Inspection
What is the main difference between Standard AS IS Contract and the 5x Contract?
Pre-Negotiated Inspection Repair Amounts
What is the purpose of the protection period in the Listing Agreement?
To stop the seller from taking the buyer you brought them and cancelling you out of the contract.
What is unique about a USDA loan?
USDA Map, no MI, income limits
What is different about closing costs with a new construction home versus a resale home?
Builders do not pay traditional sellers closing costs.
How are FHA and VA appraisals different from a standard appraisal?
FHA/VA appraisers care about the condition of the home.
When is a 4 Point required? What are the 4 Points?
When home is older than 20 years in order to bind insurance. Roof, A/C, electrical, plumbing.
What is the difference between a conditional approval and unconditional approval?
Seller has to abide by the conditions of the original listing agreement.
Put the following events in order related to the loan process... ● Clear-To-Close- ● Loan Application- ● Pre-Approval- ● Final Review- ● Submit Loan to Underwriting- ● Conditional Approval
1. Loan App 2. Pre-Approval 3. Submit to Underwriting 4. Conditional Approval 5. Final Review 6. Clear to Close
What do you need to warn buyers of new construction homes about, related to taxes?
Taxes the buyers first year may be just based off the land value. The second year they may increase greatly.
Why are there “prepaid items” as part of the buyer’s closing costs and what do they generally include?
To have money in order to set up your escrow account. Taxes and Insurance
Which loan requires a WDO-Inspection, and whose responsibility is it to pay for it?
VA, seller
What is the difference between a Short Sale and a Foreclosure?
Foreclosure - bank owns the home
Short Sale - seller hasn't been fully foreclosed upon and is cooperating with the sale
How long is the seasoning period for funds that were transferred into your account in order for the lender to not need the funds to be sourced?
60 days
What is the 1-2-10 warranty offered by several builders?
1 Year - manufacturer's warranty (inside the walls)
2 Year - electrical and plumbing (between the walls)
10 Year - structural
When taking title, what is the difference between taking as joint tenants with right of survivorship versus tenants in common?
Survivorship - goes to surviving member
Joint - goes to next of kin
What is the difference between an HO3 insurance policy and an HO6 insurance policy?
HO3 - whole house
HO6 - walls in (townhome, condo, villa)
What are some ways we list homes above and beyond what the standard basic realtor does?
LPT box, premium photos, Zillow walkthrough, premium open houses, ISA!!!!
What is a VOE and at what part in the loan process does this take place?
Verification of Employment. Generally a lender verifies employment at the beginning and of the contract process.
What is the difference between a tract builder and a custom home builder?
Tract will start building before contract. Custom doesn't start building until after you sign the contract and pick your initial customizations.
Who generates the following items... a. Who generally holds the escrow deposit? b. Inspections? c. Appraisal? d. Survey? e. Lien Search? f. Permit Search? g. HOA Estoppel? h. CD i. ALTA (Settlement Statement)
A. Title B. Buyer C. Lender D. Title E. Title F. Title G. Title H. Lender I. Title
What are 2 other inspections we can recommend our buyers to get and why?
Pest, WDO
When to use this addendum? Disclosure of Personal Interest in the Property
When the realtor is the owner or related to the owner.
When would a VA buyer be exempt from the funding fee?
When the buyer is over 90% disabled.
Name 3 tract builders. Name 3 custom home builders.
DR Horton, Lennar, Adams
West Bay, Ryan, Beezar
What is the difference between Ad Valorem Taxes and Non-Ad Valorem Taxes?
Ad Valorem - uses milage rate to determine tax rate of specific areas. Owner may be exempt with VA disability
Non ad valorem - utilities and CDD are here. Owner never exempt.