You have passed your real estate exam and are now licensed with “Real Estate Excellence Realtor®.” The brokers name is Ms. Brown; the office is located at 202 South Citrus in West Covina, CA 91791.

Sam and Suzie Seller call your office on Friday evening and advise you that they want to sell their home located at 135 Shadydale Street in West Covina. It's a 3 bedroom, 2 ¾ bath home with a wood burning fireplace in the family room. Sam and Suzie have owned and lived in the house for the past four years. The sellers plainly tell you that they will be interviewing two other agents prior to making a decision. You make an appointment to meet with them at 7:00 P.M. the following day.

Based on this information, you prepare for the listing appointment using the following checklist of the tasks to be completed prior to the appointment. Make this checklist below:  (extra credit will be given for going past 10 valid items)

a.                                                                                                           f.
b.                                                                                                           g.
c.                                                                                                           h.
d.                                                                                                           i.
e.                                                                                                           j.

The next day, the sellers call, advising you that your have been selected as their agent.  The listing appointment results in a 3 month listing with the following stipulations:

1. Asking price to be $420,000, and the earnest money deposit to be $5000.

2. All information will be provided to the MLS. The listing broker will charge a 6.0% commission which will be eventually split with the selling office.

3. The safe period will be for 120 days and the sellers confirm they have not listed the property with any other agency. A lockbox will be placed on the front door.

4. The sellers will provide the buyers with a termite clearance report for Section 1 only, and an owner title policy, as well as all other required disclosures.

5. The arbitration paragraph is not initialed.

6. The sellers reserve and will replace the crystal chandelier in the dining room.

(This project will require you to fill out an Agency Disclosure, a Listing Agreement Page 1, Listing Agreement Page 2 and Listing Agreement Page 3, as well as the Seller's Advisory Disclosure Page 1 and Seller's Advisory Disclosure Page 2,  and  The Supplemental Statutory and Contractual Disclosures a Seller's Net Sheet or Estimated Proceeds)  Not included in text book forms.. but highly suggested for use would be the Seller Property Questionnaire, CAR form SPQ (04/05).

Now that you have the listing prepared, you need to fill out all the necessary disclosure forms using the following information:

There are no other reports on the property. The house has the following amenities:

 a. Built-in gas range and oven                                                           b. Dishwasher, garbage disposal
 c. Washer/Dryer hookup in garage                                                   d. Public Sewers
 e. Smoke detectors in all bedrooms                                                    f. Water softener is rented
 g. Forced air heating                                                                           h. Central air conditioning
 i. Dbl.. detached garage w/2 controls                                                  j. Window screens
 k. Water heater is double strapped                                                      l. Exhaust fan in main bath
 m. 220 V in garage                                                                          n. Composition roof is 20-yrs.old
 o. Water source is Suburban Water                                                  p. Gas provided by the Utility Co.
 q. T.V. Antenna is not working                                                         r. Automatic sprinklers in front/rear
 s. Microwave does not stay                                                              t. There are cracks in the driveway

As the listing agent, you have noticed some stains on the ceiling. What should you do?

(Although there are other required disclosures, for this project, you will need to fill out the Transfer Disclosure Page 1, IN PRACTICE YOU NEVER FILL OUT THE "TDS" FOR THE SELLER.  YOU COMPLETE ONLY THE AGENTS PORTION!..  For the purposes of this exercise.. fill out the Seller's portions of the TDS... , Transfer Disclosure Page 2, Transfer Disclosure Page 3, the FIRPTA  (there's sort of a trick here... worth extra credit), Smoke Detector, Water Heater, Lead Based Paint Disclosures Page 1.  and finally  Lead Based Paint Disclosures Page 2 ) Extra credit will be given for listing some of the other required disclosures.

Now that you have a signed listing contract, and many of the required disclosures, what necessary activities should you perform for your clients in order to market this property?  List any you can think of below... extra credit will be given for going over the required 10.
 

 1.                                                                                 6.
 2.                                                                                 7.
 3.                                                                                 8.
 4.                                                                                 9.
 5.                                                                                 10.

As the listing agent, you should be communicating with the neighbors who will inevitably call.  What would you say or write?

First Open House. What will you do to be prepared for this event?   What do you ask your sellers to do?   How will you conduct the open house?   What do you need?   How do you follow up? List 20 items:  (extra credit will be given for going over the 40)

 1.                                                                                 11.
 2.                                                                                 12.
 3.                                                                                 13.
 4.                                                                                 14.
 5.                                                                                 15.
 6.                                                                                 16.
 7.                                                                                 17.
 8.                                                                                 18.
 9.                                                                                 19.
 10.                                                                               20.

Bob and Bonny Buyer visit your following Sunday open house and wish to write an offer.  Because of prior commitments, the appointment is made for the following Tuesday at 7:00 P.M. at your office. What two important things should you do immediately upon them expressing a desire to write an offer?  Write an offer for the buyers using the following information:

1. Purchase price to be $375,000
2. $3,000 deposit
3. Down payment to be 20%
4. Interest to be 5.6% for 30 years; buyers to pay 1 point
5. Seller to pay for a home warranty not to exceed $450 to cover the air  conditioning and the roof.
6. They want all existing fixtures (Remember sellers’ wish to reserve the DR light  fixture). They also want the D.R. hutch.
7. Escrow to be for 45 days.

What other information may you need to accompany this offer prior to presenting it to the sellers?

(Buyers’ Agency, Purchase Contract Pg. 1, Purchase Contract Pg. 2, Purchase Contract Pg. 3, Purchase Contract Pg. 4, Purchase Contract Pg. 5, Purchase Contract Pg. 6, Purchase Contract Pg. 7, Purchase Contract Pg. 8, Allocation of Termite Costs, Buyers’ Cost Sheet). Although the Buyers’ Advisory has to be signed by both parties, it will be not required in this project but discussed in class.  Extra credit will be given for options on Allocation of Termite costs!  Not included in the text book forms.. but required as of Jan 1 2006 by state law is the "Notice of Supplemental property tax bill" CAR form SPT (10/05).

You present the offer to the seller the same evening. Because the house is getting a lot of activity from various agents, the seller wants to counter offer. NEVER LET AN OFFER DIE IN YOUR COURT!  NEVER ENCOURAGE YOUR SELLER TO ACCEPT A DUAL AGENCY OFFER WITHOUT GIVING ALL OTHER PARTIES A CHANCE TO RESPOND!  Fill out a counter offer with the following information:

1. Sales price to be $395,000 with a $5,000 earnest money deposit
2. The dining room fixtures will be replaced and the hutch is reserved
3. The sellers need a 60 day escrow
4. Will you need to use other forms/disclosures?

You present the counter to Mr. and Mrs. Buyer who accept it and sign it. What must you do now? How about the increased deposit? Where and when does it go?  Extra credit will be given for providing more than six valid activities.

 1.                                                                                 4.
 2.                                                                                 5.
 3.                                                                                 6.

These projects will be discussed throughout the semester as you receive the forms and instructions on how to fill these out. Please start on these as soon as possible as late Projects will be discounted at least 1 grade.  Late Projects will not be accepted more than one week late without prior arrangement... and they will still be discounted.   Questions about any portion of this project will be discussed in class.  This Project encompasses only the aspect of getting a listing... then getting an offer... then getting an acceptance.  It does not address... handling the Escrow... where fully 25% of deals fall apart.  But... this is the most important areas for you to learn... to get your first paycheck... so here's an offer you can't refuse.  Complete all 7 projects as well as I think you should... I'll give you a "A" in the class.... as long as you meet the attendance requirements.  In total... this project accounts for no less than 60% of your grade.  Ace it... it will be 100% of your grade.  Don't complete it... you will receive an F and no credit.