Just 'Cuz You Never Know ... Keep Your Buyers Aware and Protected

Many of us are very meticulous about keeping our Buyers protected. If Buyers are working with an attentive real estate agent, things generally go just fine right to closing.

But even with the perfect agent, things can still go in a "not what we wanted" direction.  So,  "just 'cuz you never know" here are a few things to pay attention to:

Earnest money checks.  Realtors tend to be copy freaks - we copy or scan every document related to transactions for not only our records, but for the lender, the title company, the Buyer, etc.  But, protect your Buyers checking account from potential fraud - and don't copy earnest money checks because it just might end up in the hands of the wrong person.   There are people who have no limits to how, when and who they will steal from - and it's happening in ways you wouldn't even think it would!  And besides, you don't need a copy of the check because title companies will provide you with an earnest money receipt.

Home and termite inspections.  In Arizona, the purchase contract states that Buyers are responsible for paying these fees - regardless if the transaction closes. In case it wasn't explained well by me, all inspectors that I work with have their own contracts that a Buyer will sign - making them responsible for the payment.  Personal example, a Buyer of mine ultimately did not make it through underwriting.  The inspection fees were to be paid at close.  Buyer said, "Oh well ... I am not buying the house and have no intention of paying."  Home inspector says, "OK." And later won a garnishment in small claims court.  Discuss this one at length - especially with first time homebuyers.

Five days.  In Arizona, a Buyer only has 5 days to cancel a contract in writing if the home does not appraise.  Often, Buyers think that if a home doesn't appraise it's done, they can move on without doing anything.  Except there is a little issue of an earnest money and  contract that is still binding.  Don't let this one slip by you and your Buyer.

BINSR repairs.  Sellers do not have to use licensed repair folks to fix things that need fixing.  They can do it themselves.  Make sure this is thoroughly explained to Buyers.   If it's important to your Buyer, request in writing that repairs be made by a licensed person and get receipts.  This will really save you after Buyers move in and suddenly you get a call that starts with, "Do you have the name of the repair person that fixed ....."