Important Real Estate Forms

Below you will find a sampling of the forms which you will be asked to sign when employing a real estate proferssional to assist you in buying or selling real estate.  These forms are subject to modification and are not to be used without a licensee to ensure that the version is up-to-date.  These are provided to help you understand some of the important issues, rights and responsibilities of the parties involved in real estate transactions.  They are not comprehensive, but merely a sampling.

Understanding Whom an Agent Represents

This form describes the roles of real estate licensees and their limitations.  Often in these times, customers are very internet savy and do not want to be tied down with a binding brokerage contract.  This form, which is required at or before the very first, face-to-face meeting with a customer or client, explains why, under Maryland law, a buyer-broker agreement is required for buyers.  It explains which agents work for whom and helps you to better protect yourself as a consumer.  Technically, you are not required to sign this form, but the agent must explain it to you and he or she must sign it, describing to whom it was read and explained.

Consent for Dual Agency

This is a fairly confusing form and concept.  Different jurisdictions has different regulations regarding when a broker or agent might represent both sides of a transaction.  For example, in Maryland, only the broker may act as a dual agent.  In Virginia, an agent may, under cerrtain conditions, act as dual agent.  A dual agent is when a broker has both a buyer and seller for the same property.  Typically, a broker has a listing on Property A in which Agent "Anne" acts as the representative for the seller.  Agent "Jim" has a buyer for whom Agent "Anne's" listing would be perfect.  Agents "Anne" and "Jim" both are agents of the same broker.  The expectation (and the most typical reality) is that, even though "Anne" and "Jim" are co-workers and colleagues, and maybe even close friends, that each will exercise his or her fiduciary responsibility to his client with full faith, care, loyalty, obedience and trust.  The possibility exists, however, that "Anne" and "Jim" act more for their own benefit than that of their clients.  It is a potential concern that private information could be used inappropriately to complete the deal rather than to protect the interests of the clients first.  This is why Maryland requires that both buyers and sellers agree to permit dual agency before a contract could be entered into.  If both parties do not consent to dual agency, then no offer may be prepared, contract negotiated by an agent of that broker.  This means that no buyer who refuses to consent to dual agency may be shown a property which is listed by that broker and should a seller refuse to consent to dual agency, his broker may not show that listing to potential buyers.

Lead-Based Paint Disclosure

Federal law requires the disclosure of the possible existence of lead-based paint in a property.  Typically, if a home was built after 1978, one may assume that no lead-based paint was used.  (However, there may have been some builders who continued to use lead-based paint illegally, so proper research is prudent.)  A seller who has material knowledge of the exitence of lead-based paint is required to dosclose this to any potential buyer.  The seller is also responsible to disclose and provide any documentation reguarding the existence of lead-based paint, any treatments, encapsulation or remediation performed, about which he has material knowledge.  This form is the required form which makes such a disclosure or in which a seller may claim to have no knowledge thereof.

Disclosure-Disclaimer

The Property Disclosure/Disclaimer form is also required under most conditions.  The first page describes those situations in which a seller may not be required to complete this form, such as the Sheriff at public auctions, a trustee at an estate sale, a bank which has bought back the home at foreclosure and other possible scenarios when the legal seller may not have access to the appropriate information in order to be able to disclose the condition of the property due to an absence of actual knowledge regarding the property.  Most sellers, however, do have some material knowledge regarding the condition of their property.  The old adage of Caveat emptur ("Let the buyer beware") no longer is appropriate.  A buyer has the right to know material facts regarding the condition of a property prior to settlement.

Buyer-Broker Contract

This form is typically used to describe the rights and responsibilities of the broker and buyer.  It specifies the terms and conditions, roles, duties and compensation of the broker. Without a written agreement between a buyer and the broker, the broker is not permitted to be compensated or even prepare contracts or negotiated on behalf of the buyer.  Without a written agreement, a relationship called "presumed buyer agency" exists which bids the agent to protect the interests and privcacy of the buyer, but no agent will be able to negotiate or prepare contract paperwork without a written agreement for services.  This is Maryland law.

Listing Agreement

THe listing agreement describes the duties, rights and responsibilities of the parties.  It grants authorization for the agent to begin the process of marketing and selling the property on behalf of the seller.  Further, it describes the length of the contract, the compensation of the broker and any potential sub-agents or cooperating agents.  Again, without a written agreement, no broker may market a property under Maryland law.

Protect Your Family From Lead

This pamphlet provides important information about the dangers of lead-based paint.  Please read it for the protection of your family.

Notice of Buyers Rights and Sellers Obligations

Both buyers and sellers will benefit by printing this forms and reading it carefully.  Whether you use the services of a real estate professional or not, these rights and obligations apply.

Have a Home Inspection

 While this form does not even have a signature space, it is required if you are using either FHA or VAS financing.  Your lenders will need you to initial it someplace and make sure they have a copy of it.

We hope you have found these sample forms helpful in understanding some of the rights you have and responsibilities that real estate professionals have.  Obviously, there are many other potential forms which may be required in your particular circumstances, but these are some of the absolute basic ones you may see.