How Can I Sign California Banking Contract

E signature escrow agreement template

all right this is a step-by-step tutorial on how to fill out a residential purchase agreement you can pause this video at any time and see go back and or forward to see how to fill out the residential purchase agreement we're going to go through all the forms and by the end of this video you should be able to successfully fit fill out the residential purchase agreement what the terms mean and how to fill them out and also set you guys up for how to get your offer accepted as well as everything encompassing from contingency removals to all the terms there's going to be a lot of information here you might want to take notes but more than anything this is going to be as detailed as possible so it might be a longer video than usual so the first thing that we're going to want to do is we're going to go to the california association of realtors dot org c-a-r dot o-r-g okay if you don't have access to this you're gonna have to sign up for the board and get your car membership but we're going to access zip forms i'm sure most of you already know how to access zip forms you're going to have your login information your password and we're going to go ahead and sign in it's going to validate your membership as it always does once it turns yellow we're going to continue and then it's going to open up all of your files okay let's make the window smaller so that you guys can see exactly the work window so this is the work window of how it's going to work uh you're going to x out of that advertisement and then you have all of your files organized here by the address okay so to make a new file you're going to go here to new it's going to ask you what type of file you want to create new listing new purchase offers so we're going to go here to new purchase offer and it's going to ask you for the property address you can also do this little neat thing called mls connect where you can copy and paste the mls number here and then click find and it'll automatically populate all of the information from the mls into your car forms for this tutorial we're not going to do this but if you were to do it that's how you do it once it finds it okay so we're just going to type it in manually we're going to do 15244 adobe way mourinho valley so once you click here you're going to type in the type of real estate that it is it's going to be residential you're going to scroll down and you're going to hit save once you hit save it will create a file for you right here it'll be in the it'll be in the number the most recent spot but because i've already created one we're gonna click it and then it's going to give you access to the file the file consists of different tabs up at the top in this gray area the documents tab is going to show you all of the different types of documents you've already created for that file okay now we're going to go to this blue tab called all forms and in this blue tab it's going to give you every possible form from the california association of realtors that you can absolutely have so for purposes of this tutorial we're going to focus strictly on the residential purchase agreement the listing agreement is right here right above it okay so just so you know how to navigate this purchase agreement and if you notice it already auto populated it for here you go ahead and click on it it'll load your form and then it'll give you the different forms that encompass the rpa so you have the disclosure regarding agency relationship so this is the form that establishes relationship from the buyer's brokerage to the buyer there are a couple of these and they're all for different types of relationships this one specifically auto populates because you are representing the buyer and the buyer only okay and it gives some details as to dual representation which is representing both the buyer and the seller and what the seller and buyer responsibilities are so this form right here is what we call establishing agency okay now if you remember from your real estate exam establishing agency is what starts the process of creating the ability to represent your client you're going to want to click buyer if there's one buyer only you're gonna input only one name joe buyer if there's two buyers you're gonna click two buyers and we're gonna put jane buyer okay the agent and the brokerage and then you're gonna add the brokerage license number zero one eight nine six two five one okay now as the agent representing the buyers you're gonna also add your own dre license number okay so now this form is completely filled out we have both of our buyers the brokerage the brokerage dre license number your name and your dre license number scroll down to page two nothing there so this is the possible representation of more than one buyer or seller with this specific agreement we are letting the buyer know that we could possibly represent both parties and it spells out right here if there's multiple buyers if there's multiple sellers if there's a case of dual agency and offers not necessarily confidential so somebody else can know what your buyer is offering on the property okay you don't necessarily have to add the sellers names because we don't always have it unless you want to look it up on realist tax another tutorial that we can do but it's always nice because if you have both sellers names or the seller's name then it makes the offer look a little a little bit cleaner which has been my experience both as buying and selling agent it just creates a better space for everyone to work so if you want to look up who the sellers are or the owners of the property this is where you would add their name and obviously the stuff that we input previously automatically populates everywhere else on all the other forms um also adding the seller's brokerage let's say their castle realty group and then we're going to add i don't know your name okay and then obviously go in and put in the dre license number for castle realty group up here and then the dre license for the agent down there filling everything out just makes everything so much cleaner i get it not everybody does it however i would recommend that you do do it the wire fraud and electronic funds transfer advisory this is to basically let the clients know that wire fraud is on the rise not to share their bank information with anyone if they are requested to share their bank information through email they need to call the agent or the escrow company directly to make sure that it did come from them so this is a very important form especially now more than ever with all the wire fraud that is going on so they get to sign this and they get to sign that and date it so now we get into the california residential purchase agreement and joint escrow instructions the majority of information is going to be put here on the first page we're going to go step by step with each and every one of these and hopefully it gets to answer all of your questions in regards to what the rpa is and what it does so the date prepared obviously is a date that you're physically writing this offer this is an offer from joe buyer jane buyer for the real property to be acquired at the given address situated in the city of moreno valley in the county of riverside and then the zip code assessor's parcel number also known as the apn you guys can find it on the mls where the listing is so if you have the listing sheet of the mls you just go ahead and input the assessor's parcel number in here or you can look it up on realist tax copy and paste it on here but you do need the apn uh in riverside county it's uh a nine digit uh number uh separated by three different sections of uh numbers so it's a three different parts of numbers so nine in total and after each three separated by dashes um in san bernardino it's they start with four zeros i believe so whatever the apn assessor's parcel number goes right here you're going to type in the offer purchase price 450 000 and just to double check it auto populated it over here 450 000. if we're going to change it to 455 it's going to change it automatically 455 000. the close of escrow i like to keep it in days 30 days 35 days 45 days it's important to know that the lower the amount of escrow time period the better the offer looks unfortunately if you're going to do you know some down payment assistance or fha they could take a little bit longer so it's important to check with your lender or whoever the buyer is pre-qualified with and ask the lender how much time do they need to get the deal closed most lenders can close in 30 days for specific other types of loans fha va down payment assistance you're probably going to need closer to 45 days all right so that this is the top section very important when it comes to filling out the rpa now here is the agency relationships okay this is where we input who's representing the seller and who's representing the buyer you can look up the license numbers directly from the mls and input them on here and it just looks really clean when everything is uh all the license numbers are here who's representing the buyer who's representing the seller if they're different or if they're both the same so in this case in a brokerage if it's castle realty group castle realty group it would be dual agent because the brokerage is supervising both of these agents if they're two different companies then buyer and seller are different entities now here's where the initial deposit goes this is the money that goes into escrow typically a deposit is one percent of the purchase price so that's an important note to take deposit equals one percent of the purchase price so one percent of four hundred and fifty thousand would be a deposit of forty five hundred dollars this money needs to be in the buyers account ready to go as soon as their offer is accepted and they're going to deposit this via wire so we're just going to put click other and then we're going to input here wire now it's important also another thing is that if the deposit is bigger it also makes the offer a little bit better but at least one percent is typical for our market there's no uh this this doesn't apply and this doesn't apply if it was an all cash offer you would just write here all cash offer and it automatically removes all of the first loan second loan information now this is where we put in the first loan amount if your client is going to come in with let's say 10 down uh 10 of 450 is 45 000 right so of this 4 000 or 4 500 it it already includes part of their down payment so when we go in here and put the first loan amount we're gonna have to do a little bit of math here calculator so if our purchase price is 450 000 times 0.1 for 10 percent that's 45 000. that's their total down payment that this client wants to put down from this 45 000 4500 is going into escrow so they're paying their deposit upfront which is part of their down payment so we minus 4 500 and that's 40 500 that they need to come into escrow so when we do this right here uh 40 500 all right let's actually go back and redo this math so it's asking for the loan amount so 450 000 times 0.9 because 0.9 plus 0.1 equals 100 they're putting 10 percent down 405. so we're looking at a loan amount of 405 and then it gives them the remaining balance that they need to put in bring into escrow so when we add up 40 500 plus 4500 it gives us 10 down which gives us a loan amount of 405. if they're fha you click here if they're va you click here if it's conventional you leave it alone and then we put their qualifying rate rate not to exceed 3.25 now if they're going to ask for closing costs this is where we put that in seller to pay 5 000 in closing costs all right here here is a valuable note whenever you ask for closing costs whatever amount you are asking for it's being reduced from the overall offer price so if you're asking 5 000 in closing your offer is really 445. all right so that's important note to make it when asking for closing costs it's also important to ask the lender how much they need in closing costs and if the lender can offer a credit so you don't have to ask for this money from the seller especially in the market right now where it's really competitive for buyers closing costs probably no go but if you need them here's where you put them so just to recap the first page you have the date that you prepared the offer which would be today's date you have the buyers names the property address the city in which the property is in the county the zip code the parcel number the offer price the amount of days you want of escrow the agents that are representing the parties the deposit the loan amount that they're going to be financing and then if you're asking for closing costs or down here and down here it'll populate the remaining amount they need to bring into escrow so let's say let me just give you another example for you because i want to make sure that i'm really clear let's say they're doing 450 they're doing 4 500 in deposit but they're only gonna bring in the fha minimum requirement of three and a half percent so in this case you're going to do 450 000 times point nine six five why point nine six five because three and a half percent plus point nine six five equals four fifty so if we do what is uh the down payment 434 250 that's the loan amount or 34 250 brings their total down payment to 15 000 seven hundred and fifty okay so that's what they would need to bring into escrow because it's already calculating their deposit as part of their down payment that's how the system works and you can play with the numbers depending on what your buyer is working with and how much down the prequal can help you a lot with this as well okay down here verification uh of down payment and closing costs or page appraisal contingency removal so this is an important one to note because we automatically get 17 days to remove appraisal contingency what does that mean that means that within on or before the 17th day we need to be clear on what the value of the property is most of the time we have appraisals can come in you know after the 17th day technically we're at a contract so make sure that if you're going to get an appraisal get it done as quickly as possible if you're ever asked to remove the appraisal contingency then that means this 17 days is gone and your buyer is buying the property at that price no matter what that's what removing the appraisal contingency means okay so we get 17 days automatically no matter what to find out what the actual value is of the property loan terms uh loan applications uh three days after final acceptance buyer shall deliver sellers letter from buyer's lender pre-approved we're doing that upfront so it doesn't apply if you were buying this property cash there will be no loan contingency if there is a loan contingency you have 21 days to have that client fully approved and ready to go tip this is more typical for a 30-day escrow so you have 17 days to get the appraisal done and you got 21 days to get your buyer fully approved so that you remove these contingencies failure to do so can result in a breach of contract and then the seller can send you a notice to perform which that's never a good thing if there are other uh forms then this is where you would fill them in if the property is on septic you would add this and it'll automatically add it for you okay if the property is a short sale you would click on short sale and the addendum was automatically added for you same thing with probate advisory short sale information all that type of thing but in this case they're not needed all right so down here every property needs to have a natural hazard zone disclosure the seller pays for this and then we can put whoever we want i would just go with sellers choice on the nhd all right so sellers paying for the nhd we don't care if you're going to ask for termite you're going to put it down here termite report and clearance prepared by sellers choice these two are highly important we got to make sure that we're adding the termite and we're adding you know uh that it's going to be not just the report but also the clearance meaning they get the work done nothing down here page 3 of the rpa sellers shall pay for the cost of compliance with any other minimum mandatory government inspections is required as a condition of closing escrow under any law so these two right here they specifically are for cities that have inspections very rarely do we see this come up unless it's like a city in l.a i know hawthorne carson some of those areas over there they require that the city go out send an inspector to the property and make sure there's no illegal modifications to the house or illegal construction otherwise they make the seller correct that which can be very costly for the seller riverside county orange county we don't typically see the san bernardinos the same way so these can be left blank unless you're in in an area that out in la and i would just caution that you should probably look this up if you're out there if you're in riverside san bernardino orange county you're pretty much safe from this escrow and title seller shall pay for the escrow fee this is seller and buyer so in an escrow both the buyer and the seller pay the escrow fee escrow fee each their own and escrow holders shall be castle partners escrow uh if you are a listing agent yes but if you are a buyer's agent uh we just quickly you simply put sellers choice don't mind my typos on the title the seller definitely pays for this sellers choice all right so that's all you need for escrow and title you make sure that both of these are clicked and then the seller one is clicked for the title the seller only pays for the county transfer tax the city transfer tax if there's any if they're in hoa the seller pays for all the hoa transfer fees and any doc prep fees and any private transfer fees okay so this is all sellers expenses make sure that we click all of that if you were going to ask for a tc this is where you could put buyer pay for tc service if you don't have a tc just leave it blank or you can pay it out of your commission sellers shall pay for the cost of home warranty 550 and here's where you can put in whatever home warranty company you choose or you can simply just put as well sellers choice okay so this is pretty self-explanatory just going through each one of these the rest of them can be left blank items included in the sale if the stove is staying you click here you can have things removed so you can include the washer dryer if your buyers are requesting it it's not typical but stoves pretty much stay with the house you can request a refrigerator or whatever items home security system water softener system so this is where you would request what items your buyer liked about the property they can request that those items can stay as part of their offer items excluded from sale this is a stuff that your buyers could want removed the play set in the backyard i don't know the annoying satellite dish whatever so this is where you put items excluded in the sale or that yeah maybe the seller's removing their 100 000 chandelier that you know they're going to take with them and they've already let you know so you exclude the item from the sale so that your buyer knows that hey this is not included as part of this deal sheds are also big ones most of this stuff is going to not apply tenants remain in possession if the property is 10 unoccupied most are not the condo the pud disclosures seller has seven days and most of this stuff is just going to be left blank so you can go ahead and scroll oh this one's pretty big right here actually seller has seven days to deliver all reports and disclosures so i'll give you some time frames but this is a big one seller has seven days to give the buyer all the disclosures for the property otherwise the sellers not performing page eight right here this is the remedies for breach of contract yes sometimes people do get in you know a dispute over the contract or non-performance this part right here basically says we're not going to sue each other we're not going to involve lawyers in the transaction if there is a dispute this is remedies for breach of contract dispute resolution and mediation so before anything gets discussed with attorneys or anything like that both parties agree that they will try to remedy the situation through mediation and uh arbitration all right so these are important this is three initials for both parties once the purchase agreement is complete for the buyer then you have the buyer sign right here and we'll actually go through that right now on how to do it digitally so joe buyer jane buyer sign sign date date if your offer is accepted then this is where the seller would sign you as the agent you sign right here in this area right here in this white area right here so if you print it out you could sign it here or you can send it to yourself to be docusigned as well the buyer's inspection advisory this is all of the things that your buyer has the option to inspect okay the general condition of the property would destroy and pest water utilities environmental hazards all of this stuff in bold here and then the consumer privacy act advisory this is just letting the buyer know that their information is private and it's not being sold once the rpa is complete you're ready to send it out for signatures you go here to this tab called e-sign you click on it it's going to save everything first and then it's going to tell you what you want to name the packet residential purchase agreement 1218 adobe alright it's going to automatically give you the signing services docusign if you have docusign you can link it to your car forms if you don't you can use the free one so you're going to go to powered digital inc powered by sign x you're going to click next right here and then it's going to give you the parties you're going to go in here and you're going to put jane and you're going to put jane doe gmail.com good and then you're going to put jodo it's actually john but whatever joe doe gmail.com and then you're also going to put yourself so there's three different parties that are signing this purchase agreement you're going to once they're all three checked out you're going to click close you're going to have your three parties populated right here we're going to go ahead and click next you're going to click no thanks and it's going to auto populate everything that we just filled out you can see this is showing you what it's going to look like once they're signed everything looks good buyers agents portion buyers in the agents portion looks pretty good to me so we're going to go ahead and click send over here okay you click send and everyone gets an email to digitally sign once these are signed then there will be back in your remember this part over here so once you send it out to sign you're going to have a folder that looks like this you're going to click on it and you're going to have all the signatures already filled out all right so that was the tutorial for the rpa we got into a little bit more than than just basics so i hoped it helped if you guys have any questions give me a call i'd be happy to help thank you