Real Estate Buyer and Seller Advisory

REAL ESTATE BUYER AND SELLER ADVISORY

This Advisory provides an explanation of duties, rights, customary practices, and potential conflicts of interest that commonly arise in residential real estate transactions. This Advisory is intended to inform the parties of key matters that may affect decision-making during negotiation and closing.

Property Identification

Property Address:   Parcel / APN:

Parties

Transaction Terms (Advisory Data)

Proposed Closing Date:   Possession Date:

Agency Relationships and Duties

Brokers and licensees owe certain duties to their clients under applicable law including, but not limited to, the duties of loyalty, confidentiality, disclosure of material facts, obedience to lawful instructions, accounting for funds, skill, care and diligence, and the duty to disclose any material conflicts of interest. A broker's duties vary depending on whether the broker represents the buyer, the seller, or both.

Buyer acknowledges that the licensee identified below may represent the Seller unless a separate written agreement confirms otherwise. Buyer should obtain independent advice if the Buyer does not understand the effect of representation.

Dual Agency / Limited Representation

When a single broker or brokerage represents both Buyer and Seller in the same transaction, the broker may be required to provide limited representation and obtain the informed written consent of both parties. Limited representation may restrict the broker's ability to disclose confidential information and may require the broker to treat certain information as confidential even when negotiation is ongoing.

Consent to dual agency or limited representation: Yes    No    If Yes, the parties acknowledge receipt of a written disclosure describing the limitations imposed on representation prior to executing the purchase contract.

Material Facts, Disclosures and Inspections

Sellers are legally obligated to disclose known material facts affecting the value or desirability of the property. Buyers are advised to obtain professional inspections and to review all seller disclosures. The fact that a defect or condition can be repaired does not eliminate the obligation of disclosure if the defect is material.

Lead-based paint present: Yes No   Known mold or fungus: Yes No   Flood zone or prior flood damage: Yes No

Buyer Advisory — Recommended Actions

Buyers are advised to obtain inspections for structure, pest, HVAC, roof, plumbing, electrical, and any other systems the Buyer deems material. Buyers should review title reports, search public records for easements or encumbrances, and verify zoning, insurance availability and cost, and any homeowners' association obligations. The Buyer should verify financing feasibility and obtain lender pre-approval where applicable.

Seller Advisory — Responsibilities

Sellers must complete required statutory disclosure forms, permit access for inspections as agreed in the contract, and cooperate in the delivery of clear title at closing. Sellers should disclose known defects and provide documentation of repairs and permits where available.

Yes    No

Confidentiality and Handling of Offers

Brokers must present all written offers to their client in a timely manner unless the client directs otherwise in writing. Agents must keep confidential any information that a client has directed the agent in writing not to disclose, and must not disclose confidential information obtained in the course of representation except as required by law or with the client's informed consent.

Conflict of Interest and Material Relationships

The parties must disclose any material relationships that may present a conflict of interest, including financial interest in a company providing services related to the transaction or familial relationships with any brokerage principal. Failure to disclose such relationships may result in disciplinary or civil liability.

Dispute Resolution and Governing Law

Unless otherwise agreed in writing within the purchase agreement, disputes arising out of the transaction may be resolved by litigation in the courts of competent jurisdiction. Parties may agree to alternative dispute resolution such as mediation or arbitration in a separate written agreement. This Advisory is governed by the substantive laws applicable to the state in which the property is located.

Acknowledgement and Certification

By signing below, the parties acknowledge receipt of this Real Estate Buyer and Seller Advisory, represent that they have read and understand its contents, and certify that all information provided on this Advisory is true and correct to the best of their knowledge. This Advisory does not constitute a contract to purchase or sell; it is informational and intended to assist in understanding duties and risks commonly encountered in a real estate transaction.

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