HOME BUYER GUIDE YOUR VIP HOME BUYING ROAD MAP
WHAT MAKES THIS REALTY OASIS MACHINE HUM? “…surpass the expectations of every client who chooses us…”
W
e operate in a supportive, professional, positive environment that helps each member of our team provide the highest level of service in the real estate industry. This atmosphere allows our team to act on the passion and drive it takes to surpass the expectations of every client who chooses us to help fulfill their home buying or selling goals. Whether you are looking to sell your property or buy a new home, Realty Oasis offers a dedicated, skilled team of pros with an innovative marketing approach. Our team of experienced, full-time real estate agents and staff are ready to lead and advise you through the process of buying the perfect home or selling your existing home for the most amount of money in the shortest amount of time.
MARKEIBNER.COM
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YOUR HOME BUYING ROAD MAP
Strategy
• Find a REALTOR®® you can trust • Strategic home buyer consultation • Set up your “Backstage Pass” to the MLS
Financing
• Mortgage application • Obtain pre-approval letter
Showings
• Concierge home showing specialist • View your favorites • Find your home
Offer & Negotiations
• Market analysis • Write your offer • Negotiations & counter offers
Protection
• Offer accepted • Earnest money/due diligence • Inspections
Closing
• • • • •
Appraisal Final underwriting Title work Insurance Utilities in your name
• • • •
Final walk through Close on your home Deed recorded Get your keys
YOUR NEW HOME! This is a road map of what the typical home buyer process looks like. Our HOME BUYER GUIDE includes more information about each step.
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YOUR STRATEGY STARTS HERE Every decision in a real estate transaction could save or cost home buyers TENS OF
OF DOLLAR$
S
I N UN N ECE SSA RY E X P E N S E S
WE LOOK OUT FOR 80 DIFFERENT VARIABLES INVOLVED IN YOUR
7-STEP HOME BUYING STRATEGY 1. Expert Advice to Setting Your Strategy 2. Funding Your Dream
7 Resources
1 Strategy 2 Fund
3. Selecting Your Home 4. Negotiating Your Terms 5. Protecting Your Home
6 Close
Realty Oasis’ 7 Step Home Buying Strategy
6. Closing on Your Home 7. Your Lifetime Resource
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5 Protect
4 Negotiate
3 Select
EXPERT ADVICE FOR SETTING YOUR STRATEGY Market Intelligence Economic indicators
Inventory of vacant homes
Trends analysis
Rental housing vacancy rates
Interest rates
Builder confidence
Loan programs and qualifications
Shadow inventory
Real estate cycles
Inventory fluctuation
Seasonal advantages
Rent vs. buy trends
Local market conditions
Market stability
Micro markets
Knowledge of co-op agent’s negotiation strategy
National market conditions Absorption analysis Inventory of corporate-owned homes Inventory of short sales
Knowledge of mortgage options Knowledge of insider deals Knowledge of appreciation rates Knowledge of inventory
Inventory of foreclosures
Smart Home Buying Strategy Determine timing & motivation Evaluate needs & wants Out-of-pocket expenses Financing needs & pre-approval Neighborhood & lifestyle Quality of life Set expectations according to market Customized plan
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FUNDING YOUR DREAM Trusted Lenders
Your Home as an Investment
Best rate & terms
Mistakes that cause you to overpay for your home
Close on time No surprises Over deliver vs. Over promise
Mistakes that cause you to overpay for your loan
Get documents on time to the closing attorney
How to accelerate your equity and build wealth with your home purchase
Decisions on Cost
Why choosing the right lender makes all the difference
15-year vs. 30-year mortgage
Equity buyer vs. emotional buyer
Long-term hold Short-term hold Buy first or sell first Rental property 13th payment
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MORTGAGE PRE-APPROVAL How Much Can You Afford? Key Factors to Consider The down payment
Your debt-to-income ratio
The interest rate
The closing costs associated with the transaction
DOWN PAYMENT REQUIREMENTS LOAN TYPE
DOWN PAYMENT
CONVENTIONAL
5%+
You can put as little as 5% down and as much as you want. Anytime you put less than 20% down, you will have to pay some mortgage insurance.
FHA
3–5%
The lowest traditional down payment program; there is additional mortgage insurance.
DOWN PAYMENT ASSISTANCE*
$1,000+
VA
0%
FHA 203k
3–5%
A special product that allows you to wrap into your mortgage the costs of repairs or improvements to the home you buy.
CONTRACT FOR DEED
10%+
An ideal program for those without qualifying credit scores. Interest rates are slightly higher than market rates but it allows for home ownership for those who would otherwise have to rent.
DETAILS
A program for people who qualify with credit and income but do not have enough savings for a down payment. A special program for military buyers that allows them to put almost nothing down toward the purchase.
*There are many down payment assistance programs available through our preferred vendors, just ask us for more information to find out if you qualify.
Closing Costs You will be required to pay fees for loan processing and other closing costs. These fees must be paid in full at the closing, unless you are able to include them in your financing. Typically, total closing costs will range between 4–5% of your mortgage amount. In today’s market, it is common to ask for the seller to pay around 2% of the mortgage amount toward your closing costs; this is called “Seller Paid Closing Costs.” EXAMPLES OF CLOSING COSTS • Prepaid Insurance ($300–$1500) • Prepaid Taxes (up to 6 months)
• Prepaid HOA Fees (when applicable) • Mortgage Origination Fee (2%) • Appraisal Fee ($450)
• Title Fees ($1200–$1500) • Closing Fees (<$1000)
$250,000 - $5,000 = $245,000 YOUR OFFER
(Total amount of your purchase price)
SELLER’S CONTRIBUTIONS (Amount of your closing costs you ask the seller to pay for you)
NET OFFER
(Final amount the seller is actually receiving, viewed as your actual offer)
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SELECTING YOUR HOME Showings
Lifestyle and Neighborhood
Select homes of interest
School rankings
View your favorites
Crime level
Proactively suggest listings that match your needs
Demographics
On call “concierge” Showing Specialist
Right Price — Right Home Property type (condo, townhouse, single family, manufactured, multiunit, investment) Preferred subdivisions
Planned community Parks & playgrounds Privacy of neighborhood/gated community Location of home in neighborhood Proximity to: work, restaurants, recreation, public transportation, major roads, entertainment, etc.
Price range Year built (age of home)
Managing Risk
Bedroom/bathroom/garage needs
Foreclosures/bank owned homes
Square footage
Short Sales
Landscape/lot preference
Vacant homes
Floor plan
City inspections
Amenities ADA disability features Appliances
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TYPES OF HOME SALE TRANSACTIONS Traditional Sale (30–60 Days) These are homes that have a regular seller on the other side of the transaction. They are not “upside down” on their mortgage, meaning they don’t owe more on the home than the home is worth. However, if they do, they have the cash to bring to the table to sell without negotiating with the bank. The response time on your offer from a traditional seller is usually pretty prompt (generally within 24 hours, if not less). The traditional homes are going to reflect the “market value” for a neighborhood and will usually be the highest priced home sales in the market and they are usually going to be in the best condition of any homes on the market.
New Construction (Varies, typically 4–6 months unless already completed) Brand new homes, built to your tastes and warrantied. With new construction, you get exactly what you want. New construction homes can be already built, in the process of being completed or entirely custom.
Bank Owned Sale (30–60 Days) A bank owned sale is one in which the bank owns the home. Usually the bank will own the home because the seller tried to do a short sale and the bank wouldn’t agree to it, or the seller just decided to let the home go back to the bank by not making their payments. The bank owned transaction is a two party transaction, 1. Buyer 2. Bank. The listing agent is the go-between with the bank and they really help the bank’s asset manager (the decision maker at the bank) make the decisions about the property and about the pricing of the home. Bank owned sales are almost always “As Is” sales. Bank owned purchases are usually priced well below the price of a comparably sized “Traditional Sale,” but they may be in poor condition and will most likely need some sort of work or cleaning done.
FSBO (30–60 DAYS) This is the sale of a home directly by the owner rather than having representation by a real estate professional. One of the most popular reasons that owners choose to sell their homes without the help of a real estate agent is to avoid paying an agent’s commission. If the owner sells their home to a person that is also not represented by an agent, the owner pays no commission. If the buyer is represented by a real estate agent, that agent may request that the owner pay them a commission (typically 3%) for bringing the buyer to them. The owner can agree to pay or refuse. The seller is not legally obligated to pay the commission. Often times, if the owner refuses, the buyer will compensate their agent on their own. FSBO homeowners will often market their own properties or choose to employ the services of an online marketing company or listing service.
Short Sale (4+ Months) A short sale is a home that is selling for less than the mortgage balance that is owed. This is where the term “short sale” comes from: the home is selling “short” of what is owed. The seller is usually selling the home because they can’t make their payments any longer. The short sale is a three party transaction. There is 1) Seller 2) Buyer and, 3) Bank (or banks) involved in the sale. The process is like a traditional sale in that the seller hires a real estate agent to market the home and get an offer, but once the seller and the buyer agree to a price, the bank then has to make the final decision on if the price is acceptable and if they will release the seller from the obligation of the debt they owe. The bank has to collect all of the seller’s financial records and review the offer and send out a third party to value the property. From there the bank will make a decision on whether or not they will accept the offer, counter the offer, or reject the offer. Short sales can be great deals, but the waiting time involved can be extreme and very hard on a buyer wanting to purchase quickly.
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NEGOTIATING YOUR TERMS Position of Strength Pre-approval in hand Type of financing Negotiating with listing agent Comparable sales to support offer Seller’s purchase price per tax records Property tax assessment review Walk away leverage
Multiple Offer Strategy Zero repair allowance (under $500) Increased earnest money Escalation Language Closing date Seller rent back
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Seller Concessions and Offer Details Seller contribution to buyer’s closing costs Home warranty Inspection repair costs Closing date Discount/buy-down points Ancillary closing costs Title policy (buyer or seller) 60 days no payments Contract acceptance Time line Property inspection time line Negotiate repairs
MAKING AN OFFER Once we’ve found the home you wish to purchase, you’ll need to determine what offer you are willing to make on the home. After all, you are the one making the payments!
Offer Terms Sales price
Personal property
Comparative market analysis (comps)
Other applicable addendum like Common Interest Community Disclosures, Short Sale Contingencies, etc.
Earnest money Financing terms
Seller contribution to YOUR closing costs (if requested)
Inspection period Closing date
Offer Terms Example — Asking the seller to cover a portion of your closing costs.
$250,000 - $5,000 = $245,000 YOUR OFFER
(Total amount of your purchase price)
SELLER’S CONTRIBUTIONS (Amount of your closing costs you ask the seller to pay for you)
NET OFFER
(Final amount the seller is actually receiving, viewed as your actual offer)
A Note about Multiple Offers It is important to remember that the more competition there is for the home, the higher the offer will have to be, sometimes even exceeding the asking price. Remember, be realistic, but it all comes down to market value and solid comparable sales. Make offers you want the other party to sign!
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PROTECTING YOUR HOME Home Inspection
Home Warranty
Eliminate potential surprises Preemptive negotiation strategy
Cover the mechanical systems and major appliances in the home for a year
Identify potential “deal killers”
Can save buyers thousands of dollars
Walk-away leverage
Can be paid for by the seller Can renew after the first year is up
Lifestyle and Amenities Drive time Location of hospitals, restaurants, schools, gyms
Future Home Maintenance Costs Heating and cooling costs Age of appliances Utility costs Home owners association dues Lawn and landscape maintenance
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INSPECTIONS Home Inspections If you are purchasing a resale property, we highly recommend that you have a professional home inspector conduct a thorough inspection. Our Inspector is exceedingly thorough and detailed so as to minimize surprises for you. However, the inspection is not meant to be used to low ball the seller post-price negotiations, as all existing homes have minor imperfections. The inspection is intended to report on major damage or serious problems that require repair. Your home cannot “pass or fail” an inspection. The inspector’s job is to make you aware of repairs that are recommended or necessary. THE INSPECTION WILL INCLUDE THE FOLLOWING
Appliances
Well
Plumbing
Septic system
Electrical
Lead based paint
Heating and Air conditioning (depending upon the season) Roof and Attic (if accessible) Foundation General Structure Radon tests are recommended — More than 40% of the homes tested have gas levels exceeding the safe threshold set by the EPA
COMMON PRICES for the home inspector 1500 sq ft and less . . . . . . . . . . . . $350 1500–2000. . . . . . . . . . . . . . . . . . . $450 2000–2500 . . . . . . . . . . . . . . . . . . $500 2500–3000 . . . . . . . . . . . . . . . . . . $550 3000+ . . . . . . . . . . . . . (Call for pricing) Sewer Scope . . . . . . . . . . . . . . . . . . $145 Radon Testing . . . . . . . . . . . . . . . . . $150 Pest Inspections . . . . . . . . . . . . . . . . $95 Thermal Imaging with inspection. . . . . . . . . . . . . FREE (Must request)
without inspection. . . . . . . . . . . $150
Thermal imaging can reveal issues unseen in a standard visual home inspection. The seller may be willing to negotiate completion of repairs, or you may decide that the home will take too much work and money and rescind the offer during the inspection period. Your inspection is a contingency to the purchase agreement and needs to be completed and repairs negotiated within the due diligence date on the purchase agreement, usually a 9–10 day period.
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WARRANTIES Previously-Owned Home Warranties When you purchase an existing home, you can purchase warranties that will protect you against most ordinary flaws and breakdowns in major mechanicals and appliances for at least the first year you own the home. The warranty may be offered by or negotiated with the seller, or can be purchased by you, the buyer.
New Home Warranties When you purchase a newly-built home, the builder usually offers a warranty on things such as the quality of design, materials, and workmanship.
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CLOSING ON YOUR HOME Home Owner’s Insurance
The Final Details
Highly competitive rates
All documents to lender in timely manner
Impacts your monthly payment
Appraisal
Title Company/Closing Escrow Agent
Lender repairs where applicable
Quality management of process
Closing & settlement review
Manage all parties in transaction
Potential deal killers
Leverage for getting problems resolved
Transfer of utilities
Closing on time
Moving into your new home
Protecting your interests Transferring ownership of property to you Transaction management
NOTE: Buyer’s agent commission is paid at closing once we find you the right home. Our win is your win!
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WHAT TO EXPECT AT CLOSING Who Will Be There? You, the buyer(s) Seller(s) Buyer’s Agent Listing Agent Title Escrow Closer, the party representing the title company and responsible for ensuring the title is transferred to you Occasionally, your mortgage officer
New Remote Closings Electronic documents Video
What Will You Need? Bring valid government-issued photo ID and a second form of ID showing your name. Bring a cashier’s check for your cash to close or a wire transfer (your mortgage officer will tell you the amount prior to closing) For remote closings, you'll need access to a PC or smart phone with audio and video capabilities.
What Is Expected from You at the Closing? If financing the property, your lender will require you to sign a document, called a promissory note, as evidence that you are personally responsible for repaying the loan. You will also sign all title and deed documents putting you as the official homeowner!
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YOUR LIFETIME RESOURCE On-Going Real Estate Support
Raving Fan Club
Post closing questions
Parties
Updated market information
Holiday give-away (ex. Thanksgiving Pie & Valentine’s Day)
Helping your friends and family
Trusted Contractors Handymen Cleaning companies Carpet cleaning Exterior maintenance Painting & remodeling
Helpful videos Market snapshot Coupons Quarterly giveaways Moving boxes Property vault
Siding/Windows/Decks
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WHO WE ARE Realty Oasis was built on the notion that the secret to achieving incredible goals and getting true results is to dominate real estate with a team approach. One part-time agent does not have the capacity to cover every aspect of the real estate process. Realty Oasis has 30 diverse experts excelling at their roles, allowing them to focus on what they do best, at a high level, so our clients receive high level performance and unprecedented results in this industry. We operate in a supportive, professional, positive environment that helps each member of our team provide the highest level of service in the industry. This atmosphere allows our team to act on the passion and drive it takes to surpass the expectations of every client who chooses us to help fulfill their home buying or selling goals. Whether you are looking to sell your property or buy a new home, Realty Oasis offers a dedicated, skilled team with an innovative marketing approach. We also specialize in more sophisticated home buying and selling procedures concerning real estate investments. These include IRS sections 1031 exchanges, reverse 1031 exchanges, IRA, ROTH IRA, and 401K ownerships. Our team of experienced, full-time real estate agents and staff are ready to lead and advise you through the process of buying the perfect home or selling your existing home for the most amount of money in the shortest amount of time.
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WHY REALTY OASIS? One Team, One Plan, One Purpose: Beyond Expectations Go above and beyond Do what we say we will do Deliver prompt communication
VIP BU YER LO YALT Y AGRE Secure the bes EMEN t fin closing T… AS costs. Ha ancing pro YOUR gra and pur BUYE chase neg ve a pre-qualifi m for your R SPEC Provid cation/ap specific situ IALIST e you wit otiations. atio proval S, WE criteria, h certificat n with the WILL • so you regular update lowest e genera Arrange can dri ted to giv interest rat ve by and s from our Ho e and sale-by-o a private sho e you the me Hu determ • wing of nte best com least expensive Discus wner (FSBO any pro ine which pro r Service petitiv of s the bes ) proper perty you per all e advant date, ins ties t stra want to ties you actual the new proper age • pections, tegy for ma . see ly ties want Help you including that ma king an termite/p tch you the new to see. weighted prepare an off est/environm offer as we r home constru • ll ction, ban Presen in your best er with terms ental report as financing ter t the off k owned s, int , provis er on you erest. terms. ions, spe and any que ms, interest , and for • rates, cos stions cial stip r behalf you Recom t to clo ulations, and neg mi mend ext se, pos otiate in amend ght have. inspec session remely ments, your fav tio • exhibits or to hel ALWA ns, appraisal competent affi and add p you sec s, YS be liates tha endum availab warranties, ure the t can s hom le to ans proper wer you eowner haz help with you ty at the ard r hom r questio best pri ns you and title insura e purchase ce and As Ou might r Client including nce. Bonus have. , You Ar legal adv #1 – A e Also ice, hom 1-year Entitled Buyer e To Th s Ho at Bonus e Follo #2 – Ou no cost to you me Warra wing BO nty (up r Cance OR we NU to lla wil SE $50 tion l pay for S 0 value) liv Bonus it #3 – Ou e up to our pro Guarantee, We wil which l negoti r Sell Fo mi allows ate the r Free ses. you to any rea warranty Guara can son wit For the cel this ntee on you hin 24 ser r behalf agreem month which guaran missions vices above, ent at any s we wil tee time if l sell you s you that if to for the are paid by we are due a we do the sel you are r home not ler and commission and fee internal pro unhapp for FR of no les negotiate ces s on you EE! y with s than d your pur r behalf sing of your 2.5% of transactioas part of the . chase for the pur Please purcha n. You cha let us kno se are giv se price agreem that our ing us w which of the team is permissi ent. A $350 hom pro e per today’s tra represent you on to ask nsa ties you date unl the sel ction fee is duebuy. Comess can ing you as you ’d like to see ler to pay at celled and r exclus our com closing by eith AND RE ive buy be sure to er party mission MEMB in writin er’s agent. inform other ER... YO This agr agents g. , for eement U ARE automatic -sale-by-ow NEVE ners, and R UNDE ally exp bui R ANY ires six OBLIGA month lders s from TION TO PU RCHA SE AN Y PROP ERTY ! •
•
Build and maintain relationships Always solutions, never problems Deliver high performance and positive results
Are You Looking for High Performance? Continually increase yearly home sales (see graph) Invest in professional development and skills training Obtain specific certifications for working with buyers Seek continuing education classes Present a buyer agency disclosure in writing Set your home buying strategy Full-time Transaction Coordinators Team of Expert Buyer Agents
250
Proactive listing suggestions
homes
Respond promptly Available 7 days/week
178 homes
Weekly Team Meetings Weekly Sales Training
SOLD
GOAL for 2020
in Average agent only sells 6 per year
2019
6-8
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SEE YOU AT CLOSING
720-608-2613 MarkEibner.com
OUR HIGH PERFORMANCE PROMISE
An experience that you honestly cannot imagine being any better. 86% of our business in 2019 came from repeat or referral clients! • Our entire team is focused on creating a high-tech, high-touch experience. • Our systems and everything we do are designed around delivering on this Promise. • Everyone on our team is focused on what it is that you want and need. • We make every effort to be out in front of everything, to prevent any surprises and make the process as hassle-free as it can be.
And that's the Realty Oasis Promise! In return, our team wants your help. Between now and the day we close on your property ... send us the name of someone that needs help in Real Estate. If you don't, we will assume we didn't deliver on the High Performance Promise we made. Please tell us what we could have done to earn that referral. This is not a contract. Client Signature: Client Signature:
VIP BUYER LOYALTY AGREEMENT… AS YOUR BUYER SPECIALISTS, WE WILL • • • • • • • •
Secure the best financing program for your specific situation with the lowest interest rate and least expensive closing costs. Have a pre-qualification/approval certificate generated to give you the best competitive advantage and purchase negotiations. Provide you with regular updates from our Home Hunter Service of all the new properties that match your home criteria, so you can drive by and determine which properties you actually want to see. Arrange a private showing of any property you want to see including the new construction, bank owned, and forsale-by-owner (FSBO) properties. Discuss the best strategy for making an offer as well as financing terms, interest rates, cost to close, possession date, inspections, termite/pest/environmental reports, and any questions you might have. Help you prepare an offer with terms, provisions, special stipulations, amendments, exhibits and addendums weighted in your best interest. Present the offer on your behalf and negotiate in your favor to help you secure the property at the best price and terms. Recommend extremely competent affiliates that can help with your home purchase including legal advice, home inspections, appraisals, warranties, homeowner hazard and title insurance. ALWAYS be available to answer your questions you might have. As Our Client, You Are Also Entitled To The Following BONUSES Bonus #1 – A 1-year Buyers Home Warranty (up to $500 value) We will negotiate the warranty on your behalf at no cost to you OR we will pay for it Bonus #2 – Our Cancellation Guarantee, which allows you to cancel this agreement at anytime if we do not live up to our promises. Bonus #3 – Our Sell For Free Guarantee which guarantees you that if you are unhappy with your purchase for any reason within 24 months we will sell your home for FREE!
For the services above, we are due a commission of no less than 2.5% of the purchase price of the home you buy. Commissions are paid by the seller and negotiated as part of the purchase agreement. A $350 transaction fee is due at closing to for the internal processing of your transaction. You are giving us permission to ask the seller to pay our commission and fees on your behalf. Please let us know which properties you’d like to see and be sure to inform other agents, for-sale-by-owners, and builders that our team is representing you as your exclusive buyer’s agent. This agreement automatically expires six months from today’s date unless cancelled by either party in writing. AND REMEMBER... YOU ARE NEVER UNDER ANY OBLIGATION TO PURCHASE ANY PROPERTY!
Meet your Company Mark Eibner Broker/Owner
Alison Eibner Broker/Owner
• Innovator • Contracts • Listing Specialist • Training • Mentoring
• Tech Specialist • Contracts • Listing Specialist • Training • Mentoring
Tina Gadpaille Broker/TM Team
Alex Eibner TM Team
• Transactions • Contracts • Deadlines • Escrow Processor • Training
• Transactions • Deadlines • Systems • Workflow • Tech Specialist
Evin Hughes Client Concierge
Josh Graham Marketing Specialist
• Onboarding • CRM Specialist • Client Touches • Social Media • Writing/Blogging
• Graphic Design • Photos • Digital Marketing • Drone/360 Tours • Signs, Measuring
The Path to A Successful Closing Dear Client, Thank you for allowing R ealty Oasis to assist with your home purchase! There are many important and exciting steps that will take place from now until closing. This document is designed to explain those steps, so you will know exactly what to expect during this process. Hours of Operation/Questions: Your TM Team is available Monday through Friday 9:00 am to 5:00pm at 303-
800-1000 or email Team@5280TM.com. Do not hesitate to call with any quest ions or information. As your TM Team, we will be working with your Real Estate Broker, Lender and Closing Attorney during the closing process and will be your main contact if you should have questions or need anything. Mortgage Application: If you have not already chosen a lender, and need a mortgage referral, we will be happy to
make some recommendations. This application must be completed as soon as possible. The loan process can sometimes be a nuisance, but please understand that detailed documentation is required. If you haven't made a purchase in several years, it is a much more complicated process. If you feel something is unjustified, please discuss it with your loan officer and, of course, call your Realtor or Closing Coordinator if you are not satisfied with the answers you are getting. If your loan is approved with "conditionsâ&#x20AC;?, these must be fulfilled prior to closing or your closing could be delayed. Financing Steps: PRE-QUALIFICATION: You may have had a loan officer qualify you for a mortgage based upon the verbal information
you gave them while you were looking for a property.
PRE-APPROVAL: A lender has reviewed your credit, verifications, and all other required documentation and approves
your loan prior to finding the property to purchase. Lender approval of the appraisal would follow a contract is signed to purchase a property. Pre-approval is a highly recommended (It may make the difference of a Seller accepting your offer). LOAN APPLICATION: You must complete loan application documents to start the loan process. If you have not been pre-approved this must be completed within the time noted on the contract. APPRAISAL: The lender will order an appraisal on the property. You must pay the lender up front for this expense. LOAN CONDITIONS: Once the underwriter has reviewed your loan documents and the appraisal they will issue approval and a clear to close or approved with conditions. Conditions for a clear to close are normal and you may be required to provide additional information to your lender to receive the clear to close. CLEAR TO CLOSE: Once the file is clear, your lender will order the mortgage documents to be sent to the Closing Attorney. The attorney will prepare the final settlement statement and your lender must approve this prior to closing. Once approved, your Closing Coordinator, Realtor or your lender will contact you to review. Inspections: We will schedule any inspections that need to be completed during the Due Diligence period. Your Realtor should have explained this to you. We have a list of Inspectors or if you have your own, please let us know. Please contact our office if you have any questions on this. This will be scheduled according to a date and time that you prefer if you plan to attend. Your agent will receive the inspection report a few days following the inspection and will contact you to discuss. They will then compile a list of repairs, which you will need to sign. You will be notified of the seller's response regarding repairs as soon as she gets them back. Homeowners Insurance: If you would like a quote on Homeowners insurance from one of our preferred agents,
please let us know. Your lender will require this type of insurance; it may be combined with your car insurance for a premium discount.
Survey: Situations arise all too often that could have been avoided if the buyer had obtained a new survey from a
NC/SC registered surveyor. A survey will normally reveal such things as encroachment s on the Property from adjacent properties (fences, driveway s, etc.); encroachments from the Property onto adjacent properties violations of set-back lines; lack of legal access to a public right-of-way; or erroneous legal descriptions in previous deeds to the Pro pert y. Although Title Insurance companies may provide lender coverage without a new survey, the owner's policy contains an exception for easements, set-backs and other matters which would have been shown on a survey. Many such matters are not public record and would not be included in an attorney's title examination. In addition, if the buyer does not obtain their own survey they would have no claim against a surveyor for inaccuracies in a prior survey. The average cost of a survey is approx. $350 to $600 depending on the size of the property. The attorney will not order the survey and the buyer will have to order directly. Confirmation of closing location and utility information: Approximately 10 days before closing you will be
contacted by your Closing Coordinator to confirm the closing date, location and time. Closings do occasionally get delayed due to repairs or lenders. We want to make sure everyone is informed. We will also provide you a contact list to have utilities set up in your name for the day of closing. Walk-Thru: It is suggested that this be done 24-48 hours prior to closing, if possible. This is just to make sure the home is in the same condition as when your contract was signed and to review any repairs that may have been made per the repair request. Your Realtor will contact you to schedule this in coordination with your Home Inspector if you so choose to have a follow up re-inspection to check repairs, this cost is approximately $150. Closing Funds: The TM Team will review the closing statement prior to closing if possible. You will be
notified by your Lender of the amount to bring to closing. At times the amount is not known until just before closing, so if you need extra time to obtain your certified funds, the Title Company will work with you. Your closing funds will need to be in the form of a cashier's check payable to the Title Company or funds wired into their account. Closing: All parties whose names appear on the contract must attend closing unless prior arrangements
were made for a mail out or a Power of Attorney. Be sure to bring your driver's license for identification as the Title Company will require this.
Although there will be many email conversations between you and our company from now until closing, we hope this information will help prepare you for what will be happening over the next several weeks. You may call us at any time throughout the transaction with your questions. It is our pleasure to assist with the purchase of your new home. Sincerely, Mark Eibner - Realty Oasis
"Expert Advice. Guaranteed Results!" Direct Line: 303-800-1000
Oh, By the W ay, W e Are Never Too B usy for Your Referrals!
THE HOME BUYING PROCESS Part 1: Disclosures, Due Diligence, and Title These are the initial tasks once a buyer's offer is signed by the seller & delivered back to your agent: 1.
Concurrently, a deposit, or earnest money, is paid to an escrow agent, an attorney, or broker (never to the seller directly).
2.
The signed contract is sent to an attorney or title company to begin preparation of all work related to transferring and changing the title to the new owners and preparing the title commitment.
3.
The buyer reviews the property's disclosures. These disclosures vary based on property type, but often include things like known flaws with the property and prior improvements or repairs. A form called a sellers property disclosure form is provided by the seller soon after the contract is signed.
4.
The Buyer has a set period to conduct any inspections, appraisals, and secure financing. Failure to do any of this before the end of their contractual objections will result in defaulting on the contract and losing the earnest money.
5.
The buyer elects to perform inspections on the property if desired. The types of inspections vary by property type and situation (and locale), but a home inspector generally inspects the home first, and other inspections and tests can be ordered if revealed to be necessary by the initial inspection.
6.
If they do so before their contractual objections, buyers can walk away if they find anything they don't like during inspections. They can also negotiate with the seller for closing cost credits or repair work. Sellers can either a) agree to all the buyers' requests, b) offer a modified solution back to the buyer, or c) decline to make any amends. In response, the buyer can continue to negotiate, accept the seller's position, or walk away.
Part 2: The Mortgage Process For those borrowing to purchase their home, the mortgage process is usually the most stressful and opaque part of the transaction, especially as it's bound by the loan termination deadline, after which buyers are 'on the hook' no matter what happens with their loan process. It's best to start as early as possible and be ready to produce lots of documentation. The following is the general process in Colorado: 1.
By now you should have spoken to a lender. If you have not spoken to a lender, it is not too late. Even if you have prequalified with another lender you still can talk to our one of our preferred lenders to make sure you are getting the most affordable lender. It takes less than 5 minutes to call and thereâ&#x20AC;&#x2122;s no reason to pull your credit if you have already done so. A buyer submits a loan application to their lender, either directly or through a mortgage broker.
2.
Within 3 days, the lender sends a "Loan Estimate," or LE, to the buyer that is a breakdown of estimated closing costs. The final costs are likely to deviate from this estimate.
3.
Before the buyer is ready to write an offer, a pre-approval with a lender should be acquired. The buyer sends a series of personal financial disclosures to their lender. These vary by situation. 4. The lender renders an approval decision, and if approved, issues a loan commitment letter, stating its willingness to fund the mortgage provided certain conditions are met. These conditions usually include appraisal (so the lender can confirm that the property you're buying isn't worth far less than you're paying) but will also generally include any material change in your situation - or the property - as initially disclosed to your lender. 5. An appraisal is ordered by the lender or mortgage broker via a central directory of appraisers (often called an Appraisal Management Company or AMC). Choosing a specific appraiser is not possible, but a mortgage broker can reject an appraiser and ask for a new one. If the appraisal comes in lower than the purchase price, then a buyer can ask the seller to reduce the purchase price to appease their lender. Provided you objection before your contractual objections, you can simply walk away if the appraisal becomes an issue. 6. Homeowners' insurance is purchased (or substantiated, if the property being purchased includes homeowners' insurance as part of association fees or similar arrangements), and proof of homeowners' insurance is submitted to the lender.
As this process can be long, arduous, seemingly arbitrary, and is often critical to your home buying transaction, try to prepare these documents (or at least figure out how to prepare them) in advance. Also, do not make any changes to your employment or credit until your transaction is complete (not just until you get a loan commitment letter). This means not switching employers even if it results in a higher income, as counterintuitive as that may sound. It also means not leasing or financing a car, opening a new credit card account, or anything else that can affect your credit report.
Part 3: The Closing (or Settlement) The closing, or 'settlement' process itself general takes place at the Title Companyâ&#x20AC;&#x2122;s office. After all documents are signed and payments exchanged, buyers generally take possession of the keys after the deed is recorded unless a separate agreement has been reached to allow the seller to stay in the property for a period after closing. The detailed steps that make up closing are: 1.
As part of the preparation for closing, the attorney or title company performs a title search (if they haven 't already) to determine if there are any liens or assessments on the title. Provided the title is deemed 'clear,' the closing proceeds as planned, and the attorney or title company issues a title commitment. All paperwork for changing the title/deed and title insurance is prepared, and a final closing date is confirmed with all parties.
2.
A final cash figure for what a buyer needs to bring to the closing in the form of a cashier 's check or bank wire is calculated. This is based not only on a mortgage's closing costs.
3.
A final walkthrough will often be performed the day of or before closing to verify the property is in the same
5.
condition it was when the process began, provided it's agreed upon. At the closing, or settlement table, the buyer (and seller) sign all closing documents, including the CD or HUD-1 and the final loan and real estate documents. The buyer pays the remaining funds in their down-payment to the attorney or a representative of the title
6.
The representative from the title company or attorney will then record the transaction and deed with
4.
company who is acting as the settlement agent via certified funds (cashierâ&#x20AC;&#x2122;s check or wire). the appropriate municipality. The buyer receives the keys. You will get the keys at closing, or after any negotiated Seller post-closing occupancy.
IMPORTANT REMINDERS FOR BUYERS Home Warranty: I (we) hereby acknowledge that my Realty Oasis agent has informed me of the availability of a Limited Home Protection Warranty. If seller does not agree to provide a Limited Home Protection Warranty plan, and I do not purchase said plan on my own, I agree to hold Realty Oasis & their sales associates harmless in the event of subsequent defects which would otherwise have been covered. Home Inspections: Buyer is encouraged to have a complete home inspection including a mold, radon, and pest inspection done by a well-qualified inspector. It is not our policy to refer you to a specific inspection company, but we are glad to pass along a selection of home inspection companies. The choice of a home inspector is yours. It is our policy to encourage buyers to attend inspections with the inspector or at the end for a debrief. Do not rely on the seller's survey. It is our policy to encourage you to get your own survey, complete with stakes, if a survey is required or desired. Because the dates in the Contract are "time is of the essence", it is most important that all the dates be met in a timely manner. I hereby release Realty Oasis and its agents from all cost or liability related to the selection and use of any agencies, I have selected all inspection agencies of my own accord and not the representation of Realty Oasis. A comparative market analysis prepared in accordance with this act shall not be deemed to be an appraisal within the scope of the Real Estate Appraiser Certification Act. Note that this requirement applies to all CMA's whether prepared for a seller on a listing or for a buyer in preparing to write an offer. As a Real Estate Licensee, I have no expertise about mold. I urge you to consult mold-related literature, your family physician, or an appropriate professional with knowledge on the subject. We advise all buyers to get an insurance binder on the subject property for coverage within 15 days of signing the contract, to ensure the propertyâ&#x20AC;&#x2122;s insurability and understanding of costs.
SURVEY DISCLOSURE - PLEASE READ CAREFULLY Even if you are purchasing title insurance, surveys are rarely required by title agencies or their underwriters. This is a dramatic change in policy from the title industry that only occurred since the turn of the millennium.
Even though the title industry doesn't require surveys,
REALTY OASIS AND ITS AGENTS RECOMMEND THAT YOU OBTAIN A NEW SURVEY. Wondering whether a new survey is necessary really is an age-old question. Often, buyers weigh the value of a new survey against its cost and decide to use an existing survey and spend their money elsewhere. Most often, they make this decision with little knowledge of what a survey is, and what it reveals about one of the largest purchases they will ever make: their new home. For residential property purchases, the survey performed is usually a boundary retracement survey with additional surveying to meet the specific needs required by title companies. The map of such a survey must show information in detail and exactness of matters discoverable from survey and inspection, and not necessarily evidenced by public records. Unrecorded easements, access roads to other properties, physical encroachments of buildings, and other visible adverse uses of the property by other parties are examples of matters of concern for a land title survey. Furthermore, surveys show the dimensions of the lot, location of the home and driveway, building setback lines, recorded easements affecting the property, and access to a public or private road and bodies of water that may exist. In the long run, a few hundred dollars spent here may prove to be a real bargain. I/We acknowledge receipt of this Survey Disclosure, and further acknowledge that our REALTORÂŽ has recommended that we obtain a survey for the property we intend to purchase.
This is not a contract. BUYER:
DATE:
BUYER:
DATE:
WHY SHOULD I HAVE A HOME INSPECTION? A home inspection is an objective, visual examination of the physical structure and system of a home. The standard home inspector's report will review the condition of the home's major mechanical systems such as the heating system, air conditioning system, interior plumbing, electrical systems, the roof, attic and visible insulation. The ceilings, floors, windows, doors, the foundation, basement and visible structure are typically examined as well. The inspector will examine these items to provide you with information on the types of systems and their condition at the time of inspection. Realty Oasis and its agents have considerable knowledge and expertise on the sale and purchase of real estate, but we cannot give advice in the matter of law, taxation, financing, surveying, wood infestation, engineering, etc. We do not make any claims or representations as to the condition of any property; we simply defer to the experts. Realty Oasis recommends that you have your new home inspected by a professional home inspector. Although we cannot recommend a home inspector, we will be happy to provide you with a list of approved inspectors in your area. We encourage you to interview at least three companies to determine which one best suits your needs. I hereby release Realty Oasis and its agents from all cost and/or liability related to the selection and/or use of any agencies. I have selected all inspection agencies of my own accord, and not on the advice or representation of Realty Oasis.
This is not a contract.
BUYER:
DATE:
BUYER:
DATE:
BUYER OFFER SUMMARY PROPERTY ADDRESS: INITIAL OFFER PRICE: EARNEST MONEY AMOUNT: INSPECTION OBJECTION: APPRAISAL OBJECTION: LOAN TERMINATION: CLOSING DATE: LOAN DETAILS: COMMISSION DEFICIENCY: TRANSACTION FEE: ADDITIONAL CLOSING COSTS: TOTAL CLOSING COSTS: HOME WARRANTY: ADDITIONAL INFORMATION:
PREFERRED LENDERS
David Hosterman NMLS #220562 City Wide Home Loans
6025 S Quebec St # 360 Centennial, CO 80111 Office: 720-644-5566 | Cell: 720-260-981 dhosterman@citywidehomeloans.com www.citywidehomeloans.com
Thurston Rosenlund NMLS #268617
Nations Lending
7501 Village Square Dr #207 Castle Pines, CO 80108 Direct: 720-373-5407 | Cell: 720-255-0847 Thurston.Rosenlund@nationslending.com www.nationslending.com/castle-pines-co
Chris Milbrath
NMLS # 306002
Elevations Credit Union
1079 S Hover Longmont, CO 80501 Office: 303-886-0494 christopher.Milbrath@elevationscu.com www.elevationscu.com
Todd Gehrke NMLS #248559 New American Funding
5299 Dtc Boulevard, Ste. 300 Greenwood Village, CO 80111 Office: 720-608-0013 | Cell: 303-910-5668 Todd.Gehrke@nafinc.com https://www.newamericanfunding.com/
PREFERRED INSPECTORS
Jerry Payne True Vision Inspections
Direct: 720-335-3351 jerry@truevisioninspections.com www.truevisioninspections.com/
Jeremy Strouse STROUSE HOME INSPECTIONS
Direct: 720-432-0004 jeremy@StrouseHomeInspections.com www.strousehomeinspections.com
General Inspection
Axium Inspections
Office: 303-797-6900 www.axiuminspections.com
OUR CANCELLATION GUARANTEE Your Agreement with Other Agents Is Full of Potential Pitfalls
Entering into a buyer's agreement with a real estate agent can be a risky business. Every sales representative will promise the world when it comes to finding you a home, but how many of them deliver on their promises? According to a recent survey, more than 80% of homebuyers were dissatisfied with the performance of their agent, even if that agent sold them a property. The fact is, most buyer agreements lock you into long-term commitments and lengthy broker protection periods with heavy cancellation fees. In other words, it's an agreement that your agent can get out of, but you canâ&#x20AC;&#x2122;t.
Your Agreement with Us Is Risk-Free! As your Buyer Specialist, my job is simply to find you the right home as quickly as possible, before the competition finds it. The reason I'm so confident I can do this (and do it well!) is because our team has already helped hundreds of people just like you. My pledge is to provide to you with the highest level of service in the real estate industry, and my commitment to this pledge is 100%. So here it is: I am so confident that our real estate system will work for you that I will let you cancel our buyer's agreement at any time prior to submitting an offer to purchase a home, with no penalties or obligations, if you feel my service does not live up to my promise.
This is not a contract. Date Buyer
Date
blue ribbon Home Warranty Locally Owned and Operated Since 1985
Homeowner Rental Property Property Management
Protect your
Investment 24/7
14 months months of of coverage coverage standard standard 14
Why Choose Blue Ribbon? Blue Ribbon Home Warranty is here when you need us, all day, every day. Our team has you covered with our top-quality, local contractors and award-winning service.
Benefits For Homeowners Protect your budget from common, unforeseen repairs Access to top local contractors Supplements your homeowners insurance Renewable and transferable
Benefits For property managers Protect property ownerâ&#x20AC;&#x2122;s budget Complimentary pre-inspection* Convenient payment plans Billable to owners or property managers
How Does It Work? Call or go online to file a claim Our friendly service staff will dispatch an approved contractor Low $65 co-pay due at time of service* *Subject to terms and conditions of your contract
303.986.3900
What is covered under a blue ribbon Home Warranty? COVERED ITEMS Heating System Ductwork Plumbing System Water Heater Built-in Whirlpool Tub Sump Pump Electrical System Garage Door Opener Central Vacuum Ceiling Fan Doorbell (wired) Kitchen & Bathroom Exhaust Fans Refrigerator Oven/Range Dishwasher Over the Range Microwave Garbage Disposal Trash Compactor Washer Dryer Central A/C, Evaporative Cooler, Heat Pump or Whole House Fan Blue Ribbon Premier Upgrade Maintenance Plan 2nd Garage Door Opener 3 Items From Additional Items Menu
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PLATINUM l l l l l l l l l l l
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Additional or duplicate items available for ALL plans • • • • • • • • • • • • • • • • • • • • • • • • • •
Refrigerator Stove Built-in double oven Over the range microwave Dishwasher Trash compactor Central vacuum Garbage disposal Washer Dryer Garage door opener Gas fireplace Sump pump Roof Well pump Septic tank Sewage ejector pump Pool Hot tub Pool & hot tub with common equipment Heating system Water heater A/C, evaporative cooler or whole house fan Blue Ribbon Premier Upgrade Preventive Maintenance Check & Cleaning Supplemental Coverage
See contract for details
Call for special pricing on multiple unit dwellings blue ribbon is your local Home Warranty Company • • • • • •
14 months of protection Colorado-owned and operated since 1985 High quality service 24/7 year-round Access to trusted local contractors Accredited member of all Better Business Bureaus in Colorado Top 300 Small Businesses in the West
BlueRibbonHomeWarranty.com
blue ribbon Home Warranty
WARRANTY Application
COLORADO OWNED & OPERATED SINCE1985
Enrolling is easy!
Call 303.986.3900 or 800.571.0475 Email forms to applications@brhw.com Go online to BlueRibbonHomeWarranty.com
95 S. Wadsworth Blvd. Lakewood, CO 80226
1. COMPLETE APPLICATION
Warranty ordered by q Homeowner q Property Manager Other_______________________________________________ Homeowner q Property Manager Premium to be paid by q Other_______________________________________________
HOMEOWNER
Name(s) _____________________________________________ Phone_______________________________________________ Email________________________________________________ Pre-inspection includes all covered systems in the Silver, Gold or Platinum Plan. Mechanical systems and all appliances to be covered must be up and running at time of inspection. A non-refundable fee of $75 will be charged in advance. Inspection may not be available in some areas. This charge will be applied to the warranty premium.
Address of property covered q Vacant _____________________________________________________ City______________________ State_________ ZIP__________ Has this property been bought or sold within the last 30 days? q Yes q No Owner mailing address (if different than covered property) _____________________________________________________ City______________________ State_________ ZIP__________ Property manager (if applicable) Name_______________________________________________ Address______________________________________________ City______________________ State_________ ZIP__________ Phone_______________________________________________ Email________________________________________________
HOW DID YOU HEAR ABOUT US?
q Web page q Friend q Realtor q Lender q Prior Customer q Other______________________________________________
ACCEPTANCE OF COVERAGE
By submission of this application, the applicant agrees to be bound by the terms and limitations of the coverage contract and authorizes homeowner or others to pay total warranty fee to Blue Ribbon Home Warranty, Inc.
Signature_____________________________ Date___________ Signature_____________________________ Date___________
2. SELECT YOUR COVERAGE
• Select your coverage options to enroll • Call, email or go online to BlueRibbonHomeWarranty.com
IMPORTANT: For homeowners not selling or for rental property, coverage begins when payment is received and inspection is completed, Company accepts application and inspection report and issues a contract number. Payment plans require a $75 deposit, followed by 12 or 22 monthly payments.
Single Family Home Silver Plan
q 14 months $375 or q $27.00 per month $______ q 2 years $625 or q $26.75 per month $______ Gold Plan q 14 months $475 or q $35.75 per month $______ q 2 years $795 or q $35.00 per month $______ Platinum Plan* q 14 months $795 or q $64.00 per month $______ q 2 years $1325 or q $60.50 per month $______
Condo or Town Home
Silver Plan q 14 months $325 or q $22.50 per month q 2 years $545 or q $22.50 per month Gold Plan q 14 months $425 or q $31.50 per month q 2 years $715 or q $31.00 per month Platinum Plan* q 14 months $745 or q $59.50 per month q 2 years $1245 or q $56.75 per month
$______ $______ $______ $______ $______ $______
*Please choose three additional items to be covered Call for pricing on Duplex, Triplex and Fourplex properties or multi-family units
3. ADD ADDITIONAL OPTIONS
Add duplicate systems or items, or choose 3 additional items for the Platinum Plan (hot tub, pool or the combination each count as 2 additional items). Please call for 2-year pricing or to double coverage on kitchen and laundry appliances.
q $125 Heating system q $95 Water Heater q $125 A/C, evaporative cooler or whole house fan q $95 Refrigerator q $50 Stove q $95 Built-in double oven q $50 Dishwasher q $50 OTR microwave oven q $40 Trash compactor q $50 Central vacuum q $40 Garbage disposal q $50 Washer
q $50 Dryer q $50 Garage door opener q $60 Gas fireplace q $40 Sump pump q $50 Roof q $90 Well q $50 Septic tank q $75 Sewage ejector pump q $150 Pool q $150 Hot tub q $195 Pool & hot tub combo (with common equipment)
q Blue Ribbon Premier Upgrade q $75 or q 2 years $150 $______ q Preventive Maintenance q $75 or q 2 years $150 $______ Check & Cleaning q Supplemental Coverage q $125 or q 2 years $250 $______
If heating system is excluded from Silver, Gold or Platinum Plan, subtract $70 from total cost. Excludes Condominium or Town Home Plan. No other discounts apply.
4. TOTALS
$________ Plan cost $________ Additional options and upgrades $________ Total due We accept Visa, Mastercard and Discover by phone Please make checks payable to Blue Ribbon Home Warranty 1/2019
303.986.3900
Sample contract Homeowner Policy
Blue Ribbon Home Warranty (“Company”) will help repair or replace at Company’s sole option, those systems and appliances that are covered by the terms and conditions of this contract, when they become inoperative due to normal wear and tear mechanical failure. Coverage is available for Homes, Condominiums, Town Houses, Duplex, Triplex, Fourplex, Multi-Family Units, Investment Property, Manufactured and Mobile Homes (manufactured after 1967). Coverage on lease options is available for lessee only. Limitations on coverage, terms and conditions are set forth in this contract. Homeowner Coverage: Begins when payment is received, inspection is completed, Company accepts application and inspection report and issues a contract number. Company will provide a pre-inspection (see application for details) as long as warranty is paid for. Pre-inspection may not be available in some areas. Homes, Condominiums, Town Houses, Duplex, Triplex, Fourplex, Multi-Family Units, Investment Properties, plus Manufactured and Mobile Homes (manufactured after 1967) are covered up to 14 months or 2 years.
DECLARATION
1. Covered items must be in place and in good and safe working order at the start of coverage. Unknown pre-existing conditions will be covered if, at the time coverage began, the defects or malfunction would not have been known to the Homeowner or Home Inspector by visual inspection and by operating the system or appliance. Known defect or defects found at the time of the inspection are excluded from coverage until Company receives proof of completed repair. This contract only covers items within the perimeter of the main foundation and/or perimeter of the attached or detached garage and only covers one of each listed item, unless duplicate systems or duplicate appliances have been paid for. Unless an item is listed as being covered, it is excluded. 2. Additional Coverage may be added to contract within the first 30 days if items are in good and safe working order. 3. Company is not liable to perform routine maintenance without the addition of Preventive Maintenance Plan. 4. No warranty or guarantee given by any outside person, firm or corporation shall be binding on Company.
COVERED SYSTEMS
SILVER PLAN
Plumbing: Leaks or breaks in water, waste, vent or gas lines, angle stops, risers, gate valves, shower and tub valves, toilet mechanisms, wax ring seal, stoppage in interior drain, waste and vent lines, permanently installed sump pumps, built-in bathtub whirlpool (drain and fill) motor and pump assemblies, garbage disposal and water heater. When necessary water heater replacement will be with like capacity up to 50 gallons. Excluded: Plumbing fixtures (faucets, sinks, toilets, tubs, showers, enclosures and base pans), urinals, power flush mechanisms, instant water dispensers, electronic controls, touch controls, caulking and grouting, stoppage in incoming water lines, water flow restriction caused by chemical or excessive mineral deposits, insufficient or excessive water pressure, pressure regulators, on demand systems, main sewer line, water softener, septic tanks, sewage ejector pumps, circulating pumps, sprinkler systems, saunas, steam rooms, timers, collapsed pipes, polybutylene lines or abs (manufactured in the mid 1980s) plastic piping, tanks (oil, pressure, expansion, storage or sidearm unit, etc.), sedimentary buildup, hose bibs or blockages caused by foreign matter. Dedicated plumbing associated with excluded items is excluded. Electrical: Main panel, sub panels, breakers, switches, outlets, wiring, ground fault interrupters, junction boxes, exhaust fans, ceiling fans (excludes remote transmitter and light kits), doorbell
and garage door opener. Excluded: Lighting fixtures, attic fans, intercom, burglar, smoke and fire alarms, chimes, low voltage lighting controls, garage door, springs, tracks, photo eye, transmitter, security touch pad and panels that have lost their UL listing. Dedicated electrical associated with excluded items is excluded. Appliances: Oven, range, dishwasher, trash compactor, over the range microwave oven, central vacuum system (motor), refrigerator (including icemaker and dispensing equipment). Note: Built-in double oven will be covered as a typical oven if additional fee has not been paid and it is the only oven. Excluded: Clocks or self-cleaning mechanisms (unless it affects the function of the oven), timers, rotisserie, meat probes, interior lining, door glass, tubs, water reservoirs, refrigerant and refrigerant recapture, ceramic and glass stove tops, sensi-heat burners, refinishing or replacement of counter tops, cabinets, tile and floors, portable dishwashers, countertop microwave ovens, appliance knobs and handles, lights, tracks, removable baskets, lock and key assemblies, springs and hinges, multi-media displays or food spoilage. Heating Systems: Gas, electrical, electrical perimeter heating, baseboard convectors, hot water system, burners, thermostats, motors, gas valves and relays. Note: Dual pack or Heat pump (air, water or ground geothermal) is covered if plan includes heating and cooling system coverage. Excluded: Portable units, wall units (that are not main source of heat to the home), filters, electronic air cleaners, humidifiers, registers, tanks (oil, pressure, expansion, storage or sidearm unit, etc.), circulating pumps, fill valves, backflow preventers, purging, steam systems, glycol filled systems, stoppages in water lines, water flow restrictions, chemical or mineral deposits, baseboard casings, fireplaces and key valves. Ductwork: Sheet metal that has become detached at the registers or grills. Excluded: Flue ducts, vent dampers and power vent unit, zone damper systems, registers or grills, collapsed, crushed or improperly sized systems.
GOLD PLAN
Covers all Silver Plan items, plus washer, dryer, one cooling system (ducted air conditioner or evaporative cooler or whole house fan).
PLATINUM PLAN
Covers all Gold Plan items, plus Blue Ribbon Premier Upgrade, Preventive Maintenance Check and Cleaning, a second garage door opener, and three items from additional items list on application (items must be included in sale and in good working order when they are added). Note: Hot tub, pool or the combination, each count as two additional items.
ADDITIONAL COVERAGE
Choose from additional items list on application for pricing or adding “Duplicate and/or Additional” items to a plan. Washer and/or Dryer: All mechanical parts. Excluded: Plastic mini-tubs, soap dispensers, filter screens, knobs, dials, springs and hinges, venting or lint screens and damage to clothing. Ducted Air Conditioning System, Evaporative Cooler or Whole House Fan: Compressors, condensers, motors, thermostats and refrigerant leaks. Note: Coverage on the cooling system is contingent upon receipt of Company approved inspection report done while unit is up and running. If Company approved inspection has not been performed, please call Company to schedule inspection (cost $65). Inspections done May through October, weather permitting. Excluded: Refrigerant and refrigerant recapture, conversion, condenser casings, roof jacks, stands, registers, filters, electronic air cleaners, gas air conditioners, window and wall units that are not ducted. Note: If the Company determines that the air conditioning unit must be replaced, the Company will
replace with comparable unit meeting current federal, state and/ or local government efficiency standards. Roof: Covers leaks only. Excluded: Patio, porches, decks, metal roofs, masonite (hardboard, omni board, woodruff) shingles or cemwood shakes, tiles, asphalt, flashing, skylights, or if roof has deteriorated to such an extent that it can’t be fixed or needs to be replaced. Gas Fireplace: Gas valve, pilot assembly, thermocouple and blower fan. Excluded: Manufactured logs, glass doors and remotes. Pool and/or Hot Tub (including Salt Water Pool): All parts of the heating and pumping systems. Pool and/or hot tub (including exterior hot tub) are covered if they use common equipment. If they do not use common equipment, only one or the other is covered, unless an additional fee is paid. Note: Coverage on the hot tub and/or pool is contingent upon receipt of Company approved inspection report done while unit is up and running. If Company approved inspection has not been performed, please call Company to schedule inspection (cost $65). Excluded: Pool sweep motors, lights, liners, filtration system, jets, control switches, computerized control boards and ozonator, fuel storage tanks, built-in or detachable cleaning equipment including pop-up heads, turbo valves or covers. Well Pump: All parts of well pump used for main dwelling only. Well must be primary water source to residence. Excluded: Well casings, tanks (pressure, expansion, holding or storage, etc.), gauges, piping, control panels, electrical lines leading to or connecting pressure tanks and main dwelling or re-drilling of wells. Septic/Dry Refuse Tank (for domestic use only): We will clear main line stoppages that can be cleared through an existing access. If the stoppage is due to septic backup, we will pump the septic tank once during the contract term. Excluded: Broken or collapsed sewer lines, roots, stoppages that prevent the effective use of any sewer machine cable, cost of finding or gaining access to septic tanks, cost of sewer line hookups, disposal of waste, chemical treatment of the septic tank and/or sewer lines, tanks or leach lines, cesspool, any mechanical pump or systems and excavation. Sewage Ejector Pump/Lift Station: Failure of ejector pump if located within the main dwelling. Excluded: Sewer line and inaccessible pump. BLUE RIBBON PREMIER UPGRADE - (PUG) (included in Platinum Plan): Appliances: rollers, racks, removable baskets, rotisseries, handle knobs, buckets, lights, lock and key assemblies and shelves. Air conditioning: window unit. Garage Door: hinges, springs and remote. Plumbing: main sewer line cleaning, faucets (chrome), shower heads and arms, toilet tank and bowl (2 pieces white), urinals, power flush mechanisms, hose bibs (excludes freezing), pressure regulators and hot water dispenser. Heating system: registers and grills. Maximum limit $120 per system per contract period. PREVENTIVE MAINTENANCE CHECK AND CLEANING (PMC) (included in Platinum Plan): At your request and with the payment of the co-pay per item, we will perform one preventive maintenance check per item during the term of this contract on any of the following covered items: kitchen appliances, laundry appliances, water heater, heating system, cooling system, and garage door opener. Note: Co-pay is not waived on renewals. SUPPLEMENTAL COVERAGE - (SHC): Additional coverage for boiler: circulating pump and fill valve. Tank-less water heater: all mechanical components. Code upgrades associated with necessary heating system, air conditioner and water heater replacement. Power Vents. Maximum limit: $1400 per contract.
TERMS OF COVERAGE
Service: When service is needed, you must telephone Company directly within three days after the problem is discovered, 303.986.3900 or Toll Free 800.571.0475. Company accepts service calls 7 days a week, 24 hours a day. 1. Service technicians are chosen by Company, in its sole and absolute discretion. Homeowner, Investor or their Tenant agree to pay the $65 co-pay for each service call and are responsible for all charges, if not covered. If technician is not available, the Company may authorize Homeowner, Investor or their Tenant to contact a local technician. Company will reimburse for covered claims with a valid authorization code (minus co-pay) on invoices submitted within 30 days of claim. Homeowner, Investor or their Tenant are responsible for any trip/fuel charges that may be assessed and for missed service calls. Payment should be made to the Company’s service technician at the time the work is performed. Company will have no further responsibility under this contract and will not respond to any new request for service, when any previous bills are outstanding. Failure to pay such fees will result in suspension of coverage until the fees are paid. At that time, coverage will be reinstated, but the contract period will not be extended. 2. Service Guarantee: A service technician will respond within 24 hours of your placed service call to schedule an appointment or the co-pay may be waived. Homeowner, Investor or their Tenant are required to be available for contact, service and to establish necessary appointments. Limitations: Weekends and holidays (weekends and holidays begin at 5 p.m. the previous day). Non-emergency repairs will be made during normal business hours. If you should request us to perform non-emergency service outside of normal business hours, you will be responsible for payment of additional fees, including overtime. Reasonable efforts will be made to expedite service in emergencies. Company will decide what constitutes an emergency. 3. Any repair or replacement of systems and appliances under this contract is warranted for 30 days. If such system or appliance fails for similar reasons after this time, an additional co-pay will be incurred by the Homeowner, Investor or their Tenant to address the problem. Co-pays and charges will be paid by the Homeowner, Investor or their Tenant in accordance with the service technician’s usual rate schedule existing at the time that services are rendered. There may be an additional fee charged by the service technician to dispose of old system and appliance after completion of work.
misuse, noise, rust or corrosion, parts not available, discontinued parts, fire, smoke, earthquake, storms, lightning, flood, water, freezing, roots, theft, accidents, war, riots, vandalism, settlement of earth, pest or pet damage, acts of God, conditions beyond Company’s control and any problems caused in any fashion as a result of asbestos or other toxic materials. 4. Company will not upgrade or pay for additional cost or expenses that may be required to complete repairs due to, but not limited to, building or zoning code requirements or violations and connection or disconnection from public utilities. This includes city, county, state, federal and utility regulations and upgrades required by law and cost of permits, if required, at time of service. 5. If Homeowner, Investor, Tenant or other service technician alters, installs, repairs or modifies any system or appliance covered by this contract or damages it in the course of any remodeling, installs, repair or misuse, Company is no longer obligated to provide coverage or service with regard to that item. 6. This contract does not cover systems or appliances that are underground, encased in concrete or otherwise inaccessible. Company will restore drywall to a rough finish when it is necessary to open walls to complete covered repairs. Company is not responsible for trim, texture, paint, wallpaper, tile, wood, carpet or the like which in any respect may be damaged as a result of the Company’s attempts to repair or replace systems and appliances covered by this contract. Company is not responsible for the costs of finding, gaining or closing access to covered items or for additional charges to remove or install related or non-related equipment to make a covered repair or replacement. 7. Homeowners, Investors and Tenants only remedy for damages from liability claim against the Company, regardless of the form of action, shall not exceed the reasonable market cost for repair or replacement of item in dispute and shall not include consequential, secondary, special, punitive or other damages. 8. Company is not responsible to repair or replace systems and appliances classified by the manufacturer as “commercial” or commercial equipment modified for domestic use, or residential properties used in a commercial venture. 9. Common systems, appliances, areas and facilities are not covered unless the plan is for an approved duplex, triplex or fourplex property and owned by the party named in this contract. Units of five or more must be covered individually. 10. Solar systems, equipment and components, including solar heating and hot water systems and holding tanks, are not covered.
4. Any calls for service must be made within the contract period.
EXCLUSIONS AND LIMITATIONS OF LIABILITY
1. The Company has the sole right to select the technician to perform service, is not liable for service performed without its approval and will not reimburse the policy owner for unauthorized repairs. 2. Company has the sole right to determine whether to correct a malfunction by repair or replacement. Parts and replacements will be with similar quality and efficiency, except as noted in contract. Company is not responsible for matching dimensions, brand or color of covered items or for repairs arising from manufacturer’s recall of covered items or any items while still under an existing manufacturer’s, distributor’s or other warranty. Company is not responsible for the disposal of any items, including any haul-away fees. 3. This contract does not cover systems or appliances for repairs, upgrading or replacements required as a result of improper installation, inadequate wiring, capacity, lack of efficiency, overloads, power failures, missing parts, failure to clean or maintain, neglect,
11. Electronic or computerized management and appliance management systems are not covered. 12. Maximum coverage shall be up to $2000 for each gas, electrical and hot water heating system, heat pump, dual pack, air conditioner or evaporative cooler, $1600 for electrical system, hot tub or pool, $1000 for each water heater, $750 for each refrigerator, $250 for each icemaker (icemaker repairs also count towards refrigerator maximum), $250 for hood, kitchen or bathroom exhaust fans, $600 for each sewage ejector pump, garage door opener, kitchen or laundry appliance, $1500 for each built-in double oven (double coverage not available on built-in double oven), $1000 for each gas fireplace, $800 for each whirlpool tub, $1200 for each well pump, $500 for septic system pumping , $350 for roof leaks, $250 for lead or galvanized piping, per contract term and $120 for each ceiling fan or drain cleaning. Company reserves the right to issue cash back on any item covered by contract in lieu of repair or replacement. Cash reimbursements are based on our negotiated rates with our suppliers for repairs or replacements. Accounts
receivable and outstanding balances may be deducted from any claims over $100. An administrative fee, up to 8%, will be charged on all monthly billings. Cash reimbursement transactions are valid for 90 days. 13. Foundation or structural elements, including but not limited to walls, concrete, beams or similar structural components and cosmetic defects or design flaws are not covered by this warranty. 14. This contract may be governed 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 the homeowner may have a right to civil action under such laws, including obtaining the recourse or penalties specified in such laws. The losing party in any legal dispute involving this contract shall pay the prevailing party’s court costs and attorney fees. 15. Please see Declarations, Covered Systems and Additional Coverage sections for additional limitations.
CANCELLATION AND TRANSFER
1. Company may declare this contract void
i. in the event of fraud or of material misrepresentation by Homeowner, Tenant or Representatives of any fact or circumstance relating to the systems or appliances covered by this contract. ii. premium, co-pay or accounts receivable not paid. Accounts receivable may be turned over to collections if not paid within 60 days. iii. in the event of a threat to harm, or actual harm to the safety or well being of Company, any employee of Company, a Service Contractor, or any property of Company or a Service Contractor. 2. This warranty policy is transferable, agreement remains with the property and may be extended for an additional fee. 3. Homeowner may cancel this policy upon 10 days prior written notice to the Company, and shall be entitled to a pro rata refund of the paid contract fee for the unexpired term, less an administrative fee (10% of the contract price) and any costs or expenses incurred by Company in providing services to the homeowner, including costs/expenses paid by Company for service calls and parts. Homeowner shall be liable to pay Company any amounts exceeding the contract price due to costs or expenses incurred by the Company and costs/expenses relating to the warranty services. Homeowners who pay on a monthly basis for a specific coverage period may cancel this policy upon 10 days written notice to the Company and shall then pay to Company the total monthly payments due up to and including the date of cancellation, plus an administrative fee (10% of the contract price) and any costs or expenses incurred by Company in providing warranty services to the homeowner from the start of the contract term until the date of cancellation, including costs/expenses paid by Company for service calls and parts.
RENEWALS
1. Upon receipt of payment, Company may elect to renew this contract at Company’s option, contract owner will be notified by mail and contracts are for 12 months of coverage. 2. Fourth term of coverage will be provided free, upon property owner’s request, as long as Company has paid no claims for three consecutive terms. New Construction Plans excluded. 3. Homeowner acknowledges that each party or parties have read, understand and agree to the terms and conditions of this contract and acknowledge receipt of an exact copy of this contract.
Terri Lane
By ____________________________________________________________ By ____________________________________________________________ WARRANTY RECIPIENT DATE PRESIDENT DATE
blue ribbon Home Warranty Incorporated
This contact and its contents are subject to copyright and are the exclusive property of Blue Ribbon Home Warranty, Inc. Copying, reproducing, or facsimile is prohibited without prior written authorization of Blue Ribbon Home Warranty, Inc. Prices and terms are subject to change. Copyright © 1985 - 2019 BRHW, Inc. Blue Ribbon Home Warranty, Inc. All rights reserved. 1/2019