As you know we just had our random FREC audit of all three of our real estate companies and it went fantastic. In the process, we noticed some common themes on paperwork / compliance issues. I wanted to put together a quick reminder and also attached is a power point of other common contract and addenda issues that we reviewed a few months ago.
Post or Pre Closing Occupancy: Please use the standard addendum T or U which provides appropriate language and timeline for a lease to be completed before closing. Be sure to upload the lease into paperless pipeline as well.
Licensee Property Interest: Any time you are involved in a transaction (buyer or seller) the standard AA addendum should be used. If not, at a bare minimum it must be noted on the contract and if you are the seller it must be also noted in MLS agent notes. We would like for you to put a note that you are personally involved in the sale since these personal deals are one of the highest level of liability for the Brokerage.
Licensee Property Interest: This disclosure requirement holds true if your client is a licensee as well. Be sure to disclose on the contract and on MLS if it is your seller
Listing Price Changes and Extensions – A Seller signed listing modification should be uploaded whenever a listing contract term changes. For extensions and price changes, a copy of an email from the Seller is minimally required to be uploaded to Paperless Pipeline.
Rental Listings – Rental Listings must be put into Paperless Pipeline just like Standard Listings.
Repair Addendum – The repair addendum should be as specific as possible and should:
Specify the exact repair
To be done by who (licensed repair contractor, etc)
Contract contingent on repair completed by ____ date and satisfactory re-inspection by _______ date
Receipts Required
We did an update a few months ago, see attached for some more contract updates.
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