How Do I Sign Colorado Banking Contract

How do i industry sign banking colorado contract

okay let me get that camera wasn't flat okay so because it's on this like weird tripod there so it's recording now so here we go we're gonna start in five four three two one hey guys today here i'm uh with peter uh saatnik uh he's the owner and managing broker colorado home sales incorporated metro brokers he and i will go through your class today today's this class will cover uh your very first buyer you just got somebody what do i do now pete what do i do now john so here's what you need to do so if you look at the screen the software is called ctme contracts uh you see there right on the top and then uh once you you could do 30 day free trial with ctm if you want to save money early on but just you know i would say if you're in this game let's go ahead and fully get set up with ctme so set get your login password right here let's log in so once once you log in you got this first page here and this is all my clients now but uh anyway your yours will be pretty much blank but you want to come up to this section that says create new contract and click on that create new contract and that will just give you okay what are you trying to create so you're working with your first buyer so let's go ahead and get the parent contract which is exclusive right to buy contract which is the fourth one right there we'll click on that one and then again click create selected contracts so that'll take you okay pete why don't you uh help us with this so uh let's go through real quick typically our agents will do borrow agency how about you guys well john um typically i want my uh agents to be in buyer agency as well uh transaction broker's gonna be very rare unless you have both sides of the transaction and especially being your agent you're going to be looking out for your clients best interest most likely john do you think we should probably go over the definitions of working we're going to go do that but because of ctme you have to have a parent contract so we're going to start with exclusive right to buy listing contract and then we'll do the definition page should we start over since i just said that that's okay don't worry this is for our associates only pretty much uh so number two multiple person firm or one person firm uh our associates are working for multiple person firms so this is usually the choice we always do okay buyer okay let's go here i'm gonna put you're my buyer today all right thanks john okay i'd love to revive i love to represent you so i usually do that so it will update the ctme with peter's name peter sonic so that's kind of usually what i do and once you set up with ctme all this 3.23.3 should all be filled out for you um so what do we do in 3.4 okay so what is what is p trying to buy today maybe uh let's say single f single for a single family home in wash park okay family oh live by there uh single family and watch washington park around i would say let's say 1 million dollars how's that so you could do this guys so also you could say single family home in highlands ranch price between 300 to 400 you don't have to have an exact thing here but it just kind of describes what you're helping your client with here on the property so listing period we'll just jump down here because usually i i don't have my associates do leases for me i don't know if that's true for your associate's people usually i'll just go right to 3.6 yeah you're right majority of the time we're just there to sell the property we do run into that every once in a while since we have a property management company so if you were in a position where your client is asking you to just sell the property and or lease it you'd want to mark box 3.5.2 right here also be accompanied with an exclusive right to lease contract as well as a management agreement as well perfect so okay but we're just going to consider this buyer peter it's just buying a house with us not leasing so i usually like uh to get them for a minimum of three months i don't know about you three to six months is kind of a listing period uh what do you do what what do you like for your associates uh john i typically do either three months or up to six months um a lot of my investors are going to be property specific and if they're property specific on their agency then it is just a three-month agreement typically but yeah three to six months okay since you're my friend i'm gonna keep you for the entire year so i did it all the way through there so other ones are pretty simple stuff let's just go right to 3.8.2 i always do well because sometimes i forget such a deadline is on holiday so this automatically pushes that deadline to the next day that is not on the weekend so i i always do this one and then let's go down to 4.3 4.3.1.2 okay are we just doing buy agency only or can i also be a transaction broker i think pete why don't you explain the difference here well in the event that you take let's say uh you grab a great listing and you want to bring your buyer over by that uh listing if you are marked as 4.3.1.2 you have to let that buyer know that you're going to have to change their agency relationship uh to a transaction brokerage um so if you are marking that box you are limiting that buyer from effectively purchasing any of your listings unless you amend your agency agreement so i typically leave that blank i always tell a buyer that there is a a change of status form that i'll have them sign in the event that they want to purchase one of my own listings um because it is uh difficult to be neutral in a transaction okay so for our purposes for our associates we're going to leave that blank so that they have a choice to go from buyer agency to transaction broker but when you look at the top here we've already marked by our agency on top so that all already defaults you into a bar agency agreement so we'll leave that one blank so that you have an option to go either by your agent or transaction broker depending on the case so of course i mean you learn all the broker duties and all this you learned it in school so we're not going to go over this right now i don't think that's important at this time it is important obviously for all the reasons but uh just to fill out the form is kind of what we're trying to target today so let's go to 7.1.1 success fee a fee equal to how much could i get paid do you put 2.8 here or do you do two points oh okay um and then i put no less than and then i put 2.5 on the second bar okay so three percent i typically do uh but no less than two two point eight or five percent oh two point five because there are especially if you're shopping investment properties a lot of co-ops are only offered at 2.5 and it could be hard for your client to come up with the difference in cash okay so that's also the time where you need to have that conversation with your uh buyer that maybe someone is only going to offer a one percent co-op agreement um and actually in section 7.3 we'll go over that okay good so how about here do you do anything here uh on the second column do you have adjusted amount um anything like that i don't typically john no i typically don't do that either uh usually we don't do hourly fees so that's always n a for me here retainer fee yes my brokers are yeah any type of retainer or hourly fees uh we just have a success performed on a transaction we get paid if we don't sell it we don't get paid right so for me that's all n a and again i don't do uh my associates don't do leases pretty much so these are all nas but for your associates this may change depending on if you have a lease associated with uh this agency i do want a separate agency for the lease agreement as well okay got you all right so um let's go this is all n a for us for now because peter is buying that million dollar house yes i'm gonna make some commission okay all right so this is the part that will probably get you what's this john what's this pete so which box do you usually go with right here so um i coach all of my associates to mark box 7.3.1 um ultimately uh i don't know john you you know i it depends it depends on the case by case for me uh if it's somebody that i've worked with for a long time or my associates have worked for a long time past clients we may even mark this one just say you know what under no circumstances would you as a buyer be obligated to pay you know so that makes you look a little bit stronger as a broker in a way but i agree if it's a stranger i would go with you know if if somebody this is somebody from zillow leads or other leads i may go with this one so one of my strong points on marking box 7.3 7.3.1 because i actually do work with a lot of investors john yes which means that we're buying properties that are off market properties that might not actually offer a co-op in fact oftentimes when we perform on these assets no co-ops are offered so if i'm marking box 7.3.3 if there's no co-op offered unfortunately i get to work do the transaction for free right in my firm if you do have that marked and you are in that position you are doing that transaction for free um but many times i have to have that conversation with my investors and say you know if a co-op is not offered i do work at two and a half percent but we're going to find you a heck of a deal that's why we've gone to the uh to the off market transactions and in that case i have to set that um expectation upfront i typically do that with my success fee and then when i get down to section 7.3.3 i have that conversation with them or sorry 7.3.1 i'm having that conversation that in certain instances i might not get paid a full commission and then i need to either get compensated by you and or negotiate it into the transaction if that box is marked 7.3.1 uh your commission does financially impact your client therefore it is appropriate time to actually negotiate that commission into the sales price of the home if you are marked in 7.3.3 that is not appropriate for you to do so because your commission is not financially impacting that client it's financially impacting you that's the contract plan sells is between a buyer and a seller not between your commission check so i think that's that's the reason why that first box is there on as a first box because that's the box normally people would probably check so i would agree with you on that um but again under maybe you know certain clients that you know really well 7.3 7.3.2 or 7.3.3 might be an option so let's go down to the next one 7.4 holder period do you do this i usually do n a but i know some brokers do seven calendar days or 14 days depending on the situation or even 30 days what do you do here actually john i i coached 90 days and i wow that's great okay 90 days hold over period yeah because you're working with a lot of investors you want to make sure that you're you're and one of the reasons why i do that john is not to be a stickler but you know you brought up a big point as i am working with a lot of investors it's not unusual for my investors to be working with multiple brokers and that's okay too in fact as you find in your real estate career as you move up the ladder and you have more sophisticated buyers oftentimes they're in multiple brokerage relationships because they're doing different things and you might specialize in one whereas they don't in another however i want to make sure that the transactions that i'm working with that i am protected in those transactions and that's why i do indicate i hold over period and i always give my uh clients a list of properties that um are associated with that then in 7.4 you would mark the yes perfect i i there's nothing wrong with this at all even with the regular buyers so let's jump to the next column so here buyer is working with another broker then you had to mark is right uh if if that buyer tells you no you're my only broker this is an exclusive ride then you'll mark this one so depending on the situation right yes and uh again majority of your homeowner occupants are not going to be in multiple brokerage relationships that only becomes uh the case in a more sophisticated buyer when you're working on multiple deals like investments and developments and things like that so yes typically is not okay um and if they were in a relationship it's appropriate for us to ask the question is have you been provided a list of properties that might impact you in a hold over clause of what we just reviewed earlier yep so that's not comes into play so there we go but if they have uh you know looked at another property with another broker and they were very close to getting that deal done they may submit this list to you so that you're fully aware of that situation or you need to talk with your buyer about that all right so this is kind of new number 10 right to cancel for the buyer also our right to cancel so if you want to read that that might that's fine um let's see let's go to 12.1 what do you do here well i think in the buyers um agency it's fairly uh simple and straightforward i actually have saved it into the clauses section over there on the right hand side right so in efforts of not having to retype these things in multiple cases it's always nice to input a couple of clauses since they are going to be very similar in a majority of the contracts in case of me being a buyer in washington park i'm going to likely set showings and show properties um i'm going to provide any colorado commission approved contracts um i'm going to facilitate an inspection and i'm going to fill uh facilitate title and facilitated closing that's typically what i'm putting in there john what about you you know i actually leave it blank [Laughter] most of my clients are referrals and past clients so it's easier for me uh but anyway so yeah i like that so you could list what you do you know what searches you you're working with additional stuff you're performing for your buyer so that they know what you're doing the extra work you're doing so i like that um so pete already has clauses so you just click on this and his automatic clause will come up for you guys that's working for pete uh so let's go limitation so usually none or no limitation here right yeah i very suddenly have any limitations i guess the only limitation that you do run into from time to time is um uh and we're going to start seeing more of those but is hud foreclosures you have to renew your naid number fairly regularly okay sounds good uh so maybe here is probably re colorado but sometimes it could be ppar if you're working down in colorado springs or other colorado.com or other mls's if you want to list them here that's fine usually we do have their permissions so we'll go with that one right uh let's see what else do they need to fill out do you have anything for additional provisions attachments um attachments uh right now i'm attaching the covet addendum to the buyer to the agency yeah so car so are you using the car colorado association realtor car cover 19. yeah actually there is a covet addendum in uh ct right now right when you create contracts towards the ball unfortunately it doesn't make it automatic for your clients to sign which is yes you have to upload it through docs management right yeah so anyway so you will put that in here for your uh people so we'll leave it at that um anything for this box 23.2 i actually type in the contracts program in their ctme contracts so i usually just do internet to save time so it's close to the same point yes so if you want to do it that way too or if you if you're my group you could just do internet although if you uh go up to boulder and write an offer and you put ctme contracts in there they're gonna yell at you until you leave docusign okay or dot loop or one of the two yeah yeah okay so mine is automatically set for enable for signatures i don't do initials anymore what's your preference i prefer to just do signatures i don't do initials very often so here usually all i do for the email is just i just put the client's email address and that's all i put in here do you do actual address for your clients or not or any any other stuff here do you need to fill this out no i actually uh choose not to populate that because it does become part of the contact sheet and it does give the other side of the transaction your clients contact in ormation so i leave that blank yes so that's what i do so we're almost done here and what do you do the very last thing is you save it okay so you hit the same to do that yeah so you're done here guys it was that wasn't too painful so that was your first ever contract um so now we'll go back here we'll go back a screen okay and another one i think i'm going to actually cross get this one out so we're back here once you x out that screen it will go back to the original ctme contract tab that shows now you've you've done this so that's already saved so you can email this to your clients but before you do as pete mentioned there's another form you have to do so you go ahead go here and create new contract for this property and let's go to the definition page so right there so under disclosures you're going to mark this one definitions of working relationship create selected contact contracts and this is what you fill out of course you want to explain this you know seller's agent buyer agent transaction broker customer you want to fully explain that should we cover this a little bit for our new associates yeah i think it's important you know the first one's pretty self-explanatory sellers agency um you do need to go through the fact that you're going to be representing that seller's best interest you can sell a property in a transaction brokerage relationship um but typically i'm looking out for my clients interests i'm going to be giving my client advice on the contracts that are coming in and remember if you're in a transaction brokerage relationship you should not be doing any of that you're simply there for the transaction so you'd be receiving offers and just passing them off so i think it's a good time to really sell your value when you're presenting this definitions of working relationships worksheet um buyer's agency is in a very similar status when i'm walking i'm not just opening the front door and telling you to walk through it and that's the last i talked to you we're going to be discussing the different features of a home between the 1940s to the 60s to the 90s to the modern day construction and just those little actions in itself has me already in a buyer's agency relationship the only time i would ever encourage any of my clients to do a transaction brokerage relationship is if for some reason you're representing both buyer and seller on the same transaction and i'm actually a firm believer of when i do negotiate in a transaction brokerage relationship at any time that i have a conversation about the property or the negotiation of contract i have both parties present in front of me therefore i can't favor one party over the other and that's extremely important when you are in a transaction brokerage relationship uh it's so hard to write stuff from my mouse [Laughter] especially if you're uh especially if you uh are doing like an open house or something that uh reference and somebody walks in and says that they don't want your representation but yet they want to buy your home and they have no representation you have to make it very clear that you're representing them as a customer and i've actually been known to take out this definitions of a working relationship circle the word customer sign it on the bottom and hand it over to them so that i've made it very clear that they are only a customer in property management as well uh you need to treat your tenants as customers and you need to be disclosing that through a definition of a working relationship through tenant that's all i really have on this form do you have anything to add john no let's fill it out so you're you got i'm gonna make you sign this i have a new client today this is awesome million dollar buyer john uh you have cash i'm not gonna make it that easy on you okay hey so before we let you guys go this is our first video uh within many series of videos for our associates um we love you guys right p we love our new associates we want you to do well we certainly do love our new associates and we hope that they're going to be very successful yeah yeah but uh any form you do send out to your clients i i kind of tried to tell them hey we're not attorneys i mean we're we you know we have a limited function as a limited attorney to fill out these blanks and stuff but we're really not attorneys so if you are really have a lot of legal questions you should talk to your attorney or your cpa depending on your financial situation how about you do you do you mention that to your clients i do i actually um if you don't mind jumping back into the buyer's agency for me john sure let's go back okay all right and we kind of skipped over the section there so i do have that conversation with my clients um a lot of my clients might be in 1031 exchange situations right very important that they're communicating with their cpas but if you scroll down towards the bottom of the agency yeah i think i think oh you're going to go to megan's law so i tell you that's underneath it i thought you're going to talk about this part but anyway so let's see that is one section that it has that's not typically when i cover it personally okay so let's go to let me go to megan's law which is all the way i think i just saw 28. before megan's law section 23.4 choice of law got you right here um and let's see scroll up just a little bit further john you know honestly i i cover right there on the choice 18. oh he's talking about 18. there it is there we go that's what i was looking for john section 18. um i do definitely touch on that every single time i present it i make it very clear i'm not an attorney i make it very clear i'm not a cpa right and then i even joke and i say i might know the answers but you can't take any credibility from that yeah and most of my clients that are in positions where they need that legal counsel or tax counsel have that so yes yes all right perfect i think we're done here so it's it looks intimidating but it really isn't i mean you know this is very simple so we're gonna we're gonna stop here and thank you for staying with us uh next class we're gonna jump right into contracts to buy and sell real estate so join us for that so i always end with chariot as a courtesy thing for my culture and take on the realtor of course take on the realtor so we're actually going to be done here um let me end this