When you are the Owner of a property, or have a financial interest in the property, our Errors and Omission Insurance (E&O) company has requirements for the transactions.
Listing a Home for Sale
When you are selling your own home, or any home you have a financial interest:
1. It is ALWAYS Best to have someone else in company handle listing completely for you. Putting this buffer between you and the Buyer is the E&O Companies best recommendation.
2. You may NOT represent the Buyer on a property that is owned by you, or that you have a financial interest in.
3. You must disclose to all parties in the Offer or Counter Offer:
a. That you either own the property, or have a financial interest in the property.
b. That you are a licensed Agent, or Broker, and include your DRE License Number.
4. You provide the Buyer a Home Warranty, and you should provide the highest coverage offered by the Home Warranty Company (Value Plus, Eagle Premier, Comprehensive, Enhanced, etc.)
5. Disclosures are critical when representing your own property. You need to disclose anything and everything you know, and make sure that disclosures are complete and explained with What, When, How, with or without permits, etc. Don’t just say “Upgraded” or “Remodeled”, list out all items.
When you are selling the home of a relative that you do not have a financial interest in:
1. You must disclose to all parties in the Offer or Counter Offer that you are related to the client.
2. You Can represent the Buyer of a home of a relative, it is advisible to refer the Buyer to someone else in the company due to anytime you have single agent dual-agency there is huge libability to the agent.
3. You provide the Buyer a Home Warranty, and you should provide the highest coverage offered by the Home Warranty Company (Value Plus, Eagle Premier, Comprehensive, Enhanced, etc.)
4. Disclosures are critical. You need to disclose anything and everything you know, and make sure that disclosures are complete and explained with What, When, How, with or without permits, etc. Don’t just say “Upgraded” or “Remodeled”, list out all items.
Representing Yourself in a Purchase
1. You must disclose to all parties at the time of negotiating the contract, in the Offer or Counter Offer that:
a. You are either the purchaser, or that you have a financial interest in the purchaser.
b. You are a licensed Agent, or Broker, and include your DRE License Number.
c. If you are going to Flip the property for profit, you must disclose in the offer your intention to do so in the offer.
d. Consult Management if you are purchasing a property that is not listed in the MLS, prior to writing an offer, to get necessary disclosures
and wording.
Leasing Your Own Property
1. You cannot Rent or Lease your own property, or a property you have a financial interest in, through the Brokerage, including entering the Lease in the MLS, or using forms from zipForms as paperwork for the lease. (zipForms cannot have our company name in the documents, or on the bottom of the pages)
As Always… Contact RE/MAX Management for information and advice when representing your own home, or that of a family member.