Guide
Understanding Agent Value in the Purchase Process
Chase International by the numbers
$9 Billion SOLD IN 4 YEARS
10,000+ FAMILIES SERVED
15 LOCATIONS
350+
HIGHLY SPECIALIZED REALTORS®
75 DEDICATED SUPPORT PERSONNEL
7 MARKETING CREATIVES
COMPANY PROFILE
THE LEADER IN
Luxury
Founded in 1986, Chase International has developed a strong reputation as the “Leader in Luxury Real Estate.” The company has a proven track record throughout the region and sets the standard for real estate in all price ranges. Chase International is one of the nation’s most successful independent real estate firms specializing in unique and distinctive luxury properties in the Tahoe/Reno/Sacramento regions. We are proud to have sold nearly $2.6 billion in one year, with $9 billion sold in 4 years. With more than 350 highly qualified professional REALTORS® and 15 real estate locations, we are committed to our client’s success. Chase has the most knowledgeable agents with the experience and connections to serve your needs.
One Company, One Heart, One Philosophy is more than just a slogan. It is our credo, our way of life.
FIND YOUR HOME
Dear Home Buyer,
Dream
Thank you for giving us the opportunity to help guide you through your home buying process. It can be confusing and sometimes complicated, so it is important for you to understand what it takes to avoid unnecessary hassle and to ensure proper planning and a smooth transaction. Rest assured, you will receive our superb, exclusive service incorporating our experience and expertise to safeguard you and your family’s success. Exceptional homes for exceptional people: your success is our business.
The information in this handbook will educate and assist you with the following:
• Help determine your wants and needs
• Steps of the buying process
• Buyer Representation agreement & compensation
• Loan information
• Explaining the escrow and title process
• Physical inspections process
• Helpful moving tips
We look forward to giving you our undivided attention through the home buying process. Please feel free to contact us with any further questions you may have after reading this information.
BENEFITS OF BUYER Representation
TABLE OF CONTENTS
• Our Value Proposition
• Navigating the Home Purchase Process
• What is Agency?
• Initial Consultation
• Agent Value
• Exclusive Representation and Compensation
• The Steps Towards a Successful Sale
• Provide Financial Assistance and Options
• Explain the Current Market and Devise a Winning Purchase Strategy
• Provide Ethical Representation
• Locate, Preview, and Show You Properties
• Evaluate Potential Properties
• Write Competitive Offers
• Present Your Offer
• Ratify Your Offer
• Negotiate Inspections and Other Contingencies
• Guide You Through the Closing Process
• Advise After Close of Escrow
• Glossary
• Chase Ready
• Mortgage Application checklist
• Before You Start Looking at Homes
• Finding Your Home
• Offices
OUR VALUE PROPOSITION
What are the clear benefits a Buyer or Seller receives when working with a Chase Agent? We sum it up with the following components:
1. A focus on your needs: We start by understanding your core needs and discussing some of the decisions you’ll be making as either a buyer or seller.
2. A clear and specific road map: We identify how our services will address your anticipated goals and strategize success.
3. A list of benefits: All the ways in which our unique services will save you time, effort, and money, and why working with a Realtor is such a key ingredient to your home buying or selling process.
In the following pages, we will go into further detail about the homebuying process, and welcome the opportunity to sit down and discuss it with you in person.
WHY WORK WITH A REALTOR?
A Realtor® is a member of the National Association of Realtors and adheres to a strict Code of Ethics. While every Realtor® is a real estate agent, not all real estate agents have the additional education, time, and commitment to become a Realtor®. At Chase International, all our agents are Realtors®.
A home purchase is likely one of the biggest investments you’ll make. The internet can be a tool but is no replacement for the essential services Realtors® provide. Buying or selling a home isn’t a simple click-and-purchase like buying a plane ticket online. No amount of scrolling on the internet can replace having a professional by your side during this potentially complex, unfamiliar, and lengthy process.
Our Realtors® are trained and seasoned in this marketplace, offering you a competitive advantage as we search for your home. As your personal real estate advisor, we’ll listen, understand your needs and wants, guide you through the maze of paperwork we call disclosures (that accompany purchase contracts), negotiate on your behalf, navigate risk, and strategize with you throughout this challenging process.
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NAVIGATING THE HOME PURCHASE PROCESS
See a house, make an offer, move in: If only it were that easy.
While the home buying process can seem daunting, we pride ourselves on walking our buyers through the steps and guiding them along the way. Your first and best step in the process is selecting your agent. They can then help you narrow down potential neighborhoods, towns, architectural style, and more to suit your needs. From there, the house-hunt begins!
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WHAT IS AGENCY?
The Agency document details the legal role of an agent. The agent is the Realtor® assisting you, and the subAgent of the brokerage. The brokerage they are affiliated with is the broker—the entity that represents either the buyer or seller, or both.
It’s extremely important at the outset to clarify who’s working on who’s behalf, and who the representing brokers are. As such, this disclosure is one of the first (of many) documents you’ll receive when buying a home.
A broker could legally represent both buyer and seller on the same transaction, with either the same agent representing both sides of the transaction (often referred to as “double ending”) or with a buyer’s agent and a different seller’s listing agent. They would all be agents within the same brokerage. The specific roles and performances of each are detailed in agency disclosures and differ for each state.
Your realtor has a fiduciary duty to you, whether you are the buyer or seller. Buyers should understand the agent’s responsibilities and their own obligations to the agreement.
INITIAL CONSULTATION
Let’s set the stage for your home-buying process!
In our first meeting, we’ll focus on understanding your home-buying needs and explaining the home-buying process. We will strategize a successful purchase and provide loads of details.
• When would you ideally like to be in your new home?
• What other important time frames should we keep in mind?
• Have you ever bought a home before?
• Do you need to sell your current home before purchasing another?
• Have you spoken with a lender yet (if needed)?
Tell me about the type of home you’re looking for:
• Location and neighborhood (are you familiar with either/both?)
• Price range (and budget for renovations, furniture, etc.)
• Size of home, architectural style, amenities
• Condition (move-in ready or with renovations needed)
• Specific requirements and non-negotiables (school districts, commute times, walkability)
• Nice things but not deal-breakers (a backyard, garage, close to coffee…)
THE Path TO HOMEOWNERSHIP
1. INITIAL CONSULTATION
• Define agent relationship
• Determine needs and wants
• Discuss financial qualifications
• Execute buyer representation contract
2. LOAN QUALIFICATION
• Select a Mortgage provider
• Discuss financial resources
• Obtain pre-qualification letter
3. SELECT PROPERTIES
• Review listings online
• Schedule showings
4. HOME SHOPPING
• Tour properties that you consider an “ideal” home while learning about current market values
• Compare properties with your agent
5. MAKE AN OFFER
• Discuss appropriate strategies with your agent and make a reasonable offer
6. NEGOTIATING THE COUNTER OFFER
• Discuss appropriate counter offer strategies and work with your agent to negotiate and make the counter offer
7. DEADLINES
• Inspection and seller inspection resolution
• Secure insurance
• Loan contingency dates
• Set up utilities and trash
8. LOAN PROCESS
• Submit required documents
• Good faith estimate
• Loan approval
• Final credit check
• Contingency removal
9. CLOSING
• Photo ID
• Cash at closing as wire or certified check
• Receive keys
10. POST CLOSING
• Contact HOA
• Use closing statement for taxes
AGENT VALUE: IMPORTANT BENEFITS 5
• Expertise and market knowledge – Including pricing, expectations, neighborhoods and amenities.
• Market trends – Inventory, Buyer/Seller markets, interest rates.
• Property values – Increasing, decreasing and reasons why.
• Neighborhood details – Amenities, demographics, schools, transportation.
• Purchase and pricing strategies – Contingencies, comparables, competition, and multiple-offer scenarios.
• What Buyers are looking for – Floor plans, walkability, schools, yards, community.
• Helping you make informed decisions – Educating you with as much information as possible.
• Honed negotiation skills – Get you the highest price for your sale and keep as much money in your wallet when you purchase.
• Due diligence – Helping buyers conduct property inspections, review disclosure documents, assess the condition of the property, and recommend professionals for further inspections and evaluations.
• Networking with other professionals – From inspectors to mortgage lenders, these relationships can speed up your process, strengthen your investment, and uncover pre-market opportunities.
• Risk mitigation – Help you understand and navigate your way through disclosures, contingencies, and contracts, reducing the potential risk of costly mistakes, and ensuring all documents are properly prepared, reviewed and filed.
• Problem solving – Unique to each transaction, an experienced Realtor® will help guide you through challenges that may arise.
• Time saving efficiency – Streamlining the process from behind the scenes, from researching properties, coordinating with other agents and managing paperwork, all saving you time.
• Real estate psychology – Guiding you through the emotional highs and lows, ensuring your judgements remain clear and transactions continue to move forward.
• Future guidance – From home maintenance and improvements, to market trends, and possible timing for when to buy/sell again.
• Financing options – From recommending well-respected local lenders, to discussing all-cash offers, down payment options, and leveraging interest-rate fluctuations.
• Explain Agency Relationships and compensation - For professional services.
• Timeline masters – Understand and help coordinate your timelines with lenders, inspectors, other Agents, escrow and title companies, appraisers, and other professionals.
• Continual learning and evolving – Agents’ ongoing education and training of the market and its regulations, to provide the best services and experience to our clients.
• Coordinating a sell then buy – From managing finances to finding an interim place to live, managing time frames, and coordinating the move.
• Project management - From stagers to landscapers, painters, inspectors, movers and haulers can prep your home in the best light for the market expectations, or to coordinate renovations prior to moving in.
An Agent’s commission is compensation for thousands of hours they have already invested to develop the knowledge and understanding needed to guide you to a successful offer and through the escrow process to closing.
BENEFITS
OF EXCLUSIVE REPRESENTATION AND COMPENSATION
EXCLUSIVE REPRESENTATION:
Buying a home can be a daunting process. Whether it’s behind the scenes, at the negotiating table or handing you the keys to your new home, your agent is committed to your success.
Chase International Agents exclusively represent their clients and ask for the same commitment in return. This commitment is called Exclusive Representation and is solidified on the Buyer Representation Agreement. This mutual agreement establishes a contractual relationship between you, your agent, and the brokerage they are affiliated with - a relationship of loyalty to work for and with one another. It reassures buyers that their chosen agent will be focused on their specific interests and tasks in the home-buying process.
BROKERAGE COMPENSATION:
The amount a brokerage charges is not fixed by law; commission amounts are negotiable and should always be negotiated between Agents and the consumers they represent.
When listing a property for sale, sellers agree to the amount they will pay the listing brokerage within their listing agreement. They may or may not have also authorized payment to the brokerage representing the buyer (the ‘cooperating agent commission’.)
BENEFITS OF EXCLUSIVE REPRESENTATION AND COMPENSATION CONT.
BROKERAGE COMPENSATION CONT:
So how does a buyer’s agent get paid?
Buyer Representation and Broker Compensation Agreements assist in building trust and a mutually beneficial relationship. Signing an agreement at the outset of the relationship protects both the broker and the buyer by avoiding misunderstandings. It also promotes transparency through up-front conversations, and provides clarity regarding services buyers can expect to receive, and how their agent will be compensated.
Buyers will be required to sign a Buyer Representation Agreement with their buyer’s agent, before they are able to tour properties with you. While you are not obligated to sign a Buyer’s Representation Agreement with an Agent prior to this stage, the following are some considerations as you decide whether to do so: With a Buyer‘s
Representation Agreement , your agent can show you properties which are on or off the market with an assurance they will be compensated if the seller does not participate.
• If the seller offers no compensation to buyer‘s agents, or offers less than what your agent wishes to be paid, you can ask the seller, in your purchase offer, to pay the amount you would owe your agent. If the seller agrees, it will be credited to the amount that you owe your buyer‘s agent in the Buyer‘s Representation Agreement
• If you have requested through the Purchase Agreement that the seller compensates your agent, and the seller refuses your request, and you don’t want to or are unable to pay your agent’s commission (based on your Buyer‘s Representation Agreement), you can decline to purchase that property or try to negotiate a compromise with the seller to make the transaction acceptable to both sides.
• Once signed, a Buyer‘s Representation Agreement is legally binding.
A Buyer Representation and Broker Compensation Agreement details many crucial elements of the relationship, not just compensation. It also emphasizes the following:
• A mutual agreement to work for and with one another, for a specified period of time.
• The term of the agreement may be as long or as short as both parties agree.
• The scope of the agreement may be broad or refined, such as all properties within a county, all with at least 3 bedrooms and 3 baths, or priced within a certain range.
• The terms may be easily modified by mutual agreement.
• Buyer‘s Agent representation for you even when there is no published offer of commission: The Buyer agrees to pay for the Buyer-side representation of their Agent, allowing their Agent to search on their behalf for properties on the MLS or not, such as for-sale-by-owners, off-market, coming soon, all with the knowledge that they will be compensated for their work.
• Signing an agreement is a very common practice for professional services, such as with attorneys, contractors, consultants, accountants, and doctors.
Buyer’s Agents are paid for their work only when your purchase is complete - at close of escrow - regardless of the amount of time they have been working with you, the number of offers they may write with you, or the number of houses they’ve toured with you.
The compensation paid for buyer-side representation is not exclusively paid to the agent: Compensation is shared with the brokerage to cover business operations, expenses such as liability insurance, memberships in Realtor® organizations and used to offset the agent’s necessary business expenses associated with their work.
THE STEPS TOWARDS A SUCCESSFUL PURCHASE 7
Each person’s home-buying journey is unique, just like our clients. Here are the key steps towards a successful process that your agent will help you navigate:
1. Provide assistance in securing financial options
2. Explain the current market and devise a winning purchase strategy
3. Provide ethical representation
4. Locate, preview, and show you properties
5. Evaluate potential properties
6. Write competitive offers
7. Present your offer
8. Work towards ratification of your offer
9. Negotiate inspections and other contingencies
10. Guide you through the closing process
11. Advise after close of escrow
Secure Financing
Provide Ethical Representation Negotiate
Locate, Preview & Show Properties
Evaluate Potential Properties Write Competitive Offers Ratification of Your Offer Devise a Winning Strategy Present Your Offer
Guide You Through the Closing Process
Advise After Close of Escrow
PROVIDE ASSISTANCE IN SECURING FINANICAL OPTIONS
Agents typically attach a pre-approval letter to a purchase contract when submitting an offer. Your agent can recommend respected, local lenders who can confirm the property range for you to be considering, explain various loan options, prepare your pre-approval letter, and help you finance the purchase of your new home. Your lender may even collaborate on a bridge loan, so you can buy before you sell.
Once in escrow, your agent and lender will work together to:
1. Coordinate requested contract documentation
2. Meet the appraiser and provide supporting comparables
3. Communicate clearly and keep the escrow moving forward
EXPLAIN THE CURRENT MARKET AND DEVISE A WINNING PURCHASE STRATEGY
1. Provide a market analysis to help buyers determine the fair market value of a property, make a competitive offer, and avoid overpaying
2. Set up automatic feeds from Real Scout, showing new properties on the market within your set parameters, and market data in the neighborhood(s) of interest
3. Discuss estimated closing costs, transfer taxes, title and escrow processes and fees, and contractual terms
4. Be continuously available to listen, advise, communicate, and support
PROVIDE ETHICAL REPRESENTATION
A Buyer’s Agent has a fiduciary duty to the buyer, which means they are legally bound to act in the Buyer’s best interests. They provide advice and guidance while always keeping the buyers’ interests at the forefront. While agents are prohibited from providing legal advice, they can provide referrals to legal and tax professionals, if needed.
LOCATE, PREVIEW, AND SHOW YOU PROPERTIES
Agents spend hours viewing new properties on Broker Tour and previewing others throughout the week, helping to locate homes that fit your unique criteria. Here are a few other ways agents can assist you:
1. Present off-market, pre-market, or pocket listing opportunities, as they arise
2. Map out and tour private showings of properties together (once you have signed a Buyer’s Representation Agreement with them)
3. Recommend weekend open houses to attend
4. Review the pros and cons of each house, to narrow down your dream home
EVALUATE POTENTIAL PROPERTIES 11
How do the homes you’ve selected compare with others on the market and those that have sold in the neighborhood? Besides providing comps for you, your agent may also share with you:
1. Whether the home is underpriced to sell or overpriced
2. The disclosure package, including any faults or potential red flags with the property, potential legal disclosures, and requirements specific to our area
3. Discuss the Preliminary Report from the title company, confirming whether the property is free of clouds and encumbrances, or shared interests
4. Discuss the HOA documents, if the property belongs to a homeowner’s association
5. Discuss potential timeframes for additional inspections, if warranted, whether before writing an offer or included as an offer contingency
6. A published offer date (or if the Seller will be reviewing offers ‘as written’ on a specific date)
7. Any known expectations or wishes of the Seller that may impact your offer, such as rent-back options or Seller concessions
8. An estimated closing cost statement
WRITE COMPETITIVE OFFERS
Once we’ve found your dream home, and you’re ready to write an offer, we’ll provide you with information to make an informed decision on an offer price and terms. Your agent will also:
1. Communicate with the listing agent about other potential offers, competition, seller’s preferences regarding terms and timing for offer submissions, and possible seller offers of buyer agent compensation
2. Review comparable sales and strategize the best possible price and terms for your offer
3. Discuss earnest money deposits and timing
4. Assess contingent vs. non-contingent offers
5. Prepare necessary paperwork, including the purchase agreement and related documents and disclosures, pre-approval letter from your lender and proof of funds for your downpayment and good-faith deposit
6. Get signatures and all offer documents to submit a complete and winning offer
PRESENT YOUR OFFER
Part of your agent’s fiduciary duty is to present you and your offer in the best light. The listing agent will take into consideration not only the offer itself, but also the cooperating agent’s reputation and that of its brokerage, the strength of the pre-approval letter and its lender (including vetting the lender as part of the review process).
Chase International and its agents have a trusted brand and stellar reputation in the eyes of our community, providing a key ingredient to helping cooperating agents gauge our offers.
After presenting your offer and reviewing it with the listing agent (and possibly seller), your Agent will:
1. Remind you that time is of the essence after an offer is submitted, and to be as available as possible
2. Be in close contact with you, to communicate any updates or questions
3. Review any counteroffers
4. Negotiate on your behalf with subsequent counteroffers or acceptances of those offered
5. Ratify your winning offer with the Seller and listing Agent
WORK TOWARDS RATIFICATION OF YOUR OFFER
Congratulations! Your offer won, and you are on to the transaction process. Once an offer has been ratified between buyer and seller, you have a legal and binding obligation to purchase the property. Your agent will guide you through the terms agreed upon, and timelines for each. They will also:
• Connect you with a transaction coordinator, who will ensure that all transaction documents and details are handled accurately, on time, and with professionalism
• Keep you informed through continual communication and handle logistical aspects of the purchase
• Send the ratified contract to your lender, to begin the appraisal, underwriting and approval process as quickly as possible (unless yours is an “all-cash” offer)
• Open escrow with your title company, send your ratified contract and confirm any concessions not otherwise noted within the contract
• Connect you with your escrow officer, discuss wire fraud concerns and advise you to communicate directly with them regarding any wiring account or transfer information through the title company’s secure portals
• Maintain a secure transaction file with ongoing required documentation and communication logs
• Ensure you submit your good-faith deposit in a timely manner, according to the offer terms
• Complete their inspection disclosure, noting specifics about the property that may or may not be included in the listing agent’s disclosures
NEGOTIATE INSPECTIONS AND OTHER CONTINGENCIES 16
Some offers are submitted with all contingencies waived; others have defined contingencies. If your offer has contingencies, your agent will help you navigate through them, including scheduling inspections and gathering more information to make a more informed decision about the property.
• Provide a list of inspectors, contractors, or other professionals for the inspections you request for you to consider [note: a “pre-inspection” might be scheduled before submitting an offer, with the possible intention of writing a non-contingent offer]
• Schedule the inspections and attend where possible
• Discuss the inspection reports with you, and discuss inspector recommendations
• Provide access to the property and comparable sales for the appraiser, to justify your purchase price
• Communicate with your lender to ensure the loan process remains on track
• Provide resources for homeowner’s insurance and help you secure a binder of insurance prior to close of escrow
• Negotiate on your behalf any requests for repair, as needed, or seller credits
• Remove any remaining contingencies in writing, meeting your contractual deadlines
17 GUIDE YOU THROUGH THE CLOSING PROCESS
You’re almost there!
In the midst of all the paperwork, inspections, and lender requests, you also need to plan a move. Here are some of the final steps your agent will guide you through:
• The role of escrow and your title company
• Discuss time frames to securely submit your downpayment to the title company, then verify its receipt
• Provide a list of movers, interior designers, landscapers, painters, and other professionals for you to consider
• Arrange for and accompany you on a final walk-through of the property
• Advise when and how to connect with utilities for you to submit a change of address, and to schedule any vendors you may need, i.e., a locksmith to rekey
• Discuss a home warranty policy and its options
• Review your Closing Statement with you
• Verify the title company has scheduled a buyer’s signing of loan documents
• Verify the loan has funded and scheduled to close according to terms
• Upon recording of the deed and title, provide you keys and openers
ADVISE AFTER CLOSE OF ESCROW 18
While many people think a real estate purchase is merely a transaction, your agent will continue to stay in touch with you and be a valuable resource for addressing questions or concerns related to the property or homeownership.
We will provide you with a digital copy of your complete file, with closing statements for you or your accountant, and maintain that file within our Skyslope transaction management system.
Did you appreciate the service your agent provided to you? The best thank you is a great review and your personal referrals to others who you know would benefit from their top-tier service.
Your agent will also keep you in the loop on market trends, new service providers, money-saving tips, and community recommendations. They will also schedule annual real estate reviews if you like, to check on your home’s appreciation and recent sales in your neighborhood.
Realtors want to be your trusted advisors before, during and long afterwards.
HOME BUYER’S GLOSSARY
1031 EXCHANGE » A section of the U.S. Internal Revenue Service Code that allows investors to defer capital gains taxes on any exchange of like-kind properties for business or investment purposes.
ADJUSTMENT PERIOD » The length of time between interest rate changes on an ARM. For example, a loan with an adjustment period of one year is called a one-year ARM, which means that the interest rate can change once a year.
ANNUAL PERCENTAGE RATE (APR) » The total finance charges (interest, loan fees, points) expressed as a percentage of the loan amount.
APPLICATION PROCESS » Complete a mortgage application and provide copies of your income and asset verification to your lender or mortgage broker, discuss various fees and down payment options, and receive an estimate of expenses and closing costs.
APPRAISAL » A valuation of property, by the estimate of a licensed appraiser.
ASSUMPTION OF MORTGAGE » A buyer’s agreement to assume the liability under an existing note that is secured by a mortgage or deed of trust. The lender must approve the buyer in order to release the original borrower (usually the seller) from liability.
BALLOON PAYMENT » A lump sum principal payment due at the end of some mortgages or other long-term loans.
BINDER » Sometimes known as an offer to purchase or an earnest money request. A binder is the acknowledgment of a deposit, along with a brief written agreement to enter into a contract for the sale of real estate.
CAP » The limit on how much an interest rate or monthly payment can change, either at each adjustment or over the life of the mortgage.
CERTIFICATE OF REASONABLE VALUE (CRV) » A document that establishes the maximum value and loan amount for a VA-guaranteed
mortgage.
CLOSING COSTS » Also known as Settlement Costs, these are the fees a Buyer pays to finalize a mortgage and purchase of a home. This includes the cost of financing, escrow and title, property-related costs, and paperwork costs.
CLOSE OF ESCROW » When the Buyer, Seller, and all participating parties have fulfilled their legal responsibilities to one another, and the grant deed passes from Seller to Buyer
CODE OF ETHICS » Although there is not an official code for all real estate agents, many are members of the National Association of Realtors, which has an ethics code. The Code of Ethics and Standards of Practice of the National Association of Realtors has 17 articles which can be summarized in the golden rule: do to others as you would like them to do to you. Failure to follow this code of ethics can cause a member to lose his membership.
COMPARABLE SALES » “Comps” refer to comparable, or similar, sold properties in a specific area or neighborhood that you’re considering buying or selling in, and are used to help determine the value of a home.
CONTINGENT OFFER » An offer with a protective clause on behalf of the Buyer, such as with an Inspection Contingency, Loan Contingency, or Appraisal Contingency, with specific timeframes in which to discover more information.
CONTINGENT RIGHT OF RECISSION » A specified timeframe in which the Buyer and Seller may cancel a purchase or sale if certain contingencies are not met.
CONVENTIONAL LOAN » A mortgage loan that is not insured or guaranteed by the government (such as FHA or VA loans). These are also known as Conforming Loans.
CONVERSION CLAUSE » A provision in some ARMs that enables you to change an ARM to a fixed-rate loan, usually after the first adjustment period. The new fixed rate is generally set at the prevailing interest rate for fixed-rate mortgages. This conversion feature may cost extra.
HOME BUYER’S GLOSSARY
COOPERATIVE » A form of multiple ownership in which a corporation or business trust entity holds title to a property and grants occupancy rights to shareholders by means of proprietary leases or similar arrangements.
DEED » A legal instrument, evidenced in writing, to confirm the ownership interest or legal rights of an owner of real property.
DISCLOSURES » A set of written documents provided by a Seller detailing conditions about the property they have on the market—including known defects and previously undisclosed details—so a Buyer may evaluate whether they want to buy it and if so, how to craft their purchase offer.
DUAL-AGENCY » Dual Agency, or a “consent to act” in a real estate transaction that means the listing broker represents both the seller and the buyer. A dual agent must not disclose confidential information to either party and must operate in a hands-off manner. A dual agent cannot get the highest price for the seller and the lowest price for the buyer – it is impossible.
DUE-ON-SALE CLAUSE » An acceleration clause that requires full payment of a mortgage or deed or trust when the secured property changes ownership.
DOWN PAYMENT » The money a Buyer pays at closing towards the cost of their new home; it’s the difference between your mortgage amount and their purchase price, and typically expressed as a percentage rather than a dollar amount.
ENCUMBRANCE » An encumbrance is a right to, interest in, or legal liability on real property that does not prohibit passing title to the property but that diminishes its value. Encumbrances can be classified in several ways. They may be financial (e.g., liens) or non-financial (e.g., easements, private restrictions).
ESCROW » The process of having a neutral party manage the exchange of money for real property.
ESCROW OFFICER » Working at the requested title company, the escrow officer is the holder
who facilitates your escrow, including reviewing escrow instructions, document preparation, funds disbursement, and more.
EXCLUSIVE RIGHT TO SELL LISTING
»
Written agreement between the owners, buyer representative and agent, giving the agent the right to sell the property and collect a fee for a set term.
FAIR MARKET VALUE » The price at which a willing seller would sell and a willing buyer would buy, neither subjected to abnormal pressure.
THE FOREIGN INVESTMENT IN REAL PROPERTY TAX ACT (FIRPTA)
» Of 1980 is a United States tax law that imposes income tax on foreign persons disposing of United States real property interests. Tax is imposed at regular tax rates for the type of taxpayer on the amount of gain considered recognized. Purchasers of real property interests are required to withhold tax on payment for the property. Withholding may be reduced from the standard 10% to an amount that will cover the tax liability, upon application in advance of sale to the Internal Revenue Service. FIRPTA overrides most non-recognition provisions as well as those remaining tax treaties that provide exemption from tax for such gains.
FHA LOAN » A loan insured by the Insuring Office of the Department of Housing and Urban Development; the Federal Housing Administration.
FEDERAL NATIONAL MORTGAGE ASSOCIATION
(FNMA) » Popularly known as Fannie Mae. A privately owned corporation created by Congress to support the secondary mortgage market. It purchases and sells residential mortgages insured by FHA or guaranteed by the VA, as well as conventional home mortgages.
FEE SIMPLE » An estate in which the owner has unrestricted power to dispose of the property as he wishes, including leaving by will or inheritance. It is the greatest interest a person can have in real estate.
FIXED-RATE MORTGAGE
» A home loan with a fixed interest rate for the entire term of the loan.
HOME BUYER’S GLOSSARY
FIXTURES » A fixture, as a legal concept, means any physical property that is permanently attached (fixed) to real property (usually land). Property not affixed to real property is considered chattel property.
FORECLOSURE » Foreclosure is a legal process in which a lender attempts to recover the balance of a loan from a borrower, who has stopped making payments to the lender, by forcing the sale of the asset used as the collateral for the loan.
FUNDING » The process of releasing (wiring) money from the mortgage lender to the title company, after all Buyers and Sellers have signed their closing documents and prior to the close of escrow.
GRADUATED PAYMENT MORTGAGE » A residential mortgage with monthly payments that start at a low level and increase at a predetermined rate.
HOMEOWNER’S ASSOCIATION (HOA) »
An organization that oversees and enforces rules for a neighborhood, subdivision, planned community, or condominium building, and whose members are residents or owners.
HOMEOWNER’S INSURANCE » A type of property insurance that covers losses and damages to a person’s home and assets in the house.
INDEX » A measure of interest rate changes used to determine changes in an ARM’s interest rate over the loan’s term.
JOINT TENANCY » An equal, undivided ownership of property by two or more persons. Upon the death of any owner, the survivors take the decedent’s interest in the property.
LOAN COMMITMENT » A written promise to make a loan for a specified amount on specified terms.
LOAN ORIGINATION FEE » A fee that is normally 1% of the loan amount, charged by the lender to the buyer.
LOAN-TO-VALUE RATIO (LTV) » The principal of your mortgage loan (how much money you’re borrowing) divided by the value of the property you’re buying, usually expressed as a percentage.
MARGIN » The number of percentage points the lender adds to the index rate to calculate the ARM interest rate at each adjustment.
MEDIATION » Either at the time a contract is signed, or when a dispute arises in a real estate transaction, the parties can agree to mediation of disputes. This is a process involving a neutral third party who works with the disputing parties to examine all aspects of the dispute, discuss it and come to some mutual agreement.
MLS » A database of properties listed for sale by Realtors.
MORTGAGE » A loan that allows a borrower to buy a home over a period of time, receiving money upfront from a lender, then repaying those funds with interest.
MORTGAGEE’S TITLE POLICY » Required by lenders
MORTGAGE LIFE INSURANCE » A type of term-based life insurance often bought by mortgagers. The coverage decreases as the mortgage balance declines. If the borrower dies while the policy is in force, the debt is automatically covered by insurance proceeds.
NEGATIVE AMORTIZATION » Negative amortization occurs when monthly payments fail to cover the interest cost. The interest that is not covered is added to the unpaid balance, which means that even after several payments you could owe more than you did at the beginning of the loan. Negative amortization can occur when an ARM has a payment cap that results in monthly payments that are not high enough to cover the interest.
ORIGINATION FEE » A fee or charge for evaluating, preparing, and submitting a proposed mortgage loan. The fee is limited to 1 percent for FHA and VA loans.
HOME BUYER’S GLOSSARY
PERSONAL PROPERTY » Personal property is generally considered property that is movable, as opposed to real property or real estate. In common law systems, personal property may also be called chattels or personality.
PITI » Principal, interest, taxes, and insurance, all of which make up your monthly mortgage payment.
PLANNED UNIT DEVELOPMENT (PUD)
» A zoning designation for property developed at the same, or slightly greater, overall density with that of conventional development, sometimes with improvements clustered between open and common areas. Uses may be residential, commercial, or industrial.
POINT » An amount equal to 1 percent of the principal amount of the investment or note. The lender assesses loan discount points at closing to increase the yield on the mortgage to a position competitive with other types of investments. Paid by the buyer or seller.
PRE-APPROVAL » After reviewing your income, assets, and credit history to determine that you qualify for the proposed mortgage, your lender will issue a pre-approval letter.
PRE-INSPECTION » A home inspection done prior to putting a home on the market, giving Sellers upfront information about the condition of the property (so they may correct issues or disclose them), or Buyers more information before submitting a purchase offer.
PREPAYMENT PENALTY » A fee charged to a mortgagor who pays a loan before it is due. Not allowed for FHA or VA loans.
QUIT-CLAIM DEED » A legal document releasing or transferring a person’s interest in a piece of real property, often between family members.
REGULATION Z » The set of rules governing consumer lending issued by the Federal Reserve Board of Governors in accordance with the Consumer Protection Act.
SEPTIC INSPECTION » The septic system must have a certificate by the city or county Health Department.
SHORT SALE » A real estate short sale is any sale of real estate that generates proceeds that are less than the amount owed on the property. A real estate short sale occurs when the lender and borrower decide that selling the property and absorbing a moderate loss is preferable to having the borrower default on the loan.
SURVEY » Survey of property required by lender, detailing lot size, easements, any encroachments, improvement locations, etc.
TAX SERVICE FEE » Required by lender for collection and disbursement of a tax escrow, which is prepared by a servicing company.
TENANCY IN COMMON » A type of joint ownership of property by two or more persons with no right of survivorship.
TITLE DEFECT » A piece of property or asset that has a publicly recorded encumbrance, such as a lien, mortgage, or judgment. Because other parties can lay claim to the property or asset, the title cannot be legally transferred to another party.
TITLE INSURANCE POLICY » A policy that protects the purchaser, mortgagee, or other party against losses.
VA FUNDING FEE » Veteran’s Administration charge for originating a VA loan.
VA LOAN » A loan that is partially guaranteed by the Veterans Administration and made by a private lender.
WAREHOUSE FUNDING FEE » Charged by the lender to hold the loan locally before selling it in the secondary mortgage market to an investor.
ZONING » Act of city authorities specifying type of use for which property can be used.
CHASE INTERNATIONAL STANDS OUT FROM THE CROWD WITH Chase Ready LISTINGS
A Chase Ready listing lets you know exactly what you are purchasing. You will be able to make an educated and confident decision when making an offer.
What distinguishes a Chase Ready Property?
Prior to putting a home on the market, Chase Ready Properties have completed the following requirements:
Full Home Warranty for Buyers: Coverage for the sellers during the listing period
Property Inspection
Fully Completed Disclosures
Preliminary Title Search
Completed Natural Hazards Disclosure Report (California)
Completed Sewer Clearance if necessary
Defensible Space Evaluation if necessary
Why choose to buy a Chase Ready home?
ASSURANCE
Chase Ready Properties provide you with the assurance that you are purchasing a home with the most complete information available.
CONFIDENCE
Chase Ready Properties enable you to make educated and confident decisions when writing a purchase offer.
SECURITY
Chase Ready properties protect you from the high cost of unexpected systems repairs during the first year of your purchase.
MORTGAGE APPLICATION CHECKLIST
The following is a List of documentation each borrower should have when starting a Sanctuary Funding Home Loan Application:
Income:
• Pay stubs (last 30 days)
• W-2 Statements (last 2 years)
If Additional Income: Commissions, Overtime, Bonus: Include:
• Year End Paystubs (2 Years)
• Personal Tax Returns (last 2 years)
Self Employed, K-1, Rental, Business Partnerships:
• Individual Tax Returns (last 2 years)
• Including K1’s & Schedule E’s
Business Owner (with >25% ownership):
• Include Current 12-month profit and loss statement
A Sanctuary Funding Mortgage Expert will gather and review your documents, meticulously assess your income and assets, and ensure your loan package highlights all eligible income to ensure maximizing your borrowing power.
BEFORE YOU START LOOKING AT HOMES
Step 1: Understand How Much Home You Can Afford
Knowing your budget is crucial for a successful home buying experience. Here’s what to consider:
• Income and Debt-to-Income Ratio (DTI): Lenders assess your gross monthly income to determine your maximum loan amount. Your DTI ratio, the percentage of income spent on debts, should ideally be 43% or lower.
• Assets: A larger down payment reduces your loan amount and may secure better loan terms, including lower interest rates and reduced PMI requirements.
• Credit Score: Higher credit scores generally qualify for lower interest rates, making your mortgage more affordable.
Step 2: Pre-Qualification Process
Get Pre-Approved: Complete a loan application and provide income, asset, and credit documentation. Pre-approval clarifies your borrowing capacity and strengthens your position with sellers.
Step 3: Find Your Dream Home
Start House Hunting: With pre-approval, begin searching for your ideal home. Our team will support and guide you through the process.
Step 4: Close with Confidence
Finalizing the Purchase: Sanctuary Funding ensures a seamless closing process, handling loan paperwork, and coordinating with the seller and title company, allowing you to focus on moving in.
Step 5: Enjoy Homeownership
Congratulations on your new home! Sanctuary Funding is honored to support you throughout your homeownership journey.
PRE-CLOSING CHECKLIST
In a real estate transaction, there are dozens of loose ends to tie up between signing the contract and closing the sale. Chase is known for our attention to detail during this important phase in which we coordinate and oversee the following steps:
• Remember to bring your photo ID to the signing. (It can be in the form of a driver’s license, passport, or other valid government identification.)
• California and Nevada are “Good Funds” States. Buyers must have good funds to close escrow. Note: These funds must be in the form of a cashier’s check or a bank wire.
• Inform your Escrow Officer if you need additional review time. We will try to provide documentation to you ahead of time for your review
• Inform your Escrow Officer of any special requirements needed (Power of Attorney, etc). We will need to approve the document in advance or prepare one specific to the transaction.
• Inform your Escrow Officer immediately if you have any of the following circumstances: parties divorced or a divorce in the process, any party pertinent to the closing is deceased, any parties have or will be holding title in the name of a trust.
• Let your Escrow Officer know if the buyer and seller are out of state, traveling, or will require accommodations for an outside of office signing. We will be happy to coordinate this for your clients
• If you live inside a homeowner’s association, your escrow officer will contact you to obtain a form of upfront payment for the HOA documents required to close. Many HOAs charge transfer fees to be paid prior to producing the required documentation for closing. These charges are separate from the monthly/quarterly HOA payment.
THE CHASE DIFFERENCE
CHASE INTERNATIONAL FOUNDATION
The Chase International Foundation, founded by Shari Chase in 2022, focuses on addressing basic human needs for shelter, food, safety, and well-being. Through its “Four Pillars of Giving,” the foundation supports local nonprofits that provide critical services, including homelessness outreach, food distribution, mental health support, and safety for victims of violence. The foundation also encourages volunteerism through its Chase Cares program, helping communities beyond financial contributions. The foundation holds two grant cycles annually, and donations support their goal of raising $50,000 in 2024.
FOR MORE DETAILS, VISIT CHASEINTERNATIONALFOUNDATION.ORG
ZEPHYR COVE
190 Highway 50
Zephyr Cove, Nevada 89448
775 588 6130 | 800 322 6130
GLENBROOK
2070 Pray Meadow Road
Glenbrook, Nevada 89413
775 749 5663 | 800 914 5663
INCLINE VILLAGE
917 Tahoe Boulevard, Suite 100
Incline Village, Nevada 89451
775 831 7300 | 866 831 8999
CLEAR CREEK TAHOE
3745 Golf Club Drive
Carson City , NV 89705
775 781 2597
CARSON CITY
111 West Telegraph Street, Suite 200
Carson City, NV 89703
775 782 2777
MINDEN-GARDNERVILLE
1374 US Highway 395 N, Gardnerville, NV 89410
775 782 2777
RENO
985 Damonte Ranch Parkway, Suite 110 Reno, Nevada 89521
775 850 5900 | 877 922 5900
SPARKS
2848 Vista Boulevard Sparks, Nevada 89434
775 737 5900 | 855 495 5900
ZEPHYR COVE | LAKE TAHOE | NEVADA
SOUTH LAKE TAHOE
989 Tahoe Keys Boulevard
South Lake Tahoe, California 96150
530 544 2121 | 800 776 2120
TAHOE CITY
531 North Lake Boulevard | Post Office Box 854
Tahoe City, California 96145
530 581 0722 | 800 581 0722
TRUCKEE
10344 Donner Pass Road, Suite 2
Truckee, California 96161
530 550 2464 | 866 441 0424
ROSEVILLE
915 Highland Pointe Suite 190
Roseville, California 95678
888 70 CHASE | 888 702 4273
IONE
12 W Main Street Suite 1
Ione, California 95640
209 304 7971
LAKE ALMANOR
452 Peninsula Drive, Lake Almanor, CA 96137
530 596 3303 | 530 596 3330 (FAX)
LONDON, ENGLAND
Mayfair International, Cashel House 15 Thayer Street
Mayfair, London, England W1U 3JT
44 (0)20 7467 5332 INTERNATIONAL OFFICE
RENO | NEVADA
ONE COMPANY | ONE HEART | ONE PHILOSOPHY
Chase International is one of the nation’s most successful independent real estate firms specializing in unique and distinctive luxury properties in the Tahoe/Reno/Sacramento regions. We are proud to have sold nearly $9 billion in sales in 4 Years and served over 10,000 families. With more than 350 highly qualified professional REALTORS® and 15 real estate locations, we are committed to our clients’ success. Chase has the most knowledgeable agents with the experience and connections to serve your needs.