So You're Ready to Buy: Simplified list of forms and brief explanations

So you’re ready to buy a property and not sure what you need to do to get started. This article list the required documents and gives a brief description of how they are used. The order in which the documents are signed is not as important as understanding the role and purpose of each document. We prefer to set up what we call a “ Signing Appointment” with our clients.  The “Signing Appointment” is usually in a relaxed and comfortable environment, typically selected by our client.

1. Consumer Notice- This form requires a signature and discloses the business relationship available to consumers when working a realtor. This form should be and is provided at the initial client meeting.

2. Business Relationship Agreement - This form requires a signature and establishes the buyer agency relationship between the buyer and agent. The form is signed once all the terms of the relationship are agreed to by the buyer and agent.

3. Buyer’s Estimated Closing Cost- This form requires a signature and is generated to give the buyer an estimate of the cost to close (purchase) the property. This form is prepared by the Buyer Agent for the buyer and is coordinated with cost information that may come in later; i.e. final loan cost, title cost(based on final purchase price) etc.

4. Affiliated Services Addendum (RESPA)-This form requires a signature and provides for disclosure of affiliated business relationships the broker may have with providers’ of services required on the transactions i.e. settlement, mortgage, title and home warranty business relationships. This form is required whether the buyer uses these services or not.

5. Mold Disclosure and Waiver- This form requires a signature and acknowledges the broker’s issuance and notification of the buyers’ right to obtain a home inspection. This form is required. More information on MOLD

6. Lead Base Paint Notice (for Philadelphia)- This form requires a signature and acknowledges the broker’s issuance and notification of the buyers’ right to obtain a lead paint inspection. This form is required. More information on LEAD
7. Deposit Money Notice- This form requires a signature and serves to notify the buyer of how and to whom the Earnest Money Deposit will be distributed, the brokers’ involved in the transaction and identifies which broker holds the deposit. This form is required.

9. Co-op Broker’s Compensation Letter.- This form requires initials and acknowledges that the buyer has been made aware of the distribution of commission funds. This form is required

10. Agreement of Sale- This form requires the signature of both the seller and the buyer. The final terms of the agreement are negotiated through offers and counter offers between the seller and buyer prior to final execution. This form is required.

   As Realtors our goal is to educate our clients by providing the most up to date information available and by doing so commit to their goals and objectives. By virtue of serving we believe we are rewarded. All transactions are different and may involve additional documentation. You are encouraged to consult an attorney.