Document Dictionary

A reference for explaining paperwork! If you're not sure about something, look it up here! This is an ever-changing page, so check back as needed. Hint: you can hit "ctrl" + "f" and search for the specific document you want more info on.
  • Showing Status and Lockbox Input: This is a team specific sheet that was created to fill in frequently asked questions by the admin to the listing agent. It collects info for the admins THAT IS HIGHLY IMPORTANT AND ALWAYS OVERLOOKED! This must be typed into Dotloop in order to prevent readability issues with handwriting.
    • Seller contact info is important to label and put on this sheet. Put the full name (and any nicknames) so we know who we're talking with. This includes their future address so we can build our database.
    • Tenants should be labeled with their unit so we can quickly contact correct people. Try to get their emails, but some landlords don't have that information. It needs to go on the sheet ASAP so we can coordinate pictures and showings.
    • Ask the seller what the utilities are up front so we can remind the buyer transfer them easily. "Public" is not acceptable. There needs to be EXACT company names like "PWSA" or "American Water" since those both work on different parts of the city.
    • Also stating any tricky doors, special instructions about lights, who confirms showings, alarms, etc makes life easier.
    • Please also make it clear if someone is living in the property. We don't want to surprise anyone by showing up unannounced.
  • Consumer Notice (CN): This is a huge fine if not signed! PA state law to get this signed. You learned about it in classes and it's MANDATORY before any real estate communication can begin. Legally, at first meeting they need to sign it and you need to give them a copy of it. It details the different types of agency that you can have. This should be used on EVERY SINGLE REAL ESTATE TRANSACTION.
  • Standard Exclusive Listing Contract (List Contract) (WPML Version): This We use the WPML version of the listing contract rather than the PAR version. The MLS makes us use their docs if we want to put it in their MLS. This how you get paid as a listing agent. You need this signed to legally be able to market the property for sale. It's illegal to advertise anywhere without this signed, including on Facebook or email. Make sure the address/Parcel ID is correct, the commission is correct on line 74. We have pre-filled in "7% or $4500, whichever is greater, plus $750 admin fee". While there is some wiggle room on commission above $250k to go to 5% (or 2.5% each side, plus the admin fee, minimum commission for the team is $4000 and a $500 admin fee, so don't go below that. If the property is listed below $66k, you should be writing in "$4500 plus $500 admin fee" because 3% is lower than that amount. If your client doesn't want to pay that, then don't work with them. You are working hard, and deserve a good commission. Don't be greedy, but don't be a pushover. This is a business and we need to make a profit of some sort. If they close more than one transaction a year, we can lower the admin fee. Talk to Dustin about the specifics of the discounts. They have to close within the same CALENDAR year. So one closing in December and another closing in January is not exempt from this rule. The admin fee MUST be on every contract so that if the deal doesn't close in the same calendar year, we can still collect one on the next deal.
  • WPML Input Statement (RES): This is for properties that are considered residential use (1 to 4 units). PLEASE fill it out the best of your ability so the property looks complete online. Feel free to just email the remarks later, since it's not a large box. Agent remarks are what agents on the MLS see only. That's for special info, income info, etc. Admins will edit out from the regular remarks to keep it legal with the MLS. Most of the time, admins aren't going to the property and cannot fill in the blanks for you. Do you job and fill it out.
  • WPML Input Statement (MUL): This is for multi-unit properties. 1 to 4 units is considered residential, so also fill out a RES input form, 5 and up is considered commercial so fill out a COM input form too. Make sure to put in the unit breakdowns (IE how many bedrooms and bathrooms in each unit) and rents because you’ll get that asked a ton. Any garage income? Laundry income? Taxes, average expenses, vacancy, and what utilities are paid by the owner are also important.
  • DN Team Policies and Procedures: This is an Affiliated Business Disclosure that is team specific. It lets the client know the team, EXP Realty, and our agents have business relationships with people like Movement Mortgage, CMCS, Nulf Management Services/The Full House, AJM Mortgage, Elite Title, and HSA. It's a $300k fine if it's not signed. Also states our admin fee again, and the authorization to negotiate for the client.
  • Wire Fraud: This sheet is required by EXP. It reminds the client that there are lots of scams that happen when wiring money and they should double check the wire instructions are from a valid person at the title company. They should google the phone number (or look it up from a previous email) and verbally talk to someone at the company to double check the numbers.
  • EXP ABA: Another required EXP document. The affiliated business disclosure informs the client of who EXP has business relationships with. This is required on every deal.
  • Seller's Estimated Costs (SEC): This should be signed when you list the property at the list price so they know what to expect. This should be filled out again for each offer that you get so they know what they are walking away with. This must be signed before closing with the purchase price according to RESPA (aka a big fine if not signed). The one we use is a PAR form.
  • Residential Lead Based Paint Hazards Disclosure (LBP): This is a federal law for all houses built before 1978 and is a PAR form. There's a lot of old houses in PGH so pretty much everyone needs to sign one. Based on where the sellers initial (either line 12 and 18 or 13 and 19), they are disclosing what they know about lead based paint in the house. Listing agent signs the bottom of this, and it's put on the MLS for the buyer to also sign. Most people don't know about any lead based paint, but it's a health hazard so it has to be disclosed if they know about it. FOR BUYERS: The buyers just initial on line 29 and 30 to say that they got the "Protect your Family From Lead in Your Home" pamphlet, the reviewed the seller's disclosure, and received records if there is Lead Based Paint. They also initial line 33 OR 35 to say they accept the opportunity to inspect for LBP or they waive the opportunity to inspect for LBP. Listing and buyers agents both sign it too. 
  • Mold Disclosure and Waiver (Mold): This is team specific. It's just stating that you recommend they get a mold inspection, especially if they think mold is present in the house. They are also signing that you cannot be sued over mold in the house because you told them to get a mold inspection. This does not mean there is mold in the house. You are not qualified to tell someone if there is, and you are recommending they get a professional to identify if there is any. DO NOT TRY TO IDENTIFY MOLD since it is a major health hazard. Don't miss the initial in the middle of the page, since sometimes it's hard to see.
  • HSA Home Warranty Brochure (HSA): If you don't offer a home warranty, your Errors and Omissions insurance will not protect you. This is proving you offered one. It's totally the client's choice if they want to offer one. We like HSA because they do a good job, but the client can pick a different company if they want. They can also change their mind in either direction if they want. They are not locked into it. They pay at closing, but get some coverage during the listing period. There's two boxes at the bottom: accept or decline. They must sign one of them. Please also select what coverage they want. We just do the cheapest one if it's not filled out. If you want to include coverage for a pool or hot tub, select it. I will not assume they want coverage for it, even if I know there is a pool on the property.
  • Seller's Disclosure (SD): DO NOT FILL THIS OUT. Don't even put their name or the property. Just hand it to them and say "please get this back to me as soon as possible" in order to prevent a lawsuit if things go bad. This must be signed (and initialed on the top of each page) before closing. Just get it ASAP because people will be asking for it. It's just to state what they know about the property. Again, DO NOT FILL IT OUT. Buyers will read through and sign (and initial on the top of each page) when putting an offer in on a house. This is a WPML form.
  • Green Addendum: Another thing for the seller to fill out. Pittsburgh doesn't have a lot of green homes, so it's useful if they have some Green/eco-friendly features. They can fill out what they know, but it's not mandatory so don't make them fill it out if they don't want to. This is a WPML form.
  • Oil, Gas, Mineral Rights: The one you should be using is a PAR document and the code is OGMD. There's at least 3 versions of similar documents, so please be sure to use the correct code. It's just to disclose any rights to the oil, gas, and mineral rights the property might have on it. The other version just have a place for the seller to sign, but the correct one has the seller and buyer initial spots. This will go on the MLS.
  • Price Escalation Addendum to Agreement of Sale (PEA): This is used when there are multiple offers already submitted. Some agents won't allow them, so be sure to ask. There is a price cap that states the max price your clients will go, but it states your client will pay $X more than the next highest offer. Be sure you have a price cap on there if submitting!!! This is a PAR form.
  • Agreement of Sale (AOS): This is the MOST IMPORTANT DOCUMENT. The code is the ASR if you're looking it up in the PAR documents. Sometimes called the PSA (Purchase Sale Agreement) by banks. We call it the AOS. Make sure you know the ins and outs of this contract. You must have a Time is of the Essence date (line 52). You must pick financing (starts on line 92), and if they are getting a loan, you need a date in line 114 (usually a week before settlement). On the inspection contingencies, client has to initial on the left to elect or on the right to waive. They must initial on every one. Line 696, Change that box to 15 days. Line 719, check off that box to ensure the seller cannot sue for anything more than the hand money. For more detail, go to the Buyer Procedures. 
  • Pre-Approval: This is something a lender will give your client. It will usually have their max purchase price on it. This does not guarantee that they will get a loan, since the lender needs to verify the info. As a buyers agent, you need this before you start showing homes to be sure they can afford it. You don't want them to waste time looking at houses they can't afford.
  • Proof of Funds (POF): This is a letter from a bank or screenshot of a bank account proving they have cash. This is in place of the Pre-Approval letter you would see from a lender. If you are submitting a cash offer, you should be including the POF so the seller knows the buyer is serious. 
  • Buyer Agency Contract (BAC): A PAR document that gives you the right to negotiate for the buyer. THIS IS HOW YOU GET PAID as a buyer agent. You and the client will both be locked into this contract for the time period on the contract, but no more than a year. The commission should say 3% or $2000 plus a $500 admin fee. It's a good idea to put contract 
  • Non-Exclusive Buyer Agency Contract (NBA): A PAR document that is pretty similar to the BAC. The only difference is that the client is free to work with other agents while working with you. "Buyer and/or assigns to ensure Keller Williams Realty will be paid 3% or $2000, whichever is greater, plus a $500 admin fee" to be at the bottom of the contract in the "additional terms" part on the last page.
  • Buyer Estimated Costs (BEC): A PAR document that details for the buyer what they will have to bring to the table. THIS MUST BE SIGNED BEFORE CLOSING AT THE SALES PRICE. This is a RESPA law, and a huge fine. It's a good practice to do a buyer estimated costs at the buyer consultation appointment, then at the initial offer, and then the under contract price.
  • ​Lender Choice Sheet: This is to suggest some good lenders and to see who they are going with. We should be able to recommend good lenders for our clients, and keep up to date on who our clients end up with.
  • "Protect Your Family from Lead" pamphlet: This is what is referred to on the last page of the AOS. It details the hazards of lead paint in homes. There's a large amount of old houses in Pittsburgh who have old paint, and it's important you disclose this. They can just initial it since there's not a specific spot to sign.
  • "For Your Protection, Get a Home Inspection" sheet: This protects agents by letting buyers know the importance of a home inspection. It's technically an FHA document, but a good idea to get it for ALL buyers.​
  • Pre-Settlement Walk Through Form: Form that you have clients sign after doing a final walk through (or in place of a final walkthrough). It states there are either corrective actions to be completed pre or post settlement, or buyer accepts the property in it's condition. It prevents a buyer from closing, then coming back and saying "hey I wanted this to be done and it was not done" or suing.