to be in the lender’s possession at least ten (10) days prior to closing. The policy must contain a loss-payable clause in favor of the lender, and the insuring company must be acceptable to the lender.

Prior To Closing utility change over and walk through of the property are recommended to be performed prior to closing. A Seller should provide items integral to the property, such as instruction manuals, warranty papers, garage door openers, keys, and alarm and garage door opener codes. A Seller should leave the property in presentable, clean condition. It is recommended that the Buyer have locks and codes changed after closing.

Closing (Settlement, Escrow) is the exchange of the deed for the purchase price. The closing is normally held at the office of a title insurance company. Immediately prior to the real estate closing, the Buyer will execute all of the documents required by the lender in order to close the loan on the property, either at the lender’s office or at the title insurance company. Normally, the Buyer closes first and the Seller closes later in the day. Often the Buyer and Seller close at different title companies. Buyer and Seller are each responsible for closing charges as defined in the contract. The closing date should be carefully chosen to avoid the 15th, 30th or 31st of a month to lessen the possibility of delays.

The Conveyance of a property is normally by General Warranty Deed and is subject to recorded deed restrictions easements, rights of way, etc. Most residential properties have restrictions such as utility easements, and most subdivisions have indentures containing use restrictions and trustee assessments. Strict zoning laws such as building lines and land use restriction are applicable in most of the metropolitan areas. The Deed of Trust is the security instrument for the debt as evidenced by the Note which recites the terms of the loan.

The Deed of Trust is recorded at the County/City recorder’s office immediately after the General Warranty Deed has been recorded. After recording, the Deed of Trust is held by the lender until the note is paid in full. At that time, it should be forwarded, along with a recorded Deed of Release, to the Signatory.

Real Estate Tax is to be prorated as of the date of closing per the terms of the contract .

“It is important to both Buyer and Seller throughout the home buying and selling process from pre-approval through closing that all times and dates by met.”

As members of the National Association of REALTOR® , REALTOR® are actively engaged in the real estate business; bound by a Code of Ethics to provide good advice and honest treatment; and are committed to continuing education for updating their knowledge and skills.

INSPECTIONS

INSPECTIONS Contingency

Please be advised that this brochure is not a contract, does not replace the contractual provisions and is not a legal interpretation of the contractual provisions.  No representations are made by this brochure as to the legal or practical effect of any contractual provision.  If you have questions about your legal rights and liabilities under this or any other provisions of the contract, you should consult your own attorney.

 

This brochure is a brief explanation of the Inspection Contingency, Paragraph 10 of the joint St Louis Association of Realtors® and Bar Association of Metropolitan St. Louis approved Residential Sale Contract dated 1/2004.  It will remain applicable to subsequent versions of the contract until a revision of the contract mandates its change.

 

WHY DO I NEED INSPECTIONS?

 

The intended purpose of the “Inspection” contingency is to allow a buyer the opportunity to verify that the property being purchased is in the condition it appeared to be on the date of the contract.  In most pre-owned homes, minor flaws or imperfections may have developed over a period of time because of normal wear and tear.  These kinds of items are to be expected and should be considered when a buyer makes a good faith purchase offer.  The inspections provision is not intended to give a buyer the opportunity to ask a seller to make an “old” house “new” inasmuch as minor cosmetic flaws should not escape a buyer’s notice during the pre-offer viewing of the property.  On the other hand, the inspection contingency should be considered as an opportunity for a buyer to “discover” unacceptable conditions, such as a defective roof, a structurally deficient foundation or a faulty electrical or plumbing system.  Weather conditions may limit the inspector’s ability to inspect certain components of the property.

 

THE CONTINGENCY PROCESS

 

The process begins by allowing the Buyer a specific period of time to obtain written property inspection reports from any independent qualified inspector.  If the Buyer is satisfied with the inspection results, he so notifies the Seller and the contingency is resolved.

 

If the Buyer is not satisfied with the inspection results or is simply no satisfied for any reason regardless of inspections results, he must furnish a written Inspection Notice and all written inspection reports to the Seller or listing broker within the time specified in the contract.  The Notice can either inform the Seller that the contract is terminated or it can identify certain requirements that, if agreed to by the Seller, would satisfy the Buyer. These requirements could be that the Seller corrects certain unacceptable conditions or provide a monetary adjustment at closing.

 

If the Buyer has an inspection, the buyer has the unilateral right to terminate the contract unless he submits a request for remedy.  If he elects not to terminate but instead, chooses to request that the Seller satisfy his identified requirements or conditions, he should proceed in good faith in attempting to accomplish a resolution of the contingency.

 

If the Buyer provides a timely Inspection Notice, the process then provides the parties with a specified period time in which to reach an agreement (the resolution period) or the contract terminates.  During this resolution period, a written commitment by the Seller to meet the requirements originally submitted by the Buyer in the Inspection Notice or a written commitment by the Buyer to accept the property without satisfaction of such requirements, shall constitute a agreement for the purpose of this contingency.

 

The calendar shown here is provided to help understand the inspection time frames.  It assume a 10 day inspection period which is the contract time period unless otherwise specified.  If the “Acceptance Deadline” date is the 5th of the month, day one is the 6th and the Inspection Notice must be in the hands of the Seller or listing broker by ll:59 p.m. on the 15th of the month.  The resolution period works the same way.  Day one is the day after the Inspection Notice, accompanied by a complete copy of written inspection reports, is received by the Seller or listing broker.

IT IS VERY IMPORTANT TO REMEMBER THAT ALL REQUESTS AND NOTICES DESCRIBED ABOVE MUST BE TIMELY AND MUST BE IN WRITING.

 

THE INSPECTION REPORT

 

The Buyer may have the property inspected by any independent qualified inspector.  It is recommended that the inspector be a member of a professional association.  If the Buyer chooses to use a member of the American Society of Home Inspectors (ASHI), the Buyer may expect an inspection and report as indicated below.  When reading an inspection report, it is important to understand that most home inspectors include suggestions for future improvements and general maintenance.  This really isn’t the intended purpose of the contingency but it is typically very useful information for the new homeowner to understand how to maintain his investment.

 

BUILDING INPECTIONS BY ASHI MEMBERS

 

The building inspection is a VISUAL inspection of the major structural and mechanical components of the dwelling unit.  The inspection is performed in accordance with the standards of practice established by the American Society of Home Inspectors (ASHI) and is not meant to be a code compliance inspection.  All utilities should be turned on for a complete inspection to be performed.  Note that the inspector can only inspect exposed and accessible systems and their components.   Any wiring/plumbing lines/vents/structural components, etc. that are concealed behind walls or are underground cannot be inspected.  The following general areas are inspected.

 

A. Electrical System – Identify the type/manufacturer of the main panel and sub-panel(s) and the existence of ground cable; compatibility to overload protection with conductor size; spot check electrical switches and receptacles and look for exposed wiring.

B. Interior Plumbing – Water supply; hot water source; interior plumbing lines; existence of vent pip system; water pressure (functional flow); fixtures and faucets; proper drainage and piping.

C. Roofing – Type and condition of roofing; guttering; venting; attic insulation

D. Walls, ceilings, floors, stairs and railings are inspected for major structural problems.  Doors and windows are tested for proper operation.

E. Exterior – Exterior wall coverings; flashing; rim; attached decks; balconies; stoops; steps; retaining walls and grading/surface drainage as they apply to the structure.

F. Foundations – Basements; type of structure; materials; exposed areas of foundation (footings and piers cannot be inspected); evidence of water penetration.  Note that an inspector cannot predict future settlement of a structure.

G. Central Heating System (space heating not included) – Energy source; heating equipment; heating distribution; presence of heating source in each habitable room.  The inspector will operate the system using normal manual controls.  The inspector will not light the pilot.

H. Cooling System (window units not included) – Energy source; cooling equipment; cooling distribution; presence of central cooling source in each habitable room.  The inspector will operate the system using normal manual controls.

 

ASHI does not require individual inspectors to predict life expectancies of components such as roofs, air conditioners, heating systems, water heaters or appliances.  Buyers should be aware that mechanical components can randomly or unexpectedly fail and the inspector cannot predict such phenomenon.  The inspection and written report present the inspector’s opinion of the conditions visible at the time of the inspection and is not a warranty or guarantee of the continued future performance of the home’s components.  Note that home warranties can be purchased by home buyers which insure future performance/repair of many components of a home.

 

Private or specialized systems are excluded from ASHI inspections; examples include pools, hot tubs, saunas, alarm, sprinkler, septic systems, wells, etc.  Inspections for wood destroying insects, and testing for lead paint, asbestos, radon, mold and other environmental pollutants are excluded from ASHI standards inspections.  Private inspections from qualified or licensed specialists should be obtained for these specialty items.

INSURANCE

Don’t Take Property Insurance For Granted

St. Louis Association of Realtors®
12777 Olive Blvd.
St. Louis, MO 63141

THE PROPERTY INSURANCE ISSUE:

 

Recently the property insurance environment has dramatically changed and continues to do so.  Here are some important tips to consider about this new insurance environment:

• Don’t wait to secure your insurance.

As soon as your offer is accepted, call your insurance agent and arrange for coverage.  If you are shopping around, try to pick an insurance company/agent before you write an offer. Then, when your over is accepted you will know whom to call.  If you haven’t picked an insurance company or agent by the time your offer is accepted, do it immediately after your offer is accepted.

• Consider Learning Your Insurance Score.

Consider buying an “Insurance Score” report.  Similar to a “credit score,” you “insurance score” is used by many insurance companies in deciding whether to extend insurance coverage to you.  The components of your insurance score may vary from company to company, but usually include a composite of your credit score and possible your past record of filing insurance claims on other properties you have owned or rented.  One company offering Insurance Score Reports is Choice Trust.  Their web site is www.choicetrust.com .  A choice Trust Insurance Score Report is available for a minimal fee

• Obtain “CLUE” for Current Property:

Consider obtaining a “Clue” Report for the property you currently own.  “Clue” means Comprehensive Loss Underwriting Exchange.”  CLUE is a database of insurance claims on properties throughout the United States.  Insurance Companies contribute claims information about properties they have insured and thus a record of claims as to each property that has been insured by a contributing company has been built over the past 10 to 12 years. Generally, claims over the past 5 years are available through the CLUE database.  CLUE Reports are used by insurance companies to decide whether to insure a property.  If a CLUE Report reveals that a property has had “too many” past claims or certain types of claims (such as water damage), many insurance companies will not insure the property. Unfortunately, there is no standard among insurance companies about what are “too many” claims to result in a denial of coverage.  CLUE Reports can be obtained at the Choice Trust website, www.choicetrust.com .  There is a nominal charge to obtain a CLUE Report.  The best time to get a CLUE Report for your own property is before you put it on the market and before you write an offer to buy a new property.  If your current property’s CLUE Report reveals  significant insurability issues, this may affect the salability of your property.

• Consider Asking:

Consider asking the seller of the property you are interested in buying for a CLUE Report for their property before writing an offer to buy.  Only the owner of the property can obtain a CLUE Report

• When Buying Your Insurance:

When buying your insurance, ask your insurance agent if the binder or policy can be cancelled by the insurance company after it has been issued.  Some binders and policies give the insurance company up to 60 days or more to cancel the policy for any reason, including information revealed in a CLUE Report.  This 60 day period may extend after your closing date.  Cancellation of your insurance after closing could cause serious problems for you with your lender.

• Cost of Insurance:

Even if property insurance is available, it may be significantly more expensive than in the past.  Property insurance premiums have risen substantially overall in the past several months.  Also, a property that has an unfavorable CLUE Report may be insurable, but only a a significantly higher premium.  Buyers with low insurance scores may also be required to pay higher premiums to secure property insurance.

• Consider Higher Deductibles:

Consider higher deductibles to make your insurance more affordable.  10-12% discounts are offered on $1,000 deductibles rather than the $500 deductible option.

As members of the National Association of REALTORS®,
REALTORS® are actively engaged in the real estate business; bound by a Code of Ethics to provide good advice and honest treatment; and are committed to continuing education for updating their knowledge and skills.

Source:  Bruce H Aydt, ABR,ABRM,CRB
©St. Louis Association of  REALTORS®
FORM #2170 05/03

TITLE AND SURVEY

Title and Survey Contingency Explanation

 

St. Louis Association of Realtors®
12777 Olive Blvd. St. Louis, MO 63141

 

THE TITLE AND SURVEY CONTINGENCY PROCESS:

 

The title contingency process begins with the choices provided on the sale contract and negotiated between Buyer and Seller. The agreement may be for the “Seller to Order, Provide and Purchase Title” or for the “Buyer to Order and Purchase Title.” The Buyer, in either case, may select the title company) in paragraph 5), which is to provide the title insurance and where the closing will take place. The Seller may close at the title company of his choice.

 

The survey contingency process begins by allowing the Buyer to order, at the Buyer’s expense, either a “stake” or “spot” survey.

 

It is critical that the title examination and the survey be ordered as soon as possible to allow for the examination process to be completed and problems identified within the time limits provided in the contract.

 

TITLE EXAMINATION:

 

This contingency provides the Buyer the opportunity to inspect the condition of the title to the property. The title company selected to examine the condition of the title will provide insurance to the Buyer and the Buyer’s lender, if applicable. The title policy may have exceptions including any title defects discovered in this title examination process which are not corrected prior to closing. The commitment may also exclude the following items as listed in the sale contract:

 

A)  Zoning regulations

 

B)  Leases and occupancy of tenants existing on the date the contract is executed by the Buyer, and disclosed to the Buyer in writing before the execution of the contract

 

C)  General taxes payable in the current year and thereafter

 

D)  Any lien or encumbrance created by or assumed by Buyer in writing or any easement accepted by Buyer in writing

 

E)  Subdivision, use and other restriction, rights of way and utility easements, all of record, which do not adversely affect the use of the property as it exists for residential purposes at the time of the contract

 

SURVEY EXAMINATION:

 

The survey is an integral part of the title examination. The large majority of title defects involve those that an accurate survey would disclose. These defects might include property improvements built on easements or over building lines, or encroachments of the property improvements on the adjacent property or vice versa. These are all defects, some of which are more serious than others and some of which may not be able to be corrected, particularly in a timely manner.

 

The contract allows the Buyer to order either a “stake” or “spot” survey, at the Buyer’s expense. A Boundary Improvement Survey (Stake survey) physically identifies the property corners, property lines, and the location of the improvements.

 

A Surveyors Real Property Report (Spot Survey) is a visual guide and represents only a cursory check o the location of the improvements. It may not disclose such matters as encroachments, overlaps and boundary line or acreage discrepancies.

 

A Boundary Improvement Survey is always the preferred choice and is recommended to assure that defects are discovered in the examination process.

 

CORRECTION OF DEFECTS:

 

Except for the conditions outlined in A) through E) above, if during the examination process and time period, title defects are discovered and are unacceptable to the Buyer, Buyer is to give timely notice to the Seller or listing broker. If Seller is unable or unwilling to agree to correct the defect or defects objected to by Buyer, The Buyer has the option to terminate the contract. Please refer to the contract for details as to the applicable time frames for notices.

 

NOTE ESPECIALLY FOR SELLER:

 

It is recommended that the Seller reduce some of their unforeseen risk by beginning the title examination process at the time the property is listed for sale. The reason is should a defect be discovered by the Buyer that the Seller finds difficult or time consuming to correct, there is a possibility that the contract could be terminated. Under this scenario, if the Buyer terminates the contract then the Seller must reimburse the Buyer’s cost of title, survey, inspections and appraisal. If the Seller orders the title examined and has a survey that is acceptable to the title company, in most situations the Seller will have virtually eliminated the risk involved with this contingency.

 

LIMITATIONS OF PROFESSIONALS INVOLVED IN THE PROCESS:

 

Real estate licensees are specifically prohibited from providing legal advice, which includes the interpretation of surveys or title reports. Similarly, under the decision of In re First Escrow, Ind., title companies may not “give advice or opinions as to the legal rights of their customers, the legal effect of the instrument, or the validity of titles to real estate.” Title company attorneys may not provide legal services to their company’s customers. For these reasons, if Buyers or Sellers have questions about information on the survey, they may ask the surveyor. If they have questions about the title commitment or policy, they may ask the title company employees. Questions about the legal implications of documents, including the sale contract, riders, addenda, survey, or title insurance policy should be directed to their attorney.

 

 

As members of the National Association of REALTORS®,
REALTORS® are actively engaged in the real estate business; bound by a Code of Ethics to provide good advice and honest treatment; and are committed to continuing education for updating their knowledge and skills.

©St. Louis Association of Realtors®
FORM #2062 10/2001

ENVIRONMENTAL

St Louis Association of Realtors

Presents

In order to assist Realtors in making information available to interested home buyers, the Association has purchase a number of brochures from agencies which have expertise in different areas of the environment. To purchase copies, Realtors may stop by or call the Realtor Store at 576-0033. Realtors are encouraged to contact these agencies to get further information, and to be sure that the brochures furnished by the Association are the most recent available.

 

General Information

United States Environmental Protection

Agency Public Information Center

1-202-260-2080

 

RADON

Publication available:

“Home Buyer’s and Seller’s

Guide to Radon”3/93

 

United States Environmental Protection

Agency – Region VII

726 Minnesota Avenue

Kansas City, KS 66101

1-913-551-7260

 

American Lung Association

1118 Hampton Avenue

St Louis MO 63139

1-314-645-5505

 

Lead

 

Publication available:

“Protect Your Family From Lead in Your Home” 5/95

 

Missouri Lead Contacts

1-314-526-4911

 

National Lead Information Center

Clearinghouse

1-800-575-9267

 

USEPA Safe Drinking Water

1-800-575-9267

 

Missouri Lead Hot-Line

1-800-575-9267

 

St Louis County Department of Health and Hospitals

1-314-854-6905

 

Department of Health and Human Services

Public Health Service Centers for Disease Control

Atlanta, GA 30333

 

ASBESTOS

 

Publication available:

“Asbestos in Your Home” 12/92

 

USEPA Toxic Substance Control Act

Assistance Information Service

401 M. Street, SW

Washington D.C. 20460

1-202-554-1404

 

ELECTROMAAGNETIC FIELDS

 

Publication available:

“EMF in Your Environment-Magnetic Field Measurements of Everyday Electrical Devices” 12/92

 

Office of Radiation and Indoor Air Radiation Studies Division USEPA
Washington D. C. 20406

 

Ameren UE

1-314-554-2402

 

Superintendent of Documents U.S. Government Printing Office
Washington D.C. 20402
1-202-512-1800

 

Hazardous Wastes

Missouri Department of Natural Resources Technical Assistance Program
1-800-361-4827

Form #2128

BROKER DISCLOSURE

 

MISSOURI BROKER DISCLOSURE FORM

 

This disclosure is to enable you, a prospective buyer, seller, tenant or landlord of real estate, to make an informed choice BEFORE working with a real estate licensee.

 

Missouri law allows licensees to work for the interest of one or both of the parties to the transaction. The law also allows the licensee to work in a neutral position. How the licensee works depends on the type of brokerage service agreements involved. Since the sale or lease of real estate can involve several licensees, it is important that you understand what options are available to you regarding representation and to understand the relationships among the parties to any transaction in which you are involved.

 

Missouri laws require that if you want representation, you must enter into a written agreement. This may or may not require you to pay a commission. You do not need to enter into a written agreement with a transaction broker unless you intend to compensate this licensee. These agreements vary and you may also want to considerm an exclusive or nonexclusive type of relationship.

 

If you choose not to be represented by an agent, the licensee working with you may be working for the other party to the transaction.

 

Prescribed by the Missouri Real Estate Commission as of January, 2005

 

 

CHOICES AVAILABLE TO YOU IN MISSOURI

Seller’s or Landlord’s Limited Agent

Duty to perform the terms of the written agreement made with the seller or landlord, to exercise reasonable skill and care for the seller or landlord, and to promote the interests of the seller or landlord with the utmost good faith, loyalty and fidelity in the sale, lease, or management of property.

 

Information given by the buyer/tenant to a licensee acting as a Seller’s or Landlord’s Limited Agent will be disclosed to the seller/landlord.

Buyer’s or Tenant’s Limited Agent

Duty to perform the terms of the written agreement made with the buyer or tenant, to exercise reasonable skill and care for the buyer or tenant and to promote the interests of the buyer or tenant with the utmost good faith, loyalty and fidelity in the purchase or lease of property.

 

Information given by the seller/landlord to licensee acting as a Buyer’s or Tenant’s Limited Agent will be disclosed to the buyer/tenant.

Sub-Agent (Agent of the Agent)

Owes the same obligations and responsibilities as the Seller’s or Landlord’s Limited agent, or Buyer’s or Tenant’s Limited Agent. Seller or landlords, or buyers or tenants may authorize their agent to offer sub-agency to other firms.

Disclosed Dual Agent

With the written consent of all parties, represents both the seller and the buyer or the landlord and the tenant.

 

A Disclosed Dual Agent may disclose any information to either party that the licensee gains that is material to the transaction.

 

A dual agent may not disclose information that is considered confidential, such as:

Designated Agent

Acts as your specific agent, whether you are a buyer or tenant, or seller or landlord. When the broker makes this appointment, the other real estate licensees in the company do not represent you.

 

There are two exceptions with both resulting in dual agency:

 

1. The agent representing you as a buyer or tenant is also the agent who listed the property you may want or buy or lease.

 

2. The supervising broker of two designated agents becomes involved in the transaction.

Transaction Broker

Does not represent either party, therefore, does not advocate the interest of either party.

 

A transaction broker is responsible for performing the following:

Protect the confidences of both parties.

Exercise reasonable skill and care.

Present all written offers in a timely manner.

Keep the parties fully informed.

Account for all money and property received.

Assist the parties in complying with the terms and conditions of the contract.

Disclose to each party of the transaction any adverse material facts known by the licensee.

Suggest that the parties obtain expert advice.

A transaction broker shall not disclose:

Buyer/Tenant will pay more than the purchase or lease price.

Seller/Landlord will accept less than the asking or lease price.

Motivating factors of the parties.

Seller/Buyer will accept financing terms other than those offered.

A transaction broker has no duty to:

Conduct an independent inspection of, or discover any defects in, the property for the benefit of either party.

Conduct an independent investigation of the buyer’s financial condition.

Missouri law does not prohibit written agency agreements which provide for duties exceeding that of a limited agent described in this pamphlet.

 

This brokerage authorizes its licensees to act as a:

  • Sellers Limited Agent
  • Landlord’s Limited Agent
  • Buyer’s Limited Agent
  • Tenant’s Limited Agent
  • Sub-Agent
  • Disclosed Dual Agent
  • Designated Agent
  • Transaction Broker
  • Other Agency Relationship

 

Broker or Entity Name and Address

L K Wood Realtors

5600 Hampton Avenue

Saint Louis, MO  63109

 

L K Wood Realty Services

(314) 849-6300
Mon - Fri 8:30 am to 6:30 pm
Sat - Sun 9 am to 6 pm

Copyright © 1949 LK Wood Realty Services All rights reserved.

Equal Housing Opportunity
L K Wood Realty Services is a member of the St. Louis, Missouri, and National Associations of Realtors.