Regional training binder 3 13 18 by Schmidt Family of Companies

CONTENTS

AGENCY HOME WARRANTY LISTING AGREEMENT PURCHASE AGREEMENT SMOOTH TRANSACTION ZAP

1 27 44 53 59 71

Name and email: Buyer Agency Exam Please circle “T” if the statement is true, or “F” if the statement is false.

1. T F

An agent is obligated to obey all instructions from his or her principal that are legal and are within the scope of the agency relationship.

2. T F

A subagent of a listing agent generally does not have any disclosure requirements to the seller.

3. T F

Legally created dual agency requires disclosure to and consent by both buyer and seller.

4. T F

Dual agency may be legally established by the Disclosure of Real Estate Agency Relationships.

5. T F

When two agents are working for the same broker, and one of them represents the seller and the other represents the buyer, neither agent has a dual agency relationship.

6. T F

When a company policy allows dual agency, the seller should determine whether he agrees or disagrees to the concept prior to executing the listing agreement.

7. T F

Dual agency means that both the buyer and the seller have full agency representation.

8. T F

An agent owes fiduciary duties to both the client and the customer.

9. T F

A subagent of a listing agent has no disclosure requirement to the buyer.

10. T F

Whenever you work with a buyer who is a family member, you should be a buyer’s agent.

11. T F

A listing agent should discuss the role of buyer’s agents, sub agents, and transaction coordinators with his or her seller.

12. T F

A company that practices single agency only, can only represent buyers.

13. T F

When practicing designated agency, the broker and or designated managers of company “X” become a dual agent when both the buyer and seller are represented by agents of company “X”.

14. T F

Disclosed dual agency is legal.

15. T F

If a buyer broker is compensated by the seller, the seller becomes his or her client.

Name and email: 16. T F

If your agency disclosure statement indicates that you represent the seller, but your actions and language make it appear that you work for the buyer, you could lose your commission.

17. T F

You are a buyer’s agent. Your buyer wants to purchase a property that you have previously shown as a subagent. While you were a subagent, your learned the price that the seller would accept, and know that the seller is extremely motivated. You must share the information with your buyer.

18. T F

When the buyer is the customer, you are expected to provide the customer with accurate information. When the buyer is your client, you are expected to advise your buyer as to the significance of the information.

Please circle the letter of the correct response.

19.

Which of the following should a subagent of a seller reveal to a buyer? a. willingness of the seller to accept a lower price b. material facts about the condition of the property c. length of time the property has been on the market d. seller’s urgency to dispose of the property

20.

When an agent is working with a buyer as a subagent, he or she should refer to the buyer as a. the customer b. my buyer c. the client

21.

A buyer’s agent owes a fiduciary duty to a. the buyer b. the seller c. whoever compensates the broker

Name and email: 22.

When you are a buyerâ&#x20AC;&#x2122;s agent, you should notify the listing broker that you represent the buyer a. when you present the offer b. when you notify the listing broker that you are taking the offer c. only if and when the listing broker asks d. when you call to make an appointment to show the property

23.

When do you first talk to a buyer about agency a. when they are ready to buy b. after you have met with them, established some rapport, and shown them a couple of houses c. before they have an opportunity to discuss confidential information

24.

When you are working as a buyerâ&#x20AC;&#x2122;s agent, which of the following should you do a. prepare a C.M.A. on the property the buyer wants to purchase b. advise the buyer on strategies for purchasing the home c. have a signed buyer agency contract d. all of the above

25.

Under designated agency, in which of the following situations would you be a dual agent a. you are selling one of your listings to your customer b. you are selling one of your listings to your buyer client c. a only d. b only e. both of the above f. none of the above

26.

When you first met a buyer, Bob Buyright, he agreed to have you work with him a subagent of the seller. After working with Bob for several weeks, he decided that it would be to his advantage to have you represent him as a buyer agent. a. changing agency is illegal b. changing agency is legal with proper documentation and notification

WEST MICHIGAN REGIONAL PURCHASE AGREEMENT # DATE:

(time)

MLS #

SELLING OFFICE:

BROKER LIC.#:

REALTOR® PHONE:

LISTING OFFICE:

REALTOR® PHONE:

1. Effective Date: This Agreement is effective on the date of Seller's acceptance of Buyer's offer or Buyer's acceptance of any counteroffer, as the case may be, and this date shall hereafter be referred to as the "Effective Date". Further, any reference to "days" in this Agreement refers to calendar days. The first calendar day begins at 12:01 a.m. on the day after the Effective Date. Any reference to "time" refers to local time. 2. Agency Disclosure: The Undersigned Buyer and Seller each acknowledge that they have read and signed the Disclosure Regarding Real Estate Agency Relationships. The selling licensee is acting as (check one): Agent/Subagent of the Seller Buyer’s Agent Dual Agent (with written, informed consent of both Buyer and Seller) Transaction Coordinator Primary Selling Agent Name:

Email:

Lic.#:

Alternate Selling Agent Name:

Email:

Lic.#:

3. Seller’s Disclosure Statement: (This paragraph applies to sales of one-to-four family residential units.) Buyer has received Seller’s Disclosure Statement, dated . Seller certifies to Buyer that the Property is currently in the same condition as Seller previously disclosed in that statement. Seller agrees to inform Buyer in writing of any changes in the content of the disclosure statement with respect to the structural/mechanical/appliance systems prior to closing. Buyer has not received Seller’s Disclosure Statement. Buyer’s obligations under this Agreement are subject to Buyer’s receipt of Seller’s Disclosure Statement. Exceptions: 4. Lead-Based Paint Addendum: Transactions involving homes built prior to 1978 require a written disclosure which is hereby attached and will be an integral part of this Agreement. 5. Property Description: Buyer hereby offers to buy the property located in the City Village Township of , County, Michigan, commonly known as St./Ave., Zip Code, with the following legal or tax description:

PP#

The following paragraph applies only if the Premises include unplatted land: Seller agrees to grant Buyer at closing the right to make (insert number) division(s) under Section 108(2), (3), and (4) of the Michigan Land Division Act. (If no number is inserted, the right to make divisions under the sections referenced above stays with any remainder of the parent parcel retained by Seller. If a number is inserted, Seller retains all available divisions in excess of the number stated; however, Seller and/or REALTOR® do not warrant that the number of divisions stated is actually available.) If this sale will create a new division, Seller’s obligations under this Agreement are contingent on Seller’s receipt of municipal approval on or before , of the proposed division to create the Premises. 6. Purchase Price: Buyer offers to buy the Property for the sum of $ U.S. Dollars 7. Seller Concessions, if any: 8. Terms: The Terms of Purchase will be as indicated by “X” below: (Other unmarked terms of purchase do not apply.) SOURCE OF FUNDS TO CLOSE: Buyer represents that the funds necessary to close this transaction on the terms specified below are currently available to Buyer in cash or an equally liquid equivalent. If the Property’s value stated in an appraisal obtained by Buyer or Buyer’s lender is less than the Purchase Price, Buyer may within three (3) days after receipt of the appraisal: 1) renegotiate with the Seller, 2) terminate the transaction, in which case Buyer shall receive a refund of Buyer’s Good-Faith Deposit, or 3) proceed to close the transaction at the agreed Purchase Price. CASH. The full Purchase Price upon execution and delivery of Warranty Deed. Buyer Agrees to provide Buyer Agent/Dual Agent verification of funds within five (5) days after the Effective Date, and consents to the disclosure of such information to Seller and/or Seller’s Agent. Any appraisal required by Buyer shall be arranged and paid for by Buyer within ten (10) days after the Effective Date of this Agreement. NEW MORTGAGE. The full Purchase Price upon execution and delivery of Warranty Deed, contingent upon Buyer’s ability to obtain a type (year) mortgage in the amount of % of the Purchase Price bearing interest at a rate not to exceed % per annum (rate at time of loan application), on or before the date the sale is to be closed. Buyer agrees to apply for a mortgage loan, and pay all fees and costs customarily charged by Buyer’s lender to process the application, within days after the Effective Date, not to impair the Buyers’ credit after the date such loan if offered. Seller Buyer will agree to pay an amount not to exceed $ representing repairs required as a condition of financing. Buyer agrees does not agree to authorize Buyer’s Agent/Dual Agent to obtain information from Buyer’s lender regarding Buyer’s financing, and consents to the disclosure of this information to Seller and/or Seller’s Agent. ©Copyright, West Michigan REALTOR® Associations Page 1 of 6 Revision Date 1/18

Buyer’s Initials

Seller’s Initials

West Michigan Regional Purchase Agreement

Page 2 of 6

Exceptions: SELLER FINANCING (check one of the following):

CONTRACT or

PURCHASE MONEY MORTGAGE

In the case of Seller financing, Buyer agrees to provide Seller with a credit report within 72 hours after the Effective Date. If the credit report is unacceptable to the Seller, the Seller shall have the right to terminate this offer within 48 hours of Seller’s receipt, or if Buyer fails to provide said credit report to Seller within the time frame allotted, the Seller shall have the right to terminate this offer within 48 hours. Seller is advised to seek professional advice regarding the credit report. $ upon execution and delivery of a form (name or type of form and revision date), a copy of which is attached, wherein the balance of $ will be payable in monthly installments of $ or more including interest at % per annum, interest to start on date of closing, and first payment to become due thirty (30) days after date of closing. The entire unpaid balance will become due and payable months after closing. Any appraisal required by Buyer shall be arranged and paid for by Buyer within ten (10) days after the Effective Date of this Agreement. Exceptions: EQUITY (check one of the following): Formal Assumption or Informal Assumption Upon execution and delivery of: Warranty Deed subject to existing mortgage OR Assignment of Vendee Interest in Land Contract, Buyer to pay the difference (approximately $ ) between the Purchase Price above provided and the unpaid balance (approximately $ ) upon said mortgage or land contract, which Buyer agrees to assume and pay. Buyer agrees to reimburse Seller for accumulated funds held in escrow, if any, for payment of future taxes and insurance premiums, etc. Any appraisal required by Buyer shall be arranged and paid for by Buyer within ten (10) days after the Effective Date of this Agreement. Exceptions: OTHER:

9. Contingencies: The Buyer’s obligation to consummate this transaction (check one): IS NOT CONTINGENT - is not contingent upon the sale or exchange of any other property by Buyer. IS CONTINGENT UPON CLOSING - is contingent upon closing of a sale or exchange of Buyer’s property located at: on or before . A copy of Buyer’s agreement to sell or exchange that property is being delivered to Seller along with this offer. IS CONTINGENT UPON THE SALE AND CLOSING - is contingent upon the execution of a binding agreement and the closing of a sale or exchange of Buyer’s property located at on or before . Seller will have the right to continue to market Seller’s Property until Buyer enters into a binding agreement to sell or exchange Buyer’s property and delivers a copy thereof to Seller. During such marketing period, Seller may enter into a binding contract for sale to another purchaser on such price and terms as the Seller deems appropriate. In such event, this Agreement will automatically terminate, Buyer will be notified promptly, and Buyer’s deposit will be refunded. Exceptions: 10. Fixtures & Improvements: The following is not intended to be an all-inclusive list of items included with the Property. All improvements and appurtenances are included in the Purchase Price, if now in or on the Property, including the following: all buildings; landscaping; lighting fixtures and their shades and bulbs; ceiling fans; hardware for draperies and curtains; window shades and blinds; built-in kitchen appliances, including garbage disposal and drop-in ranges; wall to wall carpeting, if attached; all attached mirrors; all attached TV mounting brackets; all attached shelving; attached work benches; stationary laundry tubs; water softener (unless rented); water heater; incinerator; sump pump; water pump and pressure tank; heating and air conditioning equipment (window units excluded); attached humidifiers; heating units, including add-on heating stoves and heating stoves connected by flue pipe; fireplace screens, inserts, and grates; fireplace doors, if attached; liquid heating and cooking fuel tanks if owned by Seller; TV antenna and complete rotor equipment; satellite dish and necessary accessories and complete rotor equipment; all support equipment for inground pools; screens and storm windows and doors; awnings; installed basketball backboard, pole and goal; mailbox; flagpole(s); fencing, invisible inground fencing and all related equipment, including collars; detached storage buildings; underground sprinkling, including the pump; installed outdoor grills; all plantings and bulbs; garage door opener and control(s); and any and all items and fixtures permanently affixed to the Property; and also includes:

but does not include:

Subject Property Address/Description ©Copyright, West Michigan REALTOR® Associations Revision Date 1/18

Date Buyer’s Initials

Time Seller’s Initials

West Michigan Regional Purchase Agreement

Page 3 of 6

11. Heating and Cooking Fuels: Liquid heating and cooking fuels in tanks are included in the sale and will transfer to Buyer at time of possession unless usage is metered (in which case it is not included in the sale). Sellers are responsible for maintaining heating and cooking liquid fuels at an operational level and shall not permit fuels to fall below 10% in the tank(s) at the time of possession, except that the tank(s) may be empty only if now empty. Further, the Seller is precluded from removing fuel from tank(s) other than what is expended through normal use. Exceptions: 12. Assessments (choose one): If the Property is subject to any assessments Seller shall pay the entire balance of any such assessments that are due and payable on or before the day of closing (regardless of any installment arrangements), except for any fees that are required to connect to public utilities. Seller shall pay all installments of such assessments that become due and payable on or before day of closing. Buyer shall assume and pay all other installments of such assessments. 13. Property Taxes: Seller will be responsible for any taxes billed prior to those addressed below. Buyer will be responsible for all taxes billed after those addressed below. Buyer is also advised that the state equalized value of the Property, principal residence exemption information and other real property tax information is available from the appropriate local assessor’s office. Buyer should not assume that Buyer’s future tax bills on the Property will be the same as the Seller’s present tax bills. Under Michigan law, real property tax obligations can change significantly when property is transferred. No proration. Buyer Buyer

(Choose one): Seller will pay taxes billed summer Seller will pay taxes billed winter

(year); (year);

Calendar Year Proration (all taxes billed or to be billed in the year of the closing). Calendar year tax levies will be estimated, if necessary, using the taxable value and the millage rate(s) in effect on the day of closing, broken down to a per diem tax payment and prorated to the date of closing with Seller paying for January 1 through the day before closing. Fiscal Year Proration - Taxes will be prorated as though they are paid in (choose one): advance. arrears. Fiscal Year will be assumed to cover a 12 month period from date billed, and taxes will be prorated to the date of closing. Fiscal year tax levies will be estimated, if necessary, using the taxable value and millage rate(s) in effect on the day of closing, broken down to a per diem tax payment and prorated to the date of closing with Seller paying through the day before closing. Exceptions: 14. Well/Septic: Within ten (10) days after the Effective Date, the Seller will arrange and pay for an inspection of the primary well used for human consumption (including a water quality test for coliform bacteria and nitrates) and septic systems in use on the Property. The inspection shall be performed by a qualified inspector in a manner that meets county (or other local governmental authority, if applicable) protocol. Seller shall also follow any governmental rules regarding pumping of tanks. Where no county or government protocol is in place, Seller shall arrange and pay for well and septic inspections (as referenced above) by a qualified inspector, and Seller shall have the septic tank(s) pumped at Seller’s expense. If any report discloses a condition unsatisfactory to Buyer, or doesn’t meet county standards that are a condition of sale, Buyer may, within three (3) days after Buyer has received the report, by written notice to Seller, either terminate this Agreement and receive a refund of Buyer’s good-faith deposit, or make a written proposal to Seller to correct those unsatisfactory conditions. If Buyer fails to make a written proposal within the above referenced time period, then Buyer will be deemed to have accepted the well/septic as-is. Seller will respond in writing within three (3) days to Buyer’s request. If Seller fails to respond or to arrive at a mutually agreeable resolution within three (3) days after Seller’s receipt of Buyer’s proposal, Buyer shall have three (3) days to provide written notice of termination of this Agreement and receive a refund of any applicable good-faith deposit. If Buyer fails to terminate the contract, Buyer will proceed to closing according to the terms and conditions of this Agreement. Exceptions: 15. Inspections & Investigations: Inspections: Buyer, or someone selected by Buyer, has the right to inspect the buildings, premises, components and systems, at Buyer’s expense. Any damage, misuse, abuse, or neglect of any portion of the Property or premises as a result of inspections will be Buyer’s responsibility and expense. In the event of VA financing, Seller will pay for the inspection for termites and other wood destroying insects. Investigations: It is Buyer’s responsibility to investigate (i) whether the Property complies with applicable codes and local ordinances and whether the Property is zoned for Buyer’s intended use; and (ii) whether Buyer can obtain a homeowner’s insurance policy for the Property at price and terms acceptable to Buyer. All inspections and investigations will be completed within ten (10) days after the Effective Date. If the results of Buyer’s inspections and investigations are not acceptable to Buyer, Buyer may, within the above referenced period, by written notice to Seller, either terminate this Agreement and receive a refund of Buyer’s good-faith deposit, or make a written proposal to Seller to

Subject Property Address/Description ©Copyright, West Michigan REALTOR® Associations Revision Date 1/18

Date Buyer’s Initials

Time Seller’s Initials

West Michigan Regional Purchase Agreement

Page 4 of 6

correct those unsatisfactory conditions. If Buyer fails to make a written proposal within the above referenced time period, then Buyer will be deemed to have accepted the Property as-is. Seller may negotiate with Buyer, or, by written notice to Buyer, accept Buyer’s proposal or terminate this Agreement. If Seller fails to respond, or to arrive at a mutually agreeable resolution within three (3) days after Seller’s receipt of Buyer’s proposal, Buyer shall have three (3) days to provide written notice of termination of this Agreement and receive a refund of any applicable good-faith deposit. If Buyer fails to terminate this Agreement within said three (3) day period, Buyer will be deemed to accept the Inspections & Investigations and will proceed to closing according to the terms and conditions of this Agreement. Buyer has waived all rights under this Inspections & Investigations paragraph. 16. Municipal Compliances: The Seller will arrange and pay for current certificates of occupancy, sidewalk compliance, and smoke detector ordinances, if applicable. 17. Title Insurance: Seller agrees to convey marketable title to the Property subject to conditions, limitations, reservation of oil, gas and other mineral rights, existing zoning ordinances, and building and use restrictions and easements of record. An expanded coverage ALTA Homeowner’s Policy of Title Insurance in the amount of the Purchase Price shall be ordered by Seller and furnished to Buyer at Seller’s expense, and a commitment to issue a policy insuring marketable title vested in Buyer, including a real estate tax status report, will be made available to Buyer within ten (10) days after the Effective Date. If Buyer so chooses, or if an expanded policy is not applicable, then a standard ALTA Owners’ Policy of Title Insurance shall be provided. If Buyer objects to any conditions, Buyer may, within three (3) days of receipt of the Title Commitment, by written notice to Seller, either terminate this Agreement and receive a refund of Buyer’s good-faith deposit, or make a written proposal to Seller to correct those unsatisfactory conditions. If Buyer fails to make a written proposal within the above referenced time period, then Buyer will be deemed to have accepted the Title Commitment as-is. Seller may negotiate with Buyer, or, by written notice to Buyer, accept Buyer’s proposal or terminate this Agreement. If Seller fails to respond, or to arrive at a mutually agreeable resolution within three (3) days after Seller’s receipt of Buyer’s proposal, Buyer shall have three (3) days to provide written notice of termination of this Agreement and shall receive a refund of any applicable good-faith deposit. If Buyer fails to terminate this Agreement within said three (3) day period, Buyer will be deemed to accept the Title Commitment as-is and will proceed to closing according to the terms and conditions of this Agreement. Exceptions:

18. Property Survey: Broker advises that Buyer should have a survey performed to satisfy Buyer as to the boundaries of the Property and the location of improvements thereon. Buyer

Seller (check one) shall obtain and pay for:

A boundary survey certified to Buyer with iron corner stakes and with improvements and easements located on a map of survey. A surveyor’s report or sketch (not a boundary survey) re-certified to Buyer showing the approximate location of improvements. No survey. When closing occurs, Buyer shall be deemed to have accepted the boundaries of the Property and the location of such improvements thereon. Exceptions:

19. Home Protection Plan: Buyer and Seller have been informed that home protection plans may be available. Such plans may provide additional protection and benefit to the parties. Exceptions: 20. Prorations: Rent; association dues/fees, if any; insurance, if assigned; interest on any existing land contract, mortgage or lien assumed by Buyer; will all be adjusted to the date of closing. 21. Closing: If agreeable to both parties, the sale will be closed as soon as closing documents are ready, but not later than . An additional period of fifteen (15) days will be allowed for closing to accommodate the correction of title defects or survey problems which can be readily corrected, delays in obtaining any lender required inspections/repairs. During this additional period, the closing will be held within 5 days after all parties have been notified that all necessary documents have been prepared. Buyer and Seller will each pay their title company closing fee, if applicable, except in the case of VA financing where the Seller will pay the entire closing fee. Exceptions: 22. Possession: Seller will maintain the Property in its present condition until the completion of the closing of the sale. Possession to be delivered to Buyer, subject to rights of present tenants, if any. At the completion of the closing of the sale. At a.m. p.m. on the day after completion of the closing of the sale, during which time Seller will have the privilege to occupy the Property and hereby agrees to pay the Buyer $ as an occupancy fee for this period payable at closing, WITHOUT PRORATION. Payment shall be made in the form of cash or certified funds. Subject Property Address/Description ©Copyright, West Michigan REALTOR® Associations Revision Date 1/18

Date Buyer’s Initials

Time Seller’s Initials

West Michigan Regional Purchase Agreement

Page 5 of 6

If Seller fails to deliver possession to Buyer on the agreed date, Seller shall become a tenant at sufferance and shall pay to Buyer as liquidated damages $ per day plus all of the Buyer’s actual reasonable attorney's fees incurred in removing the Seller from the Property. If Seller occupies the Property after closing, Seller will pay all utilities during such occupancy. Buyer will maintain the structure and mechanical systems at the Property. However, any repairs or replacements necessitated by Seller’s misuse, abuse, or neglect of any portion of the Property will be Seller’s responsibility and expense. On the agreed delivery date, Seller shall deliver the Property free of trash and debris and in broom-clean condition, shall remove all personal property (unless otherwise stated in this or an additional written agreement), shall make arrangements for final payment on all utilities, and shall deliver all keys to Buyer. Exceptions: 23. Good-Faith Deposit: For valuable consideration, Buyer gives REALTOR® above named until (time) on ` , to obtain the written acceptance of this offer and agrees that this offer, when accepted by Seller, will constitute a binding agreement between Buyer and Seller and herewith deposits $ evidencing Buyer's good faith, to be held by (insert name of broker, title company, other) and to apply against the Purchase Price. If this offer is not accepted or if the sale is not closed due to a failure to satisfy a contingency for a reason other than the fault of Buyer, the good-faith deposit shall be refunded to Buyer. If the sale is not closed as provided in this Agreement, the Broker holding the deposit will notify Buyer and Seller, in writing, of Broker’s intended disposition of the deposit. If the parties do not object to such disposition in writing within fifteen (15) days after the date of Broker’s notice, they will be deemed to have agreed to Broker’s proposed disposition; if a party objects and no mutually agreeable disposition can be negotiated, Broker may deposit the funds by interpleader with a court of proper jurisdiction or await further actions by the parties. In the event of litigation involving the deposit, in whole or in part, either the Seller or the Buyer that is not the prevailing party, as determined by the court, will reimburse the other for reasonable attorneys’ fees and expenses incurred in connection with the litigation, and will reimburse the Broker for any reasonable attorneys’ fees and expenses incurred in connection with any interpleader action instituted. 24. Professional Advice: Broker hereby advises Buyer and Seller to seek legal, tax, environmental and other appropriate professional advice relating to this transaction. Broker does not make any representations or warranties with respect to the advisability of, or the legal effect of this transaction. Buyer further acknowledges that REALTOR® above named in the Agreement hereby recommends to Buyer that an attorney be retained by Buyer to pass upon the marketability of the title and to ascertain that the required details of the sale are adhered to before the transaction is consummated. Buyer agrees that Buyer is not relying on any representation or statement made by Seller or any real estate salesperson (whether intentionally or negligently) regarding any aspect of the Property or this sale transaction, except as may be expressly set forth in this Agreement, a written amendment to this Agreement, or a disclosure statement separately signed by the Seller. 25. Disclosure of Information: Buyer and Seller acknowledge and agree that the Purchase Price, terms, and other details with respect to this transaction (when closed) are not confidential, will be disclosed to REALTORS® who participate in the applicable Multiple Listing Service, and may otherwise be used and/or published by that Multiple Listing Service in the ordinary course of its business. 26. Other Provisions:

Buyer

(Bus.) Print name as you want it to appear on documents.

Buyer 2 Address Buyer 2 Phone: (Res.)

Buyer

(Bus.) Print name as you want it to appear on documents.

Subject Property Address/Description ©Copyright, West Michigan REALTOR® Associations Revision Date 1/18

Date Buyer’s Initials

Time Seller’s Initials

West Michigan Regional Purchase Agreement

DATE: 30. Seller’s Acceptance: The Above Offer is Hereby Accepted:

As written.

Page 6 of 6

(time)

As written except:

Counteroffer, if any, expires , at (time). Seller has the right to withdraw this counter offer and to accept other offers until Seller or Seller’s Agent has received notice of Buyer’s acceptance. 31. Certification of Previous Disclosure Statement: Seller certifies to Buyer that the Property is currently in the same condition as disclosed in the Seller’s Disclosure Statement dated (check one): Yes No. Seller agrees to inform the Buyer in writing of any changes in the content of the disclosure statement prior to closing. 32. Notice to Seller: Seller understands that consummation of the sale or transfer of the Property described in this Agreement will not relieve the Seller of any liability that Seller may have under the mortgages to which the Property is subject, unless otherwise agreed to by the lender or required by law or regulation. The parties to the transaction are advised that a Notice to Seller & Buyer of Underlying Mortgage form is available from the respective agents via the West Michigan REALTOR® Boards. 33. Listing Office Address:

Listing Broker License #

Listing Agent Name:

Listing Agent License #

34. Seller’s Acknowledgment: Seller has read this Agreement and acknowledges receipt of a copy. X

Seller Print name as you want it to appear on documents.

Seller’s Address

X Seller’s Phone: (Res.)

Seller

(Bus.) Print name as you want it to appear on documents.

DATE:

(time)

35. Buyer’s Receipt/Acceptance: Receipt is hereby acknowledged by Buyer of Seller’s acceptance of Buyer’s offer. In the event the acceptance was subject to certain changes from Buyer’s offer, Buyer agrees to accept said changes, all other terms and conditions remaining unchanged. X

Buyer

DATE:

(time)

36. Seller’s Receipt: Seller acknowledges receipt of Buyer’s acceptance of counter offer.

Subject Property Address/Description ©Copyright, West Michigan REALTOR® Associations Revision Date 1/18

Seller

Seller Date

Time

1. Call:

First, make sure the item is covered by your plan.

If the item is listed as covered, call our customer service department. An APHW service representative will take your information and assign you a claim number. You may then call a local licensed contractor of your choice to diagnose the problem.

2. Schedule:

Once your contractor arrives, they must first diagnose your problem.

Important: Before the contractor does any work, have the contractor call APHW with the diagnosis.

An APHW customer service representative will speak with you and your contractor to determine the approved dollar amount covered by your warranty. Your contractor may then make the necessary repairs.

3. Payment:

Your APHW customer service representative will make sure that arrangements for payments are made. You will be required to pay the contractor a deductible for each trade call, or the actual cost, whichever is less. An APHW customer service representative will follow up with you after the repairs are made to make sure you are completely satisfied with the work that was done.

For service call:

1.800.648.5006

REMEMBER

Please write your contract number, deductible amount and start date here so you have them readily accessible when you call to file a claim or renewal:

You must have telephone approval before having any work done. Reimbursement for services will not be made without prior approval.

Contract Number Deductible

24/7/365

Person-to-Person Claims Service

Contract Start Date

1.800.648.5006 2 of 12 - APHW0118425E

We will make every effort to expedite service in case of emergencies.

ATTIC AND EXHAUST FANS

Plans that cover this item: Buyer | Seller

Covered: Switches, controls, motors, bearings and blades. Not Covered: Shutters, belts and filters, circulation or paddle-type fans.

CENTRAL AIR CONDITIONING Plans that cover this item: Buyer | Seller Preferred Upgrade

Covered: (Electric refrigerant central air conditioning units only). Coils and compressor, capacitor, motors, thermostat valves, dial and non-programmable digital thermostat, leaks in refrigerant lines, liquid suction line dryers, fuses, breakers, disconnect boxes (contactor), wiring, condensing units, evaporative coolers.

Not Covered: Window units, free-standing room units, water cooled units, portable units, any type of gas, lithium/glycol, outside and/or underground components and piping for geothermal including condenser fins, drain pans, cleaning, duct work associated with any gas units, electronic air filters or cleaners, filters, water towers, evaporative cooling pads, energy management systems, or recovery of refrigerant and chillers. Zone controls, zone motors, dampers, and leak tests.

ELECTRICAL

Plans that cover this item: Buyer | Seller

Covered: Electrical breakers, wiring, panels and sub- panels, plugs, fuses, switches, conduit, junction box, central vacuum systems.

Buyer Plan only: Garage door openers (motors, push buttons, control boards, drive mechanisms, chains).

Not Covered: Service entrance cables, garage doors, meter boxes, counter balance mechanisms, rollers and remote sensing units, tracks, infrared sensors, any loss due to water seepage along service cable, any loss from overload or power failure, any electrical items or wiring located outside the perimeter of the principal dwelling and attached garage.

HEATING SYSTEM

Plans that cover this item: Buyer | Seller Preferred Upgrade

Covered: (Must be centrally ducted) Central heating system including electric, gas, oil, gravity (centrally ducted only), steam or hot water heat systems, ductwork, interior gas lines, dial and non-programmable digital thermostats, relays and wiring. Heat exchanger and/or combustion chamber, electric heat pump, burners, circuit board, igniter, flame sensor, transformer, gas valves, baseboard convectors, pumps, motors, switches, heating element.

Boiler systems only: Zone valves, geothermal and/or water source heat pump components and parts located within the foundation of the home or attached garage which cool and/or heat the home.

Not Covered: Outside and/or underground components and piping for geothermal and/or water source heat pumps, well pump and well pump components for geothermal and/or water source heat pumps. Free-standing or portable heating units, through-wall units, coal or wood burning equipment, fuel oil or propane gas storage tanks, fuel oil lines, registers, electronic air filters and cleaners, vents, space heaters, registers, grills, filters, solar heating systems, radiators, fireplaces, clocks, chimneys and chimney liners, recovery of refrigerant and cleaning and energy management systems. Leak tests. Zone controls, zone motors and dampers.

HUMIDIFIER

Plans that cover this item: Buyer

Covered: Permanently mounted furnace humidifier including pans, housing, motors, fans, humidistats, transformers, valves and lines.

Not Covered: Humidifier pads, media elements, brushes, atomizers or back flush units.

KITCHEN APPLIANCES

Plans that cover this item: Buyer | Seller Preferred Upgrade Coverage is limited to primary kitchen area.

Covered: (Note: All appliances must be part of the contract to purchase for the purchaser at the time of the sale of the home or be built-in). Free-standing range, built-in oven, cooktop, built-in dishwasher (pump, motor, timers, gaskets, spray arm, seals, air gap, latches, switches and heating element, control board), built-in microwave, garbage disposal, refrigerator compressor (only). Not Covered: Water dispenser, cracked or broken thermal shells, any loss or damage of a cosmetic nature such as denting, chipping, the cost of attaining access, replacement or repair of countertops or cabinets, racks, baskets, clocks, timers, rollers, glass or ceramic cooktops, self-cleaning mechanisms, cooking accessories, doors, door hinges, knobs, keypads, interior lining, door glass, latches, meat probes, rotisseries, shelves, ice makers, ice crushers, soap dispensers, beverage dispensers, broken interior, loss due to rust-out and food spoilage, recovery of refrigerant, and freezers which are not an integral part of refrigerator.

PLUMBING SYSTEMS

Plans that cover this item: Buyer | Seller

Covered: Drains and standard faucets, leaks and breaks to water, vent, gas or sewer lines, waste lines, assembly parts within the toilet tank, valves to shower, tub diverter, interior hose bibs, stoppage in drain, vent and sewer lines; angle stops and risers. Clearing of stoppages with rotary machine (cleaning same lines after 14 days has elapsed shall be considered a new claim and is subject to a new deductible). The foregoing is covered only within the perimeter of the main foundation of the home including attached garage. Buyer only: Permanently installed sump pumps (ground water only).

Not Covered: Sinks, bathtubs, fixtures, exterior hose bibs, filters, sewage ejector pumps, shower-base pans, shower enclosures, tub enclosures, toilet wax ring seals, toilet bowl and tank, caulking, grouting, tile fields, lawn sprinklers, leach beds, root damage, any loss arising out of a condition of chemical or mineral deposits, water residue, rust-out, or insufficient capacity drain, low or high pressure, loss arising from porcelain cracking, chipping, dents or other externally caused physical damages, storage or holding tanks, auxiliary sump pumps. Sewage lines located outside the main foundation of the home and blockages from tree roots and foreign objects.

ROOF

Plans that cover this item: Buyer

Covered: Rolled roofing, asphalt shingles and flashing from water leaks only, and must occur during coverage period for coverage to apply.

Not Covered: Roof mount installations, gutters, drain lines, pre-existing leaks, leaks in any deck or balcony, leaks due to ice damming. Leaks which are caused by, or which result from, any of the following: damage due to persons walking or standing on the roof, missing and/or broken tiles or shingles, repairs or construction not performed in a workmanlike manner, failure to perform normal roof maintenance, replacement of entire roof, rotten wood, flat and/or hot tar roof, or acts of God such as tornado, hurricane, earthquake, fire, and lightning. Water damage must occur in the roof located over the primary living area excluding attached garage.

SEPTIC

Plans that cover this item: Buyer

Coverage for septic systems begins thirty (30) days from date of closing.

Covered: Septic tank and line from house, baffles, sewage ejector pump and switches. Not Covered: Drain field, tile fields and leach beds, clean out, insufficient capacity, and blockages from tree roots and foreign objects.

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TRASH COMPACTOR

Plans that cover this item: Buyer | Seller

Not Covered: Removable buckets.

Plans that cover this item: Buyer

Must be primary water source. Coverage begins thirty (30) days after closing.

Covered: All parts and components excluding lock-key assembly.

WATER WELL PUMP

Covered: Well pumps, valves and regulators.

WATER HEATER

Plans that cover this item: Buyer | Seller

Covered: Electric, gas and tankless. Control thermostat and thermocouple, gas valves, pressure and temperature relief valve, heating elements, drain valve and instant hot water dispensers, dip tubes, blower motor, heat exchanger, burners, igniter, temperature sensor.

Not Covered: Pressure tanks, piping or electrical lines leading to or connecting pressure tank and primary dwelling, well casings, holding or storage tanks and re-drilling of well, screens, points, well pump if used for lawn sprinkler system or other like system. Some coverage is subject to additional limitations as provided in the Terms and Conditions Section of the Supreme Home Warranty Service Agreement.

Not Covered: Oil hot water tanks, and loss arising as a result of chemical, mineral deposits, sediments, insufficient capacity, water residue or rust-out.

CLOTHES WASHER & DRYER

Covered: All parts and components except: soap dispensers, filter screens, plastic mini-tub, dials and knobs, lint screen, venting, and damage to clothing.

CEILING FAN Must be located in main dwelling.

Not Covered: Soap dispensers, filter screens, plastic mini-tub, dials and knobs, lint screen, venting, and damage to clothing.

CENTRAL AIR (ADDS) Refrigerant recovery, registers and grills, cost for crane to install roof mounted covered replacement air conditioner unit $200 maximum.

INGROUND POOLS, SPAS

Covered: All components and parts of the heating, pumping, and filtration system. A spa, including an exterior whirlpool and hot tub is also covered along with a swimming pool, if the units utilize common equipment. If they do not, coverage is limited to the option selected for either the spa or the pool. Premium/Salt Water/Spa add salt water components and cells.

CENTRAL HEAT (ADDS) Registers, grills and heat lamps. CODE VIOLATIONS When the correction of code violation(s) is required to affect a covered repair or replacement of a heating, plumbing or electrical â&#x20AC;&#x153;Component Partâ&#x20AC;?, APHW will pay up to $250 aggregate to correct the code violation(s). APHW will not simply pay to remove the violation.

Not Covered: Skimmers, pool sweeps, pool sweep motors, lights, liners, jets, concrete-encased, underground electrical, gas or plumbing lines, cleaning equipment, solar equipment, structural defects, all above ground pools.

KITCHEN APPLIANCES (ADDS) Refrigerator control board, refrigerant recovery and recharge, ice maker and ice/beverage dispenser and their respective equipment; trash compactor lock and key assembly, buckets; built-in dishwasher racks, baskets and rollers; built-in microwave interior lining, glass door, clocks and shelves; oven/range interior lining, clocks, rotisseries, racks, handles, knobs and dials.

JETTED BATHTUBS

Covered: Mechanical parts and components as follows: accessible electrical controls, accessible plumbing lines, air pumps, drains, gaskets, and primary circulation pump motor.

Not Covered: Bathtub shell, caulking and grout, failures due to dry operation of equipment, gaining access to piping, jets, electrical and component parts, tiles and marble, and tub enclosure.

SPECIAL ELECTRICAL PACKAGE Fire/Burglar alarm, lighting fixtures, doorbell, garage door opener - hinges, springs, keypads and remote transmitters.

WATER SOFTENER

WATER HEATER (ADDS) Failure due to chemical, mineral deposits, and sediment build-up.

Covered: Domestic Water Softener, brine tank and connecting water lines.

Not Covered: Insufficient or excessive water pressure, color or purity of water, filters, resin beds, salt replacement, rust or corrosion, normal maintenance, purification systems, and all rented/leased water softeners.

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PLUMBING (ADDS) Toilets replaced with like quality up to $200 per occurrence.

PERFORMANCE OF SERVICE

Please read your coverage carefully. Should you need service, telephone the Customer Service department at 1-800-648-5006. Service is available 24 hours a day, seven days a week; you must have telephone approval before having any work done. The Customer Service department will make every effort to expedite service in emergencies. You will be required to pay a deductible per trade call, or the actual cost, whichever is less. If any additional repairs have been made during a service call to items not covered by this agreement, you will be required to pay those expenses. PAYMENT

Payment is due at closing and is derived from closing costs and must be received within seven (7) business days to ensure coverage. DEFINITIONS

1. Agreement, Contract, Service Contract, Home Warranty means this Agreement which You have purchased from Us and which includes the completed agreement on page 11 of this document 2. “Company” means America’s Preferred Home Warranty, Inc. (APHW), 5775 Ann Arbor Rd. Jackson MI 49201 1-800-648-5006 3. “Component Part” means covered item as listed on the “What Items are Covered?” page. 4. Contract Fee means the amount you paid for this Agreement, as shown on the Supreme Home Warranty Agreement Page 5. Deductible means the amount You are required to pay, as shown on pages 10 and 11, per repair for covered Breakdowns. 6. Breakdown means a failure of a covered item that is due to normal wear and tear. 7. Provider means the party obligated to perform or arrange to perform services pursuant to the terms of this Agreement and is also known as the Obligor, Extended Service Contract Provider, Service Contract Provider and Service Contract Maker. The Provider of this Agreement is America’s Preferred Home Warranty, Inc., 5775 Ann Arbor Rd. Jackson MI 49201 1-800-648-5006 8. Agreement Page (page 11 of this document) means the document which must be attached to and becomes part of this Agreement. It lists information regarding You, Your Covered Property, Plan selected, and other vital information. 9. We, Us, Ours means the Provider of this Agreement. 10. You and Your means the Agreement holder as shown on the Agreement Page (page 11), or the person to whom this Agreement was properly transferred. CONTRACT COVERAGE

This contract provides protection, at a reasonable cost, against breakdown of specific items you have due to normal wear and tear. This agreement is not intended to shift responsibility for minor repairs or normal maintenance. It does not cover everything. It may not cover the entire cost of repair or replacement of a covered item. A deductible is required for each APHW covered repair. Please read the following terms and conditions carefully. They describe the terms of your coverage and how to obtain service. THIS CONTRACT COVERS ONLY THOSE ITEMS WHICH ARE:

1. Located in a single-family residence and/or condo. 2. In place, operative and located within the main perimeter of the main foundation of the home, including any attached garage, located at the address shown, on the effective date of this contract. 3. Not located in rooms or buildings used for commercial or business purposes. 4. Specified as “Covered” in the section of the Agreement titled “What Items are Covered?” If a system and/or item is not listed as covered, then it is NOT COVERED.

CUSTOMER SERVICE

IMPORTANT: Please read these terms and conditions carefully. They describe the terms of your coverage and how to obtain service.

1. Telephone service is available 24 hours a day, 7 days a week. You must call the Company to place a claim. No claim forms are used. When service is required call APHW at 1.800.648.5006 to open a claim. After receiving a claim number you may call the licensed contractor of your choice. After your contractor has diagnosed the situation, you must call one of our customer service representatives so they can speak to the contractor while they are at your home to approve the repair and set up payment with the contractor. Please remember, there is no payment or reimbursement without prior approval. In case of furnace failure during periods of freezing temperatures, service will be initiated immediately and will be completed as soon as reasonably possible. If service cannot be initiated immediately due to conditions beyond the control of the Company and the homeowner must leave the home, upon prior authorization by the Company, the Company will pay up to $75.00 per night for no more than a three-night hotel stay. 2. A deductible is required for each APHW covered repair. If repairs are made to parts of additional systems, a separate deductible will apply to each system repaired. 3. It is the discretion of the Company to determine whether a covered system or component is to be replaced or repaired. Replacement is based on like kind or of better efficiency. For air conditioning or heating equipment, like kind includes equal or a better energy efficiency rating. For air conditioning equipment, this is the SEER rating. When replacement systems of exact dimensions are not available, the Company will be responsible for installation of like kind equipment, but not for the cost of carpentry or construction to necessitate the different dimensions. The Company is not responsible for upgrade or matching color or brand and is not limited to brand names. Determination of the operating condition as of the agreement effective date and the nature of any failure will be made by us based upon the professional opinion of our claim staff reflecting, but not limited to, our approved contractor’s diagnosis. 31 5 of 12 - APHW0118425E

4. APHW allows the homeowner to choose their own licensed contractor. You must call APHW first. APHW requires that the service provider diagnose your problem, and then contact APHW for approval of the proposed work. APHW will recommend a licensed contractor for you if you do not have an approved licensed contractor in your area, or if you would rather have APHW recommend the licensed contractor. The contractor must be licensed and bonded. 5. If no covered defects are discovered or repaired during a service call, the homeowner is responsible for the entire cost of the service call. 6. No additional deductible will be required where service work fails within 30 days after the service call. LIMITATIONS OF COVERAGE

leaks and breaks in plumbing or wiring) duct work, $500. This limit includes access, diagnosis, repair or replacement and restoring or resurfacing to a rough finish. 5. Pool/spa (must be built-in) heater and filtration system & jetted bathtub is limited to $600. Premium/saltwater pool/spa upgrade is $1,200. 6. Washer and dryer, water well pump (must be primary source of water), and septic is $400 (water well and septic coverage begin 30 days after closing). 7. Water softener is $600. 8. Humidifier is $500. 9. The special electrical package is limited to $1,000 per contract. (See “Limitations of Coverage,” D13, Special Electric Coverage). 10. Sump Pump: Primary sump pump only. Auxiliary pump not covered. 11. Water heater is $500 (chemical, mineral deposits, and sediments are covered with Buyers Preferred Upgrade only). 12. Refrigerator is $1,000. 13. Buyer Preferred Upgrades: Central Heat adds: registers, grills and heat lamps. Central Air adds: refrigerant recovery, reclaim and disposal, registers and grills. Cost for crane to install roof mounted covered replacement air conditioner unit $200 maximum. Plumbing adds: toilets replaced with like quality up to $200 per occurrence. Water Heater adds: sediment build-up. Special Electrical Package Includes: fire/burglar alarm, lighting fixtures, doorbell, garage door opener - hinges, springs, keypads and remote transmitters, ceiling fans. Appliances adds: refrigerator control board, refrigerator refrigerant recovery, ice maker and ice/beverage dispenser and their respective equipment; trash compactor lock and key assembly, buckets; built-in dishwasher racks, baskets and rollers; built-in microwave interior lining, glass door, clocks and shelves; oven/range interior lining, clocks, rotisseries, racks, handles, knobs and dials. Ceiling Fan: must be located in main dwelling. Code violations: when the correction of code violation(s) is required to affect a covered repair or replacement of a heating, plumbing or electrical “Component Part”, APHW will pay up to $250 aggregate to correct the code violation(s). APHW will not simply pay to remove the violation. IMPORTANT: If the Buyer Preferred Upgrade has been selected and the property is a multiple family dwelling, the upgrade package must be purchased for each unit, if it is not selected for each unit, any shared systems and or appliances will not be covered.

A. Seller. The maximum aggregate liability of the Service to the Seller, regardless of the number of claims for repairs or replacement, for the life of the listing is $1,000. Payment by APHW for any claim for repair or replacement for Seller does not affect the amount of coverage for the Buyer. 1. Seller Preferred Upgrade (must be chosen at time of listing): includes Heating systems (including heat pumps or steam or hot water heating systems) Hot water heat system boiler must have auto boiler feed; steam heat must have low water cut-off valve. Geothermal and/or water source heat pump components and parts located within the foundation of the home or attached garage which cool and/or heat the home. Central air conditioning, refrigerator, built-in dishwasher, free-standing range, built-in oven, cooktop, built-in microwave, garbage disposal. The Company covers multiple systems for heating and air conditioning (Hot water, steam and geothermal systems are not covered for multiple systems). EXCEPT: Not Covered: outside or underground piping and components for geothermal and/or water source heat pumps, well pump and well pump components for geothermal and/or water heat pumps. 2. Seller’s ListSecure® Program: As part of this APHW home warranty contract, if Seller(s) contracted for coverage when listing the home through a registered APHW broker, and it is fully funded, and not cancelled, after closing, Seller(s) may be eligible to participate in APHW’s ListSecure® Program (the “Program”). The Program will be funded by APHW with credits from each fully paid non-cancelled home warranty. Reimbursements shall not exceed funding credits except in APHW’s sole discretion. The Program provides a maximum reimbursement of $1,000 for post sale attorney fees incurred by Seller(s) defending a lawsuit by buyer arising directly out of the transaction for which this home warranty was purchased. The program does not cover settlement payments, or attorney fees for alternative dispute resolution required by the buy/sell LIMITS OF LIABILITY agreement or a local, regional or state Board of Realtors or equivalent, which process(es) are a condition precedent to 1. The Company will not reimburse you for services performed without Program eligibility. To be eligible, Seller must also provide Company authorization. You must call APHW at 1-800-648-5006 APHW a copy of the lawsuit for which reimbursement may be for service. No claims will be honored after coverage period. You later sought within 21 days of being served with the lawsuit. must have prior telephone approval from APHW before calling Eligible Sellers can request reimbursement from the Program a contractor. for up to 2 years after the date of closing. The Program is not an 2. The Company will not pay for any additional costs or related assignable benefit of the Seller, and is terminable at will by any expenses which may be required to complete repairs, nor will successor in interest to APHW. the Company upgrade equipment or improve due to lack of B. The maximum aggregate liability of the Warranty is $25,000. capacity, previous improper installation, previous repair of or C. Commercial-like or Ultra-Premium Appliances or Combination design of appliances, systems and components; or problems Appliances: $1,000 maximum (e.g. Viking, Wolf, Dacor, and all occurring because of modifications or alterations to appliances, commercial-like or ultra-premium appliances). systems or components, or failure to meet building or zoning code D. Buyer (Seller where applicable). The maximum aggregate liability for requirements or violations, city, county, state, federal, or any utility repairs or replacement, regardless of the number of claims for repairs regulations or upgrades required by law. or replacement, or the number of systems/units: 3. Common areas or facilities of mobile home parks and 1. Heating systems including heat pumps are $2,250 ($1,500 for condominiums are not covered. steam or hot water heating systems): hot water heat system boiler 4. Company is not responsible for repairs or replacements required must have auto boiler feed; steam heat must have low water cut as a result of: missing parts, fire, war, flood, smoke, water damage, off valve. $1,500 for geothermal and/or water source heat pump lightning, freeze-up, earthquake, theft, storms, accidents, nuclear components and parts located within the foundation of the home explosions, reaction, radiation or radioactive contamination, or attached garage which cool and/ or heat the home. The insurrection, extreme or unusual climate conditions, rust-out, Company covers multiple systems for heating and air conditioning corrosion, riots, vandalism, code violations, improper installation, (Hot water, steam and geothermal systems are not covered for acts of God, pest damage or misuse, structural changes, water failure multiple systems.) EXCEPT: Not Covered: outside or underground and/or electrical surges, soil movement or mud, or failure to clean piping and components for geothermal and/or water source heat or maintain as instructed by the equipment manufacturer. Nor is the pumps, well pump and well pump components for geothermal Company responsible for repairs of any cosmetic defects or cost of and/or water source heat pumps. cleaning of equipment or parts. 2. The air conditioning system is $2,250. 5. Company is not liable for consequential or secondary damage 3. Roof leak repair, $550; roof vent not covered. from any covered item for property damage or personal injury, 32 nor for service relating to any toxic materials or asbestos. 4. Concealed plumbing or enclosed wiring (drains, vent piping, 6 of 12 - APHW0118425E

6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17.

Company has the sole responsibility in determining whether to repair or replace. Company’s liability is limited to systems failure due to normal wear and tear. Systems beyond life expectancy will be the sole discretion of the Company. Company is not responsible for any computerized or electronic energy management, lighting, or appliance management systems. Company is not responsible for failure to provide reasonable service due to conditions beyond its control; including but not limited to, delays in obtaining equipment, parts, or labor difficulties. Items not covered for the home seller or for the first 30 days after the close of sale for the homebuyer are: any improper operation or malfunction due to rust for any system or component, appliance or pools/spas, and collapsed duct work. Company is not responsible for additional charges to install or remove non-related equipment or systems in order to make a covered repair. Vacant or unoccupied homes are covered during the listing period as long as they are maintained and not abandoned. This contract is non-cancellable except for non-payment of contract fees, deductibles and/or service call fees, fraud or misrepresentation of facts, material to the issuance of this contract. Company will not be obligated to service any system or appliance classified by manufacturer as commercial, leased equipment, stolen, vandalized, not properly maintained or connected, misused, neglected, consequential damages, abnormal use or damages due to inadequate capacity as determined/diagnosed by a licensed service contractor in the specific field and/or Company. The type of service, repair or replacement and/or second opinion, will be at the Company’s sole discretion. APHW is not responsible for any costs due to repair, replacement, installation and labor of any covered system or part while under existing manufacturer’s warranty or third party service plan/agreement. Any inspections, reports, findings and/or disclosures will be made available to APHW upon request. Anyone doing work on covered items is in no way a representative or agent of Company. Coverage will not be provided if APHW is not notified when a problem is discovered and in all events prior to the expiration of this contract. All repairs under this Contract must be completed within 30 days of the date Company is first notified or the claim will be permanently closed unless, for good cause shown by the homeowner, Company agrees in writing to permit consideration of the claim at a later time.

8. The buyers and/or sellers, by signing this contract, give authorization to APHW to contact you by phone, mail and/or electronically. 9. If the home is a foreclosure or a repossessed home, there is no coverage for the seller. Coverage for the buyer begins 30 days after closing, provided all proper paper work is signed and submitted to APHW. 10. This is not an insurance policy; our obligations under this agreement are backed by its Full Faith of credit. 11. If ownership of the covered premises changes during the contract term, you must notify APHW at 1.800.648.5006, within 30 days of property transfer for the contract to be transferred to the new owner of the covered premises. MULTIPLE UNITS

1. If this contract is for a duplex, triplex, or fourplex dwelling, all units within such dwelling must be covered by an APHW warranty agreement for coverage to apply to common systems and appliances (e.g. Triplex = 3 warranty agreements). 2. If this contract is for a unit within a multiple unit of 5 or more, then only items contained within the confines of each individual unit are covered. Common systems and appliances are excluded. Listing coverage is not available to seller. 3. Except as otherwise provided in this section, common systems and appliances are not covered. MANUFACTURED HOMES

1. Manufactured homes must have a permanent address. 2. Manufactured homes over 20 years old have a $500 limit on heating. There is also a $500 limit on air conditioning. 3. Manufactured homes during the moving of location from one to another will not be covered from the time of disconnect until 30 days after hook-up (by an approved contractor) to the second location. Notice must be given to the warranty company of the moving and address change of the home. SPECIAL STATE REQUIREMENTS:

Regulation of Home Warranty Agreements may vary widely from state to state. Any provision within this Agreement which conflicts with the laws of the state where the covered home is located shall automatically be considered to be modified in conformity with applicable state laws and regulations as set forth below. The following state specific requirements apply if Your Agreement was purchased in one of the following states and supersede any other provision within Your Agreement terms and conditions to the contrary.

GENERAL

1. Any dispute arising under this Agreement shall be submitted for binding arbitration under the auspices of the American Arbitration Association’s local office. Each party shall pay for its own representative and shall bear arbitration cost equally. The Arbitrator’s Award shall be final and binding and may be enforced by any Court and law. 2. Coverage for Lease Purchase Agreement is available for the Lessee only. This coverage begins upon payment of the contract fee and the acceptance of the Agreement by the Company. 3. This Agreement may be renewed at the option of the Company and where permitted by State Law. Prior to renewal, the Company will notify the homeowner of the proposed renewal terms and costs. 4. The Company reserves the right to seek a second opinion for any service call. 5. The Company reserves the right to purchase back the warranty program if the party is not satisfied with the Home Warranty Plan. APHW will return the pro-rated purchase price of this Agreement, less any fees and/or costs incurred for repairs, to the party that purchased this Agreement. 6. This Agreement may be terminated by either party upon written notice to the other for any of the following reasons: a. Misrepresentation concerning any covered item or any other fact related to the Agreement; b. Non-payment of initial or service fees; c. If the listing agreement for the covered property terminates or expires without sale of the property, or upon mutual agreement of the parties; d. Abuse, threatening or harming, or endangering the safety and/or well being of any APHW employee. 7. America’s Preferred Home Warranty, Inc. is bonded.

ALABAMA RESIDENTS ONLY: Cancellation and Refunds

If You request cancellation of this Agreement within thirty (30) days of the purchase date of the Agreement and the refund is not paid or credited within forty-five (45) days after return of the Agreement to Us, a ten percent (10%) penalty will be added to the refund for every thirty (30) days the refund is not paid. This provision applies only to the original purchaser of the Agreement. If You cancel this Agreement, the administrative fee shall not exceed the lesser of 10% of the Contract Fee or twenty-five dollars ($25.00). Any refund may be credited to any outstanding balance of Your account and the excess, if any, returned to You. If We cancel this Agreement We must provide You with a written notice at least 5 days prior to cancellation at Your last known address, with the effective date for the cancellation and the reason for cancellation. Prior notice is not required if the reason for cancellation is nonpayment of the Contract Fee, or a material misstatement by You relating to the covered property or its use. If We cancel this Agreement, You will receive a refund based upon one-hundred percent (100%) of the unearned pro-rata Contract Fee of this Agreement.

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Transfer of Coverage/Agreement

claim against this company if We fail to pay any claim or refund within 60 days after You have filed proof of loss with Us. Arbitration results will be non-binding relative to contracts issued to Georgia residents.

If ownership of the covered premises changes during the contract term, you must notify APHW at 1.800.648.5006, within 30 days of property transfer for the contract to be transferred to the new owner of the covered premises.

Cancellation and Refunds

Use of Non-Original Manufacturer Parts

You may cancel this Agreement by informing Us of Your cancellation request within 30 days of the purchase of the Agreement and You will receive a 100% refund of the full Agreement Fee provided no claims have been paid. If Your cancellation request is made more than thirty (30) days from the date of purchase, or if a claim has been paid within the first thirty (30) days, You will receive a pro-rata refund, less 10% of the refund amount due. We may not cancel this Agreement except for fraud, material misrepresentation, or nonpayment by You. Notice of such cancellation will be in writing and given at least thirty (30) days prior to cancellation. If We cancel this Agreement, You will receive a 100% pro-rata refund. In no event will claims be deducted from any refund. This Agreement will be interpreted and enforced according to the laws of the state of Georgia.

We will approve the use of non-original manufacturer parts in providing the services we are required to perform under this Agreement. ARIZONA RESIDENTS ONLY: Cancellation and Refunds

If Your cancellation request is made more than thirty (30) days from the date of purchase, or if a claim has been paid within the first thirty (30) days, You will receive a pro-rata refund of the Contract Fee, less an administrative fee not to exceed 10% of the pro-rata refund. We may not cancel this Agreement except for fraud, material misrepresentation, or nonpayment by You. Notice of such cancellation will be in writing and given at least thirty (30) days prior to cancellation. This Agreement will be interpreted and enforced according to the laws of the state of Arizona. In no event will claims be deducted from any refund.

ILLINOIS RESIDENTS ONLY:

THIS IS NOT A CONTRACT FOR INSURANCE. IOWA RESIDENTS ONLY:

ARKANSAS RESIDENTS ONLY:

The issuer of this contract is subject to regulation by the insurance division of the department of commerce of the state of Iowa. Complaints which are not settled by the issuer may be sent to the insurance division.

Cancellations and Refunds

You may cancel this Agreement by informing Us of Your cancellation request within 30 days of the purchase of the Agreement and You will receive a 100% refund of the full Contract Fee of Your Agreement, provided no claims have been paid. If Your cancellation request is made more than 30 days from the date of purchase, or if a claim has been paid within the first 30 days, You will receive a pro-rata refund of the Contract Fee, minus any paid claims and less an administrative fee not to exceed 10% of the Contract Fee.

KENTUCKY RESIDENTS ONLY:

This is not an insurance policy; APHW is backed by its Full Faith of Credit. The holder of this service contract shall be entitled to make a direct claim against the insurer upon the failure of the maker to pay any claim within 60 days after the claim has been filed with Philadelphia Indemnity Insurance Company, 4050 Crums Mill Road, Suite 201 Harrisburg, PA 17112. MISSOURI RESIDENTS ONLY:

Obligations of the provider under this service contract are backed only by the full faith and credit of the provider (issuer) and are not guaranteed under a reimbursement insurance policy.

This agreement does not cover any pre-existing defects. In order to qualify for coverage, potentially covered items must be fully operational and in satisfactory working condition upon occupancy of the home.

Cancellation and Refunds

Transfer of Coverage/Agreement

Use of Non-Original Manufacturer Parts

We will approve the use of non-original manufacturer parts in providing the services we are required to perform under this Agreement.

Use of Non-Original Manufacturer Parts

NEW JERSEY RESIDENTS ONLY:

We will approve the use of non-original manufacturer parts in providing the services we are required to perform under this Agreement.

You may cancel this Agreement by informing APHW of your cancellation request within 30 days of the purchase of the Agreement and you will receive a 100% refund of the full Agreement fee, provided no claims have been paid. If your cancellation request is made more than 30 days from the date of purchase, or if one or more claim has been paid, you will receive a pro rata refund of the Agreement fee, minus the amounts paid by APHW on claims.

COLORADO RESIDENTS ONLY:

This service contract may be covered by the provisions of the “Colorado Consumer Protection Act” or the “Unfair Practices Act”, articles 1 and 2 of title 6, C.R.S., and that a party to such a contract may have the right of civil action under such laws, including obtaining the recourse or penalties specified in such laws.

If you request cancellation of this Agreement within 30 days of the purchase date of the Agreement and the refund is not paid or credited within 45 days after cancellation of the Agreement to APHW, a 10% penalty will be added to the refund for every 30 days the refund is not paid.

GEORGIA RESIDENTS ONLY:

This is not a contract of insurance.

This Agreement does not cover consequential damages that result from a covered breakdown or normal wear and tear. This Agreement only provides coverage for one-family or two-family residential building structures. This Agreement also does not provide coverage for condominium units if they are within a building structure that houses more than two families.

Our obligations under this Agreement are insured under a Surety Bond issued by Philadelphia Indemnity Insurance Company, 4050 Crums Mill Road, Suite 201 Harrisburg, PA 17112. You are entitled to make a direct 8 of 12 - APHW0118425E

If APHW cancels this Agreement APHW must provide you with a written notice at least 5 days prior to cancellation at your last known address, with the effective date for the cancellation and the reason for the cancellation. Prior notice is not required if the reason for cancellation is nonpayment of the Agreement the or and material misrepresentation or substantial breach of duties by you relating to the covered property or its use. If APHW cancels, you will receive a pro rata refund of the Agreement the based upon length of the Agreement and the time the Agreement has been in effect as of the date of cancellation.

APHW will approve the use of refurbished, reconditioned, non-original manufacturer parts in performing our obligations under the Agreement.

APHW will not sell your information to third parties. Any third parties who perform services for us are required to protect any customer information and may only use it in connection with performing those services. We extensively secure and limit access to your information. We protect information about potential, current, and former APHW customers.

Obligations of the provider under this service contract are backed by the full faith and credit of the provider.

NEW MEXICO RESIDENTS ONLY: Cancellations and Refunds You may cancel this Agreement by informing Us of Your cancellation request within 30 days of the purchase of the Agreement and You will receive a 100% refund of the full Contract Fee of Your Agreement, provided no claims have been paid. If Your cancellation request is made more than 30 days from the date of purchase, or if a claim has been paid within the first 30 days, You will receive a pro-rata refund of the Contract Fee, minus any paid claims and less an administrative fee not to exceed 10% of the Contract Fee.

Information about our customers or former customers will only be disclosed as permitted or required by law. Information about you that has been collected is maintained in our home warranty Agreement records. We use this Information to process and service your Agreement; to service claims; with your consent; or as directed by you. We restrict access to your information to only APHW employees who we have determined need it in order to provide services to you. We train our employees to safeguard customer information, and we require them to sign confidentiality and non-disclosure agreements. We maintain strict physical, electronic, and procedural safeguards to protect your Information from unauthorized access by third parties.

If you request cancellation of this Agreement within thirty (30) days of the purchase date of the Agreement and the refund is not paid or credited within sixty (60) days after return of the Agreement to Us,a ten percent (10%) penalty will be added to the refund for every thirty (30) days the refund is not paid. This provision applies only to the original purchaser of the Agreement.

If you have a concern about privacy or security at America’s Preferred Home Warranty please let us know. Email us at aphwoffice@aphw.com or call us: 1.800.648.5006.

If We cancel this Agreement We must provide You with a written notice at least 15 days prior to cancellation at Your last known address, with the effective date for the cancellation and the reason for cancellation Prior notice is not required if the reason for cancellation is nonpayment of the Contract Fee or a material misrepresentation or substantial breach of duties by You relating to the covered property or its use. OHIO RESIDENTS ONLY: This contract is non-cancellable by buyer or person entitled to benefits under this contract. SOUTH CAROLINA RESIDENTS ONLY: This is not a contract of insurance. You may cancel this Agreement by informing Us of Your cancellation request within 30 days of the purchase of the Agreement and You will receive a 100% refund of the full Contract Fee of Your Agreement, provided no claims have been paid. If Your cancellation request is made more than 30 days from the date of purchase, or if a claim has been paid within the first 30 days, You will receive a pro-rata refund of the Contract Fee, minus any paid claims.

Supreme Home Warranty Agreement Information Seller’s coverage for the listing period starts the date the application is received and accepted by APHW and continues until closing or until the listing is cancelled, whichever occurs first. Buyer’s coverage begins at the close of sale and continues for One (1) year from that date (or 2 years if the 2 year plan is chosen), provided payment has been received by APHW within seven (7) business days after close of sale in order for coverage to be in force. See terms, conditions, and limitations within this agreement, located on pages 6-9 of this contract. The charges shown for principal dwelling and additional dwellings include the full amount of all fees, if any, payable to the real estate Broker and its agents for administering, processing and advertising.

Seller acknowledges by signature and/or payment, that he or she has read, understands and accepts this Supreme Home Warranty Agreement, including all Service Agreement Terms & Conditions on pages 6-9 and that the obligation of APHW to perform hereunder is conditional upon the truth and accuracy of statements made in these declarations and upon full performance of this Agreement by the Seller. The seller further acknowledges that any known pre-existing defects have been declared and that all systems for which coverage is provided are fully functional and in good, satisfactory operating condition and will be in good operating condition on the transfer date of coverage to the buyer and upon occupancy of the home and is obligated to pay the cost of this home warranty protection at closing. Seller Preferred Upgrade fee is due at closing. Seller understands and agrees that APHW reserves the right to request payment of the Seller Preferred Upgrade if service has been performed on an upgraded system or appliance in the event of listing expiration or cancellation of coverage.

If you have any questions regarding this Contract, or a complaint against the provider, you may contact the South Carolina Department of Insurance, 1201 Main St. Ste. 1000, Columbia, SC 29201 or Post Office Box 100105, Columbia, SC 29202-3105, or (800) 768-3467. Transfer of Coverage/Agreement If ownership of the covered premises changes during the contract term, you must notify APHW at 1.800.648.5006, within 30 days of property transfer for the contract to be transferred to the new owner of the covered premises. Use of Non-Original Manufacturer Parts We will approve the use of non-original manufacturer parts in providing the services we are required to perform under this Agreement. WASHINGTON RESIDENTS ONLY:

This contract is inapplicable to and does not provide services for items that are prohibited or excluded by Washington law.

Buyer acknowledges by signature and/or payment, that he or she has read, understands and accepts this Supreme Home Warranty Agreement, including all Service Agreement Terms and Conditions on pages 6-9 and the obligation of this Agreement by the seller and buyer that all systems are in good and satisfactory, operating condition on the transfer date of coverage to the buyer and upon occupancy of the home. 9 of 12 - APHW0118425E

Pricing Information Single Family Home - One Year:

$100 Deductible........................ $425 $50 Deductible........................ $460 Single Family Home - Two Year: $100 Deductible............................... $799 Condo/Townhouse Plan - One Year:

$75 Deductible............................... $399

New Construction Plan for Buyers - Three Years: $75 Deductible...........................................................................$550 Coverage begins 366 days after closing and continues for three years. Multi-family Unit Plans ($75 Deductible): Duplex (2 warranty agreements) ............................................$770 Triplex (3 warranty agreements) ......................................... $1,074 Fourplex (4 warranty agreements) ..................................... $1,380

Buyer Coverage Plans

STANDARD COVERAGE ITEMS

BUYER PREFERRED UPGRADE (Optional) | $140

Attic & Exhaust Fans

•

Built-in Dishwasher (Adds): • Racks, Baskets and Rollers

Built-In Microwave

•

Built-in Microwave (Adds): Interior Lining, Glass Door, Clocks and Shelves

•

Central Air (Adds): • Refrigerant Recovery, Cost of Crane, Registers & Grills

Built-In Dishwasher Built-In Oven

Central Air Conditioning Central Vacuum Duct Work

Electrical System

Free-Standing Range/Cooktop Garage Door Opener Garbage Disposal Heating System Hotel Benefits Humidifier

Instant Hot Water Dispenser

Permanently Installed Sump Pump Plumbing

Refrigerator

Roof Leak Repair Septic System Stoppages

Trash Compactor (built-in) Water Heater

Water Well Pump

• • • •

•

Ceiling Fan •

•

Central Heat (Adds): Registers, Grills and Heat Lamps

•

Garage Door Opener (Adds): • Hinges, Springs, Keypads and Remote Transmitters

•

Refrigerator (Adds): Refrigerant Recovery, Control Board, Ice Maker and Ice/Beverage Dispenser

• • •

•

Special Electrical Package (Adds): • Fire/Burglar Alarm, Lighting Fixtures, Doorbell

•

Toilets (Adds): • Replaced With Like Quality

•

Trash compactor (Adds): Lock and Key Assembly, Buckets

•

Oven/Range (Adds): Interior Lining, Clocks, Rotisseries, Racks, Handles, Knobs and Dials

•

Water Heater (Adds): Sediment Buildup

•

• • •

• •

$250 towards Code Violations •

IMPORTANT: If the Buyer Preferred Upgrade has been selected and the property is a multiple family dwelling, the upgrade package must be purchased for each unit.

Seller Coverage Plans STANDARD COVERAGE ITEMS ListSecure®

Attic & Exhaust Fans Central Vacuum Duct Work

Electrical System

Instant Hot Water Dispenser Plumbing

Stoppages

Trash Compactor (built-in) Water Heater

10 of 12 - APHW0118425E

•

SELLER PREFERRED UPGRADE (Optional) | $75 Built-In Dishwasher

•

Built-In Oven

•

Free-Standing Range/Cooktop

•

Heating System

• •

Built-In Microwave

•

Central Air Conditioning

•

Garbage Disposal

•

Refrigerator

•

• • • • • • 36

Optional Coverages

Buyer Preferred Upgrade................ $140 Seller Preferred Upgrade....................$75

Pool/Spa............................................. $185 Premium/Salt Water Pool/Spa........ $345 Jetted Bathtubs................................. $125 Clothes Washer & Dryer.....................$85 Water Softener.....................................$85

Contract No: ____________________________________________________________

IMPORTANT: FOR SERVICE CALL: 1.800.648.5006. NO PAYMENT OR REIMBURSEMENT FOR SERVICES PERFORMED WITHOUT PRIOR APPROVAL. ~ Please be sure to fill in all applicable areas of information. ~ Seller’s Name Property Address No. & Street City

State

County

Zip

Phone #

HOUSING TYPE (Please Check One) Single/Family Condo/Townhouse Duplex (2 warranties) Triplex (3 warranties) Fourplex (4 warranties) New Home Construction Manufactured Home Year Manufactured: ___________ Foreclosed/Repossessed Home** **See Terms and Conditions “General #9” PLAN OPTIONS (Please Check One) Buyer’s Premier Coverage Plan............................ $685 Standard Coverage Items + Buyer Preferred Upgrade + Washer & Dryer Coverage + $50 Deductible

Seller’s E-mail

Buyer’s Name Phone #

Single Family - One Year: $100 Deductible....................................................... $425 $50 Deductible....................................................... $460

Buyer’s E-mail

Single Family - Two Year: $100 Deductible....................................................... $799 Condo/Townhouse Plan - One Year: $75 Deductible....................................................... $399

Real Estate Office Address City

State

Phone #

Fax #

Real Estate Agent

Agent’s E-mail

Closing Date

Listing date

Zip

BOTH PARTIES AGREE THAT THE OBLIGATIONS FOR REPAIR OR SERVICE UNDER THIS AGREEMENT ARE SOLELY THOSE OF THE SERVICE PROVIDER AND ARE NOT THE OBLIGATION OF ANY REAL ESTATE FIRM. SEE ADDITIONAL TERMS AND CONDITIONS ON THE PREVIOUS PAGES.

SELLER AND BUYER ACKNOWLEDGE BY SIGNATURE OR PAYMENT THAT HE OR SHE HAS READ, UNDERSTANDS AND ACCEPTS THIS SUPREME HOME WARRANTY AGREEMENT INCLUDING ALL SERVICE AGREEMENT TERMS AND CONDITIONS. Seller(s) Signature(s) X ____________________________________ Date ________________ X ____________________________________ Date ________________ Buyer(s) Signature(s) X ____________________________________ Date ________________ X ____________________________________ Date ________________ WAIVER

Applicant has reviewed the Supreme Home Warranty Agreement and hereby declines coverage. Applicant agrees to hold the real estate broker and agent harmless in the event of a significant mechanical failure which otherwise would have been covered under the Supreme Home Warranty Agreement. Seller(s) Signature(s) X ____________________________________ Date ________________ Buyer(s) Signature(s) X ____________________________________ Date ________________ 37

New Construction Plan for Buyers - Three Years: $75 Deductible....................................................... $550 Coverage begins 366 days after closing and continues for three years. Multi-family Unit Plans ($75 Deductible): Duplex (2 warranty agreements) ............................. $770 Triplex (3 warranty agreements) ........................... $1,074 Fourplex (4 warranty agreements) ....................... $1,380 BUYER COVERAGE OPTIONS (Check All That Apply) 0 Buyer Preferred Upgrade......$140 x ___ yrs. = $______

Important: If the Buyer Preferred Upgrade has been selected and the property is a multiple family dwelling, the upgrade package must be purchased for each unit. Pool/Spa..................................$185 x Premium Salt Water/Pool/Spa...............$345 x Jetted Bathtub........................$125 x Clothes Washer & Dryer..........$85 x Water Softener..........................$85 x

0 ___ yrs. = $______ 0 ___ yrs. = $______ 0 ___ yrs. = $______ 0 ___ yrs. = $______ 0 ___ yrs. = $______

SELLER’S COVERAGE Seller Preferred Upgrade............................................ $75 $ 0.00 Plan Cost(s)................................. $_____________________ $ 0.00 Option Cost(s)............................ $_____________________ $ 0.00 Total........................................ $_____________________

PLEASE REMIT PAYMENT TO:

AMERICA’S PREFERRED HOME WARRANTY

PO BOX 772150 | DETROIT, MI 48277-2150 SUBMIT 11 of 12 - APHW0118425E

5775 Ann Arbor Rd. Jackson, MI 49201 T: 800.648.5006 F: 888.479.2652 aphwoffice@aphw.com www.aphw.com

DATA COLLECTION FORM Property Information Home Warranty Contract Number (Required):_______________________________ 5775 Ann Arbor Rd. Jackson, MI 49201 T: 800.648.5006 F: 888.479.2652 aphwoffice@aphw.com aphw.com

This form must be submitted within 60 days of closing.

Address: ________________________________________________________________ City: ______________________________ State: ______________ Zip:___________ Client’s Name: ___________________________________________________________ Client’s E-mail: __________________________________________________________ Client’s Phone: __________________________________________________________ Closing Date: ____________________________________________________________ Was this property professionally inspected?

Yes

Date of Inspection: _______________________________________________________

Housing Information Single Family

Condo

Duplex

Triplex

Fourplex

Manufactured

New Home Construction Foreclosure/Bank Owned Number of Beds/Bath:_______ /_________ House Size:_____________ sq. ft. Garage Type:

None

1 Car

2 or More

Equipment Information Primary System/Appliance

Brand Name

Range

_________________________________

Furnace/Heat Source

_________________________________

Air Conditioner

_________________________________

Water Heater

_________________________________

Refrigerator

_________________________________

Dishwasher

_________________________________

Agent Information Name: __________________________________________ Date:_________________ Real Estate Office:________________________________________________________ City: ____________________________________________ State: ________________ E-mail: __________________________________________________________________

SUBMIT SUBMIT

Revised 1217

Enjoy “Living” in Your New Home We know how frustrating it can be when an appliance or home system breaks down shortly after you’ve moved into your new home. During those situations our home warranty offers you:

Security We will pay towards your covered repair costs, leaving money in your pocket. Our warranty is also renewable, making it an effective tool for managing your yearly repair budget.

Control YOU CHOOSE your own licensed contractor to make any covered repair.

Easy Claims Our person-to-person 24/7/365 Fast & Easy Claims Service will always be there to assist you.

Results From our homeowners:

89%

Felt it is important to be able to Choose Their Own Licensed Contractor rate their 90% Would chosen Contractor

as “Professional”

their Contractor

“Satisfied” with 93% Were the work done by Source: APHW 2017 Customer Satisfaction Survey

Insist that our Home Warranty be included with your contract! America’s Preferred Home Warranty, Inc. 800.648.5006 | APHW.COM 40

Sell Your Home Faster & Easier Add our warranty to your listing when you first put it on the market

It Gives Your Listing A Competitive Advantage Providing a warranty shows you stand behind your home. Buyers like that.

It Keeps Your Deal Together Your home buyer is purchasing a previously lived in home. Your appliances and home systems are now “used” equipment. Should one or more of those items break down after the buyer moves in, they have “peace of mind” knowing they have a home warranty.

It Could Get You A Better Offer Studies show that homes listed with a home warranty generally sell for more money.

It Prevents Post Sale Headaches When your home buyer has an appliance/ system breakdown after moving in, they CALL US ... NOT YOU.

It Provides Post Sale Legal Protection If you add our warranty when you first list your home, you have our LISTSECURE® coverage at no additional cost. It provides you with two years of additional legal protection, up to $1,000. (Terms and conditions do apply)

Our coverage is complimentary for the length of your listing (no expiration date). You don’t pay us until your home sells. Add our SELLER’S PREFERRED UPGRADE for a nominal fee. It provides HVAC and more kitchen appliance coverages.

America’s Preferred Home Warranty, Inc. 800.648.5006 | APHW.COM 41

hen you provide a homeowner with the Freedom to Choose Their Own Licensed Contractor, you give them: • A contractor who works for them, not the warranty company • An independent third party evaluation

• A claims process that is personalized, fast and easy An APHW home warranty offers these and many other benefits. It will also be a powerful tool for increasing your sales. Give it a try, you won’t be disappointed! Contact your Area Sales Manager today to learn more.

Jeff Sebastian, Area Sales Manager C: 586.922.7423 | F: 888.479.2652 jsebastian@ aphw.com 43

aphw.com

WEST MICHIGAN REGIONAL PURCHASE AGREEMENT # DATE:

(time)

MLS #

SELLING OFFICE:

BROKER LIC.#:

REALTOR® PHONE:

LISTING OFFICE:

REALTOR® PHONE:

Email:

Lic.#:

Alternate Selling Agent Name: Email: Lic.#: 3. Seller’s Disclosure Statement: (This paragraph applies to sales of one-to-four family residential units.) Buyer has received Seller’s Disclosure Statement, dated . Seller certifies to Buyer that the Property is currently in the same condition as Seller previously disclosed in that statement. Seller agrees to inform Buyer in writing of any changes in the content of the disclosure statement with respect to the structural/mechanical/appliance systems prior to closing. Buyer has not received Seller’s Disclosure Statement. Buyer may terminate this Agreement, in writing, any time prior to receipt of the Seller’s Disclosure Statement. Once Buyer has received the Seller’s Disclosure Statement, Buyer may terminate this Agreement, in writing, within 72 hours of receipt if the disclosure was received in person, or within 120 hours if received by registered mail. Exceptions: 4. Lead-Based Paint Addendum: Transactions involving homes built prior to 1978 require a written disclosure which is hereby attached and will be an integral part of this Agreement. 5. Property Description: Buyer offers to buy the property located in the City Village Township of , County, Michigan, commonly known as St./Ave., Zip Code, with the following legal or tax description:

PP#

The following paragraph applies only if the Premises include unplatted land: Seller agrees to grant Buyer at closing the right to make (insert number) division(s) under Section 108(2), (3), and (4) of the Michigan Land Division Act. (If no number is inserted, the right to make divisions under the sections referenced above stays with any remainder of the parent parcel retained by Seller. If a number is inserted, Seller retains all available divisions in excess of the number stated; however, Seller and/or REALTOR® do not warrant that the number of divisions stated is actually available.) If this sale will create a new division, Seller’s obligations under this Agreement are contingent on Seller’s receipt of municipal approval on or before , of the proposed division to create the Premises. 6. Purchase Price: Buyer offers to buy the Property for the sum of $ U.S. Dollars 7. Seller Concessions, if any: 8. Terms: The Terms of Purchase will be as indicated by “X” below: (Other unmarked terms of purchase do not apply.) SOURCE OF FUNDS TO CLOSE: Buyer represents that the funds necessary to close this transaction on the terms specified below are currently available to Buyer in cash or an equally liquid equivalent. If the Property’s value stated in an appraisal obtained by Buyer or Buyer’s lender is less than the Purchase Price, Buyer shall within three (3) days after receipt of the appraisal: 1) renegotiate with the Seller, 2) terminate the transaction, in which case Buyer shall receive a refund of Buyer’s Good-Faith Deposit, or 3) proceed to close the transaction at the agreed Purchase Price. CASH. The full Purchase Price upon execution and delivery of Warranty Deed. Buyer Agrees to provide Buyer Agent/Dual Agent verification of funds within five (5) days after the Effective Date, and consents to the disclosure of such information to Seller and/or Seller’s Agent. Any appraisal required by Buyer shall be arranged and paid for by Buyer within ten (10) days after the Effective Date of this Agreement. NEW MORTGAGE. The full Purchase Price upon execution and delivery of Warranty Deed, contingent upon Buyer’s ability to obtain a type (year) mortgage in the amount of % of the Purchase Price bearing interest at a rate not to exceed % per annum (rate at time of loan application), on or before the date the sale is to be closed. Buyer agrees to apply for a mortgage loan, and pay all fees and costs customarily charged by Buyer’s lender to process the application, within days after the Effective Date, not to impair the Buyers’ credit after the date such loan if offered. Seller Buyer will agree to pay an amount not to exceed $ representing repairs required as a condition of financing. Buyer agrees does not agree to authorize ©Copyright, West Michigan REALTOR® Associations Page 1 of 6 Revision Date 2/19

Buyer’s Initials

Seller’s Initials

West Michigan Regional Purchase Agreement

Page 2 of 6

Buyer’s Agent/Dual Agent to obtain information from Buyer’s lender regarding Buyer’s financing, and consents to the disclosure of this information to Seller and/or Seller’s Agent. Exceptions: SELLER FINANCING (check one of the following):

CONTRACT or

PURCHASE MONEY MORTGAGE

9. Contingencies: The Buyer’s obligation to consummate this transaction (check one): IS NOT CONTINGENT - is not contingent upon the sale or exchange of any other property by Buyer. IS CONTINGENT UPON CLOSING - is contingent upon closing of a sale or exchange of Buyer’s property located at: on or before . A copy of Buyer’s agreement to sell or exchange that property is being delivered to Seller along with this offer. IS CONTINGENT UPON THE SALE AND CLOSING - is contingent upon the execution of a binding agreement and the closing of a sale or exchange of Buyer’s property located at on or before . Seller will have the right to continue to market Seller’s Property until Buyer enters into a binding agreement to sell or exchange Buyer’s property and delivers a copy thereof to Seller. During such marketing period, Seller may enter into a binding contract for sale to another purchaser on such price and terms as the Seller deems appropriate. In such event, this Agreement will automatically terminate, Buyer will be notified promptly, and Buyer’s deposit will be refunded. Exceptions: 10. Fixtures & Improvements: The following is not intended to be an all-inclusive list of items included with the Property. All improvements and appurtenances are included in the Purchase Price, if now in or on the Property, including the following: all buildings; landscaping; attached smart home devices; lighting fixtures and their shades and bulbs; ceiling fans; hardware for draperies and curtains; window shades and blinds; built-in kitchen appliances, including garbage disposal and drop-in ranges; wall to wall carpeting, if attached; all attached mirrors; all attached TV mounting brackets; all attached shelving; attached work benches; stationary laundry tubs; water softener (unless rented); water heater; incinerator; sump pump; water pump and pressure tank; heating and air conditioning equipment (window units excluded); attached humidifiers; heating units, including add-on heating stoves and heating stoves connected by flue pipe; fireplace screens, inserts, and grates; fireplace doors, if attached; liquid heating and cooking fuel tanks if owned by Seller; TV antenna and complete rotor equipment; satellite dish and necessary accessories and complete rotor equipment; all support equipment for inground pools; screens and storm windows and doors; awnings; installed basketball backboard, pole and goal; mailbox; flagpole(s); fencing, invisible inground fencing and all related equipment, including collars; detached storage buildings; underground sprinkling, including the pump; installed outdoor grills; all plantings and bulbs; garage door opener and control(s); and any and all items and fixtures permanently affixed to the Property; and also includes:

but does not include:

Date Buyer’s Initials

Time Seller’s Initials

West Michigan Regional Purchase Agreement

Page 3 of 6

(Choose one): Seller will pay taxes billed summer Seller will pay taxes billed winter

(year); (year);

Calendar Year Proration (all taxes billed or to be billed in the year of the closing). Calendar year tax levies will be estimated, if necessary, using the taxable value and the millage rate(s) in effect on the day of closing, broken down to a per diem tax payment and prorated to the date of closing with Seller paying for January 1 through the day before closing. Fiscal Year Proration - Taxes will be prorated as though they are paid in (choose one): advance. arrears. Fiscal Year will be assumed to cover a 12-month period from date billed, and taxes will be prorated to the date of closing. Fiscal year tax levies will be estimated, if necessary, using the taxable value and millage rate(s) in effect on the day of closing, broken down to a per diem tax payment and prorated to the date of closing with Seller paying through the day before closing. Exceptions: 14. Well/Septic: Within ten (10) days after the Effective Date, the Seller will arrange for, at Seller’s expense, an inspection of the primary well used for human consumption (including a water quality test for coliform bacteria and nitrates) and septic systems in use on the Property. The inspection will be performed by a qualified inspector in a manner that meets county (or other local governmental authority, if applicable) protocol. Seller will also follow any governmental rules regarding pumping of tanks. Where no county or government protocol is in place, Seller will arrange for, at Seller’s expense, well and septic inspections (as referenced above) by a qualified inspector and Seller will have the septic tank(s) pumped at Seller’s expense. If any report discloses a condition unsatisfactory to Buyer, or doesn’t meet county standards that are a condition of sale, Buyer may, within three (3) days after Buyer has received the report, by written notice to Seller, either terminate this Agreement and receive a refund of Buyer’s good-faith deposit, or make a written proposal to Seller to correct those unsatisfactory conditions. If Buyer fails to make a written proposal within the above referenced time period, then Buyer will be deemed to have accepted the well/septic as-is. Seller will respond in writing within three (3) days to Buyer’s request. If Seller fails to respond or to arrive at a mutually agreeable resolution within three (3) days after Seller’s receipt of Buyer’s proposal, Buyer will have three (3) days to provide written notice of termination of this Agreement and receive a refund of any applicable good-faith deposit. If Buyer fails to terminate the contract, Buyer will proceed to closing according to the terms and conditions of this Agreement. Exceptions: 15. Inspections & Investigations: Inspections: Buyer, or someone selected by Buyer, has the right to inspect the buildings, premises, components and systems, at Buyer’s expense. Any damage, misuse, abuse, or neglect of any portion of the Property or premises as a result of inspections will be Buyer’s responsibility and expense. In the event of VA financing, Seller will pay for the inspection for termites and other wood destroying insects. Investigations: It is Buyer’s responsibility to investigate (i) whether the Property complies with applicable codes and local ordinances and whether the Property is zoned for Buyer’s intended use; (ii) whether Buyer can obtain a homeowner’s insurance policy for the Property at price and terms acceptable to Buyer; (iii) and whether or not the Property is in a flood zone. All inspections and investigations will be completed within ten (10) days after the Effective Date. If the results of Buyer’s inspections and investigations are not acceptable to Buyer, Buyer may, within the above referenced period, by written notice to Seller, either terminate this Agreement and receive a refund of Buyer’s good-faith deposit, or make a written proposal to Seller to

Date Buyer’s Initials

Time Seller’s Initials

West Michigan Regional Purchase Agreement

Page 4 of 6

correct those unsatisfactory conditions. If Buyer fails to make a written proposal within the above referenced time period, then Buyer will be deemed to have accepted the Property as-is. Seller may negotiate with Buyer, or by written notice to Buyer, accept Buyer’s proposal or terminate this Agreement. If Seller fails to respond, or to arrive at a mutually agreeable resolution within three (3) days after Seller’s receipt of Buyer’s proposal, Buyer shall have three (3) days to provide written notice of termination of this Agreement and receive a refund of any applicable good-faith deposit. If Buyer fails to terminate this Agreement within said three (3) day period, Buyer will be deemed to accept the Inspections & Investigations and will proceed to closing according to the terms and conditions of this Agreement. Buyer has waived all rights under this Inspections & Investigations paragraph. 16. Municipal Compliances: The Seller will arrange and pay for current certificates of occupancy, sidewalk compliance, and smoke detector ordinances, if applicable. 17. Title Insurance: Seller agrees to convey marketable title to the Property subject to conditions, limitations, reservation of oil, gas and other mineral rights, existing zoning ordinances, and building and use restrictions and easements of record. An expanded coverage ALTA Homeowner’s Policy of Title Insurance in the amount of the Purchase Price shall be ordered by Seller and furnished to Buyer at Seller’s expense, and a commitment to issue a policy insuring marketable title vested in Buyer, including a real estate tax status report, will be made available to Buyer within ten (10) days after the Effective Date. If Buyer so chooses, or if an expanded policy is not applicable, then a standard ALTA Owners’ Policy of Title Insurance shall be provided. If Buyer objects to any conditions, Buyer may, within three (3) days of receipt of the Title Commitment, by written notice to Seller, either terminate this Agreement and receive a refund of Buyer’s good-faith deposit, or make a written proposal to Seller to correct those unsatisfactory conditions. If Buyer fails to make a written proposal within the above referenced time period, then Buyer will be deemed to have accepted the Title Commitment as-is. Seller may negotiate with Buyer, or by written notice to Buyer, accept Buyer’s proposal or terminate this Agreement. If Seller fails to respond, or to arrive at a mutually agreeable resolution within three (3) days after Seller’s receipt of Buyer’s proposal, Buyer shall have three (3) days to provide written notice of termination of this Agreement and shall receive a refund of any applicable good-faith deposit. If Buyer fails to terminate this Agreement within said three (3) day period, Buyer will be deemed to accept the Title Commitment as-is and will proceed to closing according to the terms and conditions of this Agreement. Exceptions:

18. Property Survey: Broker advises that Buyer should have a survey performed to satisfy Buyer as to the boundaries of the Property and the location of improvements thereon. Buyer Seller (check one) shall obtain and pay for a boundary survey, certified to Buyer, with iron corner stakes and with improvements and easements located on a map of survey. No survey. When closing occurs, Buyer shall be deemed to have accepted the boundaries of the Property and the location of such improvements thereon. Exceptions:

19. Home Protection Plan: Buyer and Seller have been informed that home protection plans may be available. Such plans may provide additional protection and benefit to the parties. Exceptions: 20. Prorations: Rent; association dues/fees, if any; insurance, if assigned; interest on any existing land contract, mortgage or lien assumed by Buyer; will all be adjusted to the date of closing. 21. Closing: If agreeable to both parties, the sale will be closed as soon as closing documents are ready, but not later than . An additional period of fifteen (15) days will be allowed for closing to accommodate the correction of title defects or survey problems which can be readily corrected, or for delays in obtaining any lender required inspections/repairs. During this additional period, the closing will be held within 5 days after all parties have been notified that all necessary documents have been prepared. Buyer and Seller will each pay their title company closing fee, if applicable, except in the case of VA financing where the Seller will pay the entire closing fee. Exceptions: 22. Possession: Seller will maintain the Property in its present condition until the completion of the closing of the sale. Possession to be delivered to Buyer, subject to rights of present tenants, if any. At the completion of the closing of the sale. At a.m. p.m. on the day after completion of the closing of the sale, during which time Seller will have the privilege to occupy the Property and hereby agrees to pay the Buyer $ as an occupancy fee for this period payable at closing, WITHOUT PRORATION. Payment shall be made in the form of cash or certified funds. If Seller fails to deliver possession to Buyer on the agreed date, Seller shall become a tenant at sufferance and shall pay to Buyer as liquidated damages $ per day plus all of the Buyer’s actual reasonable attorney's fees incurred in removing the Seller from the Property.

Date Buyer’s Initials

Time Seller’s Initials

West Michigan Regional Purchase Agreement

Page 5 of 6

If Seller occupies the Property after closing, Seller will pay all utilities during such occupancy. Buyer will maintain the structure and mechanical systems at the Property. However, any repairs or replacements necessitated by Seller’s misuse, abuse, or neglect of any portion of the Property will be Seller’s responsibility and expense. On the agreed delivery date, Seller shall deliver the Property free of trash and debris and in broom-clean condition, shall remove all personal property (unless otherwise stated in this or an additional written agreement), shall make arrangements for final payment on all utilities, and shall deliver all keys to Buyer. Exceptions: 23. Good-Faith Deposit: For valuable consideration, Buyer gives Seller until (time) on _____________________________ (date), to deliver the written acceptance of this offer and agrees that this offer, when accepted by Seller, will constitute a binding Agreement between Buyer and Seller. A Good-Faith Deposit in the amount of $______________________ shall be submitted to________________________________(insert name of broker, title company, other) within 72 hours of the Effective Date of this Agreement, and shall be applied against the Purchase Price. If the Good-Faith Deposit is not received within 72 hours of the Effective Date or is returned for insufficient funds, Seller may terminate this Agreement until such time as the Good-Faith Deposit is received. If Seller terminates this Agreement under this provision, Seller waives any claim to the Good-Faith Deposit. If this offer is not accepted or if the sale is not closed due to a failure to satisfy a contingency for a reason other than the fault of Buyer, the good-faith deposit shall be refunded to Buyer. If the sale is not closed as provided in this Agreement, the Broker holding the deposit will notify Buyer and Seller, in writing, of Broker’s intended disposition of the deposit. If the parties do not object to such disposition in writing within fifteen (15) days after the date of Broker’s notice, they will be deemed to have agreed to Broker’s proposed disposition; if a party objects and no mutually agreeable disposition can be negotiated, Broker may deposit the funds by interpleader with a court of proper jurisdiction or await further actions by the parties. In the event of litigation involving the deposit, in whole or in part, either the Seller or the Buyer that is not the prevailing party, as determined by the court, will reimburse the other for reasonable attorneys’ fees and expenses incurred in connection with the litigation, and will reimburse the Broker for any reasonable attorneys’ fees and expenses incurred in connection with any interpleader action instituted. 24. Professional Advice: Broker hereby advises Buyer and Seller to seek legal, tax, environmental and other appropriate professional advice relating to this transaction. Broker does not make any representations or warranties with respect to the advisability of, or the legal effect of this transaction. Buyer further acknowledges that REALTOR® above named in the Agreement hereby recommends to Buyer that an attorney be retained by Buyer to pass upon the marketability of the title and to ascertain that the required details of the sale are adhered to before the transaction is consummated. Buyer agrees that Buyer is not relying on any representation or statement made by Seller or any real estate salesperson (whether intentionally or negligently) regarding any aspect of the Property or this sale transaction, except as may be expressly set forth in this Agreement, a written amendment to this Agreement, or a disclosure statement separately signed by the Seller. 25. Disclosure of Information: Buyer and Seller acknowledge and agree that the Purchase Price, terms, and other details with respect to this transaction (when closed) are not confidential, will be disclosed to REALTORS® who participate in the applicable Multiple Listing Service, and may otherwise be used and/or published by that Multiple Listing Service in the ordinary course of its business. 26. Other Provisions:

27. Mergers and Integrations: This Agreement is the final expression of the complete agreement of the parties and there are no oral agreements existing between the parties relating to this transaction. This Agreement may be amended only in writing signed by the parties and attached to this Agreement. 28. Fax/Electronic Distribution and Electronic Signatures: The parties agree that any signed copy of this Agreement, and any amendments or addendums related to this transaction, transmitted by facsimile or other electronic means shall be competent evidence of its contents to the same effect as an original signed copy. The parties further agree that an electronic signature is the legal equivalent of a manual or handwritten signature, and consent to use of electronic signatures. 29. Wire Fraud: Seller and Buyer are advised that wire fraud is an increasingly common problem. If you receive any electronic communication directing you to transfer funds or provide nonpublic personal information (such as social security numbers, drivers’ license numbers, wire instructions, bank account numbers, etc.), even if that electronic communication appears to be from the Broker, Title Company, or Lender, DO NOT reply until you have verified the authenticity of the email by direct communication with Broker, Title Company, or Lender. DO NOT use telephone numbers provided in the email. Such requests may be part of a scheme to steal funds or use your identity. 30. Buyer’s Acknowledgment: Buyer hereby acknowledges receipt of a copy of this Agreement. Buyer 1 Address Buyer 1 Phone: (Res.)

Buyer

(Bus.) Print name as you want it to appear on documents.

Buyer 2 Address Buyer 2 Phone: (Res.)

Buyer

(Bus.) Print name as you want it to appear on documents.

Date Buyer’s Initials

Time Seller’s Initials

West Michigan Regional Purchase Agreement

31. Seller’s Acceptance: The Above Offer is Hereby Accepted: DATE:

Page 6 of 6

As written.

(time)

As written except:

Counteroffer, if any, expires , at (time). Seller has the right to withdraw this counter offer and to accept other offers until Seller or Seller’s Agent has received notice of Buyer’s acceptance. 32. Certification of Previous Disclosure Statement: Seller certifies to Buyer that the Property is currently in the same condition as disclosed in the Seller’s Disclosure Statement dated______________ (check one): Yes No. Seller agrees to inform the Buyer in writing of any changes in the content of the disclosure statement prior to closing. 33. Notice to Seller: Seller understands that consummation of the sale or transfer of the Property described in this Agreement will not relieve the Seller of any liability that Seller may have under the mortgages to which the Property is subject, unless otherwise agreed to by the lender or required by law or regulation. The parties to the transaction are advised that a Notice to Seller & Buyer of Underlying Mortgage form is available from the respective agents via the West Michigan REALTOR® Boards. 34. Listing Office Address:

Listing Broker License # ________________________

Listing Agent Name:

Listing Agent License # ________________________

35. Seller’s Acknowledgment: Seller has read this Agreement and acknowledges receipt of a copy. X

Seller U.S. Citizen?

Yes

No*

Print name as you want it to appear on documents.

Seller’s Address X

Seller U.S. Citizen?

Seller’s Phone: (Res.)

Yes

No*

(Bus.) Print name as you want it to appear on documents.

*If Seller(s) is not a U.S. Citizen, there may be tax implications and Buyer and Seller are advised to seek professional advice.

DATE:

(time)

36. Buyer’s Receipt/Acceptance: Receipt is hereby acknowledged by Buyer of Seller’s acceptance of Buyer’s offer. In the event the acceptance was subject to certain changes from Buyer’s offer, Buyer agrees to accept said changes, all other terms and conditions remaining unchanged. X Buyer X DATE:

Buyer ,

37. Seller’s Receipt: Seller acknowledges receipt of Buyer’s acceptance of counter offer. X

Seller

Subject Property Address/Description

Seller

Date

(time)

Time

COVERING: Keeping you on task with checklists and good practices for your business. We will discuss, the steps in ordering title, what you need before close, scheduling the closing, keeping yourself organized, how smooth transactions equals more business, and keeping yourself sharp. BONUS: A practical checklist you can start using now!

Presented by : Chicago Title

Chicago Title Steps in Ordering Title 1. How to order title work. a. Once you receive the Purchase agreement and all required documents for your front desk you can turn it into Chicago Title as well WITH a Pending transaction Sheet or any additional information you think we may need. You can turn it in via: i. EMAIL, you can send them directly to your main contact at the Chicago Title office or Email address: ____________________________ ii. DOTLOOP- Share your Loop with us, you can even send with the pending sheet! We LOVE DOTLOOP 2. After it’s entered you will receive an email that we are working on it! a. Central Processing Unit (CPU) will now start to work on any searches to be done. These different searches could be: i. OFAC, bankruptcy, names pertaining to the sale agreement, tax searches and legal description/property searches. 3. These searches create the title package which is sent to our examining team. They then review the file and the commitment is typed and sent out. 4. What information do you need to give us? WE LOVE information so the more you can give us the better. Common Items we will ask for: (HINT USE a Transaction report/ Pending Sheet, when you fill it out most of our requests are on there.) a. Is there is an Admin fee and what is the expected commission (usually this is already on a Pending sheet)

b. Include Copy of EMD c. Who is the Lender, we will need contact information. i. A copy of their pre-approval letter is a good start. 1. Have they been given the PA also, and have they started on their end. Also make sure they know our contact information as well. ii. Ask whom the other side is using for Title work, would they like to close with you? Tell them how wonderful the title company you use is! Be proud. Don’t feel strong armed into using someone you don’t want to. If not us then whom should we contact? iii. If you know ahead of time that they have a mortgage(s) on the property, have the payoff Authorization form completed ahead of time. (These have to be wet signatures) We can send you a blank electronic one at any time, or keep a copy! iv. Please specify if there may have been a death affecting title, we will not always know that and it will save a revision if we know up front. v. Any addendums that affect the purchase agreement or will affect the settlement statement. We will need these throughout the entire process. 60

ChicagoTitle What you need before close Once you receive the Title Commitment… REVIEW it. If you are unsure of what to look for we can help you become familiar with it! This is a very powerful tool you are given and can make or break a smooth transaction. Most of what you learn in our Title 101 con-ed class will guide you on how to clear the seller’s title. Ask Questions! Learn about the process this will only help you become a great agent! 1. A Few common requirements to note on the Commitment a. Buyer and seller names correct Are they spelled correctly on the title commitment do they match the PA you have? b. Contract sale price correct This is reflected on the invoice that is sent with the title commitment c. Release of Liens what are they and will they be requiring a Payoff Authorization or will they be obtaining themselves. d. Back taxes owed or large assessments -are there any due currently? These will be paid at close and are your sellers aware of what is due? e. Buying or selling in a trust i. For the seller, our requirement for Trust is a Certificate of Trust Existence and Authority COTEA dated within 1 year of the close date. This GETS recorded so we need an original. The sooner you have them started on this the better. f. Divorce Did they own the home while they were married and have been divorced? Have they recently been or are they getting divorced? i. 9 times out of 10 we will need the Judgement of Divorce or the Divorce Decree, best to ask them for a copy or have them be prepared should we need one. Even if the spouse is not in title currently but they owned the home together we will need to see it g. Current address what are the Sellers/Buyers addresses. h. Condo/Home Owners Association- who is the contact? We will ALWAYS need to know if there is one and obtain a disclosure, and you should know when there is too. i. New Construction- Completed or to be completed additional docs (check with your title contact) i. Certificate of Occupancy (Completed only), Survey, Sworn Statements and all Lien waivers j. Death- if someone in title has passed away most likely we will need the Death Certificate and in some cases if there are no rights of survivorship we will need the Letters of Authority for the deceased’s Estate (Probate) k. Incorporated sellers/buyers- additional documentation will be needed i. operating agreement, with resolution of members, file stamped copy of Articles of Organization, Certificate of good standing with the state they are filed in l. Legal Guardianship/Conservatorship additional documentation is required and the letter from the court stating it is ok to sell. m. Mobile home/ Manufactured home- Green title required if it has not already been retired. n. Survey is required when: it is on water/ new construction/ and vacant land over 25 acres 61

ChicagoTitle What you need before close contâ&#x20AC;&#x2122;d Few Common requirements to note on the purchase agreement that we will be reviewing and asking for: 1. Addendums-If there are any changes to the PA we should have that on file, be sure we get a copy 2. Earnest Money Deposit-copy, hopefully it has already been sent in with the order 3. Well and or Septic- make sure it is done and send to us when you get it. Note some counties will not allow the property to be transferred/closed until they have that completed and approved. There can also be fees that are incurred from the county if that is not completed prior to the transfer of ownership. 4. Inspections - only time we need to see inspection report is if we are to pay that out at close. a. We would need the invoice and report. b. When the VA requires termite inspection we do require that report and the invoice if it is to be paid outside of close. 5. Survey- If one is checked to be done on the PA we will ask you for it. a. If we do not receive one we will have them sign a survey waiver at close. 6. Home Warranty- If this is part of the purchase agreement we will need a copy and it MUST have the Contract Number. a. This falls under invoices. Also, let us know who is paying for it. Buyer/seller /agent? 7. RENT/Leased property If there are any additional prorationâ&#x20AC;&#x2122;s/ or credits to be done? a. You are responsible in letting us know the amounts and how it is prorated. Unless it is on the purchase agreement, we would not know. b. In addition, it is good to note that not all lenders allow this to be on the closing disclosure and this may have to be handled outside of closing. 8. Invoices that need to be paid at close. a. Anything that is pertaining to the sale of the property can be shown and paid out at closing. b. We do require an invoice or if you are to be reimbursed, a receipt of proof it has been paid.

ChicagoTitle Scheduling the Closing Who will let me know when I can schedule?  You can officially schedule the closing once you receive the clear to close- from either your lender or the Selling agent.

 You can schedule a “Hold” without the clear to close.

 BE SURE to let the other side know when you schedule.

How far in advance should we schedule?  As a rule of Thumb, we require at LEAST 48hrs notice to schedule a closing. With TRID in place, we have had this requirement be up to 5 business days. The SOONER THE BETTER! Whom do we contact?  Contact the Specific office you would like to close at or your point of contact that you have been given.  Please note that we may not have the time you need open at certain times of the month. Month ends and Fridays are VERY popular and we may need a few options that your clients can be available. Receiving your Settlement Statement.  We do not provide the CD to the buyer, which is done by their lender. We will send out your settlement statement just as soon as we can. We do rely on other parties for information in order to put together these statements and as soon as that is complete and approved, will be sent to you. You can review it with your 63 client.

ChicagoTitle Keeping yourself organized VERSUS Post it note style- Jot it down where ever Or Checklist- organized method for incoming information  How are you maintaining your business flow now?  Do you have a structured plan set for each day?  Are you managing your time wisely?  Are you meeting any of your goals, do you even know?  What habits do I need to change in order to encourage a smooth transaction  How to make this happen now! Using a checklist for the repetitive tasks will help reduce errors and missed deadlines! As agents, you have a lot of information coming at you at once. You have specific time constraints to make sure items are completed. So be sure you stay on top of them!

ChicagoTitle Smooth Transactions =Business! 1. Be Proactive  Be driven by values not just emotions  Give yourself the ability to choose your response and take the initiative for the positive  Start creating good habits 2. Begin with the End in Mind (Life centers etc.)  “To best accomplish my task I must know where I am going to need to be”  Your responsibility to who, when, what, why, how  Simplify then expand 3. Put First Things First (don’t get burned out)  Personal Management “Organize and execute around priorities”  Consistence = Flexibility= keeping balance use the tools available  Self-Manage- Weekly Organizing, Long-term Organizing- LIVE IT! 4. Think Win-Win  Team mentality- Creating relationships who is going to work WITH me Not just a producer but a creator  The continued small wins will get you to the BIG wins  Systems in place- learn to LOVE systems and procedures 5. Seek First to Understand, Then to be Understood  Communication is key to be effective  LISTEN first, get the facts  Be driven by the values you are putting in place before you respond. 6. Synergize  The whole is greater than the sum of its parts  Principle- Centered leadership  Value the differences 7. Sharpen the Saw  Learn, Commit, Do and Repeat  Physical, Mental, Spiritual, Social/Emotional  Continue to Renew you The Seven Habits of Highly Effective People is a book written by Steven Covey, first published in 1989. Each chapter in the book titled for the habit it discusses in detail. In summary, these are the seven habits

ChicagoTitle

Keep Yourself Sharp!

Using a task manager or a checklist either via dotloop or excel, paper etc. can only HELP YOU! This is to help you keep on task, stay focused, and ensure a smooth transaction.

You should know your book business and what is happeing at all times. One example is using a running spreadsheet for each year for each property. This is a basic spreadsheet and can give you a great quick glimps of what is going on in your book of business. You can add in additional items as well likeâ&#x20AC;Ś Sale price, Commission, estimated hours spent on the file etc. This can also be very usefull for year end information. There are filters in excel that can help keep you on top of items. This tool gives youteh option to filter out items that that have been completed or even a tasks that have been completed. Excel is a very powerful tool that can help simplify tasks and keep tabs on where you are at. If you have not taken a class on Excel its worth looking into.

Using the Pending Transaction report and add a check list for each property print it out and attached to each file/folder. Attach this to your folder or print it onto the back of that sheet.

Use a Checklist online- via Dotloop You can enter in a lot of our required forms and have them right at your fingertips! Wouldnâ&#x20AC;&#x2122;t it be great to anticipate what is needed and become proactive instead of responsive! We are working with Dotloop now!

PA requirements

Date Req/Sch

Date Completed

Contact info/notes

Date Req/Sch

Date Completed

Contact info/notes

Date Req/Sch

Date Completed

Contact info/notes

Inspections to be done by Home order Y or N Pest order Y or N Well order Y or N Septic order Y or N Transfer Valuation approved Y or N

Survey Order new Y or N paid by______ Existing

Home Warranty Order Y or N to be paid by _______

Addendums

Title Ordered SRCtitle@ctt.com Contact: Erica.hendrick@ctt.com File # Received Commitment Reviewed- and Correct

Requirements Payoffs Y or N #_____ Payoff Authorization Y or N

Condo Assoc./ Home Owners Assoc Y or N SRC Disclosure completed Divorce- Judgement of Divorce Y or N Deceased- DC Required Y or N Inc.Seller/Buyer -LLC docs Required Y or N: Operating agreement, w/ resolution of members File stamped Copy of articles of Organization Certificate of good standing

New Construction Y or N Survey Certificate of Occupancy Sworn Statements and all Lien waivers

Trust- Y or N Certificate of Trust Existence and Authority

Lender/Loan Details Appraisal 10 day out check up 5 day out check up Additional Lender Requirements Clear to close

Title

READY To Close Scheduled to close Buyer side Scheduled to close Seller side Settlement Statement Received Settlement Statement Reviewed w/ Client

POST CLOSE Client Retention/Marketing Plan Updated Client information obtained and entered into my database Asked for Referral at closing table and Follow up. What is your referral plan Sent out thank you or gave thank you gift Just sold post card 30-45 Day follow up- How was the move etc 1 year follow up- its been a year congrats

NOTES:

Any questions Thank you for your time!

Quick Reference Guide | Zap® Mobile CRM for Agents All your Contacts in the palm of your hand!

ABOUT MOBILE CRM WHAT: The Mobile CRM is your ‘on the go’ Zap system. With it you can • • • • • • • • • • • • • • • • • • • •

Add Contacts Update Broker Leads Add Property Insights Text your Contacts Add Local Insights Move Follow-up Plans Along Complete Showings Add Tasks Complete Listing Appointments Respond to Requests for Info Review Lead Notifications View Contact Profile Pages View Contact History Add Tasks Send Emails Use Phone Scripts Log a Call Add a Note Add a Profile Note Change the Relationship

And just about everything you can do on the desktop version, with the exception of updating account settings. There is no cost for this app, and it’s updated frequently with new features.

Q. How do I log into the Mobile CRM? A. You use the same login as you use for the Desktop version and the same login you use to get into your brand portal. Q. What phones does the app work with? A. The app works with either Android or iPhone smart phones with a recent update to the phone’s operating system. Q. How often is the app updated? Will I get a notice? A. It is updated typically at least once a month. You may not get a notification on your phone, but if you view the app store page for the app, it will indicate if there is an update. You should check the app store frequently for updates. Q. When I add a contact or update information how long before it shows on the Desktop version? A. Because the phone is using the ‘cloud’ to store your contacts, as long as your phone is connected to the Internet, the updates should be immediate. If you are not seeing updates, make sure your phone is not on Airplane mode or and is connected to the Internet. Q. What can I not do on the Mobile CRM? A. You cannot change any account settings or update your Agent Website. Those functions need to be performed on the Desktop version of Zap.

Fastest way to add Property Insights! Texting counts as an update to leads Move follow-up plans along Add new contacts quickly

Quick Reference Guide | Zap® Consumer Website & Mobile App A great solution for your consumers.

ABOUT THE CONSUMER WEBSITE & APP WHAT: Zap offers a desktop website, a mobile website and a mobile app consumers can use to search and save properties. HOW DOES IT WORK? Once an account has been set up, either when an agent adds the account or when a new Broker lead comes in, the consumer can save searches and properties that will show up on any device they use. WHERE IS MY REFERRAL LINK FOR MY WEBSITE & APP? After you log in to Zap, you can find your website or mobile app referral link in the My Website page, listed under your picture & name in the upper right-hand corner of http://new.myzap.com.

Q. Where can consumers search for properties? A. ConsumerS can search anywhere we have a brokerage that has signed an IDX agreement with an MLS. We cover all the major markets for all brands. Zap at its core is a collection of inter-connected sites that appear as one site to consumers. Q. Can I set up searches and alerts anywhere? If I share my referral link with a client, do I show everywhere? A. Zap at the core is a website where MLSs, the brokers and Zap have signed agreements to show properties from those MLSs. That means you will show only in those Service Markets where your brokerage has signed IDX agreements with the local MLSs. It also means the areas the MLS(s) cover will be the Service Markets for which you can set up listing alerts for your clients. Q. What’s the best way to share my mobile app? A. The best way is to first add the contact, then on the Contact Profile page, click the MORE button and select Share My Mobile App Link. This ensures the contact is yours, and that you will show as their agent once they download the mobile app. Q. How often is the Consumer Mobile App updated in the app store? A. For both Android and iPhone, the app is updated frequently. Encourage your clients to check for updates.

WHY DOES MY CLIENT SEE ME AND ANOTHER AGENT WHEN THEY GO TO THE WEBSITE? Contacts can be tied to more than one agent for two reasons. Either you are the secondary agent for that contact, meaning you added the contact AFTER another agent in your company accepted the lead, or the Contact has searched and requested information in Service Markets you do not cover. You can only show as the agent representing the properties from the MLS your broker has signed IDX agreements with.

Q. When I set up a listing alert, will my Contact be notified on the Mobile app? A. Yes! If the consumer has allowed notifications, they will be notified when you set up alerts for them. Q. Can I connect other ratings & reviews to my website? A. You can either use the Resource links, or you could copy and paste into other reviews from other sites into the Testimonials section of My Website. Remember, you can only have one or the other – Reviews OR Testimonials. Using Agent Reviews provides more ways to connect to your Contacts, and is an easy way to add additional content to your Agent Website. 72

Quick Reference Guide | Zap® Consumer Website & Mobile App Give your contacts Zap home searching on the go!

Q. How do I add a Contact? A. On the home screen tap the Contacts icon. Tap the plus sign then New Contact. Fill in the fields on the screen. Tap Save when done.

Q. How can I send my mobile app to my contacts so they can start looking for homes on the go? 1. From the Contact page select your contact name. 2. Tap the three bars in the upper right-hand corner and select Share my mobile app via email or text. 3. Add a personal note to the email and click Send. 4. Your contact will receive an email with a link to your mobile site.

Q. How do contacts install and sign in? 1. From the email, click the link for the mobile app, then follow the process to install the app on the phone. 2. Click Sign Up. 3. Enter their name, email and password. Their email will be their login. However, once your contact installs the app they will automatically be signed in. Q. Can my contacts search for homes? 1. Enter a city, state or zip to get started. Q. Can I import my phone contacts? 2. Use the options on the screen to further define the search or use the A. Yes! filter option at the top of the screen. 1.Tap Contacts, then tap the plus sign 3. Filter the search by adding more search criteria. 2.Tap Import Contacts 3.Tap on the ones to import or… 4. Tap a home to view, then click Request a Showing to send you an email! 4.Tap the three bars in the upper rightOr click the heart icon to save the home to come back to later. hand corner to Select all 5.Zap notifies you of import

3 4

Zap Daily Best Practices 7 ways to maximize Zap in your day-to-day business!



#1: Log in each day.

 

#2: Add your new contacts into Zap and send the welcome email. 

#3: Send new contacts your link to your mobile app.

  

#4: Set new contacts up for new listing alerts from Zap.

 



#5: Put new contacts and new leads on a follow-up plan.

  

#6: Update out-of-compliance broker leads and complete daily follow-ups.



 

#7: Add Property Insights to your website for every home you tour.

Zap helps you prioritize and organize your daily activities from showing and info requests to updating broker leads and daily follow-ups. For added efficiency, use Mobile Zap. Send welcome email to invite them to use your Zap website instead of other websites; Zap tracks their activities through ZapScoreSM. Follow-up to confirm they log in and create a password.

Easily share your mobile app with consumers. Zap tracks all their activities. Sends constant drip of new listings which never expires. Customers value this information. Keeps them logging into your website where we track their activities. Most online customers are not ready to transact immediately. Follow-up plans help you stay connected. Zap can drip emails for you or remind you to make personal contact. Keep broker leads in the green so you are eligible for more leads. Zap dashboard reminds you who to follow-up with every day. Showcases your local knowledge. Adds unique content to your website to improve SEO.

Zap 21-Day Plan It takes 21 days to form a habit. Complete each of the tasks below to help jump-start your success using Zap.

DAY

TASK

TIP

Add one new contact into Zap and send a welcome email to invite them to use your Zap website.

Click +Add Click New Contact

Add one Property Insight to help market your Zap website.

Click +Add Click New Agent Insights

Add one Local Insight to help market your Zap website.

Click +Add Click New Agent Insights

Invite a contact to download your mobile app with an email.

Click Contact name Click Actions

Choose a contact and use the Sign in as Contact feature to save a search to send New Listing Alerts from Zap.

Click contact name Click Actions

Use your mobile Zap CRM app to add another new contact and send the welcome email.

Tap +Quick Add Tap New Contact

On Zap, Click Support Search for “Get Zapped!”

Use your Mobile Zap CRM app to add a Property Insight while you are previewing or showing a property.

Click +Quick Add Click New Showing

Use your Mobile Zap CRM app to add a Local Insight.

Click +Quick Add Click New Local Insight

Update Broker leads in your Priority Follow-ups by sending an email or logging a phone call.

Click on blue phone or email button

Add a YouTube video to your Zap website.

Click your name Click My Website

Link your Social Media accounts to your Zap website.

Click your name Click My Website

If you have a domain name for your website, forward the domain name to Zap (if needed, purchase one).

A easy to remember domain name can help customers find your website.

Review your Service Markets in Zap; if incomplete contact your Broker.

Click your name Click Account Settings

Add five or more of your own leads or clients into Zap and send the welcome email to all.

Click +Add Click New Contacts

Send all your leads the email to download the mobile app.

Click lead name Click Actions

For all your active leads, use the Sign in as Contact feature to save a search and send New Listing Alerts from Zap.

Click lead name Click Actions

Add one new Property Insight and one new Local Insight to help market your Zap website.

Click +Add Click New Agent Insights Local and Property

Place potential sellers (whom you’ve added into Zap) on a neighborhood/home value alert using Watched Home Update feature.

Click seller name Click Actions

Put your active leads and clients on Follow-up Plans.

Click contact name Click Add a Plan

Promote your domain name (which forwards to Zap) everywhere and complete tasks on SEO Agent Playbook.

This can help drive traffic to your site!

(click the link)