APPROVAL REQUIRED??

WHILE YOUR BUYER AND SELLER HAVE PRIMARY AUTHORITY OVER THE PURCHASE AGREEMENT, THERE ARE OFTEN OTHER PARTIES THAT HAVE SOME APPROVAL AUTHORITY IN YOUR TRANSACTIONS:

1.   Properties Owned in Trust: Any time a property is being transferred into or out of a Trust, the terms of the trust agreement must be reviewed and approved by the TITLE INSURANCE UNDERWRITER OR ITS’ AGENT.

2.   Powers of Attorney: All Power’s of Attorney must be approved by the TITLE INSURANCE UNDERWRITER OR ITS’ AGENT, and any POA used by the buyer must also be approved by the BUYER’S NEW LENDER.

3.   Wood Infestation Report: Often the BUYER’S NEW LENDER will require a copy of the WIR and will have the authority to require corrective action as a condition of loan approval. You should determine in advance if the lender requires approval. If they do not normally require approval, but are provided a copy of a negative report, a requirement for corrective action will probably result.

4.   Lease-backs: Most lease-backs, where the Seller will remain in the property for a period of time in exchange for “rent”, will require the approval of the BUYER’S NEW LENDER.

5.   Credits to Buyer’s Closing Costs: Any credits to the Buyer from any party may require the approval of the BUYER’S NEW LENDER.

6.   Holdbacks: Holdbacks for repairs or improvements to be done after close of escrow will probably need to be approved by the BUYER’S NEW LENDER. Unexplained holdbacks may be questioned by the LENDER, since this is one way Buyers and Sellers often try to circumvent lender’s requirements.

7.   Clue Report: The “Comprehensive Loss Underwriting Exchange” report will be reviewed and approved by the BUYER’S NEW INSURANCE COMPANY prior to issuing the homeowner’s insurance policy.

8.   Commission Changes: Commissions belong to the Real Estate Broker’s in a transaction. Any change in the specified commissions must be approved by the REAL ESTATE BROKERS OR THEIR AUTHORIZED SIGNATORIES OR MANAGERS. The agent does not have the ability to modify commission amounts on their own.

9.   Costs Not Stipulated in the Contract: Any cost not dictated by the Purchase Contract or by prevailing custom must be specifically agreed to in writing by the PAYING PARTY. This will normally include any repair bills or other costs not specifically related to the conveyance of the property or acquisition of the loan.

Provided Courtesy of EQUITY TITLE AGENCY, INC. May not apply in whole or part outside of Arizona

Tom Diller | VP Business Development | Equity Title Agency | tomd@eta-az.com