DON'T BE SHY WHEN TAKING A LISTING. ASK THE RIGHT QUESTIONS AND FOR THE RIGHT DOCUMENTS.
Buyers agents have a responsibility to show homes only to qualified home buyers. One of the reasons we qualify a buyer before taking them on a tour is because taking unqualified prospective buyers in homes for sale is not fair to the seller. Sellers generously make their home available for home buyers to tour with their agents to determine if a home meets their needs. Sellers have the right to expect that strange folks and their agents coming through their home are, at the least ready, and able to buy.
Listing agent also have a responsibility to home buyers to verify that the home they are listing for sale is fully available to convey with no liens and encumbrances on the title. Part of a listing agent's job, through due diligence, is to make sure that:
THE SELLER IS ABLE TO CLOSE ON THE SALE
That the seller is current with their mortgage payments. Home owners are not always anxious to share the fact that they are delinquent in their mortgage payments unless asked. So, please ask and it is a good idea to review the most recent mortgage statement. Agents, buyers and sellers lose a lot of time going through touring, negotiating, inspecting properties only to find out that the seller needs to bring money to the table to settle. As more homes go to foreclosure (according to the recent news reports), we'll be faced with this scenario more than in the recent past.
THE SELLER LISTING THE PROPERTY IS THE TRUE OWNER
The seller listing the property for sale, MUST be on the deed. Over the years, We've seen persons attempting to list properties for sale where they are only a part owner. If there is more than own owner on the deed, all owners must be parties to the listing agreement. In some states, owners can list properties with a Power of Attorney from another co-owner. Be sure to verify the local requirements for listing by Power of Attorney. No matter what one spouse says that the other spouse give them permission to do, one spouse cannot
sign for another. Military families have a Power of Attorney to cover this situation when the serving spouse is at an out of area duty station.
ALL OF THE OWNERS OF RECORD GOING TO COOPERATE?
If a person has a former spouse on a title, that former spouse must also sign the listing agreement. It isn't unusual for divorce attorneys to have property settlement agreements incorporated into a separation agreements and divorce decrees but neglect to file a new deed showing one spouse or the other as the true owner. When this occurs, the seller's attorney should be consulted unless the former spouse is available and willing to sign the listing agreement and cooperate throughout the sale. Listing agents and selling agents can spend a lot of time trying to sell a home only to have a former spouse cause unreasonable delay.
THE PROOF IS IN THE DOCUMENTS
If the listing agent doesn't ask questions, everyone can have some real surprises at settlement or at least when the title abstract reaches the title company for title examination. One question we learned to ask years ago when listing a property is "Are you currentwith federal and state taxes?" NONE OF OUR BUSINESS? If you don't ask, you don't know. Getting to the settlement only to find out that the seller has more in tax liens than their net proceeds is not a pleasant experience. Consider the time spent listing, marketing, advertising the property for the listing agent. Consider the time spent on the contract, inspections, financing approvals and more only to get to settlement and find that the seller can't.
IT IS OUR BUSINESS.
LISTING HOMES FOR SALE
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