The Buyer Counseling Session

1. The Buyer Counseling Session Stef Lukas, Lukas Group RE/MAX House of Real Estate

2. Our Legal Duties • Obedience to your lawful instructions • Loyalty to your interests above my own • Disclosure for material and pertinent facts • Confidentiality for any info you provide me regarding your motivation, urgency, financial position or personal situation • Accounting for your $$, paperwork, dates • Reasonable Care according to license laws I am not in sales – I am a service provider

3. Representation I represent your interests when the seller is a ‘FSBO’ or represented by an agent from another firm • As your buyer agent, if you want to make an offer on a property that I have listed, or one that is listed by my firm, my firm will have two clients in the same transaction which is a higher level of responsibility • I provide equal treatment to both, disclose all material facts required by law and each client is entitled to full confidentiality &market info. • I am required to review the Alberta Agency Relationships Guide with you and you know your alternatives and the ramification of your choices of the transaction. If this occurs, you will know in advance

4. Many Clients I represent many buyer and seller clients at the same time in a variety of transactions • Since I also represent other buyer clients, there are times when they may be interested in viewing some of the same properties that you are targeting • All client information is confidential and I will not betray that trust • If you are interested in making an offer on a property, no offer details will be shared with any other buyer or seller clients

5. We Can’t • Make any decisions for you, nor will I take responsibility for any of your choices • Guarantee to help you buy property for less than market value • Hide or misrepresent any material facts or defects about a property, even if I listed it • Discriminate in any way or undermine Human Rights laws • Collect any kickbacks or accept any rebates without your full knowledge and awareness

6. We Can’t • Choose the neighborhood or community you should live in • Tell you if the area is ‘safe’ • Tell you what schools are ‘better’ than others • Guarantee what the town planning and zoning commission will do Since these decisions are subjective, I can provide you with sources that can give you information so that you can make your own decision

7. Impacted Properties I respect the fact that many factors are important to your buying decision • ‘Stigmatized Property’ is property where there has been a murder, suicide, felony, or other psychological impact • You have the right to ask and may want to consider a written request for information • If a seller or their agent has actual knowledge they are obligated to disclose • You may also choose to contact the local police or speak with neighbors

8. Written Authorization • All consumers are entitled to mutual promises in writing outlining my legal duties and how I behave in a transaction • I respect that entitlement and am willing to represent your interests but will require written authorization prior to viewing property • Some agents may not feel providing you with written promises is necessary but I believe you are entitled to a mutual commitment on how we partner to obtain your objectives

9. Written Agreement • You will have a thorough explanation of the terms to an agreement so that you will completely understand it • I would be happy to provide you with a blank form so that you or any of your advisors may review it in advance • If my firm charges representation, signing or retainer fees you will know in advance • Once we receive your written authorization I will begin to work for you

10. How I Am Paid When you buy I receive a ‘success fee’ from the proceeds of a sale • It makes no difference who has ‘listed’ the property – I represent your interests. • I doesn’t matter what or when you purchase, or if you spend a lot or little - that is totally your decision to make and I will not push you • My focus is to provide excellent service and help you obtain your objectives so that you will recommend me to your family and friends

11. Professional Service Fees You don’t owe me any money from your pocket unless that is what you want to do • A buyer’s gross offer has always funded the entire transaction which allows the seller to deduct all transaction and brokerage fees, service fees and additional debts owed • My firm expects a certain professional service fee and you instruct me to collect this fee from the MLS or from the proceeds of a sale structured within an offer • If the amount offered in the MLS won’t cover the amount in our agreement, you will know and decide if you want to see that property

12. Loan Process Prior to showings, your qualification for a loan must be secured. If you will paying cash you will need to provide me with a verification of those assets • Some lenders are better than others and I have worked with many so we’ll discuss your loan needs and who may be right for you • If you are already pre-qualified or pre-approved, I will need to know who your lender is and be provided with full verifying documentation. • If my clients have had negative experiences with the lender – I am obligated to tell you

13. Loan Verifications Two letters of financial qualification needed • First letter is a ‘blueprint’ to structure your offer detailing loan type, rate, seller concessions, loan to value, mortgage amount and monthly (PITH) principle, interest, taxes and heating • Second letter is a generic statement from the lender stating that “Your credit report and financials have been reviewed and the lender deems you worthy for the amount you are seeking”. No amount or property address is stated in this letter since it is attached to any offer you may make

14. We’re Ready Once your financing is in order, we are ready to go shopping! • I respect your budget rather than push you to the high range that you can afford • Your needs, wants and wishes are identified, programmed into our Multiple Listing System and calibrated so that you will receive automatic updates based on your criteria • You determine the method delivery – email, pick up, fax or snail mail

15. Selection Process • You may be receiving property updates from a variety of other general websites – the info you receive from our MLS system is far more detailed and tailored to your specific criteria and budget range. • Drive-by the properties and then determine what you want to view so that I can book your showing appointments • If you do not see anything you like within your budget range, you may need to re-assess that price range

16. Showings • Most sellers require advance notice to book showings and provide confirmations so the earlier I know, the better it will be for you. • Reserve my time in advance since I want to be available to provide you the attention that you deserve. • If I have already been committed to assist another client, I will attempt to secure another agent within my firm to assist you in viewing the properties on your list • When you determine which property you want to buy - my professional abilities really come into play at that time

17. Open Houses • Licensing regulations prevent agents from interfering with another agent’s client relationship and most agents respect the choices of others • If the agent does not ask, just inform them that you are represented and sign my name to register instead of yours • No agent can prevent you from entering, nor can they say that if you do, they must represent you or write your offer if interested • Please collect their business card and call me immediately since this is a serious legal breach

18. New Construction • The same process applies if the builder is an agent or represented by an agent. • If the builder is not represented – there is no process but the builder can’t prevent you from having a buyer agent • Requesting information from their website does not make you their client nor preclude you from having your own buyer agent • Some Builders may lead you to believe that you can deal direct and save. Experience with past clients demonstrates that this is not true. Representation saves you much more

19. For Sale by Owner • The seller has made a choice to represent themselves but they can’t make that choice for you since representation is your right. • Generally they are overpriced, have heavy debt, have some material defect they prefer not to disclose, don’t want to pay a specialist and prefer to ‘do-it-yourself’ • I don’t need the seller to pay my fee since your offer includes it anyway • We just need to see the property to determine if you want to make an offer

20. Feedback • After a seller’s property has been shown, some listing agents will call for ‘feedback’ • Since feedback can divulge your confidential impressions or intentions and potentially undermine any future negotiations, I will thank the agent for the opportunity to show but won’t provide any additional comments • Should you wish us to provide comments you will hold me harmless from that decision • Any info we receive, you will know

21. Market Analysis • When you have made a final choice, I will provide you with a general market and property analysis identifying the comparable sold property, feature for feature in similar neighborhoods • The price you pay will depend on many variables – market conditions, amount of available inventory, seller’s personal and financial situation, etc. • If you really want the property, bid seriously

22. Legal Representation • You are entitled to consult with a legal representative at any time during the process • Please remember that a timely response is important and we cannot accept responsibility if the seller accepts another offer before your lawyer responds • It is important to select an attorney that specializes in real estate to minimize the occurrence of potential problems within the process

23. Offer Process • When you are ready I will write an offer on your behalf including terms and conditions that protect your interests • All components and contingencies of the offer, along with the process will be explained providing you with options, alternatives and ramifications • Remember that all decisions are yours to make and I can’t be responsible if things don’t work the way you had hoped they would

24. Customary Contingencies • Initial and additional deposits • Mortgage, Insurance, Inspection contingency • Seller concessions for repairs, closing costs, agent fees not covered in MLS • Rights of first refusal, option to purchase, lease options, right to sell property before buying another property, Hold-over or Rent-back Contingencies • Your lawyer can provide us with additional protective language for insertion if needed

25. Confidentiality of Offers • Once your offer is written and delivered to the seller’s agent, there is no implied guarantee that the terms or conditions of your offer will remain confidential • You can have the seller and listing agent sign a confidentiality statement prior to us presenting • In a seller’s marketplace there may be little that you can do without potentially losing out • In a buyer’s market you may have more time but there is still no guarantee • This will be your decision to make and you will hold us harmless from that decision

26. Presentation of Offers • There are a variety of ways to reassure you that your offer was presented. • When permitted by the seller I can personally present; I can hand deliver the offer to the listing agent; I can fax the offer to the agent; I can attach a verification of presentation form for the seller to sign • If there are no other offers, the process is usually straightforward • If multiple offers exist, I will discuss the process and your options

27. Negotiations • Sometimes things don’t work out – no matter how much you were willing to bend – each scenario has a personal backdrop that can often interfere. • Take the time you need and start again • If negotiations are successful, I will secure all necessary initials and signatures • All parties and others authorized by you, will receive complete documents

28. Contract Extensions • All performance dates require evidence of written satisfactory completion • If I have not received notification, a written extension may be requested by either party • The agents must insure that it is signed by all parties prior to the expiration of the date • If not, it may result in someone incurring a financial penalty or loss of rights

29. Inspection Process • The inspection phase is a mutually agreed timeframe that allows the buyer a third party assessment of the structure and mechanical components even if the property is “As Is” • You may select any inspector that you choose but if any of our past clients have had a bad experience I am obligated to disclose that to you and may require you to hold us harmless from that decision • If the listing agent or seller remain, they may not interfere

30. Repair Requests • Inspectors will submit a written report to the buyer and buyer agent • If repairs are requested, it is best to have them made in writing with a copy of that page of the inspector’s report • I will review the repair requests with you and help you assess your options • I will then formulate a written response based on your instructions and attempt to arrive at a mutually agreeable solution

31. Finalizing Repair Phase • Once agreed, repair items will be addressed after receipt of the written mortgage commitment and prior to closing • Sometimes a lender will send an inspector to the property to verify that repairs have been made or we will provide paid written receipts from licensed professionals at closing to verify that work was done

32. Mortgage Contingency • Within a predetermined timeframe, a written commitment can be expected from the buyer’s lender • If extra time is required, a written extension may be requested • The seller can decide whether to grant the additional time or not depending on your current circumstance • I will advise you of your options

33. Closing Count-Down • Odds and Ends • Verify all required repairs • Organize packing & movers • Contact Utility Companies for final readings • Transfer utility services into the buyer’s names • Agent will schedule a pre-closing inspection • Insure that contractually requested items are left • Occupy on the day of closing • Unless advance contractual arrangements have been made

34. Closing • The closing date is a ‘ball-park’ date that is determined by the lawyers and their respective clients • Most closings proceed without incident since all details have been handled and agreed upon prior to this event • One of our professionals, usually your buyer agent or their transaction coordinator will be present to insure that everything that was agreed upon stays that way!

35. Post-Closing • I am always here to help if I can • However, if you need general information or assistance – please contact me! • Also, please keep me in mind when your friends, family and co-workers want to buy or sell property Thank you for choosing me to represent you!