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Required
Docs
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There are certain documents required by the State
of Michigan, and certain documents required by the seller.
You will find them listed below. You must include these when
making an offer. Do not expect a response if you have not
provided these documents with your offer.
- COVER SHEET: Use our fax cover
sheet to submit you offer. You must include your email address,
cell phone, Agent ID #, office phone, office ID number. If you
are an agent buying for yourself, have another agent or you
broker write it up for you.
- PURCHASE AGREEMENT: A completed Offer to Purchase,
leave no blanks, and must be signed
and witnessed by the agent (be sure that the address, price
and terms are legible).
- EMD: A photocopy of an Earnest Money
Deposit (cash, check or
money order) or receipt for same signed by your broker. No third party checks, the check should have the same name as the buyer.
- PROOF OF FUNDS: Cash offers require proof of sufficient funds (bank
statement, letter from bank).
- PROOF OF MORTGAGE: Mortgage offers require a mortgage
approval or stip letter stating the
type of loan, LTV, also stating that the buyer has sufficient
credit, time on the job, and necessary funds to close. The
approval letter must be in same name as the buyer who signed
the offer to purchase. Direct endorsed lenders and banks are preferred over mortgage
brokers. The buyer's EMD will be non-refundable if the buyer
is using a mortgage broker. Inform your buyer that the seller may
require a offer a loan with discounted
fees, additionally, the seller will expedite the loan process. Instruct the buyer and their loan officer that failure to
achieve mortgage approval within the parameters established by
the bank addendums may result in the loss of the Earnest Money
Deposit, and a non-refundable daily
per
diem of $100 for each day they fail to close past the
must close by date. Even for a mortgage sale, make sure your buyer has
sufficient cash to close. If you are unsure, we can assist you
in calculating the total cost.
- AGENCY DISCLOSURE: A completed
Agency Disclosure signed by your client and
witnessed by the agent.
- LEAD PAINT DISCLOSURE: A
Lead Paint Disclosure signed by the buyer and witnessed by
the agent.
- AS-IS HOLD HARMLESS AGREEMENT: A copy of the
As-is Hold Harmless
Agreement signed by the buyer and witnessed by the
agent.
- BANK ADDENDUMS: We will email the
Bank Addendums and
any additional Bank Disclosures
upon verbal offer acceptance by the bank. Bank addendums may
vary from one page all the way up to 22 pages and will be
customized by us to match the offer terms acceptable to the
bank. The bank addendums may not be altered by the buyer
in any way.
- DOCUMENT DELIVERY: Upon offer acceptance, you will have 24 hours to return a
complete set of original blue ink
signature documents to our office.
- OFFER PRESENTATION: We will only
present complete offers, the bank
will not consider partial offers. We will continue to present all offers to the bank until we
receive a complete set of documents.
- Make sure that your buyer will be available for the duration
of the negotiation and closing process. Council them against
scheduling trips until after the closing.
- Make your buyer aware that the
Earnest
Money Deposit may be transferred directly to the bank
or a third party until closing. Failure to comply with the offer terms may result in the
buyer losing their Earnest Money Deposit.
- The bank will not make any repairs to the home, it is a true
"as-is" sale. The buyer may not enter the property prior to closing to
make repairs.
- Inform the buyers private inspection company that the home
is winterized, and the city may not turn on the water due to
unpaid bills. The inspection company may have to pressure test the plumbing
using an air compressor and a pressure guage
- Inform the buyer they can not enter the property for any
reason without you present.
- Just like a normal sale, the buyer will get a title policy
at closing, if your buyer wants a policy without exceptions,
make sure the buyer orders and pays for an appraisal prior to
closing. This appraisal must be sent to the title
company
- For whatever reason, If you determine your buyer can not get
a loan, get a mortgage denial letter from the buyer's lender.
Have the buyer sign a mutual release prior and fax it to our
office prior to the deadline for mortgage
approval.
- If the buyer's lender doesn't perform in a timely manner,
then the buyer has not performed. At the banks discretion, the buyer may be allotted
additional time to close at a $100 per day non-refundable penalty.
- The bank will not attend the closing, all docs will be
emailed and/or arrive via overnight delivery.
- Thank you for taking the time to read this document.
We will be happy to answer any questions you may have.
*Most banks have additional disclosures, addendums and hold
harmless agreements that need to be reviewed by the buyer and
signed. If multiple offers have been submitted, the buyer will
of need to sign one or more multiple offer notices prior to
acceptance.
**Most bank document packages can be downloaded from this site
and printed in legal size format using Adobe Reader, which is a free
download, use the link below.
***Some banks will require that your buyer be approved by one of
their loan officers before your offer will be considered.
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