__MAIN_TEXT__
feature-image

Page 1

E X PR ESS TO S UCCESS

Welcome!


EXPRESS TO SUCCESS | WEEK ONE MONDAY Start time - End time 10:00am - 11:20am 11:20am - 11:30am 11:30am - 12:00pm

Subject 1 Company Philosophy & History 10 Minute Break 1 Company Philosophy & History - (Cont'd)

12:00pm - 12:15pm 12:15pm - 01:15pm 01:15pm - 02:20pm 02:20pm - 02:30pm 02:30pm - 03:30pm 03:30pm - 03:45pm

2 Related Business Introduction Lunch Break 3 Marketing Overview 10 Minute Break Luxury Listing Tools 15 Minute Break

03:45pm - 04:15pm

5 Commercial & Operation Keys for Heroes Introduction

04:15pm - 004:45pm

5 Relocation Services

Instructor Mark Dilbeck, President Mark Dilbeck, President Mike DeGrandis Orange Coast Title, Kirk Dilbeck, Inter Valley Escrow, __________, Partners United Financial Tamia Scott, Director of Marketing Tamia Scott, Director of Marketing

Juan Carlos Argueta, Manager-Dilbeck Commercial Real Estate Division, Program Leader-Operation Keys for Heroes Sarah Gould, Relocation Coordinator

TUESDAY Start time - End time 01:00pm - 03:00pm 03:00pm- 03:15pm 03:15pm - 03:45pm

Subject Instructor 7 Listing Contract, Case Study & Marketing the Listing Laurie Biernacki, Pasadena, San Marino, Glendora, Branch Mgr. 15 Minute Break 7 Listing Contract, Case Study & Marketing the Listing (Cont’d) Laurie Biernacki, Pasadena, San Marino, Glendora, Branch Mgr.

WEDNESDAY Start time - End time 10:00am - 12:00pm 12:00pm - 01:00pm 01:00pm - 03:00pm 03:00pm - 03:15pm 03:15pm - 03:45pm

Subject 8 Open Houses and Door Knocking Lunch Break 9 Seller Disclosures 15 Minute Break 9 Seller Disclosures (Cont'd)

Instructor Pam Heiberg, Recruiting Liaison

Subject 10 Tech Tools Overview 15 Minute Break 10 Social Media, CRM & Website Lunch Break 11 Title 15 Minute Break 12 Mortgage

Instructor Tamia Scott, Director of Marketing

Subject 13 Legal Aspects 15 Minute Break 14 Working your Sphere & Establishing Online Presence Lunch Break 15 Leases, Probate, Trust, Short Sales 15 Minute Break 15 Leases, Probate, Trust, Short Sales

Instructor Mona Rose, Legal Counsel

Eric Benz, La Canada, Sales Manager Eric Benz, La Canada, Sales Manager

THURSDAY Start time - End time 10:00am - 11:15am 11:15am - 11:30am 11:30am - 12:45pm 12:45pm - 1:45pm 01:45pm - 03:15pm 03:15pm - 03:30pm 03:30pm - 04:45pm

Ashley Ray, Lead Digital Marketing & Social Media Specialist Mike DeGrandis, Orange Coast Title Mike Mulgrew, Partners United Financial

FRIDAY Start time - End time 10:00am - 11:00am 11:00am - 11:15am 11:15am - 12:45pm 12:45pm - 01:45pm 01:45pm - 02:45pm 02:45pm - 03:00pm 03:00pm - 04:00pm

Stacy Petrossian, Glendale Sales Manager Pascal Angelini, Burbank, Sales Manager Pascal Angelini, Burbank, Sales Manager


EXPRESS TO SUCCESS | WEEK TWO MONDAY Start time - End time 10:00am - 12:15pm

Subject 16 Buyer Representation Agreement/ Selecting & Showing Property/Handling Objections Lunch Break 17 Residential Purchase Agreement, Attachments & Buyer Disclosures - Part One 15 Minute Break 17 Residential Purchase Agreement, Attachments & Buyer Disclosures - Part One (Cont'd)

Instructor Shannon Cistulli, Burbank, Encino, Glendale Branch Manager

Subject 18 Residential Purchase Agreement, Attachments & Buyer Disclosures - Part Two 10 Minute Break 18 Residential Purchase Agreement, Attachments & Buyer Disclosures - Part Two (Cont'd) Lunch Break 19 Case Study & Presenting the Offer 15 Minute Break 19 Case Study & Presenting the Offer (Cont'd)

Instructor Barry Jones, La Canada, Branch Manager

Instructor Chuck Lech, Designated Broker

03:15pm - 03:25pm

Subject 20 Negotiations 10 Minute Break 20 Negotiations (Cont'd) Lunch Break 21 Reviewing the Offer - Counter Offer and Negotiations Choosing Affiliates (Cont'd) 10 Minute Break

03:25pm - 04:30pm

21

12:15pm - 001:15pm 01:15pm - 103:00pm 03:00pm - 003:15pm 03:15pm - 004:45pm

Susan Lindsey, Santa Clarita, Branch Manager

Susan Lindsey, Santa Clarita, Branch Manager

TUESDAY Start time - End time 10:00am - 11:20am 11:20am - 11:30am 11:30am - 12:30pm 12:30pm - 01:30pm 01:30pm - 103:00pm 03:00pm - 003:15pm 03:15pm - 004:45pm

Barry Jones, La Canada, Branch Manager

Merilee Iverson, Westlake, Camarillo, Branch Manager Merilee Iverson, Westlake, Camarillo, Branch Manager

WEDNESDAY Start time - End time 10:00am - 11:20am 11:20am - 11:30am 11:30am - 01:00pm 01:00pm - 02:00pm 02:00pm - 03:15pm

Reviewing the Offer - Counter Offer and Negotiations (Cont'd)

Chuck Lech, Designated Broker Brian Reed, La Canada, Sales Partner

Brian Reed, La Canada, Sales Partner

THURSDAY Start time - End time 10:00am - 12:00pm 12:00pm - 01:00pm 01:00pm - 02:30pm 02:30pm - 02:45pm 02:45pm - 04:00pm 04:00pm - 04:10pm 04:10pm - 04:45pm

Subject 22 Bio Profile Book (and Headshot Reminder) Lunch Break 23 Escrow 15 Minute Break 24 Overview of Escrow process from beginning to end including Contingencies etc. 10 Minute Break 24 Overview of Escrow process from beginning to end including Contingencies etc. (Cont'd)

Instructor Sarah Moore, Pasadena, Sales Manager

Subject 25 Business Planning, Calendar & Development, Budget Development 10 Minute Break 25 Business Planning, Calendar & Development, Budget Development (Cont'd) Meet & Greet and Congratulatory Reception

Instructor Stella Balasanian, Company Coach

Bruce Ladd/Erik Okland, Inter Valley Escrow Carol Ann Walls-Sandell, Glendora, Sales Manager Carol Ann Walls-Sandell, Glendora, Sales Manager

FRIDAY Start time - End time 10:00am - 11:20am 11:20am - 11:30am 11:30am - 12:30pm 12:30pm - 01:30pm

Stella Balasanian, Company Coach Various Managers


E X PR ESS TO S UCCESS

1| Company Philosophy & History


7/10/2020

E X P R E S S TO   S U C C E S S

Company Philosophy & History   Introductions  Early History •

Dilbeck & Associates was founded by Ray Dilbeck in 1963 (Ray's first real estate office was in La Crescenta, followed  shortly by his second office in La Canada). Ray Dilbeck partnered with Bob Stevenson to form Stevenson Dilbeck during  the 1970s (prior to that, Bob Stevenson was the owner of Stevenson Edwards Real Estate in Glendale). During the  1970’s & 1980’s Stevenson Dilbeck was among original members of early franchise networks “Realty Register” and “The  Gallery Homes.” Stevenson Dilbeck later became Dilbeck Realtors.

Bliss Keeler Realtors was founded in San Marino by Bliss Keeler in 1950.

In 1993 Dilbeck Realtors & Bliss Keeler Realtors merged to form "Keeler Dilbeck Realtors." Ray Dilbeck and Bliss  Keeler's son, Fred Keeler, were the two primary principals at that time.

Dilbeck brought La Crescenta, La Cañada, Glendale and Pasadena offices and Keeler brought San Marino and South  Pasadena offices to the merger. Those 6 offices had between 200‐250 agents at that time.

EXPRESS TO SUCCESS

 Management completed its transitioned to the next generation in 1995 & 1996  Management Philosophy • • • • •

"Hands On" Management focused on individual attention to help each Sales Partner achieve his  or her personal potential (a philosophy of empowerment, collaboration and partnership)  We’re here to help – Involve us early, if you need assistance Horizontal "team" management approach is somewhat unique for a company our  size/Together,  our Management Team makes most policy  decisions Sales Partners have direct access to decision makers Our “Agents” are our “Sales Partners” – we work together for mutual success – we listen to our  Sales Partners Our Sales Partners were actively engaged in the process we used to commit our Core Values to  writing

EXPRESS TO SUCCESS

1


7/10/2020

• Have INTEGRITY • Be Honest (Tell the Truth) • Be Ethical (Do what's Right and Good) • Be Fair (equitable, unbiased and just)

Core Values

• ACT WITH EXCELLENCE • Achieve Positive Results for our clients • Be Professional, Skillful and Knowledgeable • Be Discerning and show good judgment • Create a Quality, Full‐Service, Experience • Consistently Exceed Expectations • Support Our TEAM • We invest in every member of our real estate family  to empower them to achieve and surpass their goals • We support and encourage their professional, and  personal, growth and development • We are Collaborative, Positive and Encouraging • We are Welcoming, Helpful, and Caring • We are Community, Team and Family oriented, while  valuing diversity and each person as an individual

Be COMMUNITY MINDED •Be Grateful and Involved •Be Generous and Charitable •Live the "Golden Rule" (Treat other People the way you  would like to be treated)

LOOK FORWARD •Imagine and Innovate •Be Dynamic, Progressive and Enterprising •Create Positive Change

EXPRESS TO SUCCESS

Core Value Have INTEGRITY • Be Honest (Tell the Truth) • Be Ethical (Do what's Right and Good) • Be Fair (equitable, unbiased and just)

EXPRESS TO SUCCESS

 The Management Team is deliberate about Strategic Planning for the Company  Industry Consolidation during the mid‐90’s led to 1996 Strategic Growth Plan to ensure relevance  • A more consistent way of valuing residential real estate companies developed, which amplified the Consolidation  The Right Size & Feel • Small enough to retain a boutique feel, focus on individuals and make quick decisions  • Large enough to provide the tools and support to compete at any level  • Strong local branding and independence • We want to be the best, not the biggest  Philosophy Behind Growth and previous Franchise Relationships  (The decision to get bigger vs. smaller) • The intention behind our geographic footprint  • National and International connections and name recognition

EXPRESS TO SUCCESS

2


7/10/2020

 Past Franchise Affiliations • 1997 ‐ 1999 ‐ Better Homes and Gardens • 1999 ‐ 2011 ‐ GMAC Real Estate • 2011 ‐ 2014 ‐ Real Living  Today we have Local In‐House Marketing, I.T., Legal, Coaching & other Support Staff who  help provide tools, products and services previously provided by our franchisors.   The rise of the internet and mobile devices has also changed what we need, how  consumers and agents act, and what they expect. The first iPhone was released in 2007.  

EXPRESS TO SUCCESS

 Today's Affiliations (Are exclusive and “by invitation  only”) • Leading Real Estate Companies of the World &  Luxury Portfolio International (joined in 2014)  Leading RE connects us with a world‐ wide invitation‐only network of over 500  market‐leading real estate firms. The  network sells over a million homes and  connects tens of thousands of buyers and  sellers each year. At its heart, LeadingRE is  a referral network connecting people  through the “Art of the Introduction,” but  it also has world‐class marketing and  resources, such as excellent networking  and educational opportunities. Dilbeck  Real Estate pays a separate fee so that all  its Sales Partners will have free access to  LRE’s “Institute.”

EXPRESS TO SUCCESS

• Luxury Portfolio International is available to select Leading RE members including Dilbeck Real Estate and can  be used to obtain and market listings over $1Million. • Dilbeck Real Estate is the exclusive affiliate of Christie's International Real Estate in our Market Area  Joined Christie's Great Estates in 1999 (Christie's changed the name to Christie's International Real Estate  in 2011)  Dilbeck Estates/Christie's International Real Estate can also be used for listings over $1 million

EXPRESS TO SUCCESS

3


7/10/2020

 Growth since 1996 (At times, some offices have used different names, but it’s the same  company) • 1997 ‐ Arcadia – Merged in Dorn Realty (began in the 1920’s)/2019 Moved to San Marino • 1997 ‐ Woodland Hills – Merged in James R. Gary & Co. and called it “Dilbeck James R.  Gary”/2008 moved to Calabasas/2020 moved to Encino • 1998 ‐ Westlake Village – Merged in Matchett Village Properties and called it “Dilbeck  Matchett Properties” • 1998 ‐ Santa Clarita opened Satellite Office for Relocation/1999 New Santa Clarita Branch • 2001 ‐ New Burbank Branch • Work your plan, but also be opportunistic and adapt to the marketplace

EXPRESS TO SUCCESS

• 2002 ‐ Sherman Oaks & Studio City ‐ Merged in Gibson & Associates Realtors and called it  “Dilbeck Gibson Realtors”  (Moved Sherman Oaks office to Encino in 2016 and Studio City  to Encino in 2020)  • 2008 ‐ Ellis Realty joins La Crescenta office as "Dilbeck Ellis Realtors"  (Ellis Realty began in La Crescenta in 1963) La Crescenta Sales Partners moved to La Canada in 2018.  • 2009 ‐ Glendora ‐ Baldwin Realty joins with Arcadia and Glendora Sales Partners (Baldwin began in Arcadia in 1973) • 2012 ‐ Carnahan Agents join Calabasas office • 2018 – Camarillo Satellite • Adjusting office locations to the way people interract today

EXPRESS TO SUCCESS

 Current Size  Eleven Locations O v e r   5 0 0   S a l e s   P a r t n e r s   ( i n c l u d i n g  t h o s e   i n   t h e   R e f e r r a l   P r o g r a m ) C l o s e d   a p p r o x i m a t e l y  $ 1 . 2   B i l l i o n   i n   S a l e s   Vo l u m e   d u r i n g   2 0 1 9

EXPRESS TO SUCCESS

4


7/10/2020

 Value and Quality Driven/Full Service and Support business model • Different Real Estate Companies have different business models (philosophies  should align for partnerships to work)  • Most companies and agents join and stay with us because they are attracted by our  values and our focus on delivering value through quality  • Our Model is designed around quality and providing full service and support to our  Sales Partners to put them in the best position to provide the best service to our  clients, while doing more transactions with less personal cost • Our "Platinum Advantage" Service Approach, including the Real Satisfied Customer  Satisfaction Agent Evaluation Platform, with social media and other internet  marketing opportunities, helps set us apart • We assist Sales Partners with Personal and Career Development thorough Planning,  Training, Coaching and Consulting as they progress through all phases of their career  (with a variety of delivery methods for each)

EXPRESS TO SUCCESS

 Our Team & Family Orientation is expressed in the “Support our Team” Core Value • Please Welcome Sales Partners visiting your office from other offices the same way you would like to  be welcomed 

Core Value  Support Our TEAM • We invest in every member of our real estate family to empower them to achieve and surpass  their goals We support and encourage their professional, and personal, growth and development We are Collaborative, Positive and Encouraging We are Welcoming, Helpful, and Caring We are Community, Team and Family oriented, while valuing diversity and each person as an  individual

• • • •

EXPRESS TO SUCCESS

 The Company focuses on growth to be a healthy and vibrant organization, not growth for growth's sake ‐ We  are selective about who we ask to join us because of our focus on quality  We strive to be the best, not the biggest

EXPRESS TO SUCCESS

5


7/10/2020

 Each Manager has committed to hire only people he or she believes have the following “MUST  HAVE” characteristics (NOT AN OPTION TO HIRE WITHOUT):      •

Honesty & Integrity Self‐Motivated/Determined Positive Attitude Committed to Success in Real Estate A Passion to Serve Others

Almost on the list (& you will need to be):  Technologically Capable

EXPRESS TO SUCCESS

Our Management Team studied the concepts in Jim Collin’s Good to Great Collins postulates that “Good” is the enemy of “Great” and to become “Great” a company should focus on  what he calls its “Hedgehog Concept” The “Great” companies he studied all had a clear understanding of their “Hedgehog Concept” (although they  didn’t call it that) According to Jim Collin’s a Hedgehog Concept is: • A “single organizing idea, a basic principle or concept that unifies and guides everything.” • A “simple crystalline concept that flows from deep understanding about the intersection of … three  circles.” The three circles being What You Are Deeply Passionate About What You Can Be The Best In The World At What Drives Your Economic Engine

EXPRESS TO SUCCESS

EXPRESS TO SUCCESS

6


7/10/2020

The Guiding and Unifying concept for Dilbeck Real Estate’s Management & other Staff follows: At Dilbeck Real Estate our deep passion for serving others helps motivate us to strive to be the best in the world at supporting the development and success of each member of our Real Estate Family, a by product is that we have more Sales Partners making more money for themselves and the Company.

EXPRESS TO SUCCESS

We work every day at being the best in the world at  supporting the development and success of each  member of our Real Estate Family.

EXPRESS TO SUCCESS

We focus on retaining and hiring staff who are passionate about serving  others and whose values are consistent with our Core Values Staff “Must Have”  Characteristics Honesty& Integrity Self Motivated / Determined

Sales Partner “Must Have” Characteristics Honesty & Integrity Self Motivated / Determined

Positive Attitude

Positive Attitude

A Passion to Serve Others

A Passion to Serve Others

Team Player

Committed to Success in Real Estate

Resourceful

EXPRESS TO SUCCESS

7


7/10/2020

Core Value

ACT WITH EXCELLENCE •Achieve Positive Results for our clients •Be Professional, Skillful and Knowledgeable •Be Discerning and show good judgment •Create a Quality, Full‐Service, Experience •Consistently Exceed Expectations

EXPRESS TO SUCCESS

Our Guiding Principle is "Consistently Exceeding Expectations"  Setting the right expectations helps one exceed them  Our focus on "consistently exceeding expectations," both within the company and with  the public, drives us toward quality  Everyone at the Company should know our Guiding Principle

EXPRESS TO SUCCESS

Core Value

LOOK FORWARD • Imagine and Innovate • Be Dynamic, Progressive and Enterprising • Create Positive Change

 We have the gift of our strong legacy, but continue to reinvent in ways consistent with our Core Values • Technology as a Differentiator • Active Marketing Department • Marketing and Technology Liaisons (“MarTeks”) provide Sales Partners with Personalized Service in  Each Office (Marketing and Technology have blended) • Office, Regional and Company‐Wide Training • Company‐Wide CRM (i.e., Contract Relationship Management Program) • Personalized and Customizable Sales Partner Websites • Real Satisfied Consumer Surveys • Imprev Automated Listing Program

EXPRESS TO SUCCESS

8


7/10/2020

Our Sales Partners help us attract others to join the company who are aligned  with our Core Values  • The Dilbeck Real Estate Growing the Family Program is a way of saying “Thank You” to, and  rewarding, our Sales Partners for helping us attract quality agents to our Dilbeck Real Estate  Family. • If an agent joining Dilbeck Real Estate identifies an Existing Dilbeck Real Estate Sales Partner  or employee as the person most responsible for the New Agent joining the Company, the  Existing Sales Partner or employee will receive $500 from each closed sale or lease from the  “Company Dollar” from each of the first six closings the New Agent has with the Company  during the New Agent’s first 18 months with the Company. The New Agent must identify the  existing Sales Partner or employee in writing on the Dilbeck Real Estate Associate  Questionnaire at the time the New Agent signs up with the Company • More specific details about the program are on the Resource Center. 

EXPRESS TO SUCCESS

Core Value

Be COMMUNITY MINDED •Be Grateful and Involved •Be Generous and Charitable •Live the "Golden Rule" (Treat other People the way you would like to be treated)

EXPRESS TO SUCCESS

Company Philosophy & History 

• Guiding Principle ‐ "Consistently Exceeding Expectations“ • Vision Statement Universally accepted as Southern California’s finest residential real estate and home services  organization, and one of the foremost real estate companies in the nation, Dilbeck Realtors will  be the most trusted source for information, assistance and service related to home ownership  and other real estate needs throughout Southern California. Dilbeck Realtors will be widely  known as the real estate consumers’ first choice for a quality experience. Every individual within our organization will give meaning to the words “Consistently Exceeding  Expectations” by taking them to heart and acting upon them daily. Each member of our real  estate family will enjoy what he or she does within our organization and feel a high level of  satisfaction about his or her work experience. Each of our clients will always recommend us above all others.

EXPRESS TO SUCCESS

9


7/10/2020

• Mission Statement We are a community of real estate professionals dedicated to making a difference with integrity,  innovation, care and excellence. We will guide our actions by the highest ethical standards. We will preserve and build upon the excellent reputation established by our founders. We will consistently provide superior service through our unwavering commitment to honesty,  integrity, knowledge, skill and innovation. We will continually enhance our service with new  technology and the most current marketing systems. We will encourage a work atmosphere where personal growth, creativity and a problem‐solving  attitude are cultivated. We will foster our “family” oriented environment. We will continue as strong and progressive leaders in the communities we serve. • Motto “The Professional Difference”

EXPRESS TO SUCCESS

 Our Branding Statement is Generations of Trust for Generations to Come   Our "why“ is connected with our Branding Statement

 Our Reputation and our people are our most valuable assets  Our Core Values (along with our Guiding and Unifying Concept) ground us, while we progress  with our technology, marketing, service delivery methods and business practices Revised: July 8, 2020

EXPRESS TO SUCCESS

Core Values Have INTEGRITY •Be Honest (Tell the Truth) •Be Ethical (Do what's Right and Good) •Be Fair (equitable, unbiased and just) ACT WITH EXCELLENCE •Achieve Positive Results for our clients •Be Professional, Skillful and Knowledgeable •Be Discerning and show good judgment •Create a Quality, Full‐Service, Experience •Consistently Exceed Expectations

Be COMMUNITY MINDED •Be Grateful and Involved •Be Generous and Charitable •Live the "Golden Rule" (Treat other  People the way you would like to be  treated) LOOK FORWARD •Imagine and Innovate •Be Dynamic, Progressive and  Enterprising •Create Positive Change

Support Our TEAM •We invest in every member of our real estate family to empower them to achieve and surpass their goals •We support and encourage their professional, and personal, growth and development •We are Collaborative, Positive and Encouraging •We are Welcoming, Helpful, and Caring •We are Community, Team and Family oriented, while valuing diversity and each person as an individual

EXPRESS TO SUCCESS

10


7/10/2020

Related Family of Businesses

EXPRESS TO SUCCESS

Company Philosophy & History 

11


E X PR ESS TO S UCCESS

2| Related Businesses


YOUR

ORANGE COAST TITLE TEAM Lisa Matzner & Mike De Grandis 818-535-4111 | 818-523-8001 Burbank • Studio City • Encino La Cañada • La Crescenta

Steve Manzo 661-810-3047 Santa Clarita

Jennifer Rulli 805-551-5108 Calabasas • Westlake

Sonia Haas 818-601-7721 Glendale • Pasadena Arcadia • San Marino

Gloria Kessell 626-622-8524 Glendora

ORANGE COAST TITLE COMPANY OF SOUTHERN CALIFORNIA Experience The OCT Way on your next title transaction


PROFESSIONAL

WE PROMISE TO KEEP IN TOUCH WITH YOU AND DELIVER THE LEVEL OF SERVICE YOU DESERVE

WE PLEDGE TO DELIVER SERVICE AND VALUE TO YOU AND YOUR CLIENTS

SERVICE

WE ARE COMMITED TO CUSTOMIZE OUR SERVICE TO MEET YOUR NEEDS

WE WILL STRIVE TO LEARN THE BEST WAYS TO COMMUNICATE WITH YOU

COMMITMENT

WE ALWAYS ENDEAVOR TO DELIVER THE QUALITY AND CARING SERVICE THAT YOU DESERVE


Adrian Cunje Escrow Officer Phone (818) 547-9999 adrian.cunje@ivescrow.com

Escrow Team’s Additional Languages: Spanish & Filipino (Tagalog)

Bruce Ladd Escrow Officer Phone (818) 593-3464 bruce.ladd@ivescrow.com

Escrow Team’s Additional Language: Armenian & Korean

Erik Okland Escrow Officer Phone (818) 547-9999 erik.okland@ivescrow.com

Escrow Team’s Additional Languages: Korean & Norwegian

Regan Franklin Escrow Officer Phone (626) 564-9999 regan.franklin@ivescrow.com

Brandie Belangeri Escrow Officer Phone (818) 952-8999 brandie.belangeri@ivescrow.com

Laurie Garcia Escrow Officer Phone (626) 564-9999 laurie,garcia@ivescrow.com Additional Language: Spanish

Todd Glidden Escrow Officer Phone (818) 952-8999 Todd.glidden@ivescrow.com

Maggie Castro Escrow Officer Phone (818) 952-8999 maggie.castro@ivescrow.com Additional Language: Spanish

Roubina Der Sarkissian Business Development Manager Phone (818) 649-2841 Cell (818) 689-2701

roubina.dersarkissian@ivescrow.com

Add’l Languages: Armenian, Farsi & French

Ken Bruinsslot Escrow Representative Cell (818) 903-7657 ken.bruinsslot@ivescrow.com


Kirk Dilbeck President Phone (626) 564-9999 kirk.dilbeck@ivescrow.com

Christopher Pate Operations Manager Phone (818) 547-9999 chris.pate@ivescrow.com

Ted Boyce CFO Phone (818) 547-9999 ted.boyce@ivescrow.com

Tracey Thomas Corporate Assistant Phone (626) 564-9999 tracey.thomas@ivescrow.com

CONTACT INFORMATION GLENDALE BRANCH

PASADENA BRANCH

447 Burchett St., Glendale, CA 91203 (818) 547-9999 | Fax (818) 240-5840

140 S. Lake Ave., #265, Pasadena, CA 91101 (626) 564-9999 | Fax (626) 564-0517

Adrian Cunje, Escrow Officer Erik Okland, Escrow Officer

Regan Franklin, Escrow Officer Laurie Garcia, Escrow Officer Kirk Dilbeck, President Tracey Thomas, Corporate Assistant

(818) 593-3464 | Fax (818) 593-3208 Bruce Ladd, Escrow Officer Ken Bruinsslot, Escrow Representative

CORPORATE OFFICE Located on the 2nd Floor of our Glendale branch (818) 547-9999 | Fax (818) 658-2218 Ted Boyce, CFO Christopher Pate, Operations Manager Roubina Der Sarkissian, Business Development

LA CANADA BRANCH 1030 Foothill Blvd., #203, La Canada, CA 91011 (818) 952-8999 | Fax (818) 952-6615 Brandie Belangeri, Escrow Officer Maggie Castro, Escrow Officer Todd Glidden, Escrow Officer


What is Escrow? Definition: An escrow is an arrangement made under contractual provisions between transacting parties, whereby an independent trusted third party receives and disburses money or documents for the transacting parties, with the timing of such disbursement by the third-party dependent on the fulfillment of contractually agreed conditions by the transacting parties. What does that mean? The Escrow Holder has an obligation to safeguard the funds and/or documents while they are in the possession of the escrow holder, and to disburse funds and/or convey title only when all of the instructions of the parties in the transaction have been followed. Who are the parties to the transaction? The Seller, Buyer, Seller’s Real Estate Agent and Broker, Buyer’s Real Estate Agent and Broker, Escrow Officer and Escrow Company, Title Representative and Title Company, Buyer’s Lender, and Seller’s Payoff Lender.

Additional Languages Known: Inter Valley Escrow is proud of its diversity. Members of the IVE team hail from a wide range of places. Because of that, we have quite a few team members that speak an additional language. Below is a listing of our escrow teams and the languages spoken. GLENDALE BRANCH Adrian Cunje’s Team Filipino (Tagalog) Spanish Bruce Ladd’s Team Armenian Korean Erik Okland’s Team Norwegian Korean

Roubina Der Sarkissian Armenian Farsi French PASADENA BRANCH Laurie Garcia Spanish LA CANADA BRANCH Maggie Castro Spanish


Advantages of Independent Escrow Independent Escrow Companies

Real Estate Broker-Owned Escrow Departments

Title Company Escrow Departments

State of California Regulating Body

Department of Financial Protection and Innovation (DFPI)

California Department of Real Estate

California Department of Insurance

Bonding Required

Yes

No

No

Manager Escrow Experience Requirements

Yes

No

No

Regular Operational Procedural Audits

Independent Audits Required

(4-5 Years)

Yes

No

(Every 12- 48 months by the DFPI without any prior notice)

(DRE Auditors go out only if a problem is encountered)

No

No

No

Yes (Annually)

Yes

Yes

Deposit Funds Protection

Escrow Agents Fidelity Corp. (EAFC) Covers all Independent Licensees

(DRE Recovery Fund: Max $50,000.00 per transaction)

No

Net Worth Requirements

Yes

No

No

Liquidity Requirements

Yes

No

No

Escrow License Required

Yes

No

No

True Impartiality as a Third Party

Yes

Doubtful

Doubtful

(Broker has financial interest in transaction)

(Title Co, has other financial interest in transaction)

Background Investigations of all Employees, including Photos and Fingerprints

Yes

No

No


What to Expect in Escrow We believe it’s very important for you to have an idea of what to expect (and also when to expect certain events) during your escrow transaction. Though each escrow transaction is unique and therefore a little different from any other, the following general outline and chronology of events can serve as a source of information and reference for you during your transaction: After the Buyer and Seller have agreed upon all of the terms, and signed the contract, plus any Counter Offers, an actual escrow file is opened for your transaction at the Escrow Company. For Inter Valley Escrow, the day the escrow number is assigned to the file is the day escrow opened in the office, and that starts a kind of countdown which will end on the day escrow closes (the day on which all of the recordable documents for the transaction (Grant Deed, Deed of Trust, etc.) are recorded into the Public Records by the County Recorder). A typical timeline for a thirty-day escrow is as follows: Day 1 Escrow number assigned, Title Order opened, Supplemental Escrow Instructions typed, and Opening Packages sent out within 48 hours. Also, HOA contact information is requested (if applicable). Days 1-7 (First Week) Escrow Officer and/or Assistant(s) begin to track contingency periods, begin to follow up on getting Natural Hazard Reports and Home Protection Plans ordered and into escrow, will begin preliminary processing on Buyer and Seller opening packages if they’ve been returned, send out Preliminary Title Report, Termite report (if applicable) and order HOA documents (if applicable) Days 8-14 (Second Week) Escrow Officer and/or Assistant(s) follow up on Buyer and Seller Opening Packages, if not yet returned (we need those back as soon as possible!); order demands for any existing liens and judgments; follow up on status of Termite report/completion; retrofitting and city reports (when applicable); begin to track loan status, etc.

1


Days 15-21 (Third Week) If there is a lender; Escrow Officer follows up on Loan Status (specifically asking when does the Loan Broker or Lender expect loan documents to be ready for Buyer to sign?). Escrow Officer does a preliminary audit of the file to determine the status of any outstanding documents and/or signatures needed for the file. Follow-up with the appropriate parties is done as needed in order to inform and also to receive needed documents and signatures. Day 22-28 (Fourth Week) If there is a lender: Loan documents are signed by Buyer, packaged by Escrow, and returned to Lender in preparation for funding the loan. Lender reviews documents and informs Loan Broker and Escrow Officer of any outstanding conditions. Broker and Escrow supply conditions (if any) to Lender. In any case, Escrow ensures buyer’s remaining monies are receipted in, all signatures from Buyer and Seller are in, and all documents for recording are sent to Title for review. Escrow requests funding when all conditions have been satisfied as per the mutually agreed upon and executed Contract, Supplemental Escrow Instructions and any amendments thereto. Day 29 Lender funds the loan (meaning they actually transfer the money for the Buyer’s Loan to the Title Company) or, in an All-Cash transaction, Buyer’s money is transferred to Title by the Escrow company (if required). Once the Title Company is in possession of sufficient funds to cover any existing liens, judgments, and deeds of trust which are being paid off and any remaining monies required to close the transaction are received by wither the Title Company or the Escrow Company (or in most transactions a combination of both companies), the Title Company sends all documents to be recorded in the transaction to the Los Angeles County Recorder’s Office, and upon the Escrow Officer’s instructions, releases the file to be recorded the next day. Day 30 The County Recorder’s Office records the documents, and confirms with the Title Company that the documents have been successfully recorded. The Title Company informs Escrow of the confirmation of recording. The Escrow Officer and/or Assistants call all applicable parties to inform them of the successful close of the escrow. Upon receipt of the final title, payoff and recording charges from the Title Company, Escrow Officer balances the file, pays any bills and disburses refunds to Buyer and Seller in accordance with signed instructions. Please note that we try to balance and disburse the file as soon as is possible, but our ability to do so is dependent upon when we actually receive confirmation of recording and final figures! Any additional documentation we receive after the close of escrow (such as refund checks from the Title Company and the Title Policy) will be forwarded to the appropriate party as soon as is possible!

2


E X PR ESS TO S UCCESS

5| Commercial & Keys for Our Heroes (no handouts for sections 3 &4)


Commercial Division – Titles & Requirements Commercial Director – a seasoned commercial sales partner who has worked commercial Real Estate for 10 plus years and has worked multiple areas of commercial Real Estate. This designation will be approved by Mark Dilbeck and Branch Manager. Senior Commercial Associate - Must meet #1 below and at least one of the qualifications under #2 below. 1. All Senior Commercial Directors must be subscribed to AIR or CoStar 2. All Senior Commercial Directors must: a. Have one of the following designations: CCIM, AIR Specialist, or SIOR b. Or, have completed at least 6 Commercial Transactions (excluding leases under $500,000 in total value) in a 24 month period. Commercial Associate – There will be three types of Commercial Associates: 3. An Apprentice under a Commercial Director or Senior Commercial Associate with Branch Management approval. 4. An Agent who has worked on Three deals (excluding leases under $500,000 in total value) and who has an acceptable letter of recommendation, such as one from a Commercial Director or Senior Commercial Associate or Branch Manager, indicating that this Sales Partner can work on his or her own. This sales associate will be recognized on the website with a specific area of expertise in accordance with their experience after their designation. (e.g. Commercial Lease Associate or Multi-Unit Associate.) 5. Or have a letter of agreement with a Commercial Director or Senior Commercial Associate, who has access to AIR or CoStar, indicating they will work together on transactions.


THANK YOU FOR YOUR SERVICE Dilbeck Real Estate’s “Operation Keys for Our Heroes” program provides home buying discounts and rebates for eligible U.S. Active Military members and Veterans through our affiliate partners. Dilbeck Real Estate is an exclusive member of Leading Real Estate Companies® of the World, which is a global, by-invitation network of market-leading independent real estate companies and the network behind Military on the Move® - a program developed to say thank you to veterans and active duty military.

20% Real Estate Commission Credit Or Rebate When You Buy Or Sell A Home Dilbeck Real Estate and it’s agents will provide eligible military members with a 20% credit or rebate of their Real Estate commission, when you buy or sell a home as part of the Operation Keys for Our Heroes program or Military on the Move.

VA home loans are exclusively available to veterans, active service members, National Guard, reservists, and spouses. Highlights include up to 100% financing, downpayment assistance is allowed, and shorter seasoning for derogatory credit than conventional loans.

$1,495 Off | Our Only Loan Fee!

VA Home Loan Advantages with Partners United Financial

Apply for a VA loan through Partners United Financial and we will give you a $1,495 lender credit* at your Partners United Financial closing.

www.partnersunitedfinancial.com

*Lender credit of $1,495 for all clients who use Partners United Financial, LLC for a VA loan. This is a rebate of our flat origination fee. Loan must close with Partners United Financial to be eligible. Non-transferable

Orange Coast Title Company is pleased to offer a Military Discount on our title insurance policy fees for active military members and veterans who qualify. Contact Orange Coast Title to apply this discount on your eligible transactions. See details below. Orange Coast Title of Southern California

Orange Coast Title Company presents the UNITED STATES MILITARY DISCOUNT www.octitle.com

A 15% Discount Is Now Available On... Title policy fees being charged to U.S. Military Members that are eligible. This discount is applicable on 1-4 unit residential properties that are the primary residence of the military member. To receive this discount the party must request the discount and provide evidence of eligibility.

As a Thank You to those brave Men and Women who have served our country, Inter Valley Escrow is pleased to extend a Military Discount on our Escrow Transaction Fees. Contact Inter Valley Escrow to apply this discount to your eligible transactions. See details below.

We are pleased to offer the UNITED STATES MILITARY DISCOUNT www.intervalleyescrow.com

A 15% Discount Is Currently Available On... Escrow Transaction Fees to all active U.S. Military Members and Veterans that are eligible. To receive this discount, the party must request the discount at the opening of escrow, and provide evidence of eligibility within 5 working days.

Keys4OurHeroes@Dilbeck.com visit keys4ourheroes.com or call 877.345.2325 MUST BE AN ACTIVE MEMBER OF THE MILITARY OR A VETERAN WITH AN HONORABLE DISCHARGE

Yo u a r e n o t r e q u i r e d t o u s e P a r t n e r s U n i t e d F i n a n c i a l , O r a n g e C o a s t T i t l e C o m p a n y o f C a l i f o r n i a o r I n t e r V a l l e y E s c r o w a s a c o n d i t i o n f o r t h e p u r c h a s e , s a l e , l e a s e o r r e f i n a n c e o f t h e s u b j e c t p r o p e r t y . T H E R E A R E F R E Q U E N T LY O T H E R S E T T L E M E N T S E R V I C E P R O V I D E R S A V A I L A B L E W I T H S I M I L A R C H A R G E S . Y O U A R E F R E E T O S H O P A R O U N D T O D E T E R M I N E T H AT Y O U A R E R E C E I V I N G T H E B E S T S E R V I C E S A N D T H E B E S T R AT E F O R T H E S E S E R V I C E S . N e i t h e r D i l b e c k R e a l E s t a t e n o r i t s S a l e s A s s o c i a t e s w a r r a n t o r g u a r a n t e e t h e w o r k o r s e r v i c e s o f t h e s e o r a n y o t h e r s e r v i c e p r o v i d e r s . © 2 0 1 8 P a r t n e r s U n i t e d F i n a n c i a l , L LC . A l l R i g h t s R e s e r v e d . T h i s c o m m u n i c a t i o n d o e s n o t constitute a commitment to lend or the guarantee of a specified interest rate. All loan programs and availability of cash proceeds are subject to credit, underwriting and property approval. Programs, rates, terms and conditions a r e s u b j e c t t o c h a n g e w i t h o u t n o t i c e . O t h e r r e s t r i c t i o n s a p p l y. P a r t n e r s U n i t e d F i n a n c i a l , L LC , 2 5 0 E Wi l s o n B r i d g e R o a d , S u i t e 1 1 0 , Wo r t h i n g t o n , O H 4 3 0 8 5 . C o r p N M LS # : 1 5 0 8 6 1 9 ( w w w. n m l s c o n s u m e r a c c e s s . o r g ) . L i c e n s e d b y t h e Department of Business Oversight under the California Residential Mortgage Lending Act. Additional licenses available at www.partnersunitedfinancial.com


Sales Partners Dibeck Military & Veterans Division Program and Guidelines Dilbeck Real Estate established the “Operation Keys for Our Heroes” program to provide a suite of homebuying and selling discounts and rebates for eligible U.S. Active Military members to Veterans and thank them for their service. Through our affiliate partners – LeadingRE/Military on the Move, Orange Coast Title, Intervalley Escrow, and Partners United Financial - the Operations Keys for Our Heroes benefits include:

• A 20% cash rebate or credit on a home sale or purchase • 15% Discount on Title Policy Fees • 15% Discount on Escrow Transaction Fees • $1,495 Savings on VA loans

Orange Coast Title of Southern California

Juan Carlos Argueta

Sarah Gould

626.584.0101

877.345.2325

Program Leader

Relocation Coordinator

Keys4OurHeroes@Dilbeck.com visit keys4ourheroes.com or call 877.345.2325

Yo u a r e n o t r e q u i r e d t o u s e P a r t n e r s U n i t e d F i n a n c i a l , O r a n g e C o a s t T i t l e C o m p a n y o f C a l i f o r n i a o r I n t e r V a l l e y E s c r o w a s a c o n d i t i o n f o r t h e p u r c h a s e , s a l e , l e a s e o r r e f i n a n c e o f t h e s u b j e c t p r o p e r t y . T H E R E A R E F R E Q U E N T LY O T H E R S E T T L E M E N T S E R V I C E P R O V I D E R S A V A I L A B L E W I T H S I M I L A R C H A R G E S . Y O U A R E F R E E T O S H O P A R O U N D T O D E T E R M I N E T H AT Y O U A R E R E C E I V I N G T H E B E S T S E R V I C E S A N D T H E B E S T R AT E F O R T H E S E S E R V I C E S . N e i t h e r D i l b e c k R e a l E s t a t e n o r i t s S a l e s A s s o c i a t e s w a r r a n t o r g u a r a n t e e t h e w o r k o r s e r v i c e s o f t h e s e o r a n y o t h e r s e r v i c e p r o v i d e r s . © 2 0 1 8 P a r t n e r s U n i t e d F i n a n c i a l , L LC . A l l R i g h t s R e s e r v e d . T h i s c o m m u n i c a t i o n d o e s n o t constitute a commitment to lend or the guarantee of a specified interest rate. All loan programs and availability of cash proceeds are subject to credit, underwriting and property approval. Programs, rates, terms and conditions a r e s u b j e c t t o c h a n g e w i t h o u t n o t i c e . O t h e r r e s t r i c t i o n s a p p l y. P a r t n e r s U n i t e d F i n a n c i a l , L LC , 2 5 0 E Wi l s o n B r i d g e R o a d , S u i t e 1 1 0 , Wo r t h i n g t o n , O H 4 3 0 8 5 . C o r p N M LS # : 1 5 0 8 6 1 9 ( w w w. n m l s c o n s u m e r a c c e s s . o r g ) . L i c e n s e d b y t h e Department of Business Oversight under the California Residential Mortgage Lending Act. Additional licenses available at www.partnersunitedfinancial.com


Dilbeck Military & Veterans Sales Partner Benefits • Eligible to receive Military On The Move & Operation Keys for Our Heroes Leads from the RCS Department • Special education to help provide a competitive advantage to win the listing • Provide superior real estate experience for those who have served our country

Active Military & Veteran Referrals Buyer & Seller Requirements Dilbeck’s Relocation Corporate Services (RCS) can provide Sales Partners with Military On The Move and Operation Keys for Heroes referral clients (Active Military and Veterans). When a sales partner accept a referral, there is a 35% referral fee, which includes the 20% rebate to the customer. The sales partner commission split is capped at 70% with 6% off the top. • Active U.S. Military • Honorable Discharge Veteran • For mortgage benefits the Buyer must meet VA eligibility and financing requirements • Use Dilbeck approved affiliates (i.e. Escrow, title, lender) to obtain additional discounts

Sales Partner Qualifications and Certifications to Receive Operation Keys for Heroes Referrals Earn the Dilbeck Military and Veteran Real Estate Services Specialist Certification • Attend and complete Dilbeck’s Operation Keys for Our Heroes Training Program • Complete VA Loan training class with Partners United Financial • Complete Military on the Move training program

In order to maintain Dilbeck Military and Veteran Real Estate Services Specialist Certification, with-in 1 year of certification Sales Partners must complete • The Dilbeck Platinum Advantage Certification • Earn the NAR Military Relocation Professional (MRP) certification

Keys4OurHeroes@Dilbeck.com visit keys4ourheroes.com or call 877.345.2325 MUST BE AN ACTIVE MEMBER OF THE MILITARY OR A VETERAN WITH AN HONORABLE DISCHARGE


E X PR ESS TO S UCCESS

5| Relocation Services


3/13/2019

RELOCATION & CORPORATE SERVICES DEPARTMENT Lynn Kornm a nn , CFO| Ex pre s s to S ucce ss Train i n g

EXPRESS TO SUCCESS

Faces of Relocation & Corporate Services

Marlene Coakes, CRP* Relocation Director CalBRE #00986064

Donna Miller, CRP*, GMS-T, SPHR Relocation Manger CalBRE #00574213

Maggie Ikemi, CRP* Business Development Manager CalBRE #01272748

Sarah Gould Relocation Coordinator

*Certified Relocation Professional

EXPRESS TO SUCCESS

RCS Functions Dilbeck's Relocation and Corporate Services Department provides a single point of contact to: • Affinity-Membership Based Organizations • Relocation Companies • E-Commerce Businesses • Global Broker Networks

EXPRESS TO SUCCESS

1


3/13/2019

Affinity Member Based Organizations Military on the Move • MOM is a new program from Leading Real Estate Companies of the World® designed to reward America’s fighting men and women for their service to our country...and give them another reason to work with you. • HBP was designed to increase the local employer's ability to • A marketing program developed by LeadingRE to give recruit and retain employees by providing real estate independent broker’s a competitive solution to assistance and a financial incentive, all at no cost to the retaining and attracting business that has only been available to franchise brokers in the past. employee or employer. • Qualified military consumers can receive a rebate • The HBP Program rapidly evolved to assist primarily equal to 20% of the function side commission (where participating Credit Union Members with their residential allowed by law) when they buy or sell a home with a MOM Broker real estate needs. • In addition a richer rebate than other affinity • We currently have about fifty local and national credit programs, it can be used during the transaction for unions that participate in the HomeBenefitsPlus© Program. many things including closing costs, appliances, payment on a credit card (for VA loans), or as cash in states where allowable by law. • The rebate is paid at settlement HomeBenefitsPlus ©

• Launched in 1999, the HomeBenefitsPlus© ("HBP") program was originally targeted to small to medium sized employers within the Dilbeck market area.

EXPRESS TO SUCCESS

Corporate Relocation Dilbeck Real Estate is an awardwinning, preferred broker for corporate Relocation companies, including ReloDirect, Sirva Relocation, Weichert Relocation and Brookfield Global Relocation and many other third-party management companies nationwide.

EXPRESS TO SUCCESS

E-Commerce Business At Dilbeck, we are continually working with a variety of internet based lead sources to develop and deliver real estate business to our Sales Partners.

EXPRESS TO SUCCESS

2


3/13/2019

Global Broker Network

As a member of LeadingRE, Dilbeck Real Estate and the Dilbeck RCS Department is part of a very strong broker-to-broker referral network with 30,000-40,000 annual referrals at an industry-leading conversion rate of 41% and outgoing sales volume of over $5 million per year. EXPRESS TO SUCCESS

Global Broker Network ( Prope rt ie s Ove r $1 Milli on)

There are many ways to take advantage of your affiliation. Not only can you utilize it for your company’s real estate sales, but also to assist your clients in the sale of their fine objects as well. If a client needs to have their precious art and objects appraised and sold, the Christie’s network is available to assist.

Luxury Portfolio International® is the luxury face of Leading Real Estate Companies of the World® the largest global network of premier locally branded companies dominated by many of the world's most powerful independent luxury brokerages

EXPRESS TO SUCCESS

Global Broker Network •

Your access to our global broker network gives you the ability to assist your clients, as well as their families, by offering a full range of real estate services.

• Providing client introductions globally is just one more way you can prove yourself as the “full service” real estate resource. • Leading Real Estate Companies of the World® makes more client introductions each year than any other broker network and holds an unprecedented 41% conversion ratio.

• It is our members’ commitment to entrusting their clients out of area home buying and selling needs to another network member that ensures the very best service and a pipeline of network referral business for LeadingRE members. • While the more traditional referral client – the relocating home seller – still exists, the majority of our annual referral business comes from our experienced sales associates’ dedication to continuing to serve their entire sphere of business. This includes past clients, out of town friends and family, graduating children, retiring parents and colleagues from local civic and charitable organizations.

EXPRESS TO SUCCESS

3


3/13/2019

The Art of Introduction

EXPRESS TO SUCCESS

Outgoing Process • Dilbeck RCS provides a single point of contact to the referral network. When you place your outgoing referrals through Dilbeck RCS the following services are provided: • Help select the best LeadingRE network brokerage in the market area; • Facilitate an interview between you and the network sales associate prior to introducing your client so you can provide them pertinent information about the referral; alternatively, if you prefer, you may request a specific agent or broker to whom you would like your client to be introduced; • Coordinate referral(s) when multiple destination areas are selected;

• Negotiate a 30% referral fee, and coordinate the payment of the one fifth of that fee that is due to LeadingRE, as well as payment of the Sales Partner’s share of the remaining 24% of the fee; (note that the 1/5th fee to LRE is required whether or not RCS or LRE are used) • Handle all follow up paperwork within our company as well as with the cooperating broker and LeadingRE; and • As the life of a referral is sometimes long, the Dilbeck RCS will follow up with the cooperating broker for as long as it takes to complete the transaction and to collect the referral fee in a timely manner.

EXPRESS TO SUCCESS

Placing An Outgoing Referral The more outgoing referrals we place within the LeadingRE network, the more recognized the Dilbeck name and reputation will become and the more inbound referrals we will receive and can provide to you, our Sales Partners. • As a member of LeadingRE, Dilbeck pays a network fee equal to one fifth of the referral fee it receives, regardless of whether the referral goes to another LeadingRE broker (provided that the sales price is over $50,000). These contractual provisions apply regardless of whether Dilbeck RCS is used to manage the referral process. • When using a LeadingRE broker, the network requires a non-negotiable 30% referral fee. • If you choose to use the Dilbeck RCS Department, please complete the Outgoing Referral Form on the Resource Center or e-mail relocation@dilbeck.com

EXPRESS TO SUCCESS

4


3/13/2019

Referral Agent Requirements Minimum Requirements Referral Specialists (To Receive Incoming Referrals and Affinity Business)

• 1 Year Full time Realtor® Sales Associate

• Tech Savvy

• 3-5 closed transactions (at least two closings with Dilbeck) within 12 months

• Recommended by the Branch Manager

• 3 qualified placed outgoing referrals given to RCS Department

• Support of Company and it’s services, when appropriate

• Agent Profile on file with RCS Department

• Completion of RCS Referral Specialist training session

EXPRESS TO SUCCESS

What Now? • Make Outgoing Referrals part of your business plan Don’t be afraid to ask Refer to the Referral Sources sheet • Prepare a “Friends & Family” Letter/Postcard, etc. Explain your Local & Global affiliation. • Make it part of your social media initiative Use the “I’m Local, I’m Global” logo • Training - LeadingRE The Institute Leading Real Estate Companies of the World® has been awarded the 3rd position on Training Magazine’s “Top 125” ranking of companies for employer-sponsored workforce training and development, across all industries.

EXPRESS TO SUCCESS

5


E X PR ESS TO S UCCESS

7| Listing Contract, Case Study & Marketing the Listing (no handout for section 6)


3/13/2019

E X P R E S S TO S U C C E S S

Express to Success Week 1 : Day 2 Session 6.2 Listing Presentation Strategies EXPRESS TO SUCCESS

EXPRESS TO SUCCESS

1


3/13/2019

As a Sales Partner focused on Listings, you must understand yourself and be confident in your abilities, as well as knowing:

EXPRESS TO SUCCESS

• Most Listings acquired in a day, week or month • Your BIGGEST Sale to date • Your Largest Listing • Your Biggest Commission • Your Commissions by month, quarter and year

EXPRESS TO SUCCESS

• What is your EDGE over your competition? • As an effective Listing Agent, it is imperative you understand your competition, how you are different, and what separates you from every other Listing Agent. • The lasting impression you make with the client will determine your success in obtaining the listing EXPRESS TO SUCCESS

2


3/13/2019

Knowing your product (Homes and Sales in the area) inside and out, adds confidence and creditability to your presentation

EXPRESS TO SUCCESS

What if this is your first listing……. When you are new and you do not have a firm gasp on your competition, it is hard to compare against your competitors It is a common practice to use the team psychology and combine experience until you start achieving some personal successes and victories on your own

EXPRESS TO SUCCESS

Exemplify your value as a Dilbeck Realtor all the time… •It is the general consensus that the public thinks Realtors are overpaid. •Your professionalism towards your client should reflect the value you provide to them and their interests, which you protect. •Everything from an eye for detail, to excellent customer service, to subject matter expertise should come across every time you interact with them

EXPRESS TO SUCCESS

3


3/13/2019

First Impressions….. How may seconds do you have to make a first impression? Studies have shown you have very little time to make that all important first impression. Some studies say 7 seconds and some say you may have up to 4 minutes. Either way, you must deliver an impression of success and professionalism in very little time.

EXPRESS TO SUCCESS

When does the clock start for making the first impression? The clock could start as early as when you arrive in front of the property.

EXPRESS TO SUCCESS

Do’s and Don’ts: Do not park in the driveway, unless invited or directed to do so Walk with confidence and enthusiasm Continue to make a visual examination of the property as you approach the front door and make mental notes of features, advantages and benefits of the home

EXPRESS TO SUCCESS

4


3/13/2019

Look for different focal points of the property which can be highlighted Make a quick assessment of the property condition and areas which may require attention

EXPRESS TO SUCCESS

Goals of the Listing Presentation are to: Identify and satisfy the seller’s needs psychologically (they always have needs beyond selling their home) Are the reasons above the line (monetary) or below the line (emotional) Get the listing at the right price Get the signatures of all parties on title EXPRESS TO SUCCESS

Do not be afraid to ask probing questions… Always ask the question “What is it you are looking for in a listing agent?” “What is the BEST or WORST buying experience you remember having in your life?” Remember: You cannot “exceed their expectations” if you do not know what they are.

EXPRESS TO SUCCESS

5


3/13/2019

Components of a Listing Presentation 1. Rapport and Trust – Establish basis for trust. 2. Pre-qualify – Determine if this is a legitimate prospect 3. Provide a Comparative Market Analysis

EXPRESS TO SUCCESS

Components of a Listing Presentation (continued) 4. Provide a Seller’s Net Sheet 5. Dilbeck Realtor’s Service Plan – The more points the better 6. Commitment Statement – Always get a commitment from them, but keep in mind the best way to get a commitment is to give a commitment

EXPRESS TO SUCCESS

Practice makes Perfect… It is essential you use a pre-planned presentation! Know it so well, you are always able to flow in and out of it as necessary. Have it in your subconscious

EXPRESS TO SUCCESS

6


3/13/2019

So what is the secret to securing listings? Being prepared!!! 1. Obtain an Orange Coast Title Property Profile 2. Know all the recent homes in the neighborhood which have Sold – Inside and Out 3. Know all the current listing in the neighborhood – Inside and Out 4. Visit all FSBO’s in the neighborhood.

EXPRESS TO SUCCESS

5. Look for neighborhood hindrances, or anything especially positive or negative about the neighborhood you can address during the listing appointment 6. Create a Listing Presentation especially for the home 7. Know more about the community than the seller or other agents 8. Determine if you will use the one-step or two-step listing presentation

EXPRESS TO SUCCESS

One Step vs. Two Step Some agents prefer to visit the Sellers, get to know them and the property, then schedule a second visit to present the CMA and make the listing presentation. Beware of this approach if Sellers are interviewing multiple agents, other agents may get the listing before you were able to come back for your second visit!

EXPRESS TO SUCCESS

7


3/13/2019

Be the Dilbeck difference •Dress professionally •Arrive on time •Build rapport and trust •Find out the Sellers motivation Follow up, follow up, follow up!!!

Consistently Exceeding Expectations

EXPRESS TO SUCCESS

Before the Listing Appointment: • Obtain a property profile • Drive by the house and the neighborhood (pay special attention to properties on the market or recently sold) • Look for neighborhood hindrances, or anything especially positive or negative about the neighborhood. • Take photos • Develop your Listing Presentation Manual Decide if you will use a one-step or two step listing presentation One Step vs. Two Step Using either approach, always: • Dress professionally • Arrive on time • Build rapport and trust • Find out the seller’s motivation • Follow up, follow up, and follow up! EXPRESS TO SUCCESS

Sample Listing Presentation Build Rapport and Trust • Introduce yourself and ask to be invited in. • Ask to see the house – “Would you mind showing me through the home?” Use this time to establish rapport. Prequalify • Begin the pre-qualification process also known as the Needs Analysis. Start by asking, “Would you mind if we sit at the kitchen table?” (you have less control in the living room) • Sample Questions for prequalifying: 1. How long have you been thinking about selling? 2. May I ask why you’re moving? (This determines motivation) 3. Where are you moving to? 4. How soon do you have to be there? 5. What price would you like to list? (Just note the price at this time, do not discuss it, they may say they don’t know and that’s why they’ve asked you to come, just ask them if they have an idea, take note, and move on) 6. What do you owe? 7. If we get a bona fide offer but the buyer is short on cash, are you willing to provide owner financing? EXPRESS TO SUCCESS

8


3/13/2019

My Complete Service Plan 1. Commitment to communicate weekly 2. Generate enough qualified leads 3. Expose your home to the market place through (list all your methods and advertising vehicles) 4. Help you get the highest price in the least amount of time and the least problems 5. Tour the home on my Office Caravan, this ensures that ___ agents (use the appropriate number) become familiar with your home as soon as it goes on the market. 6. Submit your property to the Multiple Listing Service (MLS) to expose your home to all the Realtors in the area. 7. Notify Dilbeck National Relocation & Corporate Services 8. Present the property at the local board of Realtor’s Marketing Meetings 9. Hold Open House when necessary

EXPRESS TO SUCCESS

10. Develop flyers (Have sample if possible) 11. Review list of suggestions from other Realtors in my office to help market your home. 12. Keep you up-to-date on changes in the Market. 13. Inform you about financing options available to potential buyers 14. Assist you with interim or new financing 15. Prequalify all buyers interested in your home to prevent “looky loos” 16. Dilbeck sign and lockbox 17. Property Source Sign 18. Follow up with all agents who show your home 19. Deliver copy of the MLS form for your approval 20. Present all offers and negotiate the best price and terms 21. Handle all the paperwork and details after you have accepted an offer 22. Deliver your check at the close of escrow!

EXPRESS TO SUCCESS

Get commitment and close!

EXPRESS TO SUCCESS

9


3/13/2019

Thank you for the opportunity to provide this presentation today! Please feel free to ask any relate questions you may have. Should you think of any questions after our time together, feel free to contact me with those questions‌.. Barry Storch, Estates Director SRES, SFR, CN 626-399-6928 Barry.Storch@Dilbeck.com

EXPRESS TO SUCCESS

10


3/12/2019

E X P R E S S TO S U C C E S S

Laurie Biernacki Branch Manager, Arcadia & Glendora

Creating the Listing Contract Package • What kind of Property are you listing? Examples include: • Residential 1 to 4 units (our focus today) • Commercial property • Manufactured Home • Probate • REO • Vacant Land • Lease EXPRESS TO SUCCESS

OPEN LISTING AGREEMENT • An open listing authorizes the agent to find a buyer for the property and obligates the seller to pay compensation only if and when that agent procures a buyer resulting in a closed sale. • The open listing is not exclusive to any one broker. Sellers may sign as many open listings with as many brokers as they wish. • The seller will only be obligated to pay the broker that procures the ultimate buyer of the property. Under an open listing, the seller may still procure a buyer on their own and not be obligated to pay any broker. • An open listing does not have to have a termination date. The listing will be terminated upon the sale of the property and does not require that the seller inform any of the brokers of the termination.

EXPRESS TO SUCCESS

1


3/12/2019

EXCLUSIVE AGENCY LISTING • A seller can sign an Exclusive Agency Listing with only one broker (or risk the possibility of being obligated to pay compensation to more than one broker). • The Exclusive Agency Listing authorizes the broker to procure a buyer and to cooperate with other brokers. • The seller will be obligated to pay compensation to the listing broker when a buyer is procured by that broker or by any cooperating broker. • With the Exclusive Agency Listing, sellers may still procure a buyer without being obligated to pay compensation to any broker.

EXPRESS TO SUCCESS

EXCLUSIVE AUTHORIZATION AND RIGHT TO SELL • The Exclusive Authorization is similar to the Exclusive Agency agreement with one major exception: With the Exclusive Authorization the seller would be obligated to pay the listing broker even if the seller should procure the buyer. • With any Exclusive Listing it is important to know that the contract must include a definite termination date.

EXPRESS TO SUCCESS

RESIDENTIAL LISTING AGREEMENT, RLA

EXPRESS TO SUCCESS

2


3/12/2019

COMMISSION

Real Estate commissions are not set by law nor can they be set by any group or organization. For example, an MLS cannot establish a rule that commissions must be a certain amount or rate. A group of Brokers cannot get together and agree that all will charge the same commission amount or rate. This would be a violation of Federal Anti-Trust laws. It is permissible, however, for an individual broker to set an office policy establishing an acceptable amount or rate of commission. A seller may wish to negotiate this commission but the broker has no obligation to agree to a lesser amount.

EXPRESS TO SUCCESS

COMMISSION

EXPRESS TO SUCCESS

COOPERATING BROKER COMPENSATION

EXPRESS TO SUCCESS

3


3/12/2019

Included/Excluded/Leased/Liened

EXPRESS TO SUCCESS

THE MLS AND EXCLUSION

EXPRESS TO SUCCESS

Exclude the property from MLS or Internet Property must be submitted to the MLS within 2 business days of getting a valid listing or of the effective list date, whichever is later. Seller can elect to exclude property from MLS by checking the box and completing the SELM. Property can also be excluded from the Internet.

EXPRESS TO SUCCESS

4


3/12/2019

What can be excluded? Omit property address from the internet Comments or reviews can be left off. Automated estimate of value excluded.

NOTE: We can’t control some internet sites from publishing this information

EXPRESS TO SUCCESS

SELLER REPRESENTATIONS AND DUTIES

EXPRESS TO SUCCESS

AGENCY DISCLOSURE AND CONFIRMATION

EXPRESS TO SUCCESS

5


3/12/2019

A word about Dual Agency

When a buyer and seller are aware that a dual agency exists, they might decide not to divulge certain information that could affect their negotiating position. If buyer and seller are not made aware of the dual agency prior to the transaction they might have doubts as to whether or not their best interests were served because the agent knew certain information that buyer or seller may have withheld otherwise.

EXPRESS TO SUCCESS

Representing similar clients

EXPRESS TO SUCCESS

Will your Seller allow Photographs?

EXPRESS TO SUCCESS

6


3/12/2019

SECURITY AND AUDIO/VIDEO

EXPRESS TO SUCCESS

Do your Sellers want a Lock Box or Sign?

EXPRESS TO SUCCESS

MEDIATION

EXPRESS TO SUCCESS

7


3/12/2019

AGREEMENT AND AUTHORITY

EXPRESS TO SUCCESS

Signatures!

EXPRESS TO SUCCESS

SELLERS ADVISORY • Gives your seller guidance on what they may need to think about or do during the marketing and sale of their home. • Some issues are required by the contract, such as disclosing material facts, delivering required reports. • Other issues are matters that may arise during the process, such as pre-sale inspections.

EXPRESS TO SUCCESS

8


3/12/2019

WIRE FRAUD ADVISORY • Advises your seller about precautions to take when wiring funds to escrow (if necessary). Must be signed by Dilbeck clients. Ideally, you should get signatures from all parties.

EXPRESS TO SUCCESS

ADDITIONAL SIGNATURE ADDENDUM

EXPRESS TO SUCCESS

SELM AND SELI

EXPRESS TO SUCCESS

9


3/12/2019

MODIFICATION OF TERMS

EXPRESS TO SUCCESS

CANCELLATION

EXPRESS TO SUCCESS

CASE STUDY – Prepare a listing contract

EXPRESS TO SUCCESS

10


3/12/2019

CORE VALUES EXERCISE There is a basic core value within you that guides your actions. By identifying your specific core value, you are then able to integrate it into your business activities, making your business more rewarding and uniquely yours. This helps differentiate you from others in our industry and helps answer the question:

Why you? EXPRESS TO SUCCESS

EXPRESS TO SUCCESS

The Home Search Process

Source: NAR 2017 Profile of Home Buyers and Sellers.

EXPRESS TO SUCCESS

11


3/12/2019

The First Impression: Investing in a Photographer

EXPRESS TO SUCCESS

What impression will your photos make?

EXPRESS TO SUCCESS

Staging the Property

EXPRESS TO SUCCESS

12


3/12/2019

Virtual Staging

EXPRESS TO SUCCESS

Virtual Staging - Exteriors

EXPRESS TO SUCCESS

PHOTO COMPARISON My Photo

Professional Photo – Staged

EXPRESS TO SUCCESS

13


3/12/2019

PHOTO COMPARISON My Photo

Professional Photo – Staged

EXPRESS TO SUCCESS

PHOTO COMPARISON My Photo

Professional

Photo – Staged

EXPRESS TO SUCCESS

WHAT SHOULDN’T BE EDITED? •Never ask your photographer to hide holes in walls or cracks in cement. •Grass or in-ground plants should not be added where they do not exist. •Leave all power and telephone lines as is. •Don’t change paint colors, paint blemishes, or positions of light fixtures.

EXPRESS TO SUCCESS

14


3/12/2019

The Use of Floorplans

EXPRESS TO SUCCESS

Dollhouse Views

EXPRESS TO SUCCESS

SOCIAL MEDIA

EXPRESS TO SUCCESS

15


3/12/2019

The art of a home description

• 4 bed 2 bath home with laminate floors. Good schools. EXPRESS TO SUCCESS

A Picture is worth 1,000 words…but you still need some words. • Single story four-bedroom home near Old Town Providence. Nice curb appeal offers a front lawn, circular driveway and a cozy front gated courtyard. The front door leads to a tiled entry way which opens to a spacious family room that offers newer laminate hardwood floors, recessed lighting, a slider to the back patio and is open from the kitchen. Located within walking distance to Mountain Elementary School and just up the street from Old Town shopping and restaurants.

EXPRESS TO SUCCESS

How to use e-Flyers Do a sample flyer for a listing appt, using actual property and some description.

Email blasts to agents and buyers

Announce open houses, price reductions, or print and use for an open house on another agent’s listing.

EXPRESS TO SUCCESS

16


3/12/2019

Print Media D i l beck Rea l Esta te st ra tegically a d v ertises i n t h e fo l l owing p u b l ications. Ou r d i sp la y a d v ertisin g a p p ea rs i n l o ca l, reg i o nal a n d n a t i onal/international p u b l ications, wh i ch ta rg et sp eci fic a u d i ences fo r u n i q ue o r esta t e p ro perties.

EXPRESS TO SUCCESS

Selling a lifestyle D ilbe ck. co m provide s you with ex te nsi ve “life sty l e ” informat i on to share with pote nti a l clie nt s. School information

Area Points of Interest

EXPRESS TO SUCCESS

PRICING TOOLS

Comparables that help justify your list price vs. Automated Value Estimates (to show how far off they are!)

EXPRESS TO SUCCESS

17


3/12/2019

Interactive Marketing Getting some feedback Brokers’ Open House / Caravan

Public Open House

EXPRESS TO SUCCESS

Seller ’s Update

EXPRESS TO SUCCESS

Marketing Calendar

EXPRESS TO SUCCESS

18


3/12/2019

Your clients will be impressed!

EXPRESS TO SUCCESS

Takeaways…

EXPRESS TO SUCCESS

19


                            




    

        

        


             


ONLINE VALUATION ANALYSIS

ANALYSIS

Sold Listings Address

Sold Date

Sold Price

Zestimate

Difference

522 PRIMROSE Avenue

3/1/16

$389,000

$369,877

-4.92%

1045 East HUNTINGTON Drive, Unit B

3/11/16

$330,000

$390,485

18.33%

151 COLORADO

3/1/16

$364,000

$351,144

-3.53%

518 West PRIMROSE Avenue

3/10/16

$519,000

$491,185

-5.36%

1608 South Mayflower Avenue, Unit F

2/12/16

$370,000

$382,011

3.25%

320 East E. Camino Real

3/11/16

$410,000

$427,217

4.20%

208 West Walnut Avenue

2/25/16

$457,000

$609,888

33.45%

128 North Ivy Avenue

2/12/16

$602,500

$540,054

-10.36%

1504 Pilgrim Way

1/20/16

$521,500

$543,682

4.25%

427 South Shamrock Avenue

1/22/16

$535,000

$510,453

-4.59%

230 Valle Vista Avenue

2/12/16

$565,000

414 South Canyon Boulevard

2/22/16

$595,000

$498,355

-16.24%

477 Monrovista Avenue

2/4/16

$380,000

$399,130

5.03%

239 Standish Street

2/18/16

$470,000

$496,666

5.67%

523 West Maple Avenue

3/11/16

$595,000

$575,534

-3.27%

329 Linwood Avenue

2/1/16

$575,000

$612,363

6.50%

1223 South Alta Vista Avenue, Unit B

2/26/16

$585,000

145 Norumbega Drive

1/29/16

$565,000

$489,466

-13.37%

$490,444

$480,469

1.19%

Sold Averages Source: CLAW

Laurie Biernacki | Dilbeck Real Estate | Mobile: 818-298-4880 | laurie.biernacki@dilbeck.com | CalBRE#: 01880355 | Laurie4SoCalHomes.com | 115 E Foothill Blvd., Suite 102, Glendora, CA 91741


               



 



 



 



 



 




Tentative Marketing Calendar

MAR2018 8

700 Bubbling Well Dr, Glendora SUN

MON

TUE

4

WED

5

THU

6

FRI

7

SAT

1

2

3

8

9

10

16

17

Professional Photo Shoot

11

12 Virtually Stage Photos as needed

13

14

Website Design

Sign Installed

Order Just Listed Postcards

Post to Social Media

Go live on MLS

Begin Online Ad Campaign

Order Brochures

18

15

19

20

21

22

Open House Install Lockbox Begin Showings

23

Open House

24 Open House

Run LA Times AD

25

26

27

28

29

30

Open House

Laurie Biernacki

Carol Ann Walls-Sandell Sandell

818-298-4880 4880 (mobile)

312.636.9614 (mobile)

CalBRE #01880355 Laurie.biernacki@dilbeck.com lauriebiernacki.dilbeck.com

CalBRE #011977889 Carolann.ws@dilbeck.com homesbyCarolAnn.com

31


                                            


DISCLOSURE REGARDING REAL ESTATE AGENCY RELATIONSHIP (Seller's Brokerage Firm to Seller) (As required by the Civil Code) (C.A.R. Form AD, Revised 12/18)

(If checked) This form is being provided in connection with a transaction for a leasehold interest exceeding one year as per Civil Code section 2079.13(j), (k) and (l). When you enter into a discussion with a real estate agent regarding a real estate transaction, you should from the outset understand what type of agency relationship or representation you wish to have with the agent in the transaction. SELLER'S AGENT A Seller's agent under a listing agreement with the Seller acts as the agent for the Seller only. A Seller's agent or a subagent of that agent has the following affirmative obligations: To the Seller: A Fiduciary duty of utmost care, integrity, honesty and loyalty in dealings with the Seller. To the Buyer and the Seller: (a) Diligent exercise of reasonable skill and care in performance of the agent's duties. (b) A duty of honest and fair dealing and good faith. (c) A duty to disclose all facts known to the agent materially affecting the value or desirability of the property that are not known to, or within the diligent attention and observation of, the parties. An agent is not obligated to reveal to either party any confidential information obtained from the other party that does not involve the affirmative duties set forth above. BUYER'S AGENT A Buyer's agent can, with a Buyer's consent, agree to act as agent for the Buyer only. In these situations, the agent is not the Seller's agent, even if by agreement the agent may receive compensation for services rendered, either in full or in part from the Seller. An agent acting only for a Buyer has the following affirmative obligations: To the Buyer: A fiduciary duty of utmost care, integrity, honesty and loyalty in dealings with the Buyer. To the Buyer and the Seller: (a) Diligent exercise of reasonable skill and care in performance of the agent's duties. (b) A duty of honest and fair dealing and good faith. (c) A duty to disclose all facts known to the agent materially affecting the value or desirability of the property that are not known to, or within the diligent attention and observation of, the parties. An agent is not obligated to reveal to either party any confidential information obtained from the other party that does not involve the affirmative duties set forth above. AGENT REPRESENTING BOTH SELLER AND BUYER A real estate agent, either acting directly or through one or more salespersons and broker associates, can legally be the agent of both the Seller and the Buyer in a transaction, but only with the knowledge and consent of both the Seller and the Buyer. In a dual agency situation, the agent has the following affirmative obligations to both the Seller and the Buyer: (a) A fiduciary duty of utmost care, integrity, honesty and loyalty in the dealings with either the Seller or the Buyer. (b) Other duties to the Seller and the Buyer as stated above in their respective sections. In representing both Seller and Buyer, a dual agent may not, without the express permission of the respective party, disclose to the other party confidential information, including, but not limited to, facts relating to either the Buyer's or Seller's financial position, motivations, bargaining position, or other personal information that may impact price, including the Seller's willingness to accept a price less than the listing price or the Buyer's willingness to pay a price greater than the price offered. SELLER AND BUYER RESPONSIBILITIES Either the purchase agreement or a separate document will contain a confirmation of which agent is representing you and whether that agent is representing you exclusively in the transaction or acting as dual agent. Please pay attention to that confirmation to make sure it accurately reflects your understanding of your agent's role. The above duties of the agent in a real estate transaction do not relieve a Seller or Buyer from the responsibility to protect his or her own interests. You should carefully read all agreements to assure that they adequately express your understanding of the transaction. A real estate agent is a person qualified to advise about real estate. If legal or tax advice is desired, consult a competent professional. If you are a Buyer, you have the duty to exercise reasonable care to protect yourself, including as to those facts about the property which are known to you or within your diligent attention and observation. Both Sellers and Buyers should strongly consider obtaining tax advice from a competent professional because the federal and state tax consequences of a transaction can be complex and subject to change. Throughout your real property transaction you may receive more than one disclosure form, depending upon the number of agents assisting in the transaction. The law requires each agent with whom you have more than a casual relationship to present you with this disclosure form. You should read its contents each time it is presented to you, considering the relationship between you and the real estate agent in your specific transaction. This disclosure form includes the provisions of Sections 2079.13 to 2079.24, inclusive, of the Civil Code set forth on page 2. Read it carefully. I/WE ACKNOWLEDGE RECEIPT OF A COPY OF THIS DISCLOSURE AND THE PORTIONS OF THE CIVIL CODE PRINTED ON THE BACK (OR A SEPARATE PAGE). Buyer X Seller

Landlord

Tenant

Date Donald Smith

Buyer X Seller

Landlord

Tenant

Date Suzanne Smith

Agent

DRE Lic. # 01345642

Dilbeck Real Estate Real Estate Broker (Firm)

By

DRE Lic. #

Date

(Salesperson or Broker-Associate, if any) © 1991-2018, California Association of REALTORS®, Inc.

AD REVISED 12/18 (PAGE 1 OF 2)

DISCLOSURE REGARDING REAL ESTATE AGENCY RELATIONSHIP (AD PAGE 1 OF 2) Glendora Office, 115 E. Foothill Boulevard Suite 102 Glendora CA 91741 Phone: 8182984880 Laurie Biernacki Produced with zipForm® by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026 www.zipLogix.com

Fax: 626-963-0992

ETS 2019


CIVIL CODE SECTIONS 2079.13 ‒ 2079.24 (2079.16 APPEARS ON THE FRONT) 2079.13. As used in Sections 2079.7 and 2079.14 to 2079.24, inclusive, the following terms have the following meanings: (a) “Agent” means a person acting under provisions of Title 9 (commencing with Section 2295) in a real property transaction, and includes a person who is licensed as a real estate broker under Chapter 3 (commencing with Section 10130) of Part 1 of Division 4 of the Business and Professions Code, and under whose license a listing is executed or an offer to purchase is obtained. The agent in the real property transaction bears responsibility for that agent's salespersons or broker associates who perform as agents of the agent. When a salesperson or broker associate owes a duty to any principal, or to any buyer or seller who is not a principal, in a real property transaction, that duty is equivalent to the duty owed to that party by the broker for whom the salesperson or broker associate functions. (b) “Buyer” means a transferee in a real property transaction, and includes a person who executes an offer to purchase real property from a seller through an agent, or who seeks the services of an agent in more than a casual, transitory, or preliminary manner, with the object of entering into a real property transaction. “Buyer” includes vendee or lessee of real property. (c) “Commercial real property” means all real property in the state, except (1) single-family residential real property, (2) dwelling units made subject to Chapter 2 (commencing with Section 1940) of Title 5, (3) a mobilehome, as defined in Section 798.3, (4) vacant land, or (5) a recreational vehicle, as defined in Section 799.29. (d) “Dual agent” means an agent acting, either directly or through a salesperson or broker associate, as agent for both the seller and the buyer in a real property transaction. (e) “Listing agreement” means a written contract between a seller of real property and an agent, by which the agent has been authorized to sell the real property or to find or obtain a buyer, including rendering other services for which a real estate license is required to the seller pursuant to the terms of the agreement. (f) “Seller's agent” means a person who has obtained a listing of real property to act as an agent for compensation.(g) “Listing price” is the amount expressed in dollars specified in the listing for which the seller is willing to sell the real property through the seller's agent. (h) “Offering price” is the amount expressed in dollars specified in an offer to purchase for which the buyer is willing to buy the real property. (i) “Offer to purchase” means a written contract executed by a buyer acting through a buyer's agent that becomes the contract for the sale of the real property upon acceptance by the seller. (j) “Real property” means any estate specified by subdivision (1) or (2) of Section 761 in property, and includes (1) single-family residential property, (2) multiunit residential property with more than four dwelling units, (3) commercial real property, (4) vacant land, (5) a ground lease coupled with improvements, or (6) a manufactured home as defined in Section 18007 of the Health and Safety Code, or a mobilehome as defined in Section 18008 of the Health and Safety Code, when offered for sale or sold through an agent pursuant to the authority contained in Section 10131.6 of the Business and Professions Code. (k) “Real property transaction” means a transaction for the sale of real property in which an agent is retained by a buyer, seller, or both a buyer and seller to act in that transaction, and includes a listing or an offer to purchase. (l) “Sell,” “sale,” or “sold” refers to a transaction for the transfer of real property from the seller to the buyer and includes exchanges of real property between the seller and buyer, transactions for the creation of a real property sales contract within the meaning of Section 2985, and transactions for the creation of a leasehold exceeding one year's duration. (m) “Seller” means the transferor in a real property transaction and includes an owner who lists real property with an agent, whether or not a transfer results, or who receives an offer to purchase real property of which he or she is the owner from an agent on behalf of another. “Seller” includes both a vendor and a lessor of real property. (n) “Buyer's agent” means an agent who represents a buyer in a real property transaction. 2079.14. A seller's agent and buyer's agent shall provide the seller and buyer in a real property transaction with a copy of the disclosure form specified in Section 2079.16, and shall obtain a signed acknowledgment of receipt from that seller and buyer, except as provided in Section 2079.15, as follows: (a) The seller's agent, if any, shall provide the disclosure form to the seller prior to entering into the listing agreement. (b) The buyer's agent shall provide the disclosure form to the buyer as soon as practicable prior to execution of the buyer's offer to purchase. If the offer to purchase is not prepared by the buyer's agent, the buyer's agent shall present the disclosure form to the buyer not later than the next business day after receiving the offer to purchase from the buyer. 2079.15. In any circumstance in which the seller or buyer refuses to sign an acknowledgment of receipt pursuant to Section 2079.14, the agent shall set forth, sign, and date a written declaration of the facts of the refusal. 2079.16 Reproduced on Page 1 of this AD form. 2079.17(a) As soon as practicable, the buyer's agent shall disclose to the buyer and seller whether the agent is acting in the real property transaction as the buyer's agent, or as a dual agent representing both the buyer and the seller. This relationship shall be confirmed in the contract to purchase and sell real property or in a separate writing executed or acknowledged by the seller, the buyer, and the buyer's agent prior to or coincident with execution of that contract by the buyer and the seller, respectively. (b) As soon as practicable, the seller's agent shall disclose to the seller whether the seller's agent is acting in the real property transaction as the seller's agent, or as a dual agent representing both the buyer and seller. This relationship shall be confirmed in the contract to purchase and sell real property or in a separate writing executed or acknowledged by the seller and the seller's agent prior to or coincident with the execution of that contract by the seller. CONFIRMATION: The following agency relationships are confirmed for this transaction: Seller's Brokerage Firm DO NOT COMPLETE. SAMPLE ONLY License Number ________________ Is the broker of (check one): the seller; or both the buyer and seller. (dual agent) Seller's Agent DO NOT COMPLETE. SAMPLE ONLY License Number ________________ Is (check one): the Seller's Agent. (salesperson or broker associate) both the Buyer's and Seller's Agent. (dual agent) Buyer's Brokerage Firm DO NOT COMPLETE. SAMPLE ONLY License Number ________________ Is the broker of (check one): the buyer; or both the buyer and seller. (dual agent) Buyer's Agent DO NOT COMPLETE. SAMPLE ONLY License Number ________________ Is (check one): the Buyer's Agent. (salesperson or broker associate) both the Buyer's and Seller's Agent. (dual agent) (d) The disclosures and confirmation required by this section shall be in addition to the disclosure required by Section 2079.14. An agent's duty to provide disclosure and confirmation of representation in this section may be performed by a real estate salesperson or broker associate affiliated with that broker. 2079.18 (Repealed pursuant to AB-1289) 2079.19 The payment of compensation or the obligation to pay compensation to an agent by the seller or buyer is not necessarily determinative of a particular agency relationship between an agent and the seller or buyer. A listing agent and a selling agent may agree to share any compensation or commission paid, or any right to any compensation or commission for which an obligation arises as the result of a real estate transaction, and the terms of any such agreement shall not necessarily be determinative of a particular relationship. 2079.20 Nothing in this article prevents an agent from selecting, as a condition of the agent's employment, a specific form of agency relationship not specifically prohibited by this article if the requirements of Section 2079.14 and Section 2079.17 are complied with. 2079.21 (a) A dual agent may not, without the express permission of the seller, disclose to the buyer any confidential information obtained from the seller. (b) A dual agent may not, without the express permission of the buyer, disclose to the seller any confidential information obtained from the buyer. (c) “Confidential information” means facts relating to the client's financial position, motivations, bargaining position, or other personal information that may impact price, such as the seller is willing to accept a price less than the listing price or the buyer is willing to pay a price greater than the price offered. (d) This section does not alter in any way the duty or responsibility of a dual agent to any principal with respect to confidential information other than price. 2079.22 Nothing in this article precludes a seller's agent from also being a buyer's agent. If a seller or buyer in a transaction chooses to not be represented by an agent, that does not, of itself, make that agent a dual agent. 2079.23 A contract between the principal and agent may be modified or altered to change the agency relationship at any time before the performance of the act which is the object of the agency with the written consent of the parties to the agency relationship. 2079.24 Nothing in this article shall be construed to either diminish the duty of disclosure owed buyers and sellers by agents and their associate licensees, subagents, and employees or to relieve agents and their associate licensees, subagents, and employees from liability for their conduct in connection with acts governed by this article or for any breach of a fiduciary duty or a duty of disclosure. © 1991-2018, California Association of REALTORS®, Inc. THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REALTORS®. NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR ACCURACY OF ANY PROVISION IN ANY SPECIFIC TRANSACTION. A REAL ESTATE BROKER IS THE PERSON QUALIFIED TO ADVISE ON REAL ESTATE TRANSACTIONS. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. Published and Distributed by: REAL ESTATE BUSINESS SERVICES, INC. a subsidiary of the California Association of REALTORS® 525 South Virgil Avenue, Los Angeles, California 90020

AD REVISED 12/18 (PAGE 2 OF 2)

DISCLOSURE REGARDING REAL ESTATE AGENCY RELATIONSHIP (AD PAGE 2 OF 2) Produced with zipForm® by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026

www.zipLogix.com

ETS 2019


POSSIBLE REPRESENTATION OF MORE THAN ONE BUYER OR SELLER - DISCLOSURE AND CONSENT (C.A.R. Form PRBS, Revised 12/18)

A real estate broker (Broker), whether a corporation, partnership or sole proprietorship, may represent more than one buyer or seller. This multiple representation can occur through an individual licensed as a broker or salesperson or through different individual broker's or salespersons (associate licensees) acting under the Broker's license. The associate licensees may be working out of the same or different office locations. Multiple Buyers: Broker (individually or through its associate licensees) may be working with many prospective buyers at the same time. These prospective buyers may have an interest in, and make offers on, the same properties. Some of these properties may be listed with Broker and some may not. Broker will not limit or restrict any particular buyer from making an offer on any particular property whether or not Broker represents other buyers interested in the same property. Multiple Sellers: Broker (individually or through its associate licensees) may have listings on many properties at the same time. As a result, Broker will attempt to find buyers for each of those listed properties. Some listed properties may appeal to the same prospective buyers. Some properties may attract more prospective buyers than others. Some of these prospective buyers may be represented by Broker and some may not. Broker will market all listed properties to all prospective buyers whether or not Broker has another or other listed properties that may appeal to the same prospective buyers. Dual Agency: If Seller is represented by Broker, Seller acknowledges that broker may represent prospective buyers of Seller's property and consents to Broker acting as a dual agent for both seller and buyer in that transaction. If Buyer is represented by Broker, buyer acknowledges that Broker may represent sellers of property that Buyer is interested in acquiring and consents to Broker acting as a dual agent for both buyer and seller with regard to that property. In the event of dual agency, seller and buyer agree that: a dual agent may not, without the express permission of the respective party, disclose to the other party confidential information, including, but not limited to, facts relating to either the buyer's or seller's financial position, motivations, bargaining position, or other personal information that may impact price, including the seller's willingness to accept a price less than the listing price or the buyer's willingness to pay a price greater than the price offered; and except as set forth above, a dual agent is obligated to disclose known facts materially affecting the value or desirability of the Property to both parties. Offers not necessarily confidential: Buyer is advised that seller or listing agent may disclose the existence, terms, or conditions of buyer's offer unless all parties and their agent have signed a written confidentiality agreement. Whether any such information is actually disclosed depends on many factors, such as current market conditions, the prevailing practice in the real estate community, the listing agent's marketing strategy and the instructions of the seller. Buyer and seller understand that Broker may represent more than one buyer or more than one seller and even both buyer and seller on the same transaction and consents to such relationships. Seller and/or Buyer acknowledges reading and understanding this Possible Representation of More Than One Buyer or Seller - Disclosure and Consent and agrees to the agency possibilities disclosed. Seller Seller

Donald Smith Date Suzanne Smith Date

Buyer Buyer

Date Date

Buyer's Brokerage Firm By

DRE Lic # DRE Lic #

Date Date

Seller's Brokerage Firm Dilbeck Real Estate By

DRE Lic # 01345642 DRE Lic #

Date Date

© 2018, California Association of REALTORS®, Inc. United States copyright law (Title 17 U.S. Code) forbids the unauthorized distribution, display and reproduction of this form, or any portion thereof, by photocopy machine or any other means, including facsimile or computerized formats. THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR ACCURACY OF ANY PROVISION IN ANY SPECIFIC TRANSACTION. A REAL ESTATE BROKER IS THE PERSON QUALIFIED TO ADVISE ON REAL ESTATE TRANSACTIONS. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. This form is made available to real estate professionals through an agreement with or purchase from the California Association of REALTORS®. It is not intended to identify the user as a REALTOR®. REALTOR® is a registered collective membership mark which may be used only by members of the NATIONAL ASSOCIATION OF REALTORS® who subscribe to its Code of Ethics. Published and Distributed by: REAL ESTATE BUSINESS SERVICES, INC. a subsidiary of the California Association of REALTORS® 525 South Virgil Avenue, Los Angeles, California 90020

PRBS REVISED 12/18 (PAGE 1 OF 1)

POSSIBLE REPRESENTATION OF MORE THAN ONE BUYER OR SELLER (PRBS PAGE 1 OF 1) Glendora Office, 115 E. Foothill Boulevard Suite 102 Glendora CA 91741 Phone: 8182984880 Laurie Biernacki Produced with zipForm® by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026 www.zipLogix.com

Fax: 626-963-0992

ETS 2019


WIRE FRAUD AND ELECTRONIC FUNDS TRANSFER ADVISORY (C.A.R. Form WFA, Revised 12/17)

Property Address: 1020 Magnolia, Pasadena, CA 91105

(“Property”).

WIRE FRAUD AND ELECTRONIC FUNDS TRANSFERS ADVISORY: The ability to communicate and conduct business electronically is a convenience and reality in nearly all parts of our lives. At the same time, it has provided hackers and scammers new opportunities for their criminal activity. Many businesses have been victimized and the real estate business is no exception. While wiring or electronically transferring funds is a welcome convenience, we all need to exercise extreme caution. Emails attempting to induce fraudulent wire transfers have been received and have appeared to be legitimate. Reports indicate that some hackers have been able to intercept emailed transfer instructions, obtain account information and, by altering some of the data, redirect the funds to a different account. It also appears that some hackers were able to provide false phone numbers for verifying the wiring or funds transfer instructions. In those cases, the victim called the number provided to confirm the instructions, and then unwittingly authorized a transfer to somewhere or someone other than the intended recipient.

ACCORDINGLY, YOU ARE ADVISED: 1. Obtain phone numbers and account numbers only from Escrow Officers, Property Managers, or Landlords at the beginning of the transaction. 2. DO NOT EVER WIRE OR ELECTRONICALLY TRANSFER FUNDS PRIOR TO CALLING TO CONFIRM THE TRANSFER INSTRUCTIONS. ONLY USE A PHONE NUMBER YOU WERE PROVIDED PREVIOUSLY. Do not use any different phone number or account number included in any emailed transfer instructions. 3. Orally confirm the transfer instruction is legitimate and confirm the bank routing number, account numbers and other codes before taking steps to transfer the funds. 4. Avoid sending personal information in emails or texts. Provide such information in person or over the telephone directly to the Escrow Officer, Property Manager, or Landlord. 5. Take steps to secure the system you are using with your email account. These steps include creating strong passwords, using secure WiFi, and not using free services. If you believe you have received questionable or suspicious wire or funds transfer instructions, immediately notify your bank, and the other party, and the Escrow Office, Landlord, or Property Manager. The sources below, as well as others, can also provide information: Federal Bureau of Investigation: https://www.fbi.gov/; the FBI's IC3 at www.ic3.gov; or 310-477-6565 National White Collar Crime Center: http://www.nw3c.org/ On Guard Online: https://www.onguardonline.gov/

NOTE: There are existing alternatives to electronic and wired fund transfers such as cashier's checks. By signing below, the undersigned acknowledge that each has read, understands and has received a copy of this Wire Fraud and Electronic Funds Transfer Advisory. Buyer/Tenant Buyer/Tenant Seller/Landlord Seller/Landlord

Date Date Donald Smith Date Suzanne Smith Date

©2016-2017, California Association of REALTORS®, Inc. United States copyright law (Title 17 U.S. Code) forbids the unauthorized distribution, display and reproduction of this form, or any portion thereof, by photocopy machine or any other means, including facsimile or computerized formats. THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REALTORS®. NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR ACCURACY OF ANY PROVISION IN ANY SPECIFIC TRANSACTION. A REAL ESTATE BROKER IS THE PERSON QUALIFIED TO ADVISE ON REAL ESTATE TRANSACTIONS. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. This form is made available to real estate professionals through an agreement with or purchase from the California Association of REALTORS®. It is not intended to identify the user as a REALTOR®. REALTOR® is a registered collective membership mark which may be used only by members of the NATIONAL ASSOCIATION OF REALTORS® who subscribe to its Code of Ethics. Published and Distributed by: REAL ESTATE BUSINESS SERVICES, INC. a subsidiary of the California Association of REALTORS® 525 South Virgil Avenue, Los Angeles, California 90020

WFA REVISED 12/17 (PAGE 1 OF 1) WIRE FRAUD AND ELECTRONIC FUNDS TRANSFER ADVISORY (WFA PAGE 1 OF 1) Glendora Office, 115 E. Foothill Boulevard Suite 102 Glendora CA 91741 Phone: 8182984880 Laurie Biernacki Produced with zipForm® by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026 www.zipLogix.com

Fax: 626-963-0992

ETS 2019


RESIDENTIAL LISTING AGREEMENT (Exclusive Authorization and Right to Sell) (C.A.R. Form RLA, Revised 12/18)

Date Prepared: 1. EXCLUSIVE RIGHT TO SELL: (“Seller”) Donald Smith, Suzanne Smith hereby employs and grants (“Broker”) Dilbeck Real Estate beginning (date) and ending at 11:59 P.M. on (date) (“Listing Period”) the exclusive and irrevocable right to sell or exchange the real property described as 1020 Magnolia , situated in (City), Pasadena (County), California, (Zip Code), Assessor's Parcel No. (“Property”). Los Angeles 91105 This Property is a manufactured (mobile) home. See addendum for additional terms. This Property is being sold as part of a probate, conservatorship or guardianship. See addendum for additional terms. 2. LISTING PRICE AND TERMS: A. The listing price shall be: Dollars ($ ). B. Listing Terms: . 3. COMPENSATION TO BROKER: Notice: The amount or rate of real estate commissions is not fixed by law. They are set by each Broker individually and may be negotiable between Seller and Broker (real estate commissions include all compensation and fees to Broker). A. Seller agrees to pay to Broker as compensation for services irrespective of agency relationship(s), either percent of the listing price (or if a purchase agreement is entered into, of the purchase price), or $ , AND , as follows: $250 Dilbeck Flat-Fee Commission (1) If during the Listing Period, or any extension, Broker, cooperating broker, Seller or any other person procures a ready, willing, and able buyer(s) whose offer to purchase the Property on any price and terms is accepted by Seller, provided the Buyer completes the transaction or is prevented from doing so by Seller. (Broker is entitled to compensation whether any escrow resulting from such offer closes during or after the expiration of the Listing Period, or any extension.) OR (2) If within calendar days (a) after the end of the Listing Period or any extension; or (b) after any cancellation of this Agreement, unless otherwise agreed, Seller enters into a contract to sell, convey, lease or otherwise transfer the Property to anyone (“Prospective Buyer”) or that person's related entity: (i) who physically entered and was shown the Property during the Listing Period or any extension by Broker or a cooperating broker; or (ii) for whom Broker or any cooperating broker submitted to Seller a signed, written offer to acquire, lease, exchange or obtain an option on the Property. Seller, however, shall have no obligation to Broker under paragraph 3A(2) unless, not later than the end of the Listing Period or any extension or cancellation, Broker has given Seller a written notice of the names of such Prospective Buyers. OR (3) If, without Broker's prior written consent, the Property is withdrawn from sale, conveyed, leased, rented, otherwise transferred, or made unmarketable by a voluntary act of Seller during the Listing Period, or any extension. B. If completion of the sale is prevented by a party to the transaction other than Seller, then compensation which otherwise would have been earned under paragraph 3A shall be payable only if and when Seller collects damages by suit, arbitration, settlement or otherwise, and then in an amount equal to the lesser of one-half of the damages recovered or the above compensation, after first deducting title and escrow expenses and the expenses of collection, if any. C. In addition, Seller agrees to pay Broker: . D. Seller has been advised of Broker's policy regarding cooperation with, and the amount of compensation offered to, other brokers. (1) Broker is authorized to cooperate with and compensate brokers participating through the multiple listing service(s) ("MLS") by offering to MLS brokers out of Broker's compensation specified in 3A, either percent of the purchase price, or $ . (2) Broker is authorized to cooperate with and compensate brokers operating outside the MLS as per Broker's policy. E. Seller hereby irrevocably assigns to Broker the above compensation from Seller's funds and proceeds in escrow. Broker may submit this Agreement, as instructions to compensate Broker pursuant to paragraph 3A, to any escrow regarding the Property involving Seller and a buyer, Prospective Buyer or other transferee. F. (1) Seller represents that Seller has not previously entered into a listing agreement with another broker regarding the Property, unless specified as follows: . (2) Seller warrants that Seller has no obligation to pay compensation to any other broker regarding the Property unless the Property is transferred to any of the following individuals or entities: . (3) If the Property is sold to anyone listed above during the time Seller is obligated to compensate another broker: (i) Broker is not entitled to compensation under this Agreement; and (ii) Broker is not obligated to represent Seller in such transaction.

© 2018, California Association of REALTORS®, Inc.

Seller's Initials

(

)

(

)

RLA REVISED 12/18 (PAGE 1 OF 5) RESIDENTIAL LISTING AGREEMENT - EXCLUSIVE (RLA PAGE 1 OF 5) Glendora Office, 115 E. Foothill Boulevard Suite 102 Glendora CA 91741 Phone: 8182984880 Laurie Biernacki Produced with zipForm® by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026 www.zipLogix.com

Fax: 626-963-0992

ETS 2019


Property Address: 1020 Magnolia, Pasadena, CA 91105

Date:

4. A. ITEMS EXCLUDED AND INCLUDED: Unless otherwise specified in a real estate purchase agreement, all fixtures and fittings that are attached to the Property are included, and personal property items are excluded, from the purchase price. ADDITIONAL ITEMS EXCLUDED: . ADDITIONAL ITEMS INCLUDED: . Seller intends that the above items be excluded or included in offering the Property for sale, but understands that: (i) the purchase agreement supersedes any intention expressed above and will ultimately determine which items are excluded and included in the sale; and (ii) Broker is not responsible for and does not guarantee that the above exclusions and/or inclusions will be in the purchase agreement. B. (1) Leased Or Not Owned Items: The following items are leased or not owned by Seller: Solar power system Alarm system Propane tank Water Softener Other (2) Liened Items: The following items have been financed and a lien has been placed on the Property to secure payment: Solar power system Windows or doors Heating/Ventilation/Air conditioning system Other Seller will provide to Buyer, as part of the sales agreement, copies of lease documents, or other documents obligating Seller to pay for any such leased or liened item. 5. MULTIPLE LISTING SERVICE: A. Broker is a participant/subscriber to Multiple Listing Service (MLS) and possibly others. Unless CRMLS otherwise instructed in writing the Property will be listed with the MLS(s) specified above. That MLS is (or if checked is not) the primary MLS for the geographic area of the Property. All terms of the transaction, including sales price and financing, if applicable, (i) will be provided to the MLS in which the property is listed for publication, dissemination and use by persons and entities on terms approved by the MLS and (ii) may be provided to the MLS even if the Property was not listed with the MLS. Seller consents to Broker providing a copy of this listing agreement to the MLS if required by the MLS. BENEFITS OF USING THE MLS; IMPACT OF OPTING OUT OF THE MLS; PRESENTING ALL OFFERS WHAT IS AN MLS? The MLS is a database of properties for sale that is available and disseminated to and accessible by all other real estate agents who are participants or subscribers to the MLS. Property information submitted to the MLS describes the price, terms and conditions under which the Seller's property is offered for sale (including but not limited to the listing broker's offer of compensation to other brokers). It is likely that a significant number of real estate practitioners in any given area are participants or subscribers to the MLS. The MLS may also be part of a reciprocal agreement to which other multiple listing services belong. Real estate agents belonging to other multiple listing services that have reciprocal agreements with the MLS also have access to the information submitted to the MLS. The MLS may further transmit listing information to Internet sites that post property listings online. EXPOSURE TO BUYERS THROUGH MLS: Listing property with an MLS exposes a seller's property to all real estate agents and brokers (and their potential buyer clients) who are participants or subscribers to the MLS or a reciprocating MLS. CLOSED/PRIVATE LISTING CLUBS OR GROUPS: Closed or private listing clubs or groups are not the same as the MLS. The MLS referred to above is accessible to all eligible real estate licensees and provides broad exposure for a listed property. Private or closed listing clubs or groups of licensees may have been formed outside the MLS. Private or closed listing clubs or groups are accessible to a more limited number of licensees and generally offer less exposure for listed property. Whether listing property through a closed, private network - and excluding it from the MLS - is advantageous or disadvantageous to a seller, and why, should be discussed with the agent taking the Seller's listing. NOT LISTING PROPERTY IN A LOCAL MLS: If the Property is listed in an MLS which does not cover the geographic area where the Property is located then real estate agents and brokers working that territory, and Buyers they represent looking for property in the neighborhood, may not be aware the Property is for sale. OPTING OUT OF MLS: If Seller elects to exclude the Property from the MLS, Seller understands and acknowledges that: (a) real estate agents and brokers from other real estate offices, and their buyer clients, who have access to that MLS may not be aware that Seller's Property is offered for sale; (b) Information about Seller's Property will not be transmitted from the MLS to various real estate Internet sites that are used by the public to search for property listings; (c) real estate agents, brokers and members of the public may be unaware of the terms and conditions under which Seller is marketing the Property. REDUCTION IN EXPOSURE: Any reduction in exposure of the Property may lower the number of offers and negatively impact the sales price. PRESENTING ALL OFFERS: Seller understands that Broker must present all offers received for Seller's Property unless Seller gives Broker written instructions to the contrary.

Seller's Initials (

)(

)

Broker's/Agent's Initials (

Seller's Initials

(

)(

)

)

(

)

RLA REVISED 12/18 (PAGE 2 OF 5) RESIDENTIAL LISTING AGREEMENT - EXCLUSIVE (RLA PAGE 2 OF 5) Produced with zipFormÂŽ by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026

www.zipLogix.com

ETS 2019


Property Address: 1020 Magnolia, Pasadena, CA 91105

Date:

B. MLS rules generally provide that residential real property and vacant lot listings be submitted to the MLS within 2 days or some other period of time after all necessary signatures have been obtained on the listing agreement. Broker will not have to submit this listing to the MLS if, within that time, Broker submits to the MLS an appropriate form signed by Seller. Seller elects to exclude the Property from the MLS as provided by C.A.R. Form SELM or the local equivalent form. C. MLS rules allow MLS data to be made available by the MLS to additional Internet sites unless Broker gives the MLS instructions to the contrary. Seller acknowledges that for any of the below opt-out instructions to be effective, Seller must make them on a separate instruction to Broker signed by Seller. Specific information that can be excluded from the Internet as permitted by (or in accordance with) the MLS is as follows: (1) Property Availability On The MLS; Address On the MLS: Seller can instruct Broker to have the MLS not display the Property or the Property address on the Internet. Seller understands that either of these opt-outs would mean consumers searching for listings on the Internet may not see the Property or Property's address in response to their search. (2) Feature Opt-Outs: Seller can instruct Broker to advise the MLS that Seller does not want visitors to MLS Participant or Subscriber Websites or Electronic Displays that display the Property listing to have the features below. Seller understands (i) that these opt-outs apply only to Websites or Electronic Displays of MLS Participants and Subscribers who are real estate broker and agent members of the MLS; (ii) that other Internet sites may or may not have the features set forth herein; and (iii) that neither Broker nor the MLS may have the ability to control or block such features on other Internet sites. (a) Comments And Reviews: The ability to write comments or reviews about the Property on those sites; or the ability to link to another site containing such comments or reviews if the link is in immediate conjunction with the Property display. (b) Automated Estimate Of Value: The ability to create an automated estimate of value or to link to another site containing such an estimate of value if the link is in immediate conjunction with the Property display. Seller elects to opt out of certain Internet features as provided by C.A.R. Form SELI or the local equivalent form. 6. SELLER REPRESENTATIONS: Seller represents that, unless otherwise specified in writing, Seller is unaware of: (i) any Notice of Default recorded against the Property; (ii) any delinquent amounts due under any loan secured by, or other obligation affecting, the Property; (iii) any bankruptcy, insolvency or similar proceeding affecting the Property; (iv) any litigation, arbitration, administrative action, government investigation or other pending or threatened action that affects or may affect the Property or Seller's ability to transfer it; and (v) any current, pending or proposed special assessments affecting the Property. Seller shall promptly notify Broker in writing if Seller becomes aware of any of these items during the Listing Period or any extension thereof. 7. BROKER'S AND SELLER'S DUTIES: A. Broker agrees to exercise reasonable effort and due diligence to achieve the purposes of this Agreement. Unless Seller gives Broker written instructions to the contrary, Broker is authorized, but not required, to (i) order reports and disclosures including those specified in 7C as necessary, (ii) advertise and market the Property by any method and in any medium selected by Broker, including MLS and the Internet, and, to the extent permitted by these media, control the dissemination of the information submitted to any medium; and (iii) disclose to any real estate licensee making an inquiry the receipt of any offers on the Property and the offering price of such offers. B. Seller agrees to consider offers presented by Broker, and to act in good faith to accomplish the sale of the Property by, among other things, making the Property available for showing at reasonable times and, subject to paragraph 3F, referring to Broker all inquiries of any party interested in the Property. Seller is responsible for determining at what price to list and sell the Property. C. Investigations and Reports: Seller agrees, within 5 (or ) Days of the beginning date of this Agreement, to pay for the following pre-sale reports: Structural Pest Control General Property Inspection Homeowners Association Documents Other . D. Seller further agrees to indemnify, defend and hold Broker harmless from all claims, disputes, litigation, judgments attorney fees and costs arising from any incorrect or incomplete information supplied by Seller, or from any material facts that Seller knows but fails to disclose including dangerous or hidden conditions on the Property. 8. DEPOSIT: Broker is authorized to accept and hold on Seller's behalf any deposits to be applied toward the purchase price. 9. AGENCY RELATIONSHIPS: A. Disclosure: The Seller acknowledges receipt of a X “Disclosure Regarding Real Estate Agency Relationships” (C.A.R. Form AD). B. Seller Representation: Broker shall represent Seller in any resulting transaction, except as specified in paragraph 3F. C. Possible Dual Agency With Buyer: Depending upon the circumstances, it may be necessary or appropriate for Broker to act as an agent for both Seller and buyer, exchange party, or one or more additional parties (“Buyer”). Broker shall, as soon as practicable, disclose to Seller any election to act as a dual agent representing both Seller and Buyer. If a Buyer is procured directly by Broker or an associate-licensee in Broker's firm, Seller hereby consents to Broker acting as a dual agent for Seller and Buyer. In the event of an exchange, Seller hereby consents to Broker collecting compensation from additional parties for services rendered, provided there is disclosure to all parties of such agency and compensation. Seller understands and agrees that: a dual agent may not, without the express permission of the respective party, disclose to the other party confidential information, including, but not limited to, facts relating to either the Buyer's or Seller's financial position, motivations, bargaining position, or other personal information that may impact price, including the Seller's willingness to accept a price less than the listing price or the Buyer's willingness to pay a price greater than the price offered; and except as set forth above, a dual agent is obligated to disclose known facts materially affecting the value or desirability of the Property to both parties.

Seller's Initials

(

)

(

)

RLA REVISED 12/18 (PAGE 3 OF 5) RESIDENTIAL LISTING AGREEMENT - EXCLUSIVE (RLA PAGE 3 OF 5) Produced with zipForm® by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026

www.zipLogix.com

ETS 2019


Property Address: 1020 Magnolia, Pasadena, CA 91105

Date:

D. Confirmation: Broker shall confirm the agency relationship described above, or as modified, in writing, prior to or concurrent with Seller's execution of a purchase agreement. E. Potentially Competing Sellers and Buyers: Seller understands that Broker may have or obtain listings on other properties, and that potential buyers may consider, make offers on, or purchase through Broker, property the same as or similar to Seller's Property. Seller consents to Broker's representation of sellers and buyers of other properties before, during and after the end of this Agreement. Seller acknowledges receipt of a X “Possible Representation of More than One Buyer or Seller - Disclosure and Consent” (C.A.R. Form PRBS). 10. SECURITY, INSURANCE, SHOWINGS, AUDIO AND VIDEO: Broker is not responsible for loss of or damage to personal or real property, or person, whether attributable to use of a keysafe/lockbox, a showing of the Property, or otherwise. Third parties, including, but not limited to, appraisers, inspectors, brokers and prospective buyers, may have access to, and take videos and photographs of, the interior of the Property. Seller agrees: (i) to take reasonable precautions to safeguard and protect valuables that might be accessible during showings of the Property; and (ii) to obtain insurance to protect against these risks. Broker does not maintain insurance to protect Seller. Persons visiting the Property may not be aware that they could be recorded by audio or visual devices installed by Seller (such as "nanny cams" and hidden security cameras). Seller is advised to post notice disclosing the existence of security devices. 11. PHOTOGRAPHS AND INTERNET ADVERTISING: A. In order to effectively market the Property for sale it is often necessary to provide photographs, virtual tours and other media to buyers. Seller agrees (or if checked, does not agree) that Broker may photograph or otherwise electronically capture images of the exterior and interior of the Property (“Images”) for static and/or virtual tours of the Property by buyers and others for use on Broker's website, the MLS, and other marketing materials and sites. Seller acknowledges that once Images are placed on the Internet neither Broker nor Seller has control over who can view such Images and what use viewers may make of the Images, or how long such Images may remain available on the Internet. Seller further assigns any rights in all Images to the Broker and agrees that such Images are the property of Broker and that Broker may use such Images for advertising, including post sale and for Broker's business in the future. B. Seller acknowledges that prospective buyers and/or other persons coming onto the property may take photographs, videos or other images of the property. Seller understands that Broker does not have the ability to control or block the taking and use of Images by any such persons. (If checked ) Seller instructs Broker to publish in the MLS that taking of Images is limited to those persons preparing Appraisal or Inspection reports. Seller acknowledges that unauthorized persons may take images who do not have access to or have not read any limiting instruction in the MLS or who take images regardless of any limiting instruction in the MLS. Once Images are taken and/or put into electronic display on the Internet or otherwise, neither Broker nor Seller has control over who views such Images nor what use viewers may make of the Images. 12. KEYSAFE/LOCKBOX: A keysafe/lockbox is designed to hold a key to the Property to permit access to the Property by Broker, cooperating brokers, MLS participants, their authorized licensees and representatives, authorized inspectors, and accompanied prospective buyers. Broker, cooperating brokers, MLS and Associations/Boards of REALTORS® are not insurers against injury, theft, loss, vandalism or damage attributed to the use of a keysafe/lockbox. Seller does (or if checked does not) authorize Broker to install a keysafe/lockbox. If Seller does not occupy the Property, Seller shall be responsible for obtaining occupant(s)' written permission for use of a keysafe/lockbox (C.A.R. Form KLA). 13. SIGN: Seller does (or if checked does not) authorize Broker to install a FOR SALE/SOLD sign on the Property. 14. EQUAL HOUSING OPPORTUNITY: The Property is offered in compliance with federal, state and local anti-discrimination laws. 15. ATTORNEY FEES: In any action, proceeding or arbitration between Seller and Broker to enforce the compensation provisions of this Agreement, the prevailing Seller or Broker shall be entitled to reasonable attorney fees and costs from the non-prevailing Seller or Broker, except as provided in paragraph 19A. 16. ADDITIONAL TERMS: REO Advisory Listing (C.A.R. Form REOL) Short Sale Information and Advisory (C.A.R. Form SSIA) Trust Advisory (C.A.R. Form TA) Seller intends to include a contingency to purchase a replacement property as part of any resulting transaction

17. MANAGEMENT APPROVAL: If an associate-licensee in Broker's office (salesperson or broker-associate) enters into this Agreement on Broker's behalf, and Broker or Manager does not approve of its terms, Broker or Manager has the right to cancel this Agreement, in writing, within 5 Days After its execution. 18. SUCCESSORS AND ASSIGNS: This Agreement shall be binding upon Seller and Seller's successors and assigns. 19. DISPUTE RESOLUTION: A. MEDIATION: Seller and Broker agree to mediate any dispute or claim arising between them regarding the obligation to pay compensation under this Agreement, before resorting to arbitration or court action. Mediation fees, if any, shall be divided equally among the parties involved. If, for any dispute or claim to which this paragraph applies, any party (i) commences an action without first attempting to resolve the matter through mediation, or (ii) before commencement of an action, refuses to mediate after a request has been made, then that party shall not be entitled to recover attorney fees, even if they would otherwise be available to that party in any such action. Exclusions from this mediation agreement are specified in paragraph 19B. Seller's Initials

(

)

(

)

RLA REVISED 12/18 (PAGE 4 OF 5) RESIDENTIAL LISTING AGREEMENT - EXCLUSIVE (RLA PAGE 4 OF 5) Produced with zipForm® by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026

www.zipLogix.com

ETS 2019


Property Address: 1020 Magnolia, Pasadena, CA 91105 Date: B. ADDITIONAL MEDIATION TERMS: The following matters shall be excluded from mediation: (i) a judicial or nonjudicial foreclosure or other action or proceeding to enforce a deed of trust, mortgage or installment land sale contract as defined in Civil Code §2985; (ii) an unlawful detainer action; (iii) the filing or enforcement of a mechanic's lien; and (iv) any matter that is within the jurisdiction of a probate, small claims or bankruptcy court. The filing of a court action to enable the recording of a notice of pending action, for order of attachment, receivership, injunction, or other provisional remedies, shall not constitute a waiver or violation of the mediation provisions. C. ADVISORY: If Seller and Broker desire to resolve disputes arising between them through arbitration rather than court, they can document their agreement by attaching and signing an Arbitration Agreement (C.A.R. Form ARB). 20. ENTIRE AGREEMENT: All prior discussions, negotiations and agreements between the parties concerning the subject matter of this Agreement are superseded by this Agreement, which constitutes the entire contract and a complete and exclusive expression of their agreement, and may not be contradicted by evidence of any prior agreement or contemporaneous oral agreement. If any provision of this Agreement is held to be ineffective or invalid, the remaining provisions will nevertheless be given full force and effect. This Agreement and any supplement, addendum or modification, including any photocopy or facsimile, may be executed in counterparts. 21. OWNERSHIP, TITLE AND AUTHORITY: Seller warrants that: (i) Seller is the owner of the Property; (ii) no other persons or entities have title to the Property; and (iii) Seller has the authority to both execute this Agreement and sell the Property. Exceptions to ownership, title and authority are as follows: . REPRESENTATIVE CAPACITY: This Listing Agreement is being signed for Seller by an individual acting in a Representative Capacity as specified in the attached Representative Capacity Signature Disclosure (C.A.R. Form RCSD-S). Wherever the signature or initials of the representative identified in the RCSD appear on this Agreement or any related documents, it shall be deemed to be in a representative capacity for the entity described and not in an individual capacity, unless otherwise indicated. Seller (i) represents that the entity for which the individual is signing already exists and (ii) shall Deliver to Broker, within 3 Days After Execution of this Agreement, evidence of authority to act (such as but not limited to: applicable trust document, or portion thereof, letters testamentary, court order, power of attorney, resolution, or formation documents of the business entity). By signing below, Seller acknowledges that Seller has read, understands, received a copy of and agrees to the terms of this Agreement. Seller

Donald Smith Date Donald Smith

Address Telephone

City Fax

State E-mail seller1@gmail.com

Seller

Zip

Suzanne Smith Date Suzanne Smith

Address Telephone

City Fax

State E-mail seller2@gmail.com

Zip

Additional Signature Addendum attached (C.A.R. Form ASA) Real Estate Broker (Firm) Dilbeck Real Estate Address

City

DRE Lic. # 01345642 State Zip

By

Tel.

E-mail

DRE Lic.#

Date

By

Tel.

E-mail

DRE Lic.#

Date

Two Brokers with different companies are co-listing the Property. Co-listing Broker information is on the attached Additional Broker Acknowledgement (C.A.R. Form ABA).

© 1991-2018, California Association of REALTORS®, Inc. United States copyright law (Title 17 U.S. Code) forbids the unauthorized distribution, display and reproduction of this form, or any portion thereof, by photocopy machine or any other means, including facsimile or computerized formats. THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REALTORS®. NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR ACCURACY OF ANY PROVISION IN ANY SPECIFIC TRANSACTION. A REAL ESTATE BROKER IS THE PERSON QUALIFIED TO ADVISE ON REAL ESTATE TRANSACTIONS. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. Published and Distributed by: REAL ESTATE BUSINESS SERVICES, INC. a subsidiary of the California Association of REALTORS® 525 South Virgil Avenue, Los Angeles, California 90020

RLA REVISED 12/18 (PAGE 5 OF 5) RESIDENTIAL LISTING AGREEMENT - EXCLUSIVE (RLA PAGE 5 OF 5) Produced with zipForm® by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026

www.zipLogix.com

ETS 2019


SELLER'S ADVISORY (C.A.R. Form SA, Revised 12/15)

Property Address: 1020 Magnolia, Pasadena, CA 91105

("Property")

1. INTRODUCTION: Selling property in California is a process that involves many steps. From start to finish, it could take anywhere from a few weeks to many months, depending upon the condition of your Property, local market conditions and other factors. You have already taken an important first step by listing your Property for sale with a licensed real estate broker. Your broker will help guide you through the process and may refer you to other professionals, as needed. This advisory addresses many things you may need to think about and do as you market your Property. Some of these things are requirements imposed upon you, either by law or by the listing or sale contract. Others are simply practical matters that may arise during the process. Please read this document carefully and, if you have any questions, ask your broker or appropriate legal or tax advisor for help. 2. DISCLOSURES: A. General Disclosure Duties: You must affirmatively disclose to the buyer, in writing, any and all known facts that materially affect the value or desirability of your Property. You must disclose these facts whether or not asked about such matters by the buyer, any broker, or anyone else. This duty to disclose applies even if the buyer agrees to purchase your Property in its present condition without requiring you to make any repairs. If you do not know what or how to disclose, you should consult a real estate attorney in California of your choosing. Broker cannot advise you on the legal sufficiency of any disclosures you make. If the Property you are selling is a residence with one to four units except for certain subdivisions, your broker also has a duty to conduct a reasonably competent and diligent visual inspection of the accessible areas and to disclose to a buyer all adverse material facts that the inspection reveals. If your broker discovers something that could indicate a problem, your broker must advise the buyer. B. Statutory Duties: (For one-to-four Residential Units): (1) You must timely prepare and deliver to the buyer, among other things, a Real Estate Transfer Disclosure Statement ("TDS"), and a Natural Hazard Disclosure Statement ("NHD"). You have a legal obligation to honestly and completely fill out the TDS form in its entirety. (Many local entities or organizations have their own supplement to the TDS that you may also be asked to complete.) The NHD is a statement indicating whether your Property is in certain designated flood, fire or earthquake/seismic hazard zones. Third-party professional companies can help you with this task. (2) Depending upon the age and type of construction of your Property, you may also be required to provide and, in certain cases you can receive limited legal protection by providing, the buyer with booklets entitled "The Homeowner's Guide to Earthquake Safety," "The Commercial Property Owner's Guide to Earthquake Safety," "Protect Your Family From Lead in Your Home" and "Environmental Hazards: A Guide For Homeowners and Buyers." Some of these booklets may be packaged together for your convenience. The earthquake guides ask you to answer specific questions about your Property's structure and preparedness for an earthquake. If you are required to supply the booklet about lead, you will also be required to disclose to the buyer any known lead-based paint and lead-based paint hazards on a separate form. The environmental hazards guide informs the buyer of common environmental hazards that may be found in properties. (3) If you know that your property is: (i) located within one mile of a former military ordnance location; or (ii) in or affected by a zone or district allowing manufacturing, commercial or airport use, you must disclose this to the buyer. You are also required to make a good faith effort to obtain and deliver to the buyer a disclosure notice from the appropriate local agency(ies) about any special tax levied on your Property pursuant to the Mello-Roos Community Facilities Act, the Improvement Bond Act of 1915, and a notice concerning the contractual assessment provided by section 5898.24 of the Streets And Highways Code (collectively, “Special Tax Disclosures”). (4) If the TDS, NHD, or lead, military ordnance, commercial zone or Special Tax Disclosures are provided to a buyer after you accept that buyer's offer, the buyer will have 3 days after delivery (or 5 days if mailed) to terminate the offer, which is why it is extremely important to complete these disclosures as soon as possible. There are certain exemptions from these statutory requirements; however, if you have actual knowledge of any of these items, you may still be required to make a disclosure as the items can be considered material facts. C. Death and Other Disclosures: Many buyers consider death on real property to be a material fact in the purchase of property. In some situations, it is advisable to disclose that a death occurred or the manner of death; however, California Civil Code Section 1710.2 provides that you have no disclosure duty "where the death has occurred more than three years prior to the date the transferee offers to purchase, lease, or rent the real property, or [regardless of the date of occurrence] that an occupant of that property was afflicted with, or died from, Human T-Lymphotropic Virus Type III/Lymphadenopathy-Associated Virus." This law does not "immunize an owner or his or her agent from making an intentional misrepresentation in response to a direct inquiry from a transferee or a prospective transferee of real property, concerning deaths on the real property." D. Condominiums and Other Common Interest Subdivisions: If the Property is a condominium, townhouse, or other property in a common interest subdivision, you must provide to the buyer copies of the governing documents, the most recent financial statements distributed, and other documents required by law or contract. If you do not have a current version of these documents, you can request them from the management of your homeowner's association. To avoid delays, you are encouraged to obtain these documents as soon as possible, even if you have not yet entered into a purchase agreement to sell your Property. 3. CONTRACT TERMS AND LEGAL REQUIREMENTS: A. Contract Terms and Conditions: A buyer may request, as part of the contract for the sale of your Property, that you pay for repairs to the Property and other items. Your decision on whether or not to comply with a buyer's requests may affect your ability to sell your Property at a specified price. © 1991-2015, California Association of REALTORS®, Inc.

Seller's Initials (

)(

)

SA REVISED 12/15 (PAGE 1 OF 2) SELLER'S ADVISORY (SA PAGE 1 OF 2) Glendora Office, 115 E. Foothill Boulevard Suite 102 Glendora CA 91741 Phone: 8182984880 Laurie Biernacki Produced with zipForm® by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026 www.zipLogix.com

Fax: 626-963-0992

ETS 2019


Property Address: 1020 Magnolia, Pasadena, CA 91105 Date: B. Withholding Taxes: Under federal and California tax laws, a buyer is required to withhold a portion of the purchase price from your sale proceeds for tax purposes unless you sign an affidavit of non-foreign status and California residency, or some other exemption applies and is documented. C. Prohibition Against Discrimination: Discriminatory conduct in the sale of real property against individuals belonging to legally protected classes is a violation of the law. D. Government Required Repairs, Replacements and Alterations: Under State law, Property owners with limited exceptions, are required to: (1) Install operable smoke alarms and brace water heaters and provide a Buyer with a statement of compliance. Existing operable smoke alarms, that met compliance standards when installed, do no have to be removed even if not up to current legal requirements. Smoke alarms that are added or that replace older versions must comply with current law; and (2) install carbon monoxide detection devices. Some city and county governments may impose additional requirements, including, but not limited to, installing low-flow toilets and showerheads, gas shut-off valves, tempered glass, and barriers around swimming pools and spas. You should consult with the appropriate governmental agencies, inspectors, and other professionals to determine which requirements apply to your Property, the extent to which your Property complies with such requirements, and the costs, if any, of compliance. E. EPA's LEAD-BASED PAINT RENOVATION, REPAIR AND PAINTING RULE: The new rule requires that contractors and maintenance professionals working in pre-1978 housing, child care facilities, and schools with lead-based paint be certified; that their employees be trained; and that they follow protective work practice standards. The rule applies to renovation, repair, or painting activities affecting more than six square feet of lead-based paint in a room or more than 20 square feet of lead-based paint on the exterior. Enforcement of the rule begins October 1, 2010. See the EPA website at www.epa.gov/lead for more information. F. Legal, Tax and Other Implications: Selling your Property may have legal, tax, insurance, title or other implications. You should consult an appropriate professional for advice on these matters. 4. MARKETING CONSIDERATIONS: A. Pre-Sale Inspections and Considerations: You should consider doing what you can to prepare your Property for sale, such as correcting any defects or other problems, making cosmetic improvements, and staging. Many people are not aware of defects in or problems with their own Property. One way to make yourself aware is to obtain professional inspections prior to sale. Pre-sale inspections may include a general property inspection; an inspection for wood destroying pest and organisms (Structural Pest Control Report) and an inspection of the septic or well systems, if any, among others. By doing this, you then have an opportunity to make repairs before your Property is sold, which may enhance its marketability. Keep in mind, however, that any problems revealed by such inspection reports or repairs that have been made, whether or not disclosed in a report, should be disclosed to the buyer (see “Disclosures” in paragraph 2 above). This is true even if the buyer gets his/her own inspections covering the same area. Obtaining inspection reports may also assist you during contract negotiations with the buyer. For example, if a Structural Pest Control Report has both a primary and secondary recommendation for clearance, you may want to specify in the purchase agreement those recommendations, if any, for which you are going to pay. B. Post-Sale Protections: It is often helpful to provide the buyer with, among other things, a home protection/warranty plan for the Property. These plans will generally cover problems, not deemed to be pre-existing, that occur after your sale is completed. In the event something does go wrong after the sale, and it is covered by the plan, the buyer may be able to resolve the concern by contacting the home protection company. C. Safety Precautions: Advertising and marketing your Property for sale, including, but not limited to, holding open houses, placing a keysafe/lockbox, erecting FOR SALE signs, and disseminating photographs, video tapes, and virtual tours of the premises, may jeopardize your personal safety and that of your Property. You are strongly encouraged to maintain insurance, and to take any and all possible precautions and safeguards to protect yourself, other occupants, visitors, your Property, and your belongings, including cash, jewelry, drugs, firearms and other valuables located on the Property, against injury, theft, loss, vandalism, damage, and other harm. D. Expenses: You are advised that you, not the Broker, are responsible for the fees and costs, if any, to comply with your duties and obligations to the buyer of your Property. 5. OTHER ITEMS: Seller has read and understands this Advisory. By signing below, Seller acknowledges receipt of a copy of this document. Seller Print Name Donald Smith

Date

Seller Print Name Suzanne Smith

Date

Real Estate Broker (Listing Firm) Dilbeck Real Estate By By Address Telephone Fax

DRE Lic.#: 01345642 Date Date State Zip

DRE Lic.# DRE Lic.# City E-mail

© 1991-2015, California Association of REALTORS®, Inc. Copyright claimed in Form SA, exclusive of language required by California Civil Code §1710.2. THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR ACCURACY OF ANY PROVISION IN ANY SPECIFIC TRANSACTION. A REAL ESTATE BROKER IS THE PERSON QUALIFIED TO ADVISE ON REAL ESTATE TRANSACTIONS. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. Published and Distributed by: REAL ESTATE BUSINESS SERVICES, INC. a subsidiary of the California Association of REALTORS® 525 South Virgil Avenue, Los Angeles, California 90020

SA REVISED 12/15 (PAGE 2 OF 2) SELLER'S ADVISORY (SA PAGE 2 OF 2) Produced with zipForm® by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026

www.zipLogix.com

ETS 2019


ADDITIONAL SIGNATURE ADDENDUM (C.A.R. Form ASA, 4/06)

This form is not an assignment. It should not be used to add new parties after a contract has been formed. The following are additional signatories to the Other

Residential

Purchase

Agreement,

X Residential

Listing

, dated 1020 Magnolia, Pasadena, CA 91105

property known as between

(

Buyer

Agreement, , for the (“Property”),

Seller

Landlord

Tenant

Other)

and ( Buyer Seller Landlord Tenant Broker Other). By signing below, the undersigned (i) acknowledges receipt of the document identified above; and, except as specified below (ii) agrees to the terms, conditions, representations and disclosures in the document. Buyer Seller (Print Name) (If applicable) By

Landlord

Tenant

Other Title

(Signature) Date (Only initial the following if the document identified above contains an arbitration or liquidated damages provision which has been initialed by one or more parties.) I(

) agree (

) do not agree to have disputes decided in accordance with the arbitration provision.

I(

) agree (

) do not agree to the liquidated damages provision.

Buyer Seller (Print Name) (If applicable) By

Landlord

Tenant

Other Title

(Signature) Date (Only initial the following if the document identified above contains an arbitration or liquidated damages provision which has been initialed by one or more parties.) I( I(

) agree ( ) agree (

Buyer Seller (Print Name) (If applicable) By

) do not agree to have disputes decided in accordance with the arbitration provision. ) do not agree to the liquidated damages provision. Landlord

Tenant

Other Title

(Signature) Date (Only initial the following if the document identified above contains an arbitration or liquidated damages provision which has been initialed by one or more parties.) I( I(

) agree ( ) agree (

) do not agree to have disputes decided in accordance with the arbitration provision. ) do not agree to the liquidated damages provision.

© 2006, California Association of REALTORS®, Inc. United States copyright law (Title 17 U.S. Code) forbids the unauthorized distribution, display and reproduction of this form, or any portion thereof, by photocopy machine or any other means, including facsimile or computerized formats. THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REALTORS®. NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR ACCURACY OF ANY PROVISION IN ANY SPECIFIC TRANSACTION. A REAL ESTATE BROKER IS THE PERSON QUALIFIED TO ADVISE ON REAL ESTATE TRANSACTIONS. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. This form is made available to real estate professionals through an agreement with or purchase from the California Association of REALTORS®. It is not intended to identify the user as a REALTOR®. REALTOR® is a registered collective membership mark which may be used only by members of the NATIONAL ASSOCIATION OF REALTORS® who subscribe to its Code of Ethics. Published and Distributed by: REAL ESTATE BUSINESS SERVICES, INC. a subsidiary of the California Association of REALTORS® 525 South Virgil Avenue, Los Angeles, California 90020

ASA 4/06 (PAGE 1 OF 1)

ADDITIONAL SIGNATURE ADDENDUM (ASA PAGE 1 OF 1) Glendora Office, 115 E. Foothill Boulevard Suite 102 Glendora CA 91741 Phone: 8182984880 Laurie Biernacki Produced with zipForm® by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026 www.zipLogix.com

Fax: 626-963-0992

ETS 2019


SELLER INSTRUCTION TO EXCLUDE LISTING FROM THE MULTIPLE LISTING SERVICE (C.A.R. Form SELM, 7/13)

This is an addendum (“Addendum”) to the X Listing Agreement Other ("Agreement") dated on property known as 1020 Magnolia, Pasadena, CA 91105 ("Property"), in which is referred to as Seller Donald Smith, Suzanne Smith and is referred to as Broker. Dilbeck Real Estate 1.

2.

3. 4.

5.

6. 7.

MULTIPLE LISTING SERVICE: Broker is a participant/subscriber to the Multiple Listing Service (MLS). The MLS is a database of properties for sale that is available and disseminated to and accessible by all other real estate agents who are participants or subscribers to the MLS or a reciprocal MLS. Property information submitted to the MLS describes the price, terms and conditions under which the Seller's Property is offered for sale. MANDATORY SUBMISSION TO MLS: The MLS generally requires brokers participating in the service to submit all exclusive right to sell and exclusive agency listings for residential real property or vacant lots to the MLS within 2 (or ) Days of obtaining all necessary signatures of the seller(s) on the listing agreement unless Broker submits to the MLS an instruction signed by Seller (such as this form or a local equivalent form) excluding the listing from the MLS. EXPOSURE TO BUYERS THROUGH MLS: Listing property with an MLS exposes a seller's property to all real estate agents and brokers who are participants or subscribers to the MLS, or a reciprocal MLS, and potential buyer clients of those agents and brokers. The MLS may further transmit the MLS database to Internet sites that post property listings online. CLOSED/PRIVATE LISTING CLUBS OR GROUPS: The MLS provides broad exposure for a listed property. Closed or private listing clubs or groups are not the same as the MLS: They are accessible to a much more limited number of licensees and provide less exposure for listed property. Whether listing property through a closed, private network - and excluding it from the MLS - is advantageous or disadvantageous to a seller, and why, should be discussed with the agent taking the seller's listing. IMPACT OF EXCLUSION OF PROPERTY FROM MLS: If Property is excluded from the MLS, Seller understands and acknowledges that: (a) real estate agents and brokers from other real estate offices who have access to that MLS , and their buyer clients, may not be aware that Seller's Property is offered for sale; (b) information about Seller's Property will not be transmitted to various real estate Internet sites used by the public to search for property listings; and (c) real estate agents, brokers and members of the public may be unaware of the terms and conditions under which Seller is marketing the Property. IMPACT/REDUCTION OF EXPOSURE: Any reduction in exposure of the Property may lower the number of offers made and negatively impact the sales price. SELLER OPT-OUT: Seller certifies that Seller understands the implications of not submitting Property to the MLS and instructs Broker as follows (Check one): A. Do not submit Property to the MLS for a period of calendar days from the commencement of the listing. B. Do not submit Property to the MLS until (date). C. Do not submit Property to the MLS during the entire listing period provided for in the Agreement.

By signing below, Seller acknowledges that Seller has read, understands, accepts and has received a copy of this Addendum. Seller Address Telephone

Donald Smith Date State Zip

City Fax

Seller Address Telephone

E-mail seller1@gmail.com Suzanne Smith Date State Zip

City Fax

Real Estate Broker (Firm) By (Broker or Office Manager) Address Telephone

E-mail seller2@gmail.com Dilbeck Real Estate DRE Lic. # City

Fax

DRE Lic. # 01345642 Date State Zip

E-mail

© 2013, California Association of REALTORS®, Inc. United States copyright law (Title 17 U.S. Code) forbids the unauthorized distribution, display and reproduction of this form, or any portion thereof, by photocopy machine or any other means, including facsimile or computerized formats. THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR ACCURACY OF ANY PROVISION IN ANY SPECIFIC TRANSACTION. A REAL ESTATE BROKER IS THE PERSON QUALIFIED TO ADVISE ON REAL ESTATE TRANSACTIONS. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. Published and Distributed by: REAL ESTATE BUSINESS SERVICES, INC. a subsidiary of the California Association of REALTORS® 525 South Virgil Avenue, Los Angeles, California 90020

SELM 7/13 (PAGE 1 OF 1)

SELLER INSTRUCTION TO EXCLUDE LISTING FROM MLS (SELM PAGE 1 OF 1)

Glendora Office, 115 E. Foothill Boulevard Suite 102 Glendora CA 91741 Phone: 8182984880 Laurie Biernacki Produced with zipForm® by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026 www.zipLogix.com

Fax: 626-963-0992

ETS 2019


SELLER INSTRUCTION TO EXCLUDE LISTING FROM INTERNET (C.A.R. Form SELI, 7/13)

This is an addendum (“Addendum”) to the X Listing Agreement Other ("Agreement") dated on property known as 1020 Magnolia, Pasadena, CA 91105 ("Property"), in which is referred to as Seller Donald Smith, Suzanne Smith and is referred to as Broker. Dilbeck Real Estate 1.

2.

3.

MULTIPLE LISTING SERVICE: Broker is a participant/subscriber to the Multiple Listing Service (MLS). The MLS is a database of properties for sale that is available and disseminated to and accessible by all other real estate agents who are participants or subscribers to the MLS or a reciprocal MLS. Property information submitted to the MLS describes the price, terms and conditions under which the Seller's Property is offered for sale. The MLS may further transmit the MLS database to Internet sites that post property listings online, including national compilations of properties for sale. MANDATORY SUBMISSION TO MLS: The MLS generally requires brokers participating in the service to submit all exclusive right to sell and exclusive agency listings for residential real property or vacant lots to the MLS within 2 (or ) Days of obtaining all necessary signatures of the seller(s) on the listing agreement. However, in accordance with MLS rules, Broker can elect to exclude certain listing information from appearing on certain Internet sites even if the listing is submitted to the MLS, if within that same period Broker submits to the MLS such an instruction signed by Seller (such as this form or a local equivalent form). SELLER OPT-OUT OF INTERNET DISPLAY: Seller understands and acknowledges that if either A or B is checked, consumers who search for listings on Internet sites may not see information about the Property or its address in response to their search. A. Exclusion of Property from Internet: Seller requests that Broker advise the MLS that Seller does not want the Property to be displayed on the Internet.

OR

4.

B. Exclusion of Property Address from Internet: Seller requests that Broker advise the MLS that Seller does not want the address of the Property to be displayed on the Internet. Seller understands and acknowledges that (i) if this option is checked, consumers who search for listings on Internet sites may not see the Property's address in response to their search; and (ii) all requests are subject to MLS rules. SELLER OPT-OUT OF FEATURES ON MLS PARTICIPANT AND SUBSCRIBER WEBSITES OR ELECTRONIC DISPLAYS: Seller understands and acknowledges that if A or B or both is/are checked (i) this opt-out applies only to the Websites or Electronic Displays of MLS participants and subscribers who are real estate broker and agent members of an MLS; (ii) other Internet sites may or may not have the features set forth herein; and (iii) neither Broker nor the MLS may have the ability to control or block such features on other Internet sites. A. Exclusion of Comment or Property Review Feature from MLS Participant or Subscriber Websites or Electronic Displays: Seller requests that Broker advise the MLS that Seller does not want visitors to MLS participant or subscriber Websites or Electronic Displays that display the Property listing to have (i) the ability to write comments or reviews about Seller's Property on those sites; or (ii) the ability to link to another site containing such comments or reviews. B. Exclusion of Automated Estimate of Property Value Feature from MLS Participant or Subscriber Websites or Electronic Displays: Seller requests that Broker advise the MLS that Seller does not want MLS participant or subscriber Websites or Electronic Displays that display the Property listing (i) to create an automated estimate of the market value of the Property; or (ii) the ability to link to another site containing such automated estimate of the market value of the Property.

By signing below, Seller acknowledges that Seller has read, understands, accepts and has received a copy of this Addendum. Seller Address Telephone Seller Address Telephone Real Estate Broker (Firm) By (Broker or Office Manager) Address Telephone

Donald Smith Date State Zip

City Fax

E-mail seller1@gmail.com Suzanne Smith Date State Zip

City Fax

E-mail seller2@gmail.com Dilbeck Real Estate DRE Lic. # City

Fax

DRE Lic. # 01345642 Date State Zip

E-mail

© 2013, California Association of REALTORS®, Inc. United States copyright law (Title 17 U.S. Code) forbids the unauthorized distribution, display and reproduction of this form, or any portion thereof, by photocopy machine or any other means, including facsimile or computerized formats. THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR ACCURACY OF ANY PROVISION IN ANY SPECIFIC TRANSACTION. A REAL ESTATE BROKER IS THE PERSON QUALIFIED TO ADVISE ON REAL ESTATE TRANSACTIONS. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. Published and Distributed by: REAL ESTATE BUSINESS SERVICES, INC. a subsidiary of the California Association of REALTORS® 525 South Virgil Avenue, Los Angeles, California 90020

SELI 7/13 (PAGE 1 OF 1) SELLER INSTRUCTION TO EXCLUDE LISTING INFORMATION FROM INTERNET (SELI PAGE 1 OF 1) Glendora Office, 115 E. Foothill Boulevard Suite 102 Glendora CA 91741 Phone: 8182984880 Laurie Biernacki Produced with zipForm® by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026 www.zipLogix.com

Fax: 626-963-0992

ETS 2019


MODIFICATION OF TERMS / ADDENDUM TO AUTHORIZATION AND RIGHT TO SELL, ACQUIRE OR RENT, OR OTHER AGREEMENT BETWEEN PRINCIPAL AND BROKER (C.A.R. Form MT, Revised 4/13)

The X Listing Agreement

Buyer Representation Agreement, (or, if checked,) Other , between Dilbeck Real Estate and Donald Smith, Suzanne Smith property, manufactured home or business described as 1020 Magnolia, Pasadena, CA 91105

dated ("Broker") ("Principal"), regarding the real

is modified as follows: PRICE: The listing price, price range, lease or rental amount shall be changed to: Dollars ($

)

EXPIRATION DATE: The expiration date is changed to:

.

OTHER:

All other terms of the Listing Agreement, Buyer Representation Agreement, or other agreement as applicable, remain in full force and effect, except as modified herein. I acknowledge that I have read, understand and have received a copy of this Modification of Terms. Date

at

Principal

Principal

Broker Dilbeck Real Estate (Firm) By (Agent)

DRE Lic # 01345642 DRE Lic #

, California

Date ____________ Date

© 2013, California Association of REALTORS®, Inc. United States copyright law (Title 17 U.S. Code) forbids the unauthorized distribution, display and reproduction of this form, or any portion thereof, by photocopy machine or any other means, including facsimile or computerized formats. THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR ACCURACY OF ANY PROVISION IN ANY SPECIFIC TRANSACTION. A REAL ESTATE BROKER IS THE PERSON QUALIFIED TO ADVISE ON REAL ESTATE TRANSACTIONS. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. This form is made available to real estate professionals through an agreement with or purchase from the California Association of REALTORS®. It is not intended to identify the user as a REALTOR®. REALTOR® is a registered collective membership mark which may be used only by members of the NATIONAL ASSOCIATION OF REALTORS® who subscribe to its Code of Ethics.

Published and Distributed by: REAL ESTATE BUSINESS SERVICES, INC. a subsidiary of the California Association of REALTORS® 525 South Virgil Avenue, Los Angeles, California 90020 MT REVISED 4/13 (PAGE 1 OF 1) MODIFICATION / ADDENDUM AUTHORIZATION AND RIGHT TO SELL, ACQUIRE OR RENT (MT PAGE 1 OF 1) Glendora Office, 115 E. Foothill Boulevard Suite 102 Glendora CA 91741 Phone: 8182984880 Laurie Biernacki Produced with zipForm® by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026 www.zipLogix.com

Fax: 626-963-0992

ETS 2019


CANCELLATION OF LISTING (C.A.R. Form COL, Revised 6/18)

(“Broker”) has entered into a Dilbeck Real Estate written Residential Listing Agreement (or, if checked, Lease Listing, Other ) dated (“Listing”), with (“Principal”), regarding the real property or manufactured home described as: 1020 Magnolia, Pasadena, CA 91105 (“Property”). Broker and Principal agree to cancel the Listing and terminate their agency relationship, duties and responsibilities with and to each other, subject to the terms and conditions specified below. 1. (Check A or B or Both) Principal agrees to pay Broker the amount of compensation specified in the Listing: (A) If, prior to the end of the Listing Period specified in the Listing or any extension, Principal enters into a contract to sell, convey, lease or otherwise transfer the Property; (B) If, within Calendar Days after (i) this Cancellation Of Listing, or (ii) the Listing Period specified in the Listing, Principal enters into a contract to sell, convey, lease or otherwise transfer the Property to any person named below, or that person's related entity, who, after the commencement of the Listing and prior to this cancellation, (i) physically entered and was shown the Property by Broker or a cooperating broker, or (ii) submitted to Seller a signed, written offer to acquire, lease, exchange or obtain an option on the Property:

2.

3. 4. 5.

(C) In the event of a transaction specified in A or B above, Broker has no obligation to represent Principal in such transaction. (D) Compensation is payable on close of escrow or, if completion of the transaction is prevented by default of Seller, on Seller's default. (If checked) Principal agrees to pay Broker % of the compensation specified in the Listing: (A) If: (i) prior to the end of the Listing Period specified in the Listing or any extension, Principal enters into a listing agreement for the sale or lease of the Property with another real estate broker; and (ii) Principal enters into a contract to sell, convey, lease or otherwise transfer the Property during the Listing Period specified in the Listing or any extension. (B) Principal agrees to notify the other real estate broker of the compensation obligation of this paragraph and to pay Broker such compensation upon close of escrow. (C) Compensation is payable on close of escrow or, if completion of the transaction is prevented by default of Seller, on Seller's default. (If checked) Principal agrees to pay Broker $ , for out-of-pocket expenses, costs incurred and services rendered in marketing the Property prior to cancellation of the Listing. (If checked) Principal owes no compensation to Broker. (If checked) Other .

Other than as provided herein, Broker and Principal mutually release each other from all obligations under the Listing and from all claims, actions and demands that each may have against the other by reason of the Listing. However, Broker and Principal agree that the dispute resolution and attorney fees provisions of the Listing Agreement shall control any dispute arising out of this cancellation of Listing. I acknowledge that I have read and understand this Cancellation of Listing and have received a copy. Principal

Date

Real Estate Broker (Firm) Dilbeck Real Estate By (Broker/Office Manager)

DRE Lic.# 01345642 DRE Lic#:

Date

© 2005-2018, California Association of REALTORS®, Inc. United States copyright law (Title 17 U.S. Code) forbids the unauthorized distribution, display and reproduction of this form, or any portion thereof, by photocopy machine or any other means, including facsimile or computerized formats. THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REALTORS®. NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR ACCURACY OF ANY PROVISION IN ANY SPECIFIC TRANSACTION. A REAL ESTATE BROKER IS THE PERSON QUALIFIED TO ADVISE ON REAL ESTATE TRANSACTIONS. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. This form is made available to real estate professionals through an agreement with or purchase from the California Association of REALTORS®. It is not intended to identify the user as a REALTOR®. REALTOR® is a registered collective membership mark which may be used only by members of the NATIONAL ASSOCIATION OF REALTORS® who subscribe to its Code of Ethics. Published and Distributed by: REAL ESTATE BUSINESS SERVICES, INC. a subsidiary of the California Association of REALTORS® 525 South Virgil Avenue, Los Angeles, California 90020

COL REVISED 6/18 (PAGE 1 OF 1)

CANCELLATION OF LISTING (COL PAGE 1 OF 1) Glendora Office, 115 E. Foothill Boulevard Suite 102 Glendora CA 91741 Phone: 8182984880 Laurie Biernacki Produced with zipForm® by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026 www.zipLogix.com

Fax: 626-963-0992

ETS 2019


AFFILIATED BUSINESS NOTICE To: From: Property:

Consumers Dilbeck Real Estate 1020 Magnolia, Pasadena, CA 91105

This is to give you notice that Dilbeck Real Estate has a business relationship with InterValley Escrow (“IVE”), Orange Coast Title Company of Los Angeles (“OCT”), and Partners United Financial, LLC (“Partners United”). Dilbeck Real Estate and/or certain owners, employees and/or agents of Dilbeck Real Estate have a direct or indirect ownership interest in IVE, OCT and/or Partners United. Because of these relationships, this referral may provide a financial benefit to Dilbeck Real Estate, its employees and/or agents. Set forth below is the estimated charge or range of charges by IVE for the following settlement services: Basic Escrow Fee (per side): $2.00 per thousand dollars of purchase price + $300.00 base. Min. fee is $850.00. Seller All Inclusive Processing Fee: $275.00 to $350.00 Buyer All Inclusive Processing Fee: $375.00 to $450.00 Set forth below is the estimated charge or range of charges by OCT for the following settlement services: Title Premium: Endorsements: Sub-Escrow Fee: Miscellaneous Fees: Recording Fee:

Varies based on size of transaction according to underwriter rates filed with the applicable state Department of Insurance. 10% to 80% of basic title rate, based on size and type of transaction. $125.00 $10.00 to $200.00 Varies based upon charges imposed by Government Code, Revenue & Taxation Code, county codes and city ordinances. Fee information can be obtained on-line from the Registrar-Recorder in each county.

Set forth below is the estimated charge or range of charges* by Partners United for the following settlement services: Loan Discount Points: Loan Origination Charges: Processing Fee:

0% to 4% of loan amount, depending on rate chosen $995 to $1,495; or 0.5% to 2% of the loan amount in some cases $0 to $495

* The ranges of charges set forth above for Partners United are for permanent First Trust Deed loans for qualified borrowers. Second Trust Deed, sub-prime, construction loans, and other non-traditional loans may exceed the above range, and written disclosures of estimated fees will be provided. Fees may vary depending upon individual state restrictions.

You are NOT required to use IVE, OCT or Partners United as a condition for the purchase, sale or refinance of the subject property. THERE ARE FREQUENTLY OTHER SETTLEMENT SERVICE PROVIDERS AVAILABLE WITH SIMILAR SERVICES. YOU ARE FREE TO SHOP AROUND TO DETERMINE THAT YOU ARE RECEIVING THE BEST SERVICES AND THE BEST RATE FOR THESE SERVICES. ACKNOWLEDGMENT: I/we have read this disclosure form, and understand that Dilbeck Real Estate is referring me/us to purchase the above-described settlement services from IVE, OCT or Partners United, and may receive a financial or other benefit as the result of this referral. Buyer

Date

Seller Donald Smith

Date

Buyer

Date

Seller Suzanne Smith

Date Rev. 12/28/2018

Glendora Office, 115 E. Foothill Boulevard Suite 102 Glendora CA 91741 Phone: 8182984880 Laurie Biernacki Produced with zipForm® by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026 www.zipLogix.com

Fax: 626-963-0992

ETS 2019


Pa O e Lea e Li i g


REQUIRED CONTRACTS AND FORMS CHECKLIST - RESIDENTIAL LEASE PROPERTY ADDRESS:

CITY:

AGENT NAME:

YEAR BUILT (MANDATORY): OTHER AGENT NAME:

LEASE START DATE:

LANDLORD:

TENANT: OUR LISTING

OUR TENANT

BOTH

DPN LISTING #:

REQUIRED ITEM

Signatures

DPN SALE #:

COMMENTS

Complete

Listing Report Form (Fully Completed) A Lease Report Form (Fully Completed) D Cooperating Broker Compensation Agreement (CBC)

L/A T/A

M Agent Log/Notes/Correspondence I MLS Printouts (listing and leased) N Property Brochures / Flyers (if used) Property Profile Ownership Page (Docs & Deeds) Copy of checks consistent w/trust log? (if handled checks) L Lease Listing Agreement (LL) I Agency Disclosure (AD) (landlord) S T Keysafe Agreement (KLA ) (if tenant occupied)

LL

L/A

LL

L/A

LL

Application to Rent/Credit Authorization (LRA)

T T

Residential Lease or Month-to-Month (LR) Counter Offers (CO) (if applicable) #:__________

LL T L/A T/A

Agency Confirmation (Pg 5 LR or Form AC)

LL T L/A T/A

L Lease/Rental Mold and Ventilation Addendum (LRM) E Lease Agreement Addendum (ADM) (if applicable) A Dilbeck Addendum to Lease (re: no foreclosure) (ADLRA) S Water Submeter Addendum (WSMA) Multi-Unit Property* E Other Broker Addenda

LL T LL T LL T LL T LL T

*Reqr'd if submeter and if T will pay for water

LL T

Agency Disclosure (AD) (Dilbeck Tenant) 1+yr

T

Agency Disclosure (AD) (Other Broker's Landlord)1+yr

LL

Dilbeck Instructions for Lease Checks form (ILC)

LL T

T/A T/A

Lease correctly reflect checks written? D Exempt Seller Disclosure (ESD) * I Lead-Based Paint Disclosure (FLD)(construction pre-1978)

LL T

S Bed Bug Disclosure (BBD)

LL T

C Water Heater & Smoke Detector Statement of Compliance (WHSD)

LL T

L Tenant Flood Hazard Disclosure (TFHD)

LL T

O Earthquake Safety & Environ Hazards Book Receipt (LL and tenant)

LL T

S Move In/Move Out Inspection (MIMO) (if required in lease)

LL T

E City Occupancy Report Completion (Pasadena, Monterey Park, Azusa, El Monte)

*Reqr'd if death on property within past 3 years

LL T L/A T/A

OR Waiver

Pasadena Nonsmoking Disclosure (if applicable) (PASNSP)

T

**If lease with option to purchase, ground lease of land improved with 1-4 residential units, or real property installment sale contract, then need TDS, NHD, etc. (consult with manager)

Notes: KEY - LL = Landlord T = Tenant L/A = Listing Agent T/A = Tenant's Agent Reviewed By:

Date: Effective 07/12/18


Check i f

W i i g a Lea e Li i g

Re e e i g he La d

S

d

ce B ke Edi i

Zi F

Di beckH

ec

C e Shee Li i g Ag ee e o Age c Di c e Li i g Age Se e AD o Lea e Li i g Ag ee e LL Re e e a i e Ca aci if a icab e o Ke afe Ag ee e if e a cc ied KLA o Di beck Adde d Lea e Ag ee e gage de i Di c e o Wa e Hea e S ke De ec C ia ce WHSD o Ca b M ide De ec N ice CMD o Lead Ba ed Pai Di c e c ci e FLD o E e Se e Di c e ESD o Lea e Re a M d a d Ve i a i Adde d LRM o Di beck M d Adde d o Bed B g Di c e BBD o Ea h ake Safe E i e a B k e a d Recei o F d Ha a d Di c e M e I M e O I ec i MIMO I c i f Lea e Check

S

ce Di beck H

e

Di beckH

Li i g Re F i Lea e Fi e Check i T L g if check a e ha d ed

S

Office Ad i i

FORMS

a

aki g he ea e i i g

ce O a ge C a Ti e P

I

ec

e c

e

P fi e f

e

fi e i h

de

i gd c

e

e

i ed f

a ea e

a N e O ce e ake he i i g MUST e he i i g ffice ad i i a A ica i C edi be ke Fi e i h Office Ad i i a A check f he e a be Ca hie Check M e O de C edi Check Fee be i he f f a Pe a check M e O de ca h AT L g f a check ha d ed be ed i he Office Ad i i a The Landlord i referred o a Seller and Tenan referred o a B er on mo CAR Form


ALWAYS KEEP A DETAILED COMMUNICATIONAS LOG OF ALL DISCUSSIONS BETWEEN PRINCIPLES AND AGENT


MR TENANT

X

MRTENANT@GMAIL.COM

MRS TENANT

X

MRSTENANT@GMAIL.COM

MR LANDLORD 555 Main Street Studio City CA 91604

X

MR LANDLORD@GMAIL.COM

8189749660 Pamela Topa Upchurch

8187555511

ETS Lease


SR1234567 555 Main Street Studio City Los Angeles CA 91604

February 1, 2019

March 31, 2019

March 01, 2019

ETS Lease


Grove Real Estate

(666)666-6111 Mary Smith (223)333-3331

02222222

07654444

(444)444-4444 marysmith@gmail.com Dilbeck Real Estate 12164 Ventura Blvd Studio City CA 91604-2514 (818)111-1111 Lester the Lister (222)222-2222 (818)755-5511 (818)333-3333 lesterthelister@gmail.com

01345642

0111111

ETS Lease


ETS Lease


X MR LANDLORD

X Dilbeck Real Estate

01345642 0111111

Lester the Lister

8189749660 Pamela Topa Upchurch

8187555511

ETS Lease


ETS Lease


January 25, 2019 MR LANDLORD Dilbeck Real Estate February 1, 2019

March 31, 2019 Studio City 555 Main Street

Los Angeles Five Thousand

5,000.00

month

$10,000.00 negotiable

X

X

6.000 6% of the total rent for the renewal period

180

Seller agrees to pay up to $1500 in marketing expenses if the property leases rather than sells. (optional when the property is also offered for sale)

6.000

X

3.000

X

8189749660 Pamela Topa Upchurch

8187555511

ETS Lease


555 Main Street, Studio City, CA 91604

January 25, 2019

X

X X

X

ETS Lease


555 Main Street, Studio City, CA 91604

January 25, 2019

X

ETS Lease


555 Main Street, Studio City, CA 91604

X 555 Main Street

Dilbeck Real Estate 12164 Ventura Blvd

January 25, 2019

MR LANDLORD Studio City CA 91604 MR LANDLORD@GMAIL.COM

Studio City lesterthelister@gmail.com

CA

01345642 91604-2514

01111111

Lester the LIster

ETS Lease


X January 25, 2019 555 Main Street, Studio City, CA 91604 Dilbeck Real Estate MR LANDLORD

X

Dilbeck Real Estate

MR TENANT MRS TENANT

8189749660 Pamela Topa Upchurch

8187555511

ETS Lease


555 Main Street, Studio City, CA 91604 MR LANDLORD Dilbeck Real Estate

MR LANDLORD Studio City CA MR LANDLORD@GMAIL.COM

555 Main Street

Dilbeck Real Estate 12164 Ventura Blvd (222)222-2222

01345642

Studio City

CA

91604-2514

(818)755-5511

8189749660 Pamela Topa Upchurch

91604

8187555511

ETS Lease


LISTING REPORT FORM

Studio City OFFICE: ________________________________

PLEASE SUBMIT TO ADMINISTRATION WITHIN ONE BUSINESS DAY OF SIGNED LISTING ATTACH COPY OF MLS PRINTOUT & PROPERTY PROFILE OWNERSHIP PAGE

Lester the Lister

3/31/20

1/1/20

SR1122334

Short Sale

REO

555 Main Street, Studio City, CA 91607 No.

Street

Mr.

First

Salutation

Last

No.

Street

First

Main Street

No.

Studio City

Zip

Landlord, James Last

555

City

Street

91607

CA State

Zip

City

State

Zip

6

5,000 Who will pay flat-fee portion of commission?

Did Agent sign up for the $49 Real Estate Risk Management program?

IS THERE A REFERRAL FEE?

Yes

No

If Yes, who will pay?

IF YES, THE FOLLOWING MUST BE COMPLETED:

Dilbeck Relocation & Corporate Services Dilbeck IDX/Internet Referral (35%) Other Referral

No.

Source of Client:

Street

City

State

Zip


555 Main Street, Studio City, CA 91604

MR LANDLORD

MR TENANT

MRS TENANT

8189749660 Pamela Topa Upchurch

8187555511

ETS Lease


MR LANDLORD Dilbeck Real Estate 555 Main Street, Studio City, CA 91604

X

MR LANDLORD

8189749660 Pamela Topa Upchurch

8187555511

ETS Lease


X

555 Main Street

Los Angeles

X

X X

Studio City 91604

MR LANDLORD

MR TENANT MRS TENANT

8189749660 Pamela Topa Upchurch

8187555511

ETS Lease


555 Main Street, Studio City, CA 91604

X

MR LANDLORD

X

MR TENANT

X

MRS TENANT

8189749660 Pamela Topa Upchurch

8187555511

ETS Lease


X 555 Main Street, Studio City, CA 91604 MR TENANT, MRS TENANT MR LANDLORD

X

MR LANDLORD

X

8189749660 Pamela Topa Upchurch

X

8187555511

ETS Lease


555 Main Street, Studio City, CA 91604

Dilbeck Real Estate Lester the Lister

X

X MR TENANT

MRS TENANT

Grove Real Estate Mary Smith

ETS Lease


555 Main Street, Studio City, CA 91604

X

MR LANDLORD

X

MR TENANT

X

MRS TENANT

X

MR LANDLORD

X

MR TENANT

X

MRS TENANT

8189749660 Pamela Topa Upchurch

8187555511

ETS Lease


555 Main Street, Studio City, CA 91604

MR TENANT

MR LANDLORD

MRS TENANT

8189749660 Pamela Topa Upchurch

8187555511

ETS Lease


555 Main Street, Studio City, CA 91604 MR TENANT MRS TENANT Mary Smith

Grove Real Estate

555 Main Street, Studio City, CA 91604 MR LANDLORD

Lester the Lister

Dilbeck Real Estate

8189749660 Pamela Topa Upchurch

8187555511

ETS Lease


555 Main Street, Studio City, CA 91604 MR TENANT, MRS TENANT MR LANDLORD

MR TENANT

MR LANDLORD

MRS TENANT

8189749660 Pamela Topa Upchurch

8187555511

ETS Lease


555 Main Street, Studio City, CA 91604

MR TENANT

MR LANDLORD

MRS TENANT

ETS Lease


X 555 Main Street Studio City

CA

91604

MR LANDLORD

X MR LANDLORD

8189749660 Pamela Topa Upchurch

8187555511

ETS Lease


March 1, 2019 MR LANDLORD MR TENANT, MRS TENANT 555 Main Street, Studio City, CA 91604 (Broker representing the Tenant) 3% of the total rent for the lease term

X

3% of the total rent for the lease term

3.000

Mr. Landlord

X

Grove Real Estate

02222222 07654444

Mary Smith 0111111 Lester the Lister (666)666-6111

marysmith@gmail.com

8189749660 Pamela Topa Upchurch

8187555511

ETS Lease


De e

g he Lea e C

D

. .R , NO

,

. H

, M. M . M.L S -A K -A

I 2018.

: ( L

)

( B

B

)

,

J

1, 2018

O $5,000

C

.I

(

,

31, . . $15,000

; ). : 12

$60,000

$5000 $3,600

6% R

.B

$60,000

$1,800

,

.

:D R ($3600/2). O /

. O

, 3

,

. -

$15,000 (

$5000,

$10,000). 3

L

:

gB

Te a M . La d

e B

$ 1800 e

d

$ 1,800 $11,400


555 Main Street, Studio City, CA 91604

1,800.00

Dilbeck Real Estate

1,800.00

Grove Real Estate

11,400.00

Mr. Landlord

555 Main Street, Studio City, CA 91604

MR LANDLORD@GMAIL.COM

MR LANDLORD

MR TENANT

MRS TENANT

8189749660 Pamela Topa Upchurch

8187555511

ETS Lease


Par T o Lea e


CREDIT CHECK AUTHORIZATION TODAY'S DATE:

AGENT NAME:

BRANCH OFFICE: A check in the amount of $30.00 for each person listed, made out to Dilbeck Real

must accompany

APPLICANT NAME: PRESENT ADDRESS:

SOCIAL SECURITY #:

DATE OF BIRTH:

DRIVER'S LICENSE #:

STATE ISSUED:

SIGNATURE: CO APPLICANT NAME: PRESENT ADDRESS:

SOCIAL SECURITY #:

DATE OF BIRTH:

DRIVER'S LICENSE #:

STATE ISSUED:

SIGNATURE: The information on this application is true and correct to the best of my knowledge. I hereby authorize Dilbeck Real Estate or its agents to verify the above information and obtain either a consumer or investigative credit report from Contemporary Information Corp. I understand that the $30.00 per applicant fee for verifying this rental application is not a deposit, will not be applied to any rent, or refunded even if the application to rent is declined.

Dilbeck Administrative Contact Person: Paid by Check #:


555 Main Street, Studio City, CA 91604

8189749660 Pamela Topa Upchurch

8187555511

ETS Lease


555 Main Street, Studio City, CA 91604

12164 Ventura Blvd

Dilbeck Real Estate Studio City

CA

91604-2514

ETS Lease


SAMPLE LETTER TO LISTING AGENT

Hello (Listing Agent) It was a pleasure seeing you again today. I know it is a little awkward when people come in early and are in the house before you arrive. I wanted to start out by apologizing for that. We arrived very early, and the owner saw us and invited us in. I suggested we wait for you, but he seemed eager to how us around. I hope you were okay with that. I never want to step on anyone’s toes. As you could see, Mr. and Mrs. Tenant reallylove your clients’ home. We have seen several other homes, and a few of which could suit them fine, but none that really hit home for them on every level. The charm, the wide open outdoor spaces, the beautiful pool, the separate office, the proximity to work and of course the quality and the care given to the home were all directly in line with what they had hoped to find. Of course, the privacy is a big factor for them as well. I have attached a letter from them to the owner. Mrs. Tenant is set to start at Disney as a senior Human Resources Director next month. I assure you that they are willing to do whatever needs to be done to secure this home. Below are the points they would like the seller to consider: □ This home was a little above the price they had anticipated, so they are hoping that the seller might consider $5000 (not a hard and fast number) □ They would like a one-year lease (likely two years but only able commit to 1 year right now). □ They would like to ask for a few other items – none of which is a deal breaker for them. o We would like to paint some of the rooms a more neutral color. We will paint back to original color upon request of the homeowner when lease is terminated. o We would like to remove the homes curtains, so we can put up our custom curtains that match our furniture. We can safely store curtains for homeowner at the home. o We would like to remove the carpet on the stairs. We would make sure they look beautiful. o If homeowner is willing to leave his patio and pool furniture at the home, we would GLADLY take it, enjoy it and take good care of it for him! o We also welcome the owner leaving the washer and dryer. □ It is our understanding that the homeowner will provide garden and pool maintenance for the home and the tenant will pay the remaining utilities. I have their applications and driver’s license with me. Please let me know if you would like me to run credit for them or if you would rather do it yourself. Also, please let me know whatever there is any other documentation you would like me to send over to complete the review process. I look forward to hearing back from you. Thank you again for your time and consideration. I understand you will be going on vacation, so I am perfectly willing to put the lease together if that would help. Please confirm receipt. You may reach me at 818-974-9660. Best Regards, Pamela


Checkli f

W i i g a Lea e

Re e e i g he Te a

S

ce B ke Edi i

Zi F

DilbeckH

ec

C e Shee A lica i Re C edi A h i a i LRA Re ide ial Lea e Ag ee e o Age c Di cl e Li i g Age B e AD Di cl e o Age c Di cl e he b ke la dl d AD o Dilbeck Adde d Lea e Ag ee e gage deli o Wa e Hea e S ke De ec C lia ce WHSD o Ca b M ide De ec N ice CMD o Lead Ba ed Pai Di cl e c ci e FLD o E e Selle Di cl e ESD o Lea e Re al M ld a d Ve ila i Adde d LRM o Dilbeck M ld Adde d o Bed B g Di cl e BBD o Ea h ake Safe E i e al B kle a d Recei o Fl d Ha a d Di cl e I c i f Lea e Check M e I M e O I ec i MIMO

S

ce Dilbeck H

e

DilbeckH

Lea e Re F i Lea e File Checkli T L g if check a e ha dled

S

FORMS

a

c

le i g he Lea e

ce O a ge C a Ti le P

I

Office Ad i i

ec

e c

e

P file f ll

e

file i h

de l i g d c

e

e

i ed f

all lea e

a N e O ce e ake he li i g MUST e he li i g ffice ad i i a A lica i C edi be ke File i h Office Ad i i a All check f he e a be Ca hie Check M e O de C edi Check Fee be i he f f a Pe al check M e O de ca h AT L g f all check ha dled be ed i he Office Ad i i a The Landlord i referred o a Seller and Tenan referred o a B er on mo CAR Form ALWAYS KEEP A DETAILED COMMUNICATIONAS LOG OF ALL DISCUSSIONS BETWEEN PRINCIPLES AND AGENT


MR TENANT MRS TENANT

Grove Real Estate

02222222 07654444 Mary Smith

8189749660 Pamela Topa Upchurch

8187555511

ETS Lease


ETS Lease


MR LANDLORD MR TENANT, MRS TENANT 555 Main Street, Studio City, CA 91604 Mr and Mrs Tenant and Junior

March 1, 2019

February 29, 2020

X

5:00

X

5,000.00

Mr. Landlord Mr. Landlord (555)555-5555

(add landlord mailing address) specify

specify

specify

10,000.00

X

X

X

X

8189749660 Pamela Topa Upchurch

8187555511

ETS Lease


555 Main Street, Studio City, CA 91604

03/01/2019 03/30/2019

$15,000.00

$5,000.00 $10,000.00 buyers PITI

$5,000.00 $10,000.00

see instruction for lease ck

$15,000.00

$15,000.00

see instruction for lease ck

X

see instruction for lease ck

3

X X

X X

X X

X

10

X

X

ETS Lease


555 Main Street, Studio City, CA 91604

X

X

5

X X

ie Washer, Dryer, Refrigerator

X

X

X

X

ETS Lease


555 Main Street, Studio City, CA 91604

X 3/1/2019 X X

X X

X

X

X

ETS Lease


555 Main Street, Studio City, CA 91604

X

X

X

ETS Lease


555 Main Street, Studio City, CA 91604

(fill in Landlord's mailing address)

(usually the property address)

X

X

X

X

ETS Lease


555 Main Street, Studio City, CA 91604

Dilbeck Real Estate X

Grove Real Estate X

X X X

DIlbeck Addendum

X

X

X

X

ETS Lease


555 Main Street, Studio City, CA 91604

X X MR TENANT MRTENANT@GMAIL.COM X MRS TENANT MRSTENANT@GMAIL.COM

X

MR LANDLORD 555 Main Street, Studio City, CA 91604 MR LANDLORD@GMAIL.COM

Grove Real Estate

02222222 Mary Smith

(223)333-3331

07654444

marysmith@gmail.com Dilbeck Real Estate

12164 Ventura Blvd (222)222-2222

(818)755-5511

01345642 Lester the Lister 0111111 Studio City CA lesterthelister@gmail.com

91604-2514

ETS Lease


March 1, 2019

555 Main Street, Studio City, CA 91604

MR TENANT, MRS TENANT MR LANDLORD

X

X MR TENANT

MR LANDLORD

X MRS TENANT

8189749660 Pamela Topa Upchurch

8187555511

ETS Lease


March 1, 2019 555 Main Street, Studio City, CA 91604 MR TENANT, MRS TENANT MR LANDLORD

MR TENANT

MR LANDLORD

MRS TENANT

8189749660 Pamela Topa Upchurch

8187555511

ETS Lease


X March 1, 2019 555 Main Street, Studio City, CA 91604 MR TENANT, MRS TENANT MR LANDLORD

Dilbeck Real Estate

MR LANDLORD

8189749660 Pamela Topa Upchurch

8187555511

ETS Lease


ONE X March 1, 2019

555 Main Street Studio City, CA 91604 MR TENANT, MRS TENANT MR LANDLORD

X

X MR TENANT

MR LANDLORD

X MRS TENANT

8189749660 Pamela Topa Upchurch

8187555511

ETS Lease


Studio City MR TENANT, MRS TENANT

CA

555 Main Street 91604

MR LANDLORD

X MR TENANT X MRS TENANT MR LANDLORD

8189749660 Pamela Topa Upchurch

8187555511

ETS Lease


LEASE REPORT FORM 3/1/20 Studio CIty DILBECK OFFICE: _____________________ DATE OF LEASE: ________________

4 RES.

COMM. (Check one)

PROPERTY TYPE:

PROPERTY ADDRESS: LESSEE'S NAME:

Form Must Be Typed

MLS AREA:

Source Of Lessee (check one)

555 Main Street, Studio City, CA 91604

FARM Advertising Call 4 Previous Client Sign Call Relative/Neighbor/Friend Open House Own Property Referral/Client Referral Relo Walk-in/Floor call Mailer MLS / Coop Broker Other (Must Specify)* ___________________________

Mr. Landlord

AMOUNT OF LESSEE'S CHECK: $ MONTHLY RENT: $

15,000.00

5,000.00

LENGTH OF LEASE (MOS.) TOTAL LEASE AMOUNT: $ TOTAL COMMISSION (

6

12 60,000.00

%)

TOTAL AMOUNT: $

3,600.00

DISBURSEMENT TO LISTING OFFICE: Dilbeck Real Estate ADDRESS:

12164 Ventura Boulevard, Studio City

$

ATTN: Lester the Lister AGENT'S NAME/Soc.Sec. or Tax ID #

TO LEASING OFFICE: Grove Real Estate ADDRESS:

1234 Real Estate Street, Los Angeles

TO LESSOR:

1,800.00

$ ATTN:

1,800.00

Mary Smith

AGENT'S NAME/#

Mr. Landlord

$ 11,400.00

ADDRESS: For Accounting Only Company $

SA#

Units

TOTAL DISBURSED

$

15,000.00

Attach Tape Confirming Total

Volume

LIST LIST SELL SELL TOTAL

DTP 9-00

REV-IS 3/11/03


555 Main Street, Studio City, CA 91604 March 1, 2019 MR TENANT, MRS TENANT

X X

X

X

8189749660 Pamela Topa Upchurch

X

X

8187555511

ETS Lease


555 Main Street, Studio City, CA 91604

X X

X

X

X

X

ETS Lease


555 Main Street, Studio City, CA 91604

X X

X

X

X

X

ETS Lease


555 Main Street, Studio City, CA 91604

X X

X

X

X

X

ETS Lease


555 Main Street, Studio City, CA 91604

MR TENANT MRS TENANT

X X MR LANDLORD

MR TENANT MRS TENANT

X X

MR LANDLORD

ETS Lease


A Fe

oin

o Remembe

Listing and leasing properties for rent are part and parcel of being a full service real estate professional. More detailed information is available on the California Association of Realtors website --- car.org. Go to the Legal section and then use the search feature to find out exactly what you are searching for. A few points to consider: o Remember that before you either write a lease listing or execute the actual lease document, you must use the Agency Disclosure (AD). Legally this is only required if the lease term is a year and a day or longer, but company policy is to use it on every transaction. o It is Dilbeck policy that checks to landlord and commission checks must be in the form of cashier's checks. o The maximum amount of rent to be paid for an unfurnished property is the first month's en l a ec i de o i fo a ma im m amo n e al o o mon h en o Furnished properties allow a security deposit equivalent to a maximum of three month's rent. o A security deposit may be imposed for pets and waterbeds, but the maximum overall security deposit limitation (2-3 month's limitation still applies). o It is essential that all tenants sign the Application to Rent/Credit Authorization before running a credit check. Said Application gives you legal authority to do so. The cost is $30 for each adult that you run a credit check on. For explanation, a husband and wife would be $60; single lady $30; a grandmother with 2 adult children staying with her and 2 grandchildren, aged 16 and 17, would be $90. o Our job as real estate professionals is to find someone to rent the landlord's property. It is Dilbeck policy not to engage in "property management" after the lease has been executed. o We never deposit funds for the lease or security deposit into a Broker Trust Account. Instead, you should always collect three cashier's checks from the Tenant One for the landlord and one for each of the two brokerages. o Please remember that any check you touch (other than your commission check) needs to be entered into the trust log in our office. o You have earned the right to your commission when the landlord and tenant sign off on their lease even though the lease may not start until a week or so later.


SECURITY DEPOSITS Q 11. What is the maximum amount a landlord may require a residential tenant to pay for a security deposit? A Residential property is broadly defined to include all dwellings. The amount a landlord may charge for a security deposit is highly regulated. Residential landlords are limited to a maximum security deposit equal to two month's rent for unfurnished units and three months for furnished units (Cal. Civ. Code ยง 1950.5(c)). These limits cannot be waived by the tenant. While the landlord may describe some of the security deposit as "last month's rent," "cleaning deposit" or "pet fee," the landlord may not collect or demand any additional amounts for these categories. (Cal. Civ. Code ยง 1950.5(c).) However, a landlord is permitted to increase the deposit by one-half of one month's rent when a landlord is accepting a tenant with a waterbed. In that situation, the landlord is also permitted to charge a reasonable fee for administrative costs. (Cal. Civ. Code ยง 1940.5(9).) In addition to the security deposit, a landlord may collect the first month's rent in advance. Beyond the first month's rent, requiring a greater advance rent payment is permissible only if (1) the amount pre-paid is six months or more rent and (2) the term of the lease is six months or longer. (Cal. Civ. Code ยง 1950.5(c).) Furthermore, landlords may also charge a nonrefundable application screening fee. This permissible fee was limited to $30 (in 1996) but may be increased annually commensurate with an increase in the Consumer Price Index after January 1, 1998, in 2012, the maximum screening fee could not exceed $44.51. The application screening fee may not exceed the "actual out-of-pocket costs of gathering information concerning the applicant." (Cal. Civ. Code ยง 1950.6(a).) For additional information about residential as well as commercial security deposits, see the C.A.R. legal article, Security Deposits.

PRE-MOVE-OUT INSPECTION PROCEDURE Q 15. What is the pre-move-out inspection procedure? A Tenants have the right to request an inspection of the premises before they move out. The law gives tenants an opportunity to correct any identified deficiencies in the condition of the property, and thereby minimize deductions, if any, from their security deposits.


The procedures for the pre-move-out inspection are as follows: Providing Notice of Inspection Rights. Within a reasonable time after either the landlord or tenant gives notice to terminate the tenancy, or before the end of a fixedlease term, the landlord must give the tenant written notice that the tenant may request an initial inspection and may be present at that inspection (Cal. Civ. Code ยง 1950.5(f)(1)). You may use C.A.R. standard form, Notice of Right to Inspection Prior to Termination of Tenancy (NRI). An optional form that may be delivered with the NRI form or at any time before the tenant vacates is C.A.R.'s Sample Letter, "Instructions When Tenant Vacates on Termination of Tenancy." Scheduling the Inspection. If the tenant requests an inspection, the parties must try to schedule a mutually acceptable date and time. If the tenant does not request an inspection, the landlord's duties regarding the inspection are discharged (Cal. Civ. Code ยง 1950.5(f)(1)). If the tenant requests an inspection, C.A.R. standard form, Notice of Right to Inspection Prior to Termination of Tenancy (NRI), may be used to schedule the inspection. Providing 48-Hour Notice of Inspection. For a tenant requesting an inspection, the landlord must give at least 48 hours prior written notice of the date and time of the inspection, whether the parties agreed to a mutual time, or could not schedule a mutually acceptable time (Cal. Civ. Code ยง 1950.5(f)(1)). You may use C.A.R. standard form, 48-Hour Notice of/ inspection Prior to Termination of Tenancy(FEHN). Conducting the Inspection: The landlord or landlord's agent must conduct the inspection at a reasonable time no earlier than two weeks before the end of the lease. The landlord must proceed with the inspection whether the tenant is present or not, unless the tenant withdraws the request for inspection (Cal. Civ. Code ยง 1950.5(f)(1)). Preparing the Inspection Statement: Based on the inspection, the landlord must prepare an itemized statement of repairs or cleaning that are proposed to be the basis of any deductions from the security deposit. This statement must include the statutory language in California Civil Code sections 1950.S(b) and (d) which set forth, among other things, the items that may be properly deducted from the security deposit (Cal. Civ. Code ยง 1950.5(f)(2)). (See Question 12 above.) You may use C.A.R. standard form, Pre-Move-Out Inspection Statement (PMOI). Delivering the Inspection Statement: The landlord must give the inspection statement to


the tenant if the tenant is present for the inspection or leave it inside the premises (Cal. Civ. Code ยง 1950.5(f)(2)). Providing an Opportunity to Correct: The tenant must be given an opportunity to avoid deductions from the security deposit by remedying any identified deficiencies in a manner consistent with the rental agreement (Cal. Civ. Code ยง 1950.5(f)(3)). SHOWING THE PROPERTY Purpose of Entry to Show Unit If the purpose of the entry is to show the unit to a prospective or actual purchaser, the notice may be given orally, in person or by telephone, if either the landlord or his or her agent has notified the tenant in writing within 120 days prior to the oral notice that the property is for sale and that the landlord or agent may contact the tenant orally to show the unit (Cal. Civ. Code ยง 1954(d)(2)). As with written notice, oral notice should be given at least 24 hours advance to be presumed reasonable. At the time of entering the unit, the landlord or agent must leave written evidence of the entry inside the unit (e.g., a business card) (Cal. Civ. Code ยง 1954(d)(2)). Open Houses. The law permits the landlord to hold open houses on weekends with reasonable notice. This was the ruling in the case of Dromy v. Lukavsky in 2013 which set down the guidelines for holding open houses. The case allowed that open houses could be held on either Saturday or Sunday but should be limited two a month. The tenant should be given 10 days' notice, and the tenant should have the right to propose alterative days for the open house. Please see the article "Entering Tenant-Occupied Property'' from the 2015 June/July edition of California Real Estate Magazine, http://www.onlinedigitalpubs.com/publication/?i=2


MR TENANT, MRS TENANT 555 Main Street Studio City

CA

91604

MR TENANT MRS TENANT

X X

X 555 Main Street

MR LANDLORD Studio City CA MR LANDLORD@GMAIL.COM

8189749660 Pamela Topa Upchurch

8187555511

91604

ETS Lease


555 Main Street, Studio City, CA 91604

X

X

ETS Lease


555 Main Street, Studio City, CA 91604

X

X

ETS Lease


555 Main Street, Studio City, CA 91604

X

X

ETS Lease


555 Main Street, Studio City, CA 91604

X

X

ETS Lease


555 Main Street, Studio City, CA 91604

X

X

ETS Lease


MR TENANT, MRS TENANT MR LANDLORD

555 Main Street, Studio City, CA 91604 Jane Doe and John SMith

March 01, 2019

5:00

X

buyers PITI

X

1,000.00 X

X

X

X

X

8189749660 Pamela Topa Upchurch

8187555511

X

ETS Lease


555 Main Street, Studio City, CA 91604

X

X

X

ETS Lease


555 Main Street, Studio City, CA 91604

X

X

X

X

ETS Lease


555 Main Street, Studio City, CA 91604

MR TENANT

MR LANDLORD 555 Main Street Studio City, CA 91604

Dilbeck Real Estate Grove Real Estate

X

X

X

ETS Lease


555 Main Street, Studio City, CA 91604

X X

X

MR LANDLORD

X 555 Main Street

Studio City MR LANDLORD@GMAIL.COM

CA

91604

MR TENANT MRS TENANT

X X

MRTENANT@GMAIL.COM

Grove Real Estate

02222222 Mary Smith

(223)333-3331

07654444

marysmith@gmail.com

Dilbeck Real Estate

12164 Ventura Blvd (222)222-2222

01345642

(818)755-5511

Lester the Lister 0111111 Studio City lesterthelister@gmail.com

CA

91604-2514

ETS Lease


555 Main Street, Studio City, CA 91604 MR LANDLORD MR TENANT, MRS TENANT

X

X MR LANDLORD

MR TENANT X MRS TENANT

8189749660 Pamela Topa Upchurch

8187555511

ETS Lease


555 Main Street, Studio City, CA 91604 MR LANDLORD MR TENANT, MRS TENANT

MR LANDLORD

MR TENANT MRS TENANT

8189749660 Pamela Topa Upchurch

8187555511

ETS Lease


555 Main Street, Studio City, CA 91604 MR TENANT, MRS TENANT MR LANDLORD

X

buyers piti

1,000.00 X

X X

MR TENANT

X

MR LANDLORD

MRS TENANT

8189749660 Pamela Topa Upchurch

8187555511

ETS Lease


Pa Th ee Sh Sa e P ba e T


555 Main Street, Studio City, CA 91604

X

X

X

8189749660 Pamela Topa Upchurch

8187555511

ETS Lease


555 Main Street, Studio City, CA 91604

X

X

X

ETS Lease


555 Main Street, Studio City, CA 91604

X

X

X

ETS Lease


555 Main Street, Studio City, CA 91604

Grove Real Estate

02222222 Mary Smith

(223)333-3331

07654444

marysmith@gmail.com Dilbeck Real Estate

01345642 Lester the Lister

12164 Ventura Blvd (222)222-2222

Studio City (818)755-5511

0111111 CA

91604-2514

lesterthelister@gmail.com

ETS Lease


555 Main Street, Studio City, CA 91604 MR TENANT, MRS TENANT MR LANDLORD

X

X

X

8189749660 Pamela Topa Upchurch

8187555511

ETS Lease


555 Main Street, Studio City, CA 91604

X X

MR TENANT

X

MR LANDLORD

MRS TENANT

ETS Lease


555 Main Street Studio City, CA 91604

X

X

X

8189749660 Pamela Topa Upchurch

8187555511

ETS Lease


555 Main Street, Studio City, CA 91604

X X

MR TENANT

X

MR LANDLORD

MRS TENANT

ETS Lease


555 Main Street, Studio City, CA 91604 MR LANDLORD

MR LANDLORD

Dilbeck Real Estate

01345642 0111111

Lester the Lister

8189749660 Pamela Topa Upchurch

8187555511

ETS Lease


555 Main Street Studio City, CA 91604

X

X

X

8189749660 Pamela Topa Upchurch

8187555511

ETS Lease


555 Main Street, Studio City, CA 91604

X X

MR TENANT

X

MR LANDLORD

MRS TENANT

ETS Lease


MR TENANT MRS TENANT

Grove Real Estate

02222222 07654444 Mary Smith

8189749660 Pamela Topa Upchurch

8187555511

ETS Lease


ETS Lease


MR LANDLORD MR TENANT MRS TENANT Grove Real Estate

02222222 07654444

Dilbeck Real Estate

01345642 0111111

Mary Smith Lester the Lister

8189749660 Pamela Topa Upchurch

8187555511

ETS Lease


555 Main Street, Studio City, CA 91604

X

MR TENANT

X

MRS TENANT X

MR LANDLORD

8189749660 Pamela Topa Upchurch

8187555511

ETS Lease


Studio City

MR TENANT, MRS TENANT 555 Main Street 91604

Los Angeles

X

Dilbeck Real Estate

01345642

Lester the Lister

0111111

Grove Real Estate

02222222

Mary Smith

07654444 X

X

X

X

8189749660 Pamela Topa Upchurch

8187555511

ETS Lease


555 Main Street, Studio City, CA 91604

X

X

X

ETS Lease


555 Main Street, Studio City, CA 91604

X X

X

X

X

ETS Lease


555 Main Street, Studio City, CA 91604

X

X

X

ETS Lease


555 Main Street, Studio City, CA 91604

X

X

X

ETS Lease


555 Main Street, Studio City, CA 91604

X

X

X

ETS Lease


555 Main Street, Studio City, CA 91604

X

X

X

ETS Lease


555 Main Street, Studio City, CA 91604

X

X

X

ETS Lease


555 Main Street, Studio City, CA 91604

MR TENANT

MRS TENANT

X

ETS Lease


555 Main Street, Studio City, CA 91604

MR LANDLORD

Grove Real Estate

02222222 Mary Smith

(666)666-6111 Dilbeck Real Estate

marysmith@gmail.com 01345642 Lester the Lister

12164 Ventura Blvd (818)111-1111

07654444

(818)755-5511

0111111

Studio City CA lesterthelister@gmail.com

91604-2514

X

X

X

ETS Lease


555 Main Street, Studio City, CA 91604

MR TENANT

MRS TENANT

8189749660 Pamela Topa Upchurch

8187555511

ETS Lease


555 Main Street Studio City, CA 91604

X

X

X

8189749660 Pamela Topa Upchurch

8187555511

ETS Lease


555 Main Street, Studio City, CA 91604

X X

MR TENANT

X

MR LANDLORD

MRS TENANT

ETS Lease


555 Main Street, Studio City, CA 91604

X

X

X

8189749660 Pamela Topa Upchurch

8187555511

ETS Lease


555 Main Street, Studio City, CA 91604

Dilbeck Real Estate MR LANDLORD

MR TENANT MRS TENANT MR LANDLORD

ETS Lease


8189749660 Pamela Topa Upchurch

8187555511

ETS Lease


ETS Lease


ETS Lease


E X PR ESS TO S UCCESS

8| Open Houses and Door Knocking


1/17/2019

E X P R E S S TO S U C C E SS Pam Heiberg Senior Estates Director | Mentor | Career Development Liaison Glendale Branch

OPEN HOUSES THAT PRODUCE RESULTS AND DOOR KNOCKING EXPRES S TO SUCC ES S

1


1/17/2019

Why Open Houses? Marketing system that builds on Multiple Prospecting Techniques! • Social Media • Emailing • Door Knocking • Distribution • Phone Calling • Mailing

EXPRES S TO SUCC ES S

One week before Open House Select the property YOU want to hold open, giving yourself enough time to set up properly. • Choose a familiar property and neighborhood • High Traffic • Reach out to Dilbeck Listing Agents to find an open house opportunity • Consider a great partner to assist • Get your marketing together

EXPRES S TO SUCC ES S

2


1/17/2019

Prior to the Open House Preview the Property Preview Comparable Properties • Active • Active-Under Contract (if possible) Preview Neighborhood Properties Collect Local Area Information • Chamber of Commerce, School District ,Shopping, Parks, and Transportation

EXPRES S TO SUCC ES S

Monday before the Open House • Confirm with Dilbeck Listing Agent (if it’s not your listing) • Prepare Advertising • Send to Ad Coordinator by Tuesday 12pm • Know regulations regarding permits, flags, and balloons • Install Open Sunday Rider

EXPRES S TO SUCC ES S

3


1/17/2019

Monday before the Open House Select Area(s) to Invite • Surrounding Neighborhood • Lower Priced Area that would move up to this property • Your Prospects • Your Sphere of Influence • Record a video invite

EXPRES S TO SUCC ES S

Tuesday before the Open House Determine Marketing Piece(s) • Send invitations by mail or door knock • Door Hanger • Buyer and seller piece (to give out at open house) • Email your video invite to your database • Post a video on your seller’s Facebook page or have them share it from yours Create or Order

EXPRES S TO SUCC ES S

4


1/17/2019

Wednesday before the Open House • Have Inter Valley Escrow Prepare Buyer Closing Costs • Have New Penn Financial prepare Financing Flyer • Continue Marketing Efforts that you selected • Continue Send invitations by mail or door knock • Post your Open House in your MLS by Wednesday night for Dilbeck social media posts

EXPRES S TO SUCC ES S

Thursday before the Open House • Prepare E-Flyer as Open House personalized with your name (if it’s not your listing), always ask for permission for the listing agent • Make copies • Email to SOI, Prospects • Do Company & Office “Featured Open House” • Door knock or mail to “expired” listings in the area

EXPRES S TO SUCC ES S

5


1/17/2019

Prepare Flyer XXXXXX

EXPRES S TO SUCC ES S

Friday before the Open House • Prepare Handouts for Open House  Copy of E-Newsletter  Local Information • Check comparable properties  Prepare, Personalize, Print Active Comparable Listings from MLS as handout  Availability/Status  Open same day?

EXPRES S TO SUCC ES S

6


1/17/2019

Open House Day Go to the home FIRST! Prepare home for showing before putting the signs out. • Turn on A/C or Heat, Fireplace • Candles or Air Freshener • No Animals!! No Land Mines • Lights On, Drapes Open

EXPRES S TO SUCC ES S

Open House Day (continued) • Put note on door…back in xx minutes • Go to furthest point out and place open house signs • Often consumers will follow you to the house…and you’ll be ready! • Wear your name tag • Your safety is most important. Be aware of your surroundings and security of the home.

EXPRES S TO SUCC ES S

7


1/17/2019

Guests Arrive • Your attitude is key! • Greet them with a warm welcome • Ask them to sign the guest registry on your laptop, sign-in sheet or tablet  The seller requests that anyone who wants to see the house please give their name and contact info

EXPRES S TO SUCC ES S

Ice Breakers • Do you live in the neighborhood? • How did you find out about this Open House? • Are you working with an agent? • What size home are you looking for? • Have you seen any homes that you’ve liked?

EXPRES S TO SUCC ES S

8


1/17/2019

During the Open House • Have your laptop running a slide show of comparable homes • Offer copy of comparable homes that you have personalized with your name, email, websites etc. • Buyer Broker Agreement…just in case you can sign one up! • Buyer Sale Package

EXPRES S TO SUCC ES S

Your attitude dictates your Success • Be Positive • Be Helpful • Listen to them and Learn their needs and wants • Provide Platinum Advantage Service to both the Seller and Buyer

EXPRES S TO SUCC ES S

9


1/17/2019

Closing the Open House • Put a note on the door that you’ll be back in xx minutes • Go to the furthest sign out and pick up signs…often there will be someone looking until the last minute, they’ll follow you…again you’ll be ready! • Return the home in the condition in which you received it.

EXPRES S TO SUCC ES S

Closing the Open House Leave a note for the seller • Thanking them for the opportunity • Recap Activity (if it’s your listing) • Call Listing Agent (if it’s not your listing)

EXPRES S TO SUCC ES S

10


1/17/2019

Day One after Open House • Add Contacts to your CRM or Contact Manager • Contact all guests through whatever means possible • Set the contact up on a campaign • Ask for feedback on the home • Ask for appointment to qualify and get their commitment to you • Offer to show them properties that fit their needs

EXPRES S TO SUCC ES S

Things to Consider If you are working the Open House with another agent: • Have a written agreement on how you will be handling the public that attends • Referral? Split Commission? Every other client? Consider yourself as putting on a performance: • A buyer or seller may be evaluating you to be their agent • People will look for your enthusiasm, confidence, trust • This is your opportunity to prove yourself

EXPRES S TO SUCC ES S

11


E X PR ESS TO S UCCESS

9| Seller Disclosures


E X PR ESS TO S UCCESS

11| Title (no handout for section 10)


SAMPLE PRELIMINARY REPORT

1


EXPLANATION PAGE 1. Name and address of company that requested the preliminary report. (Escrow or Agent) 2. Name of individual that requested the preliminary report and property address. 3. Customer’s reference number. (Escrow Number) 4. Title order number. (Orange Coast Title’s Identification Number) 5. This paragraph states that Orange Coast Title of Southern California is prepared to

issue, or caused to be issued, a policy of title insurance, and the general scope of the insurance. 6. This paragraph states that the preliminary report is for title purposes only, with no other

liability unless specially requested. It is a report only. 7. This section is the effective date of our investigation of the public records, or the date

and time to which matters affecting title have been examined. 8. Title Officer’s name. This is the person to whom you may direct any inquiry about the

report. 9. This paragraph describes the form of the policy contemplated to be issued.

2


PRELIMINARY REPORT 

ACCURATE ESCROW 321 GLENOAKS BLVD. BURBANK, CA. 91203

ATTENTION: MARY JANE PROPERTY ADDRESS: 1049 N. AVON ST. BURBANK, CA 91505

 YOUR NO.3666-MJ  OUR NO.1070615-01

IN RESPONSE TO THE ABOVE REFERENCED APPLICATION FOR A POLICY OF TITLE INSURANCE, ORANGE COAST TITLE OF SOUTHERN CALIFORNIA HEREBY REPORTS THAT IT IS PREPARED TO ISSUE, OR CAUSE TO BE ISSUED, AS OF THE DATE HEREOF, A POLICY OR POLICIES OF TITLE INSURANCE DESCRIBING THE LAND AND THE ESTATE OR INTEREST THEREIN HEREINAFTER SET FORTH, INSURING AGAINST LOSS WHICH MAY BE SUSTAINED BY REASON OF ANY DEFECT, LIEN OR ENCUMBRANCE NOT SHOWN OR REFERRED TO AS AN EXCEPTION BELOW OR NOT EXCLUDED FROM COVERAGE PURSUANT TO THE PRINTED SCHEDULES, CONDITIONS AND STIPULATIONS OF SAID POLICY FORMS. THE PRINTED EXCEPTIONS AND EXCLUSIONS FROM THE COVERAGE OF SAID POLICY OR POLICIES ARE SET FORTH IN EXHIBIT A ATTACHED. COPIES OF THE POLICY FORMS SHOULD BE READ. THEY ARE AVAILABLE FROM THE OFFICE WHICH ISSUED THIS REPORT. PLEASE READ THE EXCEPTIONS SHOWN OR REFERRED TO BELOW AND THE EXCEPTIONS AND EXCLUSIONS SET FORTH IN EXHIBIT A OF THIS REPORT CAREFULLY. THE EXCEPTIONS AND EXCLUSIONS ARE MEANT TO PROVIDE YOU WITH NOTICE OF MATTERS WHICH ARE NOT COVERED UNDER THE TERMS OF THE TITLE INSURANCE POLICY AND SHOULD BE CAREFULLY CONSIDERED. IT IS IMPORTANT TO NOTE THAT THIS PRELIMINARY REPORT IS NOT A WRITTEN REPRESENTATION AS TO THE CONDITION OF TITLE AND MAY NOT LIST ALL LIENS, DEFECTS AND ENCUMBRANCES AFFECTING TITLE TO THE LAND.

THIS REPORT (AND ANY SUPPLEMENTS OR AMENDMENTS HERETO) IS ISSUED SOLELY FOR THE PURPOSE OF FACILITATING THE ISSUANCE OF A POLICY OF TITLE INSURANCE AND NO LIABILITY IS ASSUMED HEREBY. IF IT IS DESIRED THAT LIABILITY BE ASSUMED PRIOR TO THE ISSUANCE OF A POLICY OF TITLE INSURANCE, A BINDER OR COMMITMENT SHOULD BE REQUESTED.

 DATED: June 1, 2020  JOHN FERNANDO, TITLE OFFICER (800) 281-0887 THE FORM OF POLICY OF TITLE INSURANCE CONTEMPLATED BY THIS REPORT IS:

 ALTA HOMEOWNERS POLICY – 2008, AND AN ALTA LOAN POLICY - 2006

3


EXPLANATION PAGE 10. Type of estate. (The word “estate” is used to express the degree, quantity,

nature, duration, or extent of an interest in land). A “fee” is the highest type of estate or interest an owner can have freely transferable and inheritable, and whose owner is entitled to possession. 11. This shows the owner of record and how they hold title as well as the legal

description of the property being referred to in this report.

.

4


SCHEDULE “A”  THE ESTATE OR INTEREST IN THE LAND HEREINAFTER DESCRIBED OR REFERRED TO COVERED BY THIS REPORT IS:

A FEE.  TITLE TO SAID ESTATE OR INTEREST AT THE DATE HEREOF IS VESTED IN: JOE HOMEOWNER AND MARTHA HOMEOWNER, HUSBAND AND WIFE AS JOINT TENANTS THE LAND REFERRED TO IN THIS REPORT IS DESCRIBED AS FOLLOWS

LOT 75 OF TRACT NO. 8148, IN THE CITY OF BURBANK, COUNTY OF LOS ANGELES, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 131 PAGES 19 AND 20 OF MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.

5


EXPLANATION PAGE 12. Any transfer of this property will be subject to the following: 13. Taxes. The first item shown as an exception is a statement regarding the

amount including penalty and interest to redeem prior to certain future date is shown here. 14. Tax sale. If there are tax delinquencies for a prior year or years, the amount

including penalty and interest to redeem prior to certain future date is shown here. 15. Bonds. Bonds or assessments (if any) levied at the inception of construction of

improvement (e.g. streets, gutters, sidewalks, sewers, etc. under an approved district) are shown here. 16. Supplemental taxes.

6


SCHEDULE “B” This transaction may be subject to a Federal Regulation. Information necessary to comply with the Federal Regulation must be provided prior to the closing. This transaction will not be insured until this information is submitted, reviewed and found to be complete. The form to submit the required information may be obtained by clicking on this link: ALTA Disclosure Form

 AT THE DATE HEREOF EXCEPTIONS TO COVERAGE IN ADDITION TO THE EXCEPTIONS AND EXCLUSIONS IN SAID POLICY FORM WOULD BE AS FOLLOWS:

 1A.

TAXES AND ASSESSMENTS, GENERAL AND SPECIAL, FOR THE FISCAL YEAR 2019-2020, AS FOLLOWS: TOTAL AMOUNT 1ST INSTALLMENT 2ND INSTALLMENT PERSONAL PROPERTY CODE AREA PARCEL NO.

 1B.

: : : : : :

$902.11 $451.06, PAID $451.05 $NONE 5501 2477-018-015

SAID PROPERTY HAVING BEEN DECLARED TAX DEFAULTED FOR NON-PAYMENT OF DELINQUENT REGULAR TAXES FOR THE FISCAL YEAR 2018-2019 AMOUNT TO REDEEM BY DECEMBER 2020, FOR THE ABOVE STATED YEAR AND SUBSEQUENT YEARS, IF ANY) IS $833.69.

 1C.

ASSESSMENT NOT INCLUDED WITH TAXES, AS FOLLOWS: FOR AMOUNT TO PAY IN FULL PRIOR TO ASSESSMENT NO.

 1D.

: : : :

LOS ANGELES SANITATION DISTRICT $410.60 DECEMBER 2020 314

THE LIEN OF SUPPLEMENTAL TAXES, IF ANY, ASSESSED PURSUANT TO THE PROVISIONS OF SECTION 75, ET SEQ. OF THE REVENUE AND TAXATION CODE OF THE STATE OF CALIFORNIA.

7


EXPLANATION PAGE 17. Recorded easements. An easement is a right or interest in the land of another

which entitles the holder thereof to some use, privilege or benefit (e.g. to install poles and wires, pipe lines, road to travel over, etc.) upon or over the land. 18. Covenants, conditions, and restrictions (CC&R’s).

8


 1.

AN EASEMENT AFFECTING THAT PORTION OF SAID LAND AND FOR THE PURPOSES STATED HEREIN AND INCIDENTAL PURPOSES AS SHOWN ON THE FILED MAP. FOR AFFECTS

2.

4.

 5.

PUBLIC UTILITIES THE SOUTHERLY 6 FEET

AN EASEMENT AFFECTING THAT PORTION OF SAID LAND AND FOR THE PURPOSES STATED HEREIN AND INCIDENTAL PURPOSES AS SHOWN ON THE FILED MAP. FOR AFFECTS

3.

: :

: :

PIPE LINES THE SOUTHERLY 10 FEET

AN EASEMENT AFFECTING THAT PORTION OF SAID LAND AND FOR THE PURPOSES STATED HEREIN AND INCIDENTAL PURPOSES AS PROVIDED IN THE FOLLOWING: GRANTED TO FOR RECORDED

: : :

AFFECTS

:

SOUTHERN CALIFORNIA EDISON COMPANY ELECTRICAL LINES MARCH 6, 1949 IN BOOK 58789 PAGE 368, OFFICIAL RECORDS SAID LAND

AN EASEMENT AFFECTING THAT PORTION OF SAID LAND AND FOR THE PURPOSES STATED HEREIN AND INCIDENTAL PURPOSES AS PROVIDED IN THE FOLLOWING: GRANTED TO FOR RECORDED

: : :

AFFECTS

:

SOUTHERN CALIFORNIA GAS COMPANY GAS LINES JUNE 16, 1950 IN BOOK 59850 PAGE 114, OFFICIAL RECORDS SAID LAND

COVENANTS, CONDITIONS AND RESTRICTIONS, BUT OMITTING ANY COVENANTS OR RESTRICTIONS IF ANY, BASED ON RACE, COLOR, RELIGION, SEX, HANDICAP, FAMILIAL STATUS OR NATIONAL ORIGIN UNLESS AND ONLY TO THE EXTENT THAT SAID COVENANT (A) IS EXEMPT UNDER TITLE 42, SECTION 3607 OF THE UNITED STATES CODE OR (B) RELATES TO HANDICAP BUT DOES NOT DISCRIMINATE AGAINST HANDICAPPED PERSONS, IN AN INSTRUMENT RECORDED

:

IN BOOK 16189 PAGE 653, OFFICIAL RECORDS

NOTE: SECTION 12956.1 OF THE GOVERNMENT CODE PROVIDES THE FOLLOWING: "IF THIS DOCUMENT CONTAINS ANY RESTRICTION BASED ON RACE, COLOR, RELIGION, SEX, FAMILIAL STATUS, MARITAL STATUS, DISABILITY, NATIONAL ORIGIN, OR ANCESTRY, THAT RESTRICTION VIOLATES STATE AND FEDERAL FAIR HOUSING LAWS AND IS VOID. ANY PERSON HOLDING AN INTEREST IN THIS PROPERTY MAY REQUEST THAT THE COUNTY RECORDER REMOVE THE RESTRICTIVE COVENANT LANGUAGE PURSUANT TO SUBDIVISION (c) OF SECTION 12956.1 OF THE GOVERNMENT CODE." 9


EXPLANATION PAGE 19. Deed of trust. A (recorded) deed of trust conveys title to particular land to a

neutral third party (trustee) with limited powers (such as powers of sale) for the purpose of securing a loan (debt). 20. Notice of default. The terms of the note or trust deed were violated (e.g. failure to

pay monthly installments) and therefore a notice of said default was recorded. (Notice here the chronology of the items affecting the first deed of trust). 21. Deed of trust. Another deed of trust was recorded on the same day as the

previous deed of trust shown as item (7.) (A 2nd trust deed).

10


 6.



 7.

DEED OF TRUST TO SECURE AN INDEBTEDNESS OF THE AMOUNT STATED BELOW AND ANY OTHER AMOUNTS PAYABLE UNDER THE TERMS THEREOF, AMOUNT DATED TRUSTOR

: : :

TRUSTEE BENEFICIARY

: :

RECORDED INSTRUMENT NO. LOAN NO.

: : :

$480,000.00 JULY 30, 2019 JOE HOMEOWNER AND MARTHA HOMEOWNER, HUSBAND AND WIFE ORANGE COAST TITLE COMPANY CALIFORNIA SUNSHINE SAVINGS AND LOAN ASSOCIATION JULY 31, 2019 19-113975, OFFICIAL RECORDS 17256

A NOTICE OF DEFAULT UNDER THE TERMS OF SAID DEED OF TRUST EXECUTED BY

:

RECORDED

:

RETURNED TO ADDRESS

:

TRUSTEE'S FILE NO. OR FORECLOSURE NO.

:

CALIFORNIA SUNSHINE SAVINGS AND LOAN ASSOCIATION JANUARY 25,2020 AS INSTRUMENT NO. 20-102745 CALIFORNIA SUNSHINE SAVINGS AND LOAN ASSN., 4444 ANY STREET, SOMEWHERE, CA. 20-19834741

DEED OF TRUST TO SECURE AN INDEBTEDNESS OF THE AMOUNT STATED BELOW AND ANY OTHER AMOUNTS PAYABLE UNDER THE TERMS THEREOF, AMOUNT DATED TRUSTOR

: : :

TRUSTEE BENEFICIARY RECORDED INSTRUMENT NO. LOAN NO.

: : : : :

$100,000.00 MARCH 5, 2019 JOE HOMEOWNER AND MARTHA HOMEOWNER, HUSBAND AND WIFE ORANGE COAST TITLE COMPANY BOBBY PIN, A SINGLE MAN OCTOBER 5, 2015 19-113976, OFFICIAL RECORDS 17257

11


EXPLANATION PAGE 22. An abstract of judgment. Imposes a lien on this and all other real property now

owned or hereafter acquired by the debtor until satisfaction of the debt. 23. A property settlement agreement resulting from divorce proceedings. 24. Request for statement of identity. (This confidential information statement is

used to enable the title officer to eliminate title problems which may arise due to similarity of the names of the seller and/or buyer with the name of another person against whom there may be judgments, liens, etc.)

12


 8.

 9.

 10.

ABSTRACT OF JUDGMENT FOR THE AMOUNT HEREIN STATED AND ANY OTHER AMOUNTS DUE, CREDITOR

:

DEBTOR ENTERED COURT

: : :

CASE NO. AMOUNT RECORDED

: : :

COOL POOL, INCORPORATED, A CALIFORNIA CORPORATION JOE HOMEOWNER AND MARTHA HOMEOWNER NOVEMBER 3, 2019 MUNICIPAL COURT OF NORTH LOS ANGELES COUNTY 743611 $4,365.30 NOVEMBER 1, 2019 AS INSTRUMENT NO. 19-1213456, OFFICIAL RECORDS

THE LIEN FOR SPOUSAL AND/OR CHILD SUPPORT PAYMENTS DUE, IF ANY, PURSUANT TO THE PROVISIONS OF THE ORDER OF THE COURT, AS FOLLOWS: IN FAVOR OF AGAINST COURT

: : :

CASE NO. RECORDED

: :

MARTHA HOMEOWNER JOE HOMEOWNER MUNICIPAL COURT OF LOS ANGELES JUDICIAL DISTRICT DS 1234 DECEMBER 24,2019 AS INSTRUMENT NO. 19-1337984, OFFICIAL RECORDS

THE EFFECT OF INSTRUMENTS, PROCEEDINGS, LIENS, DECREES OR OTHER MATTERS WHICH DO NOT SPECIFICALLY DESCRIBE SAID LAND BUT WHICH, IF ANY DO EXIST, MAY AFFECT THE TITLE OR IMPOSE LIENS OR ENCUMBRANCES THEREON. THE NAME SEARCH NECESSARY TO ASCERTAIN THE EXISTENCE OF SUCH MATTERS HAS NOT BEEN COMPLETED AND IN ORDER TO DO SO WE REQUIRE A SIGNED STATEMENT OF IDENTITY FROM OR ON BEHALF OF RECORD OWNER(S).

13


EXPLANATION PAGE THIS IS NOT A SURVEY OF THE LAND AND MUST NOT BE RELIED UPON FOR ACTUAL DIMENSIONS AND LOCATIONS. THE PLAT OR MAP OF THE PROPERTY IS NORMALLY A COPY OF THE ASSESSOR’S MAP OR RECORDED SUBDIVISION.

14


15


YOUR NO. OUR NO.

3666-MJ 1070615-01

LENDERS SUPPLEMENTAL REPORT

THE ABOVE NUMBERED REPORT (INCLUDING ANY SUPPLEMENTS OR AMENDMENTS THERETO) IS HEREBY MODIFIED AND/OR SUPPLEMENTED IN ORDER TO REFLECT THE FOLLOWING ADDITIONAL ITEMS RELATING TO THE ISSUANCE OF AN AMERICAN LAND TITLE ASSOCIATION LOAN FORM POLICY AS FOLLOWS: OUR INVESTIGATION HAS BEEN COMPLETED AND THERE IS LOCATED ON SAID LAND

A SINGLE FAMILY RESIDENCE, KNOWN AS:

1O49 N. AVON STREET, BURBANK, CALIFORNIA 91505

OUR A.L.T.A. POLICY, WHEN ISSUED, WILL CONTAIN C.L.T.A. ENDORSEMENT NO. 100.

UNLESS SHOWN IN THE BODY OF THIS PRELIMINARY REPORT, THERE APPEARS OF RECORD NO TRANSFERS OR AGREEMENTS TO TRANSFER THE LAND DESCRIBED HEREIN RECORDED DURING THE PERIOD OF TWELVE MONTHS PRIOR TO THE DATE OF THIS REPORT, EXCEPT AS FOLLOWS: NONE.

16


E X PR ESS TO S UCCESS

12| Mortgage


Partners United Financial: Express to Success


Partners United Financial – Your Team! Today’s Agenda • Introduction of Partners United Financial • Review of marketing programs and opportunities to cultivate leads • Products, Programs, Pricing • Mortgage basics Part of the Dilbeck Family of Companies • A fully funded Independent Mortgage Banker, Home Mortgages is all that we do! • Founded by Mark Dilbeck and Harley Rouda in 2015 • Licensed to do business in California, Colorado, Wyoming, Indiana, Ohio, Kentucky, Florida, North Carolina, and New Mexico.


Partners United Financial, LLC Overview • A retail mortgage company lending to residential customers on 1-4 • •

• • •

unit properties with offices in five states and licensed in four others Employs experienced licensed Mortgage Bankers who partner with Realtors®, Attorneys, Accountants and Financial Planners to generate referrals A full suite of products with direct access to Fannie Mae, Freddie Mac and Ginnie Mae Access to non-QM unique products (high DTI, Bank Statement programs, non-conforming condo’s, asset dissipation, et al) Consumer Portal with 24/7 status access on in-process files Robust CRM and Social Media marketing platforms to develop brand in markets we serve

3


The Partners United Financial Mission Our mission to our Realtor® and Builder partnerships is simple in direction, but takes the combined efforts of every one of our team members to accomplish. • We will help our Realtor® and Builder partners sell more homes through our service, marketing, products and programs • We will enhance the brands of the companies and individuals who refer us by managing a smooth and seamless transaction • We will share revenue with our partners in a legal and compliant way, so that they can invest in building their business even further

4


Partners United Financial Leadership Team Emad Bastawros, SoCal Area Manager Diverse background that includes 25+ years of mortgage origination and leadership experience. Experience as the owner of his own company for 12 years and as an nationally ranked originator in a large money-center bank. Brings a passion to lead and serve his growing team to help Dilbeck’s sales team build a team to serve the needs of the SoCal marketplace.

Michael Mulgrew, President Leads the Partners United Financial team from company HQ in Ohio. Has been involved since conception of this multi-state, multi-partner venture. Started his career in the industry in 1996 and has developed and led previous joint-venture entities. Held Loan Originator, Branch & Area Manager positions and is actively involved in state and local MBA. Past President of the Columbus Mortgage Bankers Association and the Ohio Mortgage Bankers Association.

5


Partners United Financial Sales Team Darcy Conkle, Burbank & La Canada Has been on our team for over 4 years but associated with Dilbeck many more. Appreciated by a number of agents and managers by her passion to serve clients, she specializes in a first-class experience for every buyer. Two decades of experience in the industry, and a outstanding sense of problem-solving, she takes the toughest deals and makes them look easy.

Viken Shirinian, Western Footprint Joining our team July 27th. He has extensive knowledge in FHA/VA/Convention/Jumbo loans. He was a top 10 originator at one of the country’s largest lenders funding over $90M annually. His 33 years of experience help him navigate the toughest of transactions seamlessly and makes the home buying process a time for celebration for his customers.

6


Partners United Financial Legal Structure

New Rez, LLC

Partners United Financial, LLC

(Mortgage REIT providing back-room services)

HomeCo, LLC

7


Current HomeCo Members

8


Marketing Plan • Connectivity and Accountability • What we say to your prospective clients to glue them to • • • •

you How we stay in contact with prospects The tools that we provide you to educate and inspire them The products we provide that serve their needs The service experience that we deliver to make you look great


Accountability & Service • We share the same parent company—we must close on time and communicate

• When first talking to a prospect, we employ a crossreferral approach

• We market to over 35,000 homeowners in the Greater LA area, mining for opportunities to turn over pre-approved prospects

• We employ a “single-fee” approach– No Junk Fees and a low cost to produce loans

• The more agent support we generate, the lower our rates can be


Total Expert CRM System Sponsored by Partners United Financial, this industry-leading system provides hundreds of marketing opportunities. Examples include: • Co-branded marketing flyers • Co-branded “Open House” promotional flyers • Widgets • Single-property Websites • All easily promoted on Social Media platforms

• https://totalexpert.net/login


Homebot • A new program that we are launching this fall to connect with current • •

• • •

homeowners on move-up scenario’s A detailed monthly homeowners report with current estimated market value, equity position, refinance scenario’s, VRBO rental information and neighborhood activity With typical open rates of emails at 3% to 10%, this report boasts a 50% to 60% open rate Keep top of mind with your clients A free version for every agent (up to 24 homeowners) and a cosponsored version available for 25+ contacts Demo at: www.homebot.ai


Question?


Mortgage Fundamentals for Realtors Learning about home financing can give real estate agents the edge they need when looking to build their client database and outsmart their competition. Partners United Financial has a unique business model to focus on developing long-term relationships with real estate agents. This includes providing consistently exceptional customer service and continual education.


Mortgage vs. Cash When a client contacts a Realtor to buy a home, they have the option of paying cash or working with a Partners United Financial Loan Officer to secure a mortgage. There are several financial reasons why paying with cash could be detrimental to your clients: • Ties up funds that could be used for retirement, family or health emergencies, or other investments • Cash may be better served in paying off other debts (car loans, etc) • Paying cash for a home does not eliminate monthly expenses (client is responsible for property taxes, HOA fees, and maintenance costs). • Obtaining a home loan can give your clients access to major tax deduction • Just because a home is purchase in cash, the home is still subject to a “gift tax” if later inherited by the client’s child


Mortgage Types A mortgage is a loan that is secured by real estate. In exchange for the loan, the “borrower” promises to make monthly payments. Partners United Financial offers a wide variety of mortgage types and payment options. Let’s review the most common products…


Conventional Financing • Loans are originated in accordance with Fannie Mae and Freddie Mac Guidelines

• Post-close, loans are converted into Mortgage-Backed Securities and sold to institutional investors

• Maximum Loan Amount of $765,600 in SoCal • Credit, Asset Income profile defined by Fannie/Freddie with each lender providing credit overlays to define the box they are comfortable with lending into.

• Mortgage Insurance required with less than 20% down • Most flexible appraisal Standards


Jumbo Financing • Loans greater than $765,500 in SoCal • Originated to standards similar to Conventional financing, but there is not a defined secondary market delivery mechanism

• Money-center banks and Investment Institutions are primary investors

• Each investor sets tweaks to guidelines; most require 15% to 20% down payment

• Most restrictive self-employed program • Two-appraisals may be required


FHA Loans • Loans are insured by the Department of Housing and Urban Development (HUD) as they act as a mortgage insurance entity for low-down payment loans

• Not for first-time homebuyers, available for everyone • Most flexible credit, debt-to-income and down payment guidelines

• • • •

Down payment of 3.5%, which can be a gift Most restrictive appraisal standards

Credit scores as low as 620 can qualify Shortest time since BK or foreclosure of any program


VA Loans • Available for honorably discharged veterans of all branches of the military

• 100% financing available for most loan sizes • Jumbo programs available • No mortgage insurance, just an up-front funding fee that may be financeable into the mortgage amount

• Partners with Dilbeck’s Operation Keys for Hero’s program for a package service discount and marketing program

• Flexible credit and debt-to-income standards • A great way to serve those who defend our nation


30 Year Fixed Rate • Payments for the mortgage are spread out over 30 years and are the same amount each month • Ideal when interest rates are very low • Payment is constant (easier for budgeting) • Less risk if market suddenly changes or interest rates rise


15 Year Fixed Rate • Same as a 30 year Fixed Rate Mortgage – payment is just compressed into half of the time. • Payment is larger than a 30 year fixed rate • Ideal for borrowers who plan on staying in the property long term but want to pay off their mortgage sooner


Adjustable Rate Mortgage (ARM) • ARMs usually have a fixed monthly payment for a designated amount

• • • •

of time (typically 5, 7, or 10 years) and then the payment will change annually depending on the market’s interest rates. Can have lower payments than a Fixed Rate Mortgage Ideal for borrowers who are planning on staying in the property shortterm Ideal when rates are higher to take advantage if rates drop in the future More risk because payment can change with the market during the adjustable period


Other Mortgage Types Available • Interest Only Payments - Some mortgage types offer lower •

• • •

payments that only pay the “interest due” during a designated amount of time (typically 5, 7, or 10 years) Reverse Mortgages - Borrowers age 62 and older can be eligible for this type of mortgage which allows them to use the equity in the home to cover their monthly expenses – without making any monthly payments VA Loans - For borrowers and their spouses who are either Active Duty or Veterans, a variety of financing options are available including 0% down payment options FHA Loans - Requires only 3.5% down payment and can combined with special grant programs Grant Programs - Covers costs of down payment and closing costs for borrowers in California


Other Mortgage Types Available • Commercial Lending - Financing for multi-unit properties or mixed-use • • •

properties Super Jumbo - Loan amounts up to $10 Million Loans for Foreign Nationals or Borrowers without an established Credit Score Home Equity Lines of Credit - Borrowers can take out additional money from their home by refinancing or taking out a second mortgage (like a HELOC or a Fixed Rate Second) 80-10-10 - The borrower puts 10% down and can still avoid mortgage insurance by using a second mortgage along with the first loan.


Mortgage Payment Mortgage payments are typically made of the following components (“PITI”): Principal – The money the customer has borrowed Interest – The cost of borrowing the money Taxes – Property taxes to local city and/or county Insurance – Homeowner’s Insurance (fire, natural disasters, etc.). If the property is a flood risk area, they may required to purchase additional “Flood Insurance”

• • • •


Mortgage Payment Depending on the borrower’s needs, there may also be additional additions to the payment: • Mortgage Insurance (MI) – Typically required when down payment is less than 20%. • HOA Fees – For most condos or other properties in a homeowner’s association • Second Mortgages – If the borrower combines the loan with another mortgage, they payment on the second mortgage or HELOC is included into the “total payment”


Calculating Payments Refer to the chart on the next page for Principal & Interest payments. The “PI” portion of the payment is based on the following factors: • Loan Amount, Interest Rate, Term (15, 30, or 40 year terms) Some types of mortgage payments include Taxes and Insurance by using an “Escrow Account”: • Each month, the borrower pays an additional amount on top of their principal and interest to fund this account. • Insurance Premiums and Tax Payments are funded out of this account by the mortgage company. • This can be more convenient for the borrower, and can sometimes provide the borrower with a slightly lower interest rate.

3


Insurance • The borrower will need to obtain a homeowner’s insurance policy (if not included in Condo HOA dues) and will need to provide a copy of the declarations page that shows the exact amount of their insurance premium. To approximate the insurance payment, use the following calculation: Purchase Price or Value of Property x 3.5% ÷ 12 months

EXAMPLE:

$300,000 Purchase Price x 0.0035 factor ÷ 12 months = $65.63 Monthly Cost for Insurance Premium


Taxes Taxes are determined by the County, City, or other Local Municipality. To approximate the tax payment, use the following calculation: Purchase Price or Value of Property x 12.5% รท 12 months

EXAMPLE:

$300,000 Purchase Price x 0.0125 factor รท 12 months = $312.50 Monthly Costs


Mortgage Insurance When the borrower puts less cash down (“down payment”), the loan is considered to be higher risk and will require Mortgage Insurance. Government loans (Federal Housing Administration or “FHA”) always require Mortgage Insurance to fund the administrative costs of the program and offset the higher risk. Some insurance premiums can be paid in a variety of different ways: • One lump-sum payment at closing • One lump-sum that is financed into the loan amount • Monthly payments


Mortgage Insurance Mortgage Insurance premiums vary based on: • The amount of down payment (the more cash the borrower invests, the lower the premium) • Loan Amount • Type of Mortgage • Credit Score Please contact your Partners United Loan Officer for a quote, as many factors influence the premium amount.

3


Qualifying for a Mortgage The mortgage guidelines and regulations can be tough to navigate. It is important to partner with an established mortgage bank like Partners United Financial with seasoned Loan Officers that can guide you through finding a home for your client all the way to closing. When reviewing a mortgage application, the following factors are considered: • Credit • Income • Expenses • Assets • Property

3


Credit • The borrower’s credit helps to predict how likely they are to repay the mortgage debt. Scores range from about 300 – 900. The higher score – the better. • Mortgage companies use credit scores from 3 different Credit Bureaus (Experian, Equifax, and Transunion). Each bureau uses different methodology to determine score and will usually vary slightly. If there is more than one borrower on a loan (example: husband and wife), credit will be reviewed on every borrower on the loan.


Credit • At Partners United, we offer realtors and borrowers the “PreFlight” tool. This allows borrowers to see a snapshot of their credit – before applying for a mortgage application. PreFlight is the only credit summary tool that displays all 3 scores for each borrower. • Each loan is assigned a FICO score. This is the “middle score” of all borrowers on the loan.

To calculate the loan credit score, we will select the lower of the 2 middle scores (because they are 2 borrowers). In this sample, the score is 647.


Credit Enhancement Department • Free Credit Enhancement service for Conventional and Government loans

• Customer receives a “prescription” of debts to pay down or off, accounts to open or authorized users to change

• Credit report is “re-scored” by repositories • New credit scores are used for qualification and pricing – Improves client’s rate – Turns renters into homeowners

• No cost for service for consumer


What Determines a Credit Score? Payment Those who have failed to make payments in the past tend to do so in the future. The more recent a History

35% of Score

The longer you've had credit, the better. Length of Credit

10% of Score

late payment, the more it counts against you; a 30day late payment within the past 12 months hinders your chances of getting favorable mortgage terms.

Credit Use

If you're maxed out or close to your credit limits, you're viewed as risky.

30% of Score

Credit Types

Someone with a combination of revolving and installment debt is considered less risky than one with only a secured credit card.

15% of Score

New Credit

Multiple recently opened accounts or lots of inquiries could affect your score.

10% of Score 3


Income The borrower’s income determines their “ability to repay” the mortgage. Mortgage lenders consider: • Type of Employment (Salaried or Self-Employed) • Type of Income (Retirement, Military Pay, Commission, etc) • Length of job (2 years or more shows job stability) • Income documentation (W2s, Paystubs, Personal & Business Tax Returns, P&L’s, etc)

EXAMPLE: John works at Disney as an Animator. He receives a gross annual salary of $120,000. John earns $10,000 a month $120,000 ÷ 12 months = $10,000 a month

4


Income EXAMPLE: Susie owns a small business. As of March this year, she has earned $45,000 with $15,000 in deductions and expenses. On last year’s taxes, she reported income of $75,000. The year before, she reported $72,000 income. $45,000 total income - $15,000 deductions and expenses = $30,000 Year-to-Date Income Susie’s average of last 2 years plus Year-to-Date income = $30,000 YTD + $75,000 Last Year + $72,000 Prior Year ÷ 24 months + 3 months of this year = $6,555 a month

4


Income There are many other factors that are considered when calculating income. The borrower will be asked to provide documentation that shows their income as well as provide letters of explanation for gaps in employment, unusual issues, declining income over time, multiple sources of income, etc. Your Partners United Financial loan officer will provide more detail and can discuss the specific documentation that is required for each mortgage scenario.

4


Expenses The monthly expenses (also called “Debts” or “Liabilities”) that the borrower pays each month are used to determine the “Debt-to-Income Ratio”. Mortgage lenders do NOT consider “non-recurring” expenses in the borrower’s ratios, such as: • Utilities (Phone, Water, Gas) • Household expenses (Groceries, House cleaning, Maintenance) • Personal expenses (Shopping, Entertainment, Haircuts, etc) • Payroll deductions (401K contributions, Health Insurance, etc) • Mortgage

4


Expenses Mortgage lenders use the Credit Report to determine liabilities that are recurring, and consider the following categories: • Revolving (Credit Card Payments) • Installment (Car loans, Student Loans) • Mortgages (Home loans on the subject property or any other property) • Child Support or Alimony Payments

4


Calculating the Debt-to-Income Ratio • In general terms, we divide the total amount of monthly payments by the borrower’s income.

4


Calculating the Debt-to-Income Ratio Step 1 – Add All Expenses/Debts: EXAMPLE: John and Susie pay the following monthly expenses: Toyota car loan $400 Ferrari car loan $850 Visa Credit Card $200 John’s Student Loan $150 = $1,600 total monthly obligations

4


Calculating the Debt-to-Income Ratio Step 2 – Calculate the Total Mortgage Payment on the New Loan: EXAMPLE: They need a $400,000 mortgage (30 year fixed rate with a 5% interest rate). Their payment is calculated as follows: Principal and Interest $2,147 + Taxes and Insurance $667 = $2,814 PITI

4


Calculating the Debt-to-Income Ratio Step 3 – Add All Monthly Expenses Together to Calculate Total Debt:

EXAMPLE: $1,600 non-housing expenses + $2,814 PITI = $4,414 Total Debt

Step 4 –Calculate the Borrower’s Total Income:

EXAMPLE: John and Susie together earn $16,555 a month ($10,000 + $6,555)

4


Calculating the Debt-to-Income Ratio Step 5 –Divide the Total Debt by the Total Income: EXAMPLE: Debt-to-Income = $4,414 (Total Debt) á $16,555 (Total Income) = 26.66% John and Susie have a Debt-to-Income ratio of 26.66%. Ratios below 36% are generally considered to be lower risk and may have more mortgage type options.

4


Qualifying Borrowers

Let’s pose this question in a second way. John and Susie may ask their Partners United Loan Officer, “How much ‘house’ could we qualify for?”

5


Qualifying Borrowers Using the same information, let’s calculate the maximum loan amount they could qualify for.

Step 1 – Calculate the Borrower’s Total Income: EXAMPLE: John and Susie together earn $16,555 a month ($10,000 + $6,555).

Step 2 – Multiply the Borrower’s Total Income by the Maximum Allowable Ratio: EXAMPLE: Income $16,555 x 36% maximum allowable ratio = $5,960 Maximum Total Monthly Debt


Qualifying Borrowers Step 3 – Subtract all “Non-Housing” Expenses/Debts from the Maximum Allowable Ratio:

EXAMPLE: Verifying with the Credit Report, John and Susie have a total of $1,600 total monthly obligations. $5,960 - $1,600 = $4,360 Total Housing Payment Allowed (including Insurance, Taxes, HOA)

5


Qualifying Borrowers Step 4 - Calculate the Maximum Allowable Mortgage Amount:

EXAMPLE: The maximum total housing payment allowed = $4,360 Principal & Interest $3,355 + Taxes & Insurance $1,000 = $4,355 PITI monthly payment Maximum Mortgage that Borrowers could qualify for = $625,000 NOTE – This is assuming that borrower is has exceptional credit, and a 5% interest rate on a 30 year fixed rate loan and has enough funds to cover 20% down payment and closing costs.


Qualifying Borrowers Calculating the maximum loan amount and purchase price requires careful analysis of income documentation, credit report, and product and pricing knowledge. Contact your Loan Officer to pre-qualify your clients.

5


Down Payment In that scenario, John and Susie learned they could qualify for a mortgage up to $625,000.

As a realtor, it’s important to understand how the maximum mortgage correlates to home prices.

5


Down Payment – Loan-to-Value The amount of cash that the borrower contributes to the purchase property is known as a “Down Payment”. Mortgage lenders calculate the percentage of the down payment compared to the Purchase Price, in a formula called “Loan-to-Value”.

EXAMPLE: John and Susie would like to put 20% down payment to avoid paying Mortgage Insurance. If the down payment is 20%, then the loan amount is 80% of the Purchase Price. The ratio of the loan amount to the purchase price is the Loan-to-Value (LTV): Maximum Mortgage $625,000 = 80% Loan-to-Value Down Payment $160,000 = 20% Down Payment $160,000 + $625,000 = $785,000 Maximum Purchase Price 5


Down Payment – Loan-to-Value John and Susie meet with their Financial Planner and decide they are not comfortable using all of their assets for their down payment, and mention they would like to contribute a maximum of $100,000. They also still want to put 20% down. LTV Calculation: Loan Amount á the lesser of the Purchase Price or the Appraised Value

EXAMPLE: 20% down payment = $100,000 80% LTV means the loan amount = $400,000 $400,000 + $100,000 = $500,000 Maximum Purchase Price

5


Assets The funds that are used to contribute towards the down payment and other closing costs are called “Assets”. Assets can be classified in many different types: • Checking / Savings Accounts • Retirement Funds (401K, IRA) • Stocks, Bonds, Money Markets • Non-Liquid Assets (Vehicles, Fine Art) • Gift Funds (Not Available on all Loan Products)

5


Verifying Assets Asset Documentation is required on each loan. Lenders usually require: • 2 mo. of Account Statements (Current, All Pages, with Account Info) • Information in regard to any large deposits • Gift Letter to verify source of gift • Earnest Money Documentation The loan underwriter verifies that the borrower has enough assets to cover all of the following loan expenses: • Down Payment • Reserves (Assets that the borrower has “left over” after the loan transaction has funded) • Closing Costs • Discount Points (to “buy-down” the interest rate to a lower rate) • Third-Party Expenses


Closing Costs Closing Costs include fees that the lender charges to process and close the loan. In addition, there are fees from Third-Party Service Providers such as: • Title Company, Escrow Company, Appraiser All of the fees associated with the loan are listed on the loan’s disclosures. These disclosures are provided to the borrower within 3 days of the loan becoming an official “Application”. Disclosures include many documents that provide the borrower with important information about the loan. Key documents include the Good Faith Estimate (GFE) and the Truth in Lending Act statement (TILA). Closing documents also include similar disclosures and show the final costs of the loan transaction on a document called the HUD or the Settlement Statement.


Discount Points Interest rates determine the mortgage payment on the loan. Interest rates can fluctuate daily, depending on conditions in the secondary market, global economy, and other factors. Seasoned loan officers are able to evaluate market trends and offer counsel on interest rate movements to borrowers.

Points: • When quoting an interest rate, the borrower is offered an option to “pay points”. If the borrower pays points, they can “buy-down” to a lower interest rate. • The correlation between points and rates is not 1- to-1 and will change as interest rates fluctuate. • A point is a percentage of the loan amount. 1 point = 1% (Example: 1 point of $100,000 loan is $1,000)


Discount Points Here is a sample “Rate Sheet”, assuming a $400,000 Mortgage on a 30 year fixed rate product.


Discount Points Discount Points are paid at the time of closing on the loan and are tax deductible. In exchange for paying a higher cost at the closing of the loan, the borrower can opt for a lower interest rate to bring down their monthly payment. Each borrower is unique and will work with their loan officer to determine which makes most sense in their situation. If the borrower is planning on remaining in the loan long-term, it may make sense to pay more money upfront to lower the overall monthly expense.


Break-Even Point Calculation This calculation is called the “Break-Even Point”. Here is a rudimentary example:

Step 1 – Determine the Principal and Interest Payment for Each Interest Rate: EXAMPLE: If the borrower choses a 4.75% interest rate, they will have a monthly payment of $2,087. If the borrower choses a 5.00% interest rate, they will have a monthly payment of $2,147.

Step 2 - Subtract the Payment Savings

EXAMPLE:

$2,147 - $2,087 = $60 monthly savings


Break-Even Point Calculation Step 3 – Divide the Cost of the Discount Points to Buy Down the Rate into the Monthly Savings:

EXAMPLE: How many months would the borrower have to keep the loan to recoup the $2,000 upfront expense of the monthly savings? $2,000 ÷ $60 = 33 months is the “Break-Even” point If the borrower plans to be in the mortgage longer than 33 months (almost 3 years), then it may make financial sense to pay the .5 discount point to buy-down the rate.


Property To verify the value of the property, the mortgage lender orders an Appraisal. This report is prepared by an independent appraiser who has local knowledge of the area and uses recent comparable sales to generate a value. In addition to a value, the appraisal provides information on the property’s condition, type, and notes any potential issues. The underwriter reviews the Appraisal along with all of the other documentation of the file to determine the approval of the overall loan file. Partners United Financial’s fully compliant Appraisal Department works with only experienced Appraisers who are knowledgeable with the specific areas that they evaluate.


Stepping Through the Loan Process PreQualification

• Review Credit and Income with Borrower • Pre-Qualification Worksheet

Pre-Approval

• Submit Supporting Documents for Loan • Ready to write offer

Loan Application

• Sign And Date Loan Application • Complete GFE Itemization and Disclose GFE/ TIL

Home Inspection

• Buyer Inspection of Property • Buyer Chooses Home Inspector

Appraisal

• Lender’s Evaluation Of Appraisal • Borrower to Pay Appraisal Via Pay Pal

Escrow Docs

• Borrower To Complete Sign And Return Package • Include Vesting, Title and Fire Insurance Quote

Loan Approval

• Credit, Income, Assets, and Appraisal • Approval Conditions


Stepping Through the Loan Process Loan Docs

• Signing of Loan Docs and Certified Funds to Close and Final Walk Through

Funding

• Lender Released Approved Funds For Loan • Verbal Verification of Employment

Recording

• Grant Deed And Deed of Trust Are Recorded • Copies Of Closing Statement, Deeds, and Keys


Summary • We’re here to help you sell more homes • We will use our products, programs, professionalism, expertise and marketing systems to enhance your brand in the community

• We’re accountable to you, the branch leadership team and Mark Dilbeck to provide an outstanding experience

• We partner with IVE and Orange Coast for a totally connected consumer experience

• Let’s partner together so we can grow together • Thank you!


E X PR ESS TO S UCCESS

13| Legal Aspects


7/9/2020

Week 1 : Day 5  Section 13 – Legal Aspects of  Real Estate EXPRESS  TO SUCCESS

RESPA The Primary Purposes of RESPA are:  • To help consumers become better shoppers for settlement services  through the use of estimated settlement charges a borrower is likely to  incur in connection with the purchase  • To eliminate kickbacks and referral fees from unscrupulous  settlement service providers that increase costs of certain settlement  services 

EXPRESS TO SUCCESS

Transactions Covered by RESPA • RESPA covers one‐to‐four family residential property, financed with a  federally‐related mortgage loan   • These include most purchase loans, assumptions, refinances,  property improvement loans and equity lines of credit  Transactions Not Covered by RESPA • Loans secured by 25 acres or more (even if a residence exists) • An all‐cash transaction  • A sale where the Seller carries back the purchase price  • A commercial property transaction or other business purpose  transaction  • Income property of 5+ units 

EXPRESS TO SUCCESS

1


7/9/2020

How RESPA Affects Real Estate Agents RESPA outlaws “kickbacks” to or from settlement service providers. To  prevent “kickbacks,” RESPA prohibits settlement providers (such as  brokers, agents, lenders, escrows, title, termite companies, etc.) from  giving or receiving anything of value in exchange for referrals. “Anything  of value” means cash, computer equipment, business supplies, tickets  to sporting events, gift certificates, and anything else that has value to  the service provider. These things cannot be given or accepted either  directly or in exchange for referral indirectly as gifts even though they  are not tied to a particular transaction. 

EXPRESS TO SUCCESS

Settlement Providers Covered by RESPA Settlement services occurring at or prior to the purchase of a home covered  by RESPA, provided by:  • Real Estate Brokers and Agents  • Mortgage Bankers and Mortgage Brokers  • Title Companies and Title Agents  • Home Warranty Companies  • Hazard Insurance Agents  • Appraisers  • Flood and Tax Service Providers  • Home and Pest Inspectors   Services that occur after closing generally are not considered “settlement  services”.  EXPRESS  TO SUCCESS

Some Examples: 1. Can a lender set up a contest for real estate agents under which  the agent who provides the lender with the most business will win  a trip to Hawaii? No. Under RESPA, the trip itself, and even the opportunity to win  the trip, would be a thing of value given in exchange for the referral  of business. 

EXPRESS TO SUCCESS

2


7/9/2020

2.  Can a mortgage broker and a real estate broker advertise their  services together, for example, on the same brochure or newspaper  advertisement? Nothing in RESPA prevents joint advertising. However, if one party is  paying less than a pro‐rata share for the brochure or advertisement,  there could be a RESPA violation. 

EXPRESS TO SUCCESS

3.  Can a lender give a real estate agent note pads with the lender's  name on it? Yes. Such note pads with the lender's name on it would be allowable as  normal promotional items. However, if the lender gives the real estate  agent note pads with the real estate agent's name on it for the agent to  use in prospecting, then the note pads could be a thing of value given  for referral of loan business, because it defrays a marketing expense  that the real estate agent would otherwise incur.

EXPRESS TO SUCCESS

4. Can a title company sales representative take a real estate agent to lunch, dinner or happy hour, etc.? No, the law changed in 2009 and now title reps are not allowed to spend any sums to build and maintain relationships with their clients and prospective clients. They can only provide educational materials and small marketing pieces.

EXPRESS TO SUCCESS

3


7/9/2020

5. An escrow company offers to mail 500 post cards to your farm for you. Violation of RESPA? Yes, you would be receiving a “thing of value” form a settlement service provider. Even if you provided the postcards, the postage is still considered a thing of value.

EXPRESS TO SUCCESS

6. You offer to refer all of your escrow business to Woodchuck Escrow in exchange for the printing of a personal promotion brochure. Violation of RESPA? Yes, the rule works both ways. You would violate RESPA by receiving a “thing of value” for merely providing one or more referrals.

EXPRESS TO SUCCESS

7. Can you pay your dentist to refer clients to you? No.  You are a settlement service provider, and you can’t pay for  referrals, even if the person you are paying has nothing to do with real  estate.  However, you can credit part of your commission to a buyer or  seller through escrow.  (Note that a credit to the buyer must be  approved by the buyer’s lender.)

EXPRESS TO SUCCESS

4


7/9/2020

Fair Housing  • Historically and statistically, there have been identifiable groups  within our society that have received unfavorable treatment with  regard to housing. They have been rejected or prevented from renting  or buying real property, given different terms, pa id higher rents or  security deposits, or experienced a lower level of service during  tenancy than other groups of people.  • The intention of federal and state Fair Housing laws is to require that  ALL persons be given the same treatment, the same services, and  offered an equal opportunity to live in a home of their choice ‐‐ in  other words, the same rights as everyone else. The only exceptions to  this are handicapped or disabled persons who have been given  several special rights in order to establish equal opportunity. EXPRESS  TO SUCCESS

There are two basic types of discrimination: 1. Unfair treatment or denial of normal privileges to a person because  they belong to a protected class. 2. A failure to treat all persons equally where no reasonable distinction  can be found between those favored and those not favored. The protected characteristics or classes have been identified at the  federal, state and in some cases, local levels of government. There are a  total of 24 classes that apply in California:

EXPRESS TO SUCCESS

• • • • • • • •

Race Color Religion Sex (biologically assigned at birth; includes sexual harassment; ex: male,  female) Gender (social and legal status set by society about behavior,  characteristics, and thoughts based on sex; ex: male, female, non‐binary) Gender Identity (how you feel inside, may not align with sex; ex:  transgender, cisgender) Gender Expression (how you outwardly express your gender, may not  align with sex) Sexual Orientation (sexual identity in relation to the gender you are  attracted to; ex: heterosexual, homosexual, bisexual, pansexual)

EXPRESS TO SUCCESS

5


7/9/2020

• • • • • • • •

Marital Status (ex: married, unmarried persons living together) National Origin (your country of birth) Ancestry (country of your parent’s birth) Familial Status (includes pregnant women; families with children  under age 18) Source of Income (includes Section 8 and VASH vouchers) Disability (mental and physical) Age (exception for senior housing; typically related to familial status) Medical Condition

EXPRESS TO SUCCESS

• • • • • • • •

Genetic Information Citizenship Primary Language Immigration Status Military or Veteran Status Arbitrary characteristics as protected under Unruh Individual perceived to be a member of protected class Individual associated with any members of protected class

EXPRESS TO SUCCESS

"Discrimination“  means committing any of the following acts if based  upon a characteristic listed above: • Refusing to sell or rent after a bona fide offer has been made. • Discriminating in the terms, privileges or conditions of a sale or  rental. • Indicating any preference in advertising, marketing or statements. • Falsely representing the availability of a property, including  channeling or steering to a particular neighborhood. • Attempting to persuade owners to sell or rent by making  representation about the entry into the neighborhood of certain  classes of people.

EXPRESS TO SUCCESS

6


7/9/2020

When advertising property in the MLS, by direct mail, in the  newspaper, on the internet, in conversation, etc., do not use any  words, phrases, photographs, illustrations, symbols or forms, which  convey that the dwellings are available only to certain categories of  persons.  The Fair Housing laws are enforced by HUD and California housing  agencies. Consumers often contact HUD to complain about perceived  discrimination. HUD has increased its fair housing budget by more than  30% to $42.6 million with a staff of thousands nationwide, not counting  volunteer efforts in certain communities. Some municipalities have  "testers" who go out into the market to report how they are treated.  (ln other words, there are undercover HUD "police".) 

EXPRESS TO SUCCESS

Penalties (if action is brought by HUD) are: Civil penalties up to $10,000 for first time offenders 2. Civil penalties up to $25,000 if the person had been adjudged to  have committed one other discriminatory practice within 5 years 3. Civil penalties up to $50,000 if the person had been adjudged to  have committed more than two other discriminatory practices within 7  years 4. Injunctive relief 5. Attorneys' fees 

EXPRESS TO SUCCESS

The following list is compiled of words or phrases that are UNACCEPTABLE. Usage of any of the following terms  will be immediately deleted from the listing and the Principal Broker will be notified of the purge. 

• • • • • • • • • • • •

Able bodied/healthy only Bachelor Empty nesters  Ethnic reference  Married Near _____ No children No students Older person  Physically fit  Single person only/couple only Walk to ____

NO Reference to ANY of the protected classes: Race, Religion, Familial Status, Sex, National  Origin, Color, Disability, etc..  EXPRESS  TO SUCCESS

7


E X PR ESS TO S UCCESS

14| Working your Sphere & Establishing Online Presence


          


                                   


                                  


                                  


                             


                             


Holding a Big Time Open House What is the purpose of holding an open house? 1. Promise to Seller Your seller may ask you to hold the house open to procure more buyers. Every seller thinks that most likely the buyer will come through the open house. Actually, a relatively small portion of homes are sold through the open house. 2. Attract Buyers This is the classic answer when asked of most real estate agents. It is a good possibility this is where you will meet buyers at the open house. You can build rapport with them as they come in and begin a relationship with them which will lead to that buyer’s purchase of a home, whether it’s the one your showing or a different one. If you ask 100 agents what the purpose of an open house is, at least 80% would say to attract buyers. 3. Attract Sellers It can happen where most of your visitors are neighbors at the first open house. This is a great opportunity to treat them with your best premier service. They could be shopping for an agent to sell their home. Consider it as a job interview. They could also be shopping for someone who wants to live in their neighborhood. 4. Open Houses are Marketing Opportunities When you list a property, you get to have your personalized sign in the yard, use directional signs in your farm, giving you additional name recognition. You send out just listed postcards to the neighborhood and farm, knock on the neighbor’s doors to announce listing, place an ad in the paper. At the minimum, remember the 10-10-20 rule. Door knock 10 houses to the left, 10 houses to the right and 20 houses across the


street. Announce the listing, announce when it goes into escrow and when it closes. When the property is sold, you get to send out just sold cards to the farm, neighborhood and sphere of influence. You put a SOLD sign on the sign! Open House Strategy It all starts with the selection of the home. Choose a house that is not difficult to find and that has good curb appeal. If you are new, never choose a home without speaking to your mentor, and don’t volunteer to do one unless you are doing with your mentor or an experienced agent. Consider whether or not it’s in your farm or whether or not it’s in a price range and area you are comfortable in. Once you have made the selection and gotten an agreement with the listing agent, it is time to prepare for the open house! • Dress professionally—this is an interview • In advance make all the necessary arrangements with the listing broker including: Keys, Alarm Codes, Gate Instructions, Animal Instructions, etc. • Obtain permission to create your own flyer or sign-up sheet with your information • Confirm what will be done with the open house log after the open house – (will you be sharing it with the listing agent broker and confirm that those leads are yours to pursue). • Get permission from listing agent to call the owner and introduce yourself and let them know you will holding the open. If you want to serve refreshments, ask for permission. • Invite neighbors using door hangers, mailers and phone calls. If it not your listing, you can still say “One of your neighbors has listed with Dilbeck and I would like to invite you to my open house on Sunday. If you indicate you are serving refreshments, you can double your turnout. Think about it this way, if a neighbor is thinking of listing their home, what would they think of an industrious agent who personally invites the neighbors. • Prepare your property brochure after you check with the listing agent. If not, ask if there is enough on hand at the property. Bring you bio and/or set ups that you think you might need. Bring other properties listing in the area.


• Learn the area and the comps. A prospective buyer or seller who walks in the open house may know the neighborhood better than you do. Don’t get caught not knowing the area. If possible, preview other homes in the area and bring comparable data. In addition, know which local schools the home is likely in (refer to school district website to confirm). Be aware of giving too specific of information on schools and boundaries. • Have your mortgage rep prepare a loan rate sheet for you • Add an “open house” rider to the yard sign • On the day of the open house, plant as many signs and flags as you can and the local sign ordinances will allow. They are your least expensive form of advertising. • Do a complete walk through of the property. Door Knocking Once you have chosen your geographic farm (250-500 homes), you can choose many ways to market to the farm. Stacy went over the difference between “check equity” and “sweat equity”. Door knocking is “sweat equity”. Create a budget of what you are willing to spend monthly. Schedule a meeting with your Orange Coast Title rep to help you choose your farm, find out turnover rate, average sales price. Form a weekly plan. It’s important to know what you will do each day of every week to work your farm. Schedule (time block) the necessary activities (i.e. knock on 50 homes, deliver 300 flyers, do a market update, write a monthly newsletter, etc.). The key is to commit to a plan, stay focused and do not waiver. It can take 1-2 years to see results. Walk the farm every week. Go out knock on doors in your farm. Decide how many times you want to see each owner face-to-face (6 times a year) and calculate how many contacts you need to make each week and get out there! Find out who is moving and where they want to go. If you work in a HOT market with low inventory, you have to find your own inventory. “If a can find you your next home, would you move?” and if they say yes, do what it takes to find them their next home. You could also ask “At what price do you become a seller?” You


never know what you can find out by asking the right questions, probing questions. You are virtually guaranteeing yourself two sales and one very satisfied client! Realize that most agents won’t take the time to really get to know people, so they can really help them. If you quickly become known as a hard-working agent that people will want to work with. It is highly recommended you walk the farm before you mail to it. You should leave flyers with the people you meet and leave the flyer at the doors of those who are not home. Leave it tucked under the mat, not strewn around the yard. This will save lots of money in mailing costs. Take great notes on everyone you speak to. Be personal with the people you meet. Find to common ground, get them to know who you are and what you are really about. Send personal notes to people you speak with, thanking them for talking about the offering of your services. Also, ask for referrals. If you need to build up your database, sphere of influence, add people in your farm who you build rapport with. Ask for their email so they can receive neighborhood information, events or your monthly newsletter. Leave something for everyone in your farm at least 1-2 times a month. Consistency is key so each month, so make sure they receive information from you. Examples include just listed cards, just sold cards (ask about disclaimers).


E X PR ESS TO S UCCESS

16| Buyer Representation Agreement Selecting & Showing Property Handling Objections


Session 16.1

Meeting the Buyer Qualifying & Selecting Properties WE WILL COVER:  Meeting the Buyer and Building Rapport  Interviewing the Buyer – Needs Analysis

 Provide the Buyer with informative materials – Buyer Presentation Package  Determine if you want to commit to the Buyer  Commit the Buyer to you using the Buyer Representation Agreement


Win more clients with a professional Buyers Presentation Real estate agents spend a lot of time and effort creating listing presentations. However, these very same agents often overlook an equally important tool that deserves just as much attention: the buyer presentation. Some agents may think I’m just going to meet with the buyer, discover what they want, find it for them, show it to them, write it up for them, and sell it to them. There’s nothing to “present” to them. Why do I even need a buyer presentation?” The best answer to that question can be found with the simple observation that many buyers jump from one agent to another. I truly believe that a key reason for this is a disjointed buyer presentation that communicates lack of organization and poor attention to detail or, worse yet, no buyer presentation. Buyers need to be educated. They must understand how a real estate transaction works. It’s a brand new experience for many. Appraisal, inspection, pricing, listing, and negotiation are not everyday tasks for most people. This is why you need to make them as comfortable as possible every step along the way. Having a solid buyer presentation is the key to generating that comfort.


Win more clients with a professional Buyers Presentation continued The fact is most agents don’t include as part of their buyer presentation a detailed explanation of why the buyer is in good hands. Buyers need to understand the benefits of working with that agent. If the agent has not clearly articulated why he or she is the correct choice, then the buyer will likely pass and hire someone else. So, how do you start a buyer presentation? First, show your value. Highlight points of difference between you and other agents. Demonstrate the things you do that nobody else does. It all starts when you first meet. Your first mission is to find out how they like to search for homes. Do they like to look online first? Do they like to take a drive through neighborhoods first? Or do they want you to hand-deliver all the information to them? If it’s a couple, does one of them have a specific “musthave” on their list? Often, one person dominates by talking about their wants and needs while their partner remains silent. Only later do you find out what that silent partner is looking for. Uncover these hidden needs early to avoid problems later.


Win more clients with a professional Buyers Presentation continued You cannot rely on a sunny personality and “people skills” when working with buyers. You have to supply tools— spreadsheets, research, reports, articles, market data – that are of value to your clients. Want to wow your clients? Here are five items you should discuss at every buyer presentation: 1. Their needs. Not only do you want to discover what they want in a home, you also must find out what they’re willing to give up to get what they really want. 2. The home search process. Go into detail here. Discuss the entire process from beginning to end. Don’t raise their expectations with fantastic promises. Be real, be direct, and be educational. You know how it all works because you do it every day. They do not do it every day, and yet most of them think they know the process. It’s up to you to tell them what to expect at every step along the way.


Win more clients with a professional Buyers Presentation continued 3. Realistic expectations. Some people have a natural inclination to be positive. While this is a great trait to have, these people often are disappointed because they expect miracles around every corner. It’s up to you to keep people grounded in the reality of the home buying process. 4. The pending to closing time period. Buyers often think that once an offer is made, the deal is done and they can sit back and relax. We know better. This period of time from pending to closing can be the most stressful, as unforeseen problems often arise. It’s best to let them know from the start that you are their guide on this journey over rough seas—and they can expect the seas to get very rough during this phase. By being forewarned, they will not think less of you as an agent if this part of the process becomes difficult.


Win more clients with a professional Buyers Presentation continued 5. After the sale. This is where you truly shine. By helping people make one of the most important investments of their lives, you have a stake in making sure that their money is well-spent. Let them know that you’re going to be there for them long after they have actually moved in. You want to know their investment dollars are providing strong returns—so you’re going to stay in touch. That’s powerful. Most agents disappear after their commission check clears. Don’t be that agent. Remember that these people trusted you in a monumental life decision. Be there for them long after the sale and watch repeat and referral business stream in. It’s time to start thinking about how you interact with buyers. Do you cover all the above points? If not, how can you communicate them to your clients? Write out your own buyer presentation based on the ideas I’ve given you, start rehearsing them out loud, and start using them right away. When you do, you will notice that you’re wowing clients too.


Thoroughly review your Buyers want’s and why’s, using a needs analysis form.


Balanced Brain Decisions

ďƒ˜

Ask each buyer to make a list of what they want.

ďƒ˜

Next have them star three things they cannot live without.


Wants (Features) Golf 4 Bedrooms 3 Car Garage Large Kitchen Large Lot

Whys (Benefits) View, Value, Open Space Master, guests, 2 offices 2 Cars + motorcycle, golf cart Entertaining Privacy

People buy their “whys” not their “wants”.


WHAT TO INCLUDE IN A BUYERS PACKAGE Cover Letter to Buyer – Introduction letter that includes a message supporting the buyer’s decision to purchase a property. Dilbeck Materials: Buyers Guide Book Agent Profile Book RERM Pamphlet CAR ZIP Forms: Agency Disclosure Statewide Buyer and Seller Advisory Buyer Representation Agreement- Exclusive Sample copy of the Residential Purchase Agmt. Market Conditions Advisory Dilbeck forms Library: Addendum to the Statewide Buyer and Seller Advisory


WHAT TO INCLUDE IN A BUYERS PACKAGE continued

Guides form the EPUBS Library: QA on REO’s and Short Sales Consumer Guide to Disclosure Requirements for Buyers Cyber Crime Booklet Property Transaction Booklet Water Conservation Flier Include information about the home buying process: Why they should have their own representation Home buying articles Other Information you may want to include: Community Info School Info Demographic Websites Other Beneficial Websites Informative Real Estate Articles List of Suggested Mortgage Lenders Architectural Information


WHAT TO INCLUDE IN A BUYERS PACKAGE continued Include information about the home buying process: Why they should have their own representation Home buying articles Other Information you may want to include: Community Info School Info Demographic Websites Other Beneficial Websites Informative Real Estate Articles List of Suggested Mortgage Lenders Architectural Information


Create a dialogue around the pages in the Dilbeck Buyers Guide to counsel the buyer on the process and your involvement. Set the expectations.


Locating the suggested forms CAR Zipforms CAR Forms Library

Buyers Rep. Agreement


Locating the suggested forms CAR Zipforms

Dilbeck Real Estate Forms

California EPublications


Session 16.2

Using the Buyer Representation Agreement What does the CAR form BRE do? ďƒ˜ Provides the scope and the task and duties to be performed by buyer and broker. ďƒ˜ It provides for compensation to the broker and is non revocable. ďƒ˜ It is an exclusive agreement meaning the buyer will be obligated to pay a commission, even if the buyer finds the property him/herself or uses another broker.


The Birth of a Buyer Agency Presentation

For many years, real estate was practiced in such a manner that agency relationships were only extended to sellers. Any real estate agent who brought a buyer to the table was actually working as a sub-agent to the seller. This all began changing in the 1980s, when buyer agency started gaining momentum in residential transactions to protect the interest of the buyer. In some states dual agency where the listing agent represents both seller and buyer is illegal.


Are you buying through the listing agent or do you have your own agent?


Benefits to the Buyer when using the “Buyer Representation Agreement” •

Surveys have shown that one of the biggest sources of problems is lack of communication between the agent and his or her client. By putting the duties and obligations in writing, buyers will be more informed and about the broker’s responsibilities early in the transaction.

The form also identify task and services broker will do as well as what type of services in a transaction may be performed by others.

Gives the buyer knowledge so they will be able to discuss or negotiate the terms of the relationship.

Provides the buyer the opportunity to discuss and consent to potential dual agency early in the relationship, buyers can consider this questions and avoid an awkward surprise about this issue later in the relationship.

Brings more clarity and certainty to the relationship between buyer and broker, neither becomes dependent upon the other’s memory for establishing its terms.


Helpful tip when reviewing and signing forms with clients. Place the forms into three separate stacks. Advisories and Disclosures make up the majority of forms we ask our clients to review and sign. While these forms maybe the most important in terms of information they are not contractually binding. While on the other hand an agreement like the RPA is a binding agreement between Buyer and Seller. 1. ADVISORY– By signing below, Buyer acknowledges that they have read, understand, accept and have received a copy of this advisory. 2. DISCLOSUREBy signing below, Buyer acknowledges receipt of a copy of this disclosure.

3. AGREEMENT – By signing below, Buyer acknowledges that Buyer has read, understands, received a copy of and agrees to the terms of this Agreement.


Session 16.3

Showing & Closing  Narrowing the scope of the search – Don’t overwhelm your buyer with seeing too many properties in one outing.  Presenting the properties – Help them to be comfortable while investigating the homes on your tour. Give them their space and don’t over sell the house.  Cause the Buyer to evaluate the properties

 Cause the Buyer to compare the properties  Lead and Ease the buyer into the decision that’s best for them.  Write the offer – If it doesn’t get accepted keep plugging away and help them understand why.  Continue to work – Always part with the client on a positive note.


E X PR ESS TO S UCCESS

17&18| Residential Purchase Agreement, Attachments and Buyer Disclosures Part One and Two


X X DILBECK RE

Dilbeck Real Estate, 1030 Foothill Blvd La Canada, CA 91011 Susan Lindsey

XXXXX

(661) 284-6400

(818) 957-4517

2019 TRNG


2019 TRNG


DILBECK RE

Dilbeck Real Estate, 1030 Foothill Blvd La Canada, CA 91011 Susan Lindsey

XXXXX

(661) 284-6400

(818) 957-4517

2019 TRNG


1234 Maple St, Valencia, CA

Dilbeck Real Estate, 1030 Foothill Blvd La Canada, CA 91011 Susan Lindsey

(661) 284-6400

(818) 957-4517

2019 TRNG


1234 Maple St, Valencia, CA Valencia

X

DILBECK RE

XXXXX

X

Dilbeck Real Estate, 1030 Foothill Blvd La Canada, CA 91011 Susan Lindsey

(661) 284-6400

(818) 957-4517

2019 TRNG


1234 Maple St, Valencia, CA

X

2019 TRNG


1234 Maple St, Valencia, CA

2019 TRNG


1234 Maple St, Valencia, CA

2019 TRNG


1234 Maple St, Valencia, CA

2019 TRNG


1234 Maple St, Valencia, CA

2019 TRNG


1234 Maple St, Valencia, CA

2019 TRNG


1234 Maple St, Valencia, CA

2019 TRNG


1234 Maple St, Valencia, CA

2019 TRNG


1234 Maple St, Valencia, CA

DILBECK RE

XXXXX

2019 TRNG


1234 Maple St, Valencia, CA

Dilbeck Real Estate, 1030 Foothill Blvd La Canada, CA 91011 Susan Lindsey

(661) 284-6400

(818) 957-4517

2019 TRNG


X X DILBECK RE

Dilbeck Real Estate, 1030 Foothill Blvd La Canada, CA 91011 Susan Lindsey

XXXXX

(661) 284-6400

(818) 957-4517

2019 TRNG


2019 TRNG


DILBECK RE

Dilbeck Real Estate, 1030 Foothill Blvd La Canada, CA 91011 Susan Lindsey

XXXXX

(661) 284-6400

(818) 957-4517

2019 TRNG


1234 Maple St, Valencia, CA

Dilbeck Real Estate, 1030 Foothill Blvd La Canada, CA 91011 Susan Lindsey

(661) 284-6400

(818) 957-4517

2019 TRNG


1234 Maple St, Valencia, CA Valencia

X

DILBECK RE

XXXXX

X

Dilbeck Real Estate, 1030 Foothill Blvd La Canada, CA 91011 Susan Lindsey

(661) 284-6400

(818) 957-4517

2019 TRNG


1234 Maple St, Valencia, CA

X

2019 TRNG


1234 Maple St, Valencia, CA

2019 TRNG


1234 Maple St, Valencia, CA

2019 TRNG


1234 Maple St, Valencia, CA

2019 TRNG


1234 Maple St, Valencia, CA

2019 TRNG


1234 Maple St, Valencia, CA

2019 TRNG


1234 Maple St, Valencia, CA

2019 TRNG


1234 Maple St, Valencia, CA

2019 TRNG


1234 Maple St, Valencia, CA

DILBECK RE

XXXXX

2019 TRNG


1234 Maple St, Valencia, CA

Dilbeck Real Estate, 1030 Foothill Blvd La Canada, CA 91011 Susan Lindsey

(661) 284-6400

(818) 957-4517

2019 TRNG


E X PR ESS TO S UCCESS

19| Case Study & Presenting the Offer


Case Study & Presenting the Offer Steve and Kathy are relocating to the Southern California area from Florida and have chosen Westlake Village because of the great schools and easy access to the greater Los Angeles area. After weeks of looking they have decided to write an offer on 81 Northam St., Newbury Park. Steve and Kathy are meeting with you to write their offer

Terms: • • • • • •

Offer price is $800,000 30 Day Escrow 3% Initial Deposit 20% Down Payment They are approved, with Partners United, for a conventional fixed rate loan at 4.125% with no points. You are in possession of a Pre-Approval letter You are in possession of the Buyer’s Proof of Funds

Contingencies: •

Inspection 14 days, Appraisal 17 days, Loan 17 days

Seller to pay for: • • • • •

Natural Hazard Report including environmental - prepared by First American NHD. All government requirements and retrofits County and City Transfer Fees (if applicable) Escrow to be Inter Valley Escrow (Buyer and Seller to share this cost – As Is Customary) Title to be Orange Coast Title

The expiration of the offer is 2 days at 6:00pm.


What do you need to know from the buyers to write their offer?

1. __________________________________________________

2. __________________________________________________

3. __________________________________________________

4. __________________________________________________

5. __________________________________________________

What information do you need about the property for the offer?

1. __________________________________________________

2. __________________________________________________

3. __________________________________________________

4. __________________________________________________


Information and Forms for writing an offer. • MLS sheet for 81 Northam • Real List Profile (Obtained from Realist) • Disclosure Regarding Real Estate Real Estate Agency Relationship • Possible Representation of More Than One Buyer • Wire Fraud and Electronic Funds Transfer Advisory • California Residential Purchase Agreement and Escrow Instructions • Buyer’s Inspection Advisory • California Consumer Privacy Act Advisory • Market Conditions Advisory • Statewide Buyer and Seller Advisory • Square Footage & Lot Size Advisory • Dilbeck Addendum To Statewide Buyer And Seller Advisory and Purchase Agreement • Dilbeck Affiliated Business Notice • Dilbeck Mold and Water Intrusion Disclosure • Information Regarding FIRPTA • Buyer Commission Agreement


Tips for Discussion with the Listing Agent Calling a listing agent prior to writing your offer to find out what is important to the seller can go a long way. We all know, in most cases, the price is the most important thing but in some cases other factors (terms and conditions) can and often do play a factor in which buyer the seller chooses. For Example: • Close of Escrow Date – Does the seller want a quick escrow or do they need a longer escrow. • Possession – Will the sellers need an extra day or two, after the close, to move out. • Are there any items the seller wants to exclude from the sale. These are just a few of the things that may make your buyer’s offer more appealing to the seller

Compile and Send the Offer: • Have the buyers write a letter as to why this is the home for them! • Save all the contract documents as one (1) pdf • Write a professional and concise email to the listing agent outlining the highlights of the offer • Include as attachments: o The letter from the buyer o The contract package (as one document) o The buyer’s Proof of Funds & Lender Letter • Request the agent confirm receipt • After it has been sent call/text to let them know it has been sent and ask when you can expect a response • Provide status updates to the buyer


Navigating the Zipforms Platform Logging in to Zipforms 1. Begin by logging into Dilbeck Home (www.dilbeckhome.com)

2. Scroll down to the home page and select “Go” beneath the Zipforms icon

3. Select “Go” again

Zipforms Cheat Sheet - 9/6/2019

Page 1


4. Select “Continue”

5. You are now in the Zipforms home screen

Zipforms Cheat Sheet - 9/6/2019

Page 2


Creating a New Transaction 1. Select the “Transactions” tab on the top of the screen

2. Select the “New” button on the top of the screen

3. Select the appropriate transaction type

Zipforms Cheat Sheet - 9/6/2019

Page 3


4. Fill in the “Transaction Information” a. Enter Transaction Name (using the property address is suggested) b. Disregard location c. Select the Property Type i. For purchase transactions that are active on the MLS: Select MLS Connect ii. Under Choose MLS Select “CRMLS1” from the drop down menu iii. Select Listing Type from the drop down menu iv. Type in MLS listing ID v. Check the “Include Property Photo” box vi. Select Find vii. Once the property information comes up, select “Use Listing”

Zipforms Cheat Sheet - 9/6/2019

Page 4


d. Apply the appropriate template e. Select Save

5. Once the transaction has been opened, the landing page will look like this. To begin working on your transaction, select the “Documents� tab

6. The Documents tab will contain the basic forms needed for the transaction type

Zipforms Cheat Sheet - 9/6/2019

Page 5


Filling out the Cover Sheet Filling out basic information on the cover sheet will help expedite processes within the platform 1. Open the Cover Sheet

2. Enter buyer/seller name and email (if applicable)

3. Enter property address

4. Confirm your information is entered

Zipforms Cheat Sheet - 9/6/2019

Page 6


5. Enter cooperating agent information (if you used MLS Connect, their information should have already auto-populated)

6. Once all the information has been filled out, save form by selecting “Save” at the top of the screen

Adding a Form If a form that you need is not part of the template, the form can be added to the transaction manually 1. Select the “All Forms” tab at the top right of the screen

Zipforms Cheat Sheet - 9/6/2019

Page 7


2. Locate the form you need using the sidebar to the right of the screen

a. You can either scroll through the list or type in the name of the form in the search bar b. You can navigate through different libraries by changing the library that is displayed or selecting “All” 3. Add the form to your transaction by clicking on it. Once the form has been added, you can return to the documents tab by clicking the “X” at the top right of the sidebar

Zipforms Cheat Sheet - 9/6/2019

Page 8


Uploading a PDF Instructions for uploading a PDF document that has already been saved to your computer 1. Select the “Add Doc” button on the top of the page

2. Select “Browse for Document”

3. Select “Browse for a File”

Zipforms Cheat Sheet - 9/6/2019

Page 9


4. Locate the item to upload and select “Open”

5. Rename item (if applicable) and select “OK”

6. Confirmation that the form was added will appear at the top of the screen

Zipforms Cheat Sheet - 9/6/2019

Page 10


Emailing a Document Items can be emailed to clients or to yourself directly from this platform 1. Select the send button from the top of the screen

2. Select “Email” from the drop down menu

3. Select the items you would like to email and then select “Next”

4. Select recipients from the pop-up menu then select “Done” (this is if the recipient is a part of the transaction)

Zipforms Cheat Sheet - 9/6/2019

Page 11


a. If recipients are not part of the transaction (business manager, etc.), begin typing their address in the “Send to recipients” box directly i. Separate multiple emails with a semicolon

5. Once the email recipients are added and the subject line and email body are complete, select “Send using Ziplogix” and then select “Send”

6. Confirmation that the email has been sent will appear at the top of the screen

Printing a Document 1. Select print from the top of the screen

Zipforms Cheat Sheet - 9/6/2019

Page 12


2. Select the items to be printed then select “Next”

3. Confirm items to be printed then select “Print”

4. Follow on screen instructions and select “Print”

Sending Items for Signature via Docusign 1. Select “E-Sign” from the top of the screen

Zipforms Cheat Sheet - 9/6/2019

Page 13


2. Select “Create a New Signature Packet”

3. Select Documents to Include from the pop-up then select “Close”

4. Select “Next”

Zipforms Cheat Sheet - 9/6/2019

Page 14


5. Add persons to sign documents by selecting them from the pop-up menu then select “Close”

6. Select “Next”

7. Review entire document and select “Send”

8. Confirmation that the Docusign has been sent will appear on screen, select “Close”

Zipforms Cheat Sheet - 9/6/2019

Page 15


Additional Docusign Tips and Tricks 1. Customizing the Docusign Email and Subject Line a. Before sending the Docusign email, select the “Actions” dropdown from the top right of the screen then select “Edit Message”

b. Edit the subject line and email body then when finished, select “Done”

c. Review entire document and select “Send”

d. Confirmation that the Docusign has been sent will appear on screen, select “Close”

Zipforms Cheat Sheet - 9/6/2019

Page 16


2. Changing the order in which the Docusign is signed and CC’ing parties a. Before sending the Docusign email, select the “Actions” dropdown from the top right of the screen then select “Edit Recipients”

b. Change the order in which parties sign the document by changing the number assigned to their right. Multiple parties can be assigned the same number.

i. In addition to changing the order of recipients, you can copy additional parties by selecting “Add Recipient” and selecting “Receives a Copy” to the right

Zipforms Cheat Sheet - 9/6/2019

Page 17


c. Select “Done” when the necessary changes have been made

d. Review entire document and select “Send”

e. Confirmation that the Docusign has been sent will appear on screen, select “Close”

Zipforms Cheat Sheet - 9/6/2019

Page 18


E X PR ESS TO S UCCESS

20| Negotiations


Trusted Advisor

Expert Facilitator

SKILLED NEGOTIATOR Print date 7/10/2020

1


You are already a Skilled Negotiator. Make sure you identify yourself as a skilled negotiator to your clients. When a NAR survey asked buyers and sellers what assistance they were looking for from their agent, help with negotiating by a skilled negotiator was one of the top responses.

Print date 7/10/2020

2


HOW OTHER CULTURES NEGOTIATE Do all cultures negotiate in the same fashion as we do? Who has been to Mexico? Does everything have a price, or do you negotiate the price? How about Turkey? If you offer to buy something at a bazaar and pay the first price given, the vendor may be insulted. Negotiation is expected, it is part of the experience, it is enjoyable and fun, and it is a social interaction. How about in the United States? Do we negotiate everything? No. We are a fixed price culture. We are comfortable with that. We seem only to negotiate at the extremes. We negotiate at a garage sale over small amounts of money for junk that the other person no longer wants, but even then, many people are still uncomfortable with this negotiation. When we purchase a big-ticket item, a car or a house, we negotiate because it is expected of us. But we never seem to negotiate anything in between these extremes. So how good are we at negotiation? If you play golf once a year, how good are you at golf? Practice, Practice, Practice. THE STORY OF THE VISITOR FROM SAUDI ARABIA Like any skill, negotiation takes practice. Practice makes us comfortable with negotiation. Think for a moment: How do you feel when you negotiate? Are you comfortable? Do you enjoy the experience? Do you feel skilled, or are you afraid to negotiate because you are afraid of losing or it might be embarrassing? Since negotiating is a daily experience for many other cultures, it follows that we can learn from other countries and cultures. We may want to consider importing the traditions and practices of these other cultures and make them our own. Let’s consider some of the things other cultures do and see if we want to try and blend those traits into our negotiation skills. Even if you decide not to negotiate like these other cultures, at least you will come away with an understanding of how they negotiate, and you will have a comfort level in understanding the process.

Print date 7/10/2020

3


SOME CULTURES LEAVE THEMSELVES ROOM TO NEGOTIATE Who has been down to Mexico and bought a sombrero? A Mexican peasant may not have an education from Harvard, but they certainly know what a sombrero costs them and what they usually sell for. They usually sell that sombrero for about $8.00. So, is that what they tell you when you ask the price? No, they tell you it costs $30, $40, $60. Why would they do that? Lack of knowledge? In a way. They know what the sombrero costs them, they know the usual selling price, but what they don’t know is what you may be willing to pay. They build room into their price to help them determine that information. What about people from Russia, or from the Middle East? Do they build an amount into their offer to test what you are willing to sell something for? Let’s say you have a listing on a house for $500,000. A fixer. And a buyer comes in from one of these hard-negotiating cultures. What do they offer you for the house? $490,000? No way. They offer you $400,000, maybe lower. Why? Are they serious? Yes They are serious in their job of trying to find out what you are willing to sell the house for, how badly you have to sell it, how little you might accept. They test that by leaving plenty of room to negotiate. When they are selling, they tend to price high, and when they are buying, they tend to offer very low. Why? Because their experience has shown them that this works. So, is this how you should negotiate? No. But I am suggesting you consider offering a little lower when you make an offer, to test the market, to test their resolve. And this information now helps you understand them, warns you what to expect, and allows you to deal with their offers without getting personally excited. When you become emotional in any negotiation, there is a good chance you could “get taken”. And there is a wide range of emotions that can affect your negotiation. Love---I absolutely love this house. (Prepare to pay a lot more.) Anger—I think they are being dishonest. (Prepare to cancel the deal.) Let’s consider some key Negotiating Elements that other cultures utilize and see if you want to import these into the toolkit you use when you negotiate.

Print date 7/10/2020

4


THE PRESSURE OF TIME. One trait that Asians exhibit is patience, while Americans exhibit impatience. We want to get it done now, right away. The Asian culture understands the principle of using time to their advantage, particularly when dealing with Americans. Most Asian cultures have the same philosophy. When the Paris peace talks began to end the war in Vietnam, the American team reserved hotel rooms. The Vietnamese team set themselves up in a large estate with a two-year lease. They were in no hurry, we were. We do it to ourselves. They understand that rushing can cause errors, and they prefer to negotiate very slowly.

+

THE PRINCIPLE OF LIMITED AUTHORITY As China became a world economic power, their negotiating teams often traveled to the U.S. to negotiate very strongly for what was needed. Just when everything was about to conclude, they admitted that, although the offer was very fair, they were not able to accept the offer. They would take their recommendation back to their superiors. Of course, their superiors never were quite satisfied by the offer, and we always had to come up with yet another and better offer. And then that offer would be recommended to the next echelon of supervision. This would go on and on until we were ready to give them anything to finally confirm the agreement.

Print date 7/10/2020

5


SOME CULTURES WILL PUSH AND PUSH UNTIL YOU TELL THEM “NO!�

The Asian culture can be very staunch in their demand for something when the final agreement is in sight. In one home sale that I was involved in, the Asian buyer discovered that there might be a problem with the electrical supply panel due to a manufacturer recall of a similar, but not the same, panel. She insisted it prevented her sleeping; she had to have it replaced at a cost to the homeowner of $2,000. It was not safe; she could never live in the house with that constant fear of fire. This was a final negotiation for repairs, everything else had already been agreed to. The buyer got everything they wanted, and now they wanted more. We finally decided to firmly say no, and we were going to cancel the escrow. After sending this strong message, they came back and said they would pay for half of the cost if we would pay the other half. We gave them a credit in escrow for $1,000 and the sale closed. And that panel is still on the house. It was never replaced. However, had we not strongly said no, we would still be negotiating over other concessions they would have devised.

Print date 7/10/2020

6


MAKE CONCESSIONS VERY SLOWLY AND CAREFULLY When the Russians were negotiating for large grain purchases in the 70’s, we learned that in their culture making a concession was a sign of weakness. In our culture, making a concession was a way of showing we were willing to compromise somewhere in the middle. Whenever we made a concession, we only increased their impression of how strong their position was, and they became stauncher in their demands. The Russians only understood a strong position, and by using a strong position we were finally able to convince them to settle.

THE FRENCH HAVE A METHOD OF ASKING IN RETURN I once advised a company that was owned by the French. We prepared a wonderfully elegant plan of completely revamping the entire manufacturing facility over a period of 5 years. It soon became clear that our plan would never be accepted, and the main reason was that the French team did not have any input. Whenever we asked for something, they would respond by giving us a concession, but only if we also gave them something in return. Many times, they gave us one thing and insisted on getting three changes that they wanted in return for their agreement. We finally got to a conclusion, one that the French appreciated due their participation, and we got to that conclusion by giving them something each time we got something.

Print date 7/10/2020

7


THE USE OF STRONG EMOTION IN A NEGOTIATION IS FOREIGN TO AMERICANS. However, it is not foreign to other cultures. They use emotional outbreaks as just another negotiating tactic. THE STORY OF NIKITA KHRUSHCHEV AT THE U.N.

If you cry, make sure they see you cry. If you are trying to influence someone in a negotiation, a display of emotion can be a very good tactic.

Print date 7/10/2020

8


WHAT DO YOU WANT TO CONSIDER DOING NEGOTIATORS IN OTHER CULTURES CAN TEACH US?

THAT

In conclusion there are many negotiating strategies used by other cultures that we should not only understand, but we may want to import some of those traits into our negotiating style to give us more choices:

They leave themselves room to negotiate.

They use time and understand the pressures it can cause.

They limit their authority to determine if there are any more concessions available.

They make concessions slowly and carefully.

When they make a concession, they ask for something in return.

They will push the negotiation until they sure there is nothing left.

They are not afraid to use emotion to punctuate a negotiation point.

I’m not saying you should negotiate like this. I’m advising you to consider incorporating some of these into your negotiating style to give yourself more choices.

Print date 7/10/2020

9


HOW WOULD YOU LIKE TO BUY A TRUCK? AND WHAT DOES THAT HAVE TO DO WITH HOW I NEGOTIATE?

Print date 7/10/2020

10


Is this case similar to the negotiations that I am involved in?

There was a range of outcomes. Do you see that in real estate? When you are involved in the sale of a property, two properties that seem exactly alike, do they both end up with the same price and the same terms? No, there is a range of outcomes. If there is a range in the outcomes, do you think the skill of the negotiators might influence the outcome, might influence where within the range the agreement was finally settled? If negotiating is a skill, just like golf is a skill, do you think you can improve that skill? That’s why we are here. To paraphrase a line from the movie Top Gun, “You are already good negotiators. We’re going to make you better.”

What were you thinking about during this negotiation exercise? Let’s discuss the pressures on the participants in this exercise. First, let’s look at the Buyer. Besides having money, the Buyer also had pressures to buy. What were the pressures on the buyer to buy? Now let’s talk about the Seller. The Seller had pressures to sell. What were the pressures pushing the Seller to sell? Now that we all understand the pressures on both sides, let me ask you this: Were the pressures equal, or was there more pressure on the Buyer or more pressure on the Seller? Now the final, important question:

Did the fact that the Sellers had more pressure on them affect the outcome of this negotiation? If not, why not?

Print date 7/10/2020

11


What were you, as the Buyer or the Seller, thinking about while you were negotiating? About your pressures?

WHAT IS THE MOST IMPORTANT LESSON TO REMEMBER WHEN NEGOTIATING? What should any good negotiator always force him/herself to remember? First start by admitting that you have pressures. You always have pressures. You always have a reason to be involved in the negotiation. You always try to get something you want, that is why you involved. That is why you are negotiating in the first place.

THE MOST IMPORTANT LESSON TO REMEMBER IS THAT EVEN THOUGH YOU ARE UNDER PRESSURE; ALWAYS REMEMBER THAT THE OTHER SIDE ALSO HAS PRESSURE. UNDERSTANDING THE PRESSURE ON THE OTHER SIDE IS THE KEY TO BEING A SUCCESSFUL NEGOTIATOR.

Print date 7/10/2020

12


What is the difference between an Appraiser and a Negotiator?

AN APPRAISER: A NEGOTIATOR: How do you find out the pressure on the other side? Ever hear the saying that before any negotiation “you’ve got to do your homework”? OK, I’m ready. I can do that. I’m not afraid of doing work---but what work should I be doing? What is my homework assignment”?

Your homework assignment is this:

FIND OUT WHAT THE PRESSURE IS ON THE OTHER SIDE.

Print date 7/10/2020

13


TIME Was time an issue in this practice negotiation? Could you have done better if you had more time? Was time negotiable? All you had to do is ask me for more time.

TIME IS ALWAYS NEGOTIABLE. BREAK

10 minutes

Print date 7/10/2020

14


WHY SETTING GOALS IS SO IMPORTANT TO SUCCESS Becoming comfortable with negotiation can only be achieved by understanding the Process of Negotiation. Once you understand what is happening, you will not only negotiate with confidence, but it will actually become enjoyable. It should be one of the most satisfying parts of your job. To understand the process, we first we must understand goal setting and how it affects a negotiation. A great many people do not set their goals too low, and they achieve them.

“A” Students achieve 4.0 averages because they set their goals on the “A”. “B” Students achieve 3.0 averages because they set their goals on the “B”. They are happier trying for and getting a “B” than trying for an “A” and getting a “B”. They do not feel as if they failed. But by failing to set their goals high enough, many of them do not achieve all that they can achieve. People like Tony Robbins have made phenomenal careers out of telling people that they can achieve anything if they decide to do it. Earl Nightingale trained us to set goals because people with goals succeed because they know where they’re going. Many fortunes have been made explaining the Power of Positive Thinking as expressed by Norman Vincent Peale. Sam Walton developed his own catch phrase to lead his company to success:

HEATKE Print date 7/10/2020

15


GOAL SETTING IS A CHANGING TARGET Research has shown that goals are not stamped in concrete. Goals can change. Sam Walton told all his employees that their goal was to beat Sears. It became a near-religious quest. Everyone knew what the goal was and was committed to it. When Wal-Mart overtook Sears, they didn’t know what to do next. They were happy, but they now lacked direction. Then Sam Walton laid out new goals. Goals are affected by success or failure. When we reach a goal, we tend to raise our next goal. If we do not reach a goal, we tend to lower our next goal. As individuals, we like to achieve goals, it makes us feel good. And setting higher goals help people achieve success. Research by Professor Hovland, Yale University

GOAL SETTING IN A REAL ESTATE NEGOTIATION Always discuss negotiating targets with your clients to get their input and their agreement in how the negotiation should proceed. Too many times, Sellers just list high and think they will drop the price if they don’t get that lofty price. Too many times, Buyers just lowball without the next step in mind. As a minimum, you and your client should decide on the following: •

What is your target price?

_____________________

What is your starting point?

_____________________

What is your bottom line?

____________________

What price reply can we expect?

_____________________

How should we make time pressure work for us?

Besides the price, what other things are important to us?

Put these in writing and refer to them as you negotiate.

Print date 7/10/2020

16


EVERYBODY’S GOAL----WIN-WIN NEGOTIATING HAVING EVERYBODY WALK AWAY HAPPY Prior to a negotiation, it is important to set a goal. However, due to the process of negotiation, goals can change during the negotiation. We want both sides to win. Everyone wants to have a win-win negotiation. But people are not easily satisfied. As negotiators, part of our job is to make sure that everybody exits the negotiation happy. If that is true, it begs the question:

What makes people happy in a negotiation?

Print date 7/10/2020

17


WHAT GIVES SATISFACTION IN A NEGOTIATION? Karrass1 did research on the relationship between high dollar agreements and the level of satisfaction people had with their performance. Description of the Pharmaceutical Lawsuit Exercise Once both sides settled, they were asked to describe on a scale of 1-10 how they felt about the negotiation. The range of settlements was huge, from a low of $36,000 to a high of $850,000. The range of how they felt about their performance was fairly consistent--everyone thought they did a pretty good job, with few exceptions. There was no direct relationship between the settlement amount and feeling of how they thought they did. Money was not tied to happiness. If the satisfaction of their accomplishment was not measured by the amount of money achieved, what did cause the feeling of happiness and satisfaction?

Satisfaction came from how the negotiation was conducted, not by the end result.

THE PROCESS ITSELF IS WHAT GIVES PEOPLE SATISFACTION IN A NEGOTIATION. There are many factors that influence people’s satisfaction, but one of the most important contributors to their satisfaction with the negotiation centers around the process of how concessions were made. Since we want to ensure that both sides walk away happy, pleased with the negotiation and with how they felt about their performance, then we want to spend some time understanding how to effectively make concessions.

Dr. Chester Karrass, The Negotiating Game, 1970, Thomas Y. Crowell, Publishers

1

Print date 7/10/2020

18


GROUND RULES OF CONCESSION MAKING • Leave yourself room to negotiate

• Be cautious with your concessions

• Control the pattern of your concessions

• Don’t concede first on major issues

• Don’t concede the same amounts as the other side

• Be very careful as the deadline approaches

• Always tie a string to your concessions Print date 7/10/2020

19


DIFFERENT MODES OF NEGOTIATION

THE ATTITUDINAL MODE

THE COOPERATIVE MODE

THE COMPETITIVE MODE

THE PERSONAL MODE

Print date 7/10/2020

20


FUNNY MONEY THE DIFFERENT WAYS WE CHOOSE TO TALK ABOUT MONEY

• Lease vs. Purchase---car, house • Commission % • Guarantees • Percentages---Drop 10%, then add 10%---you get a different number. • Credits • The Problem with Large Numbers When talking price, do you talk about raising the offer by $5,000 or tell them it is only another $30 per month? How much difference in real money is 5% versus 6% on a $1 million house? What’s the difference of dropping the price of the home $10,000 versus giving an incentive of $10,000 to get into escrow by a certain date? The key to dealing with Funny Money is to calculate it, compare real dollars. What price should you list a $700,000 house at, $699,000 or $700,000?

Print date 7/10/2020

21


PRICING YOUR LISTING TO BE SEEN BY MORE BUYERS

You have a $700,000 listing Should you price like WalMart--$699,000? Or at $700,000? First, think of your buyer audience. Where do they do their searches? If someone is doing a search for $650,000 to $700,000, will they find your $699,000 listing? How about the buyers searching between $700,000 and $750,000. Will they find your listing? Oftentimes the price you choose will have buyers either find you or not find you. It is not a question of whether $699,000 or $700,000 makes the house sound less expensive. It is better to be found in two searches. You need to understand the ranges that have been set up by the search sites to make sure your listing is discovered in both searches.

Print date 7/10/2020

22


POWER NEGOTIATION IS A GAME ABOUT POWER Many times, people will posture to improve their power. Even before any real issues are discussed, some people will want to send you a message that they have more power than you do. “I’ve been in this business 25 years!” Often this can be a detriment to us, because this inner knowledge of our pressures creates a fear that the other side has more power.

That’s why people do it----because it works!

THE NUMBER ONE TOOL OF THE BUYER: THE POWER OF COMPETITION Who is more apt to use the Power of Competition, the Buyer or the Seller? In a Seller’s Market, there are multiple offers for a property, which push the price up because of more competition for fewer listings. In a Buyer’s Market, homes are on the market for a long time, and when a buyer shows interest Sellers are quick to give them whatever they want. The main problem here is one of perception. Both Buyer and Seller concentrate on their own pressures, and assume the other side has less pressure. As a result, they believe the other side has more power. So, what do you do to handle this perception and change it?

With Information---Comps---Visits to competing properties

Print date 7/10/2020

23


THE POWER OF LEGITIMACY The Power of Legitimacy can give a negotiating point the power of law. Most of that is due to perception. In our society, people are conditioned to regard anything printed as written in stone. What type of things can give you the power of legitimacy when negotiating on the sale or purchase of a home? Pricing Using Legitimacy • • •

Pricing too low is not smart---you leave money on the table Pricing too high is also not smart We want to be competitive (People do not want to be non-competitive)

Use Legitimacy in your market analysis to guide your client in determining the price. • • • •

Expired---these are marketing offerings that failed. They set a not-toexceed price. Solds---Past history of what sales actually took place Currently For Sale---Active listings---This is the competition Use a map with prices---better for your clients to “see” the prices in their area.

Print date 7/10/2020

24


THE POWER OF RISK The more money involved, the greater the perceived risk. Risk is inherent in any negotiation. And risk can be negotiated. Is there a risk this buyer will walk away? Is there a risk that the house condition is not what it seems? Is there a risk that they will not repair anything? Is there a risk that the repairs will not be done acceptably? Is there a risk it won’t close on time? Is there a risk the Buyer misrepresented their finances? Is there a risk the inspector will not do an adequate job? Is there a risk we may be involved in a lawsuit? Is there a risk their contingent property won’t sell? Do people change their mind about the importance of a high price when the first two contracts fall out of escrow?

Print date 7/10/2020

25


THE POWER OF KNOWLEDGE Sir Francis Bacon said, “Knowledge is Power”. Napoleon Hill, in Think and Grow Rich, said “Knowledge is power, but only when it is organized and directed to a specific strategy”. Just having knowledge is not enough. You must know how to use it. What knowledge would you like to have about the other side? Who generally knows more about the market, the Buyer or the Seller? What can you do to give both Buyer and Seller equivalent market knowledge?

THE POWER OF PRECEDENT We have been conditioned to believe that the past supports the future---“This is what similar homes sold for recently.” The Power of Precedent allows us to narrow the range over which we will conduct the negotiation. Many items just accepted as common practice. It also provides general acceptance about many of the elements that are negotiable. It takes them out of the negotiation. For example: •

Seller to provide a home warranty policy.

Contingencies to be removed within 17 days.

Seller agrees to repair all items in pest report identified as Section 1.

Seller to provide smoke detector and water heater bracing compliance.

Buyer and Seller to split Escrow costs, each paying their own.

Note that all these things are negotiable, but often they are not negotiated because of the Power of Precedent.

Print date 7/10/2020

26


THE POWER OF CHOICE When the Iranian Revolution turned the American diplomatic corps into hostages, President Jimmy Carter was given a choice to make. He was told that if he attacked with military force, the hostages would be killed. It was a very hard decision to make and caused the President to basically freeze. He wanted to send in the troops, but he didn’t want to make the decision to have the hostages killed. The Iranian revolutionaries gave him a choice to make, and it gave them more power. When President Reagan faced the situation, he gave the revolutionaries a choice. He told them to let the hostages go, or he would do something. He did not tell them what he would do, only that they would be responsible for what happened. It was their decision. He gave them a choice to make, and it gave him more negotiating power. They let the hostages go.

Giving the other side a choice to make gives you more power, since you are giving them the choices, either of which you would be happy with. They forget that there may be other choices.

SUMMARY THE OTHER SIDE TRIES TO SHOW YOU THEY HAVE ALL THE POWER. ALWAYS REMEMBER THAT THEIR POWER IS LIMITED. ALWAYS REMEMBER THAT YOU ALSO HAVE POWER. ALWAYS REMEMBER THAT YOU HAVE MORE POWER THAN YOU THINK.

Print date 7/10/2020

27


TACTICS—THE DIRTY TRICKS OF NEGOTIATION If learning tactics is why you took this class----you’ve come to the wrong course. First and foremost, I am not teaching tactics so that you should use them. I am introducing them so that you can recognize the variety of tactics and know how to deal with them. One big problem with using any of these tactics is that they each have the capability to cause an emotional reaction. Emotional reactions can cause complications, and the more complications, the less the chance of successfully completing a negotiation. There are benefits to understanding tactics. !)

You can use them as tools in your negotiation.

2)

You can gain understanding of the other side by recognizing the tactic.

Some tactics can be simple, yet still send a message.

THE FLINCH Some tactics have been around a long time, but come back occasionally.

THE AUCTION This is the same as dealing with a multiple offer situation.

Print date 7/10/2020

28


THE NIBBLE One of the easiest tactics to use. It is very easy for a client to take advantage of an agent with this tactic. The contract is agreed to, contingencies are removed, we are headed toward the close, and the client asks you for a favor. • • • • • •

Can I move my furniture in before COE? Could we move up the COE by two days? Do you think they would leave the yard furniture and the potted plants? Do you have someone who can take care of my notaries at the house? I’m going to be gone all next week; do you think you could water my plants? I don’t have my checkbook---if you pay your handyman, I’ll pay you back.

Nibbles are wonderful little sales opportunities, but often they are opportunities we would rather not have. You are going to get a big check. You haven’t done anything lately to earn your commission. Can’t you just do me this one little favor? Of course, but there are two problems with nibbles: 1. They are not appreciated 2. They keep coming and keep getting bigger until we say no. So how can you control the nibbles that are getting out of hand?

• • • • •

Lack of authority—I can’t do that because my manager makes that call. Power of legitimacy---that’s against the Federal RESPA laws. Sometimes something as simple as saying “Are You Kidding?” Keep track of the nibbles---send them a nice note---document the nibble. Nibble back—have counter-nibbles ready.

Nibbles are good, they build a relationship. But make sure they are appreciated.

Print date 7/10/2020

29


AS-IS Our contracts call for selling a home “as-is”. But what do we think when we hear the words “as-is”? We think that there will be no negotiation over repairs. They are telling us ahead of time that they will not fix anything. This was a tactic often used in a Seller’s market. But it is also now used when dealing with short sales and REOs.

TIME TACTICS In our culture, one of the toughest pressures we deal with is the pressure of time. The default in our contracts is three days to reply to an offer. So, what do we do, we put in 24 hours. We put in “Upon Presentation”. That pushes everyone to really decide quickly. And quick decisions, quick negotiations, are often poor negotiations, ones that favor one side or the other. Is time negotiable? Of course it is. But we must remind ourselves that the constraints we put on an offer can always be changed

Print date 7/10/2020

30


SATISFACTION TACTICS Here are some tactics that are very useful to increasing the satisfaction of all involved in the negotiation.

JUST SAY NO INCLUDE DESSERT TIE A STRING TO YOUR CONCESSIONS

Print date 7/10/2020

31


WIN-WIN NEGOTIATING . OK, we agree, it’s great to be a win-win negotiator. But what does that mean? First, why do we like it? It seems fair, and we like being fair. We look at negotiation as a contest. In a contest, there are winners and losers. But what if we can change that so that both sides win? Isn’t that wonderful? Here’s the biggest question of all---How The answer is---through

do we get to a win-win?

continual negotiation.

You should continue to negotiate once you get a good price, to increase the value you receive for that price, for both the buyers and the sellers. The Japanese do this. Once you agree to a contract on Friday, they come back on Monday to see if it can be improved. Nothing wrong with improving, as long as both sides agree. You had the best contract available on Friday, but on Monday you may be able to make it even better.

BUYING AND SELLING A HOUSE IS NOT ONE NEGOTIATION, IT IS A SERIES OF NEGOTIATIONS.

Print date 7/10/2020

32


NEGOTIATING REPAIRS, CREDITS AND PRICE REDUCTIONS. Make sure you look at the big picture---what is really important? Obtain estimates of repair costs. Prioritize what is important to your clients Prepare a list of repairs in three categories: • Safety Items (and legally mandated items) • Important Items • Negotiating Give-ups Should you ask for a repair or a credit? Always ask for licensed Contractors Keep 150% of the amount of the repair in escrow if the repair is to be accomplished after escrow closes. Stipulate that the buyer’s inspector will to return to verify repairs were done. Attach a string to your concessions.

Print date 7/10/2020

33


TYING A STRING TO YOUR CONCESSIONS You need to have a list of alternatives well thought out ahead of time, readily available, so that you won’t forget them in times of negotiation stress. Let’s prepare the list today, so that you can have it available when you need it. You just received a counteroffer. You have planned your price negotiation well; you are prepared to give them an appropriate price response. But in addition to that price response, you are going to offer it with strings attached. What are strings that you would like to attach to the counteroffer? ___INTERVALLEY ESCROW____________________________________ ___ORANGE COAST TITLE____________________________________ ___BACKUP APPLICATION WITH PARTNERS UNITED FUNDING_____ ___BUYER PAYS SOME OF SELLER CLOSING COSTS_____________ ___ALL REPAIRS TO BE COMPLETED BY LICENSED CONTRACTORS ___PARTIAL RELEASE OF DEPOSIT__ (see Mona’s guidance on this)__ ___CREDIT IN ESCROW INSTEAD OF REPAIRS___________________ ___INCLUDE POTTED PLANTS_________________________________ ___REPAIRS TO BE MADE BY A CERTAIN DATE__________________ ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ Use this list the next time you are in a negotiation, excuse yourself and consult your list. Don’t just give away money, tie a string to your counteroffer and use it to justify your change in dollars, to learn something about their pressures, and to create satisfaction in the negotiation for both sides.

Print date 7/10/2020

34


CLOSING REMARKS You didn’t have to learn everything—you are already good negotiators. But it does help to see the process, to understand what is going on. The best way to begin a negotiation is to plan. •

Set your goals

Determine where your first offer should be.

Plan your concessions ahead of time.

Make Time your Friend, work with time, and don’t be afraid of it.

Learn all you can about the pressures on the other side. Make the other side work---that creates satisfaction for both sides. Don’t be afraid to take people on, even when it is uncomfortable. Negotiate all the time. You will get better and more comfortable with it, and you will learn a lot from the people you deal with. Learn to enjoy it. Go have some FUN negotiating.

Print date 7/10/2020

35


THE MOST IMPORTANT LESSON TO REMEMBER IS THAT EVEN THOUGH YOU ARE UNDER PRESSURE; ALWAYS REMEMBER THAT THE OTHER SIDE ALSO HAS PRESSURE.

UNDERSTANDING THE PRESSURE ON THE OTHER SIDE IS THE KEY TO BEING A SUCCESSFUL NEGOTIATOR.

Print date 7/10/2020

36


E X PR ESS TO S UCCESS

21| Reviewing the Offer Counter Offer and Negotiations Choosing Affiliates


Reviewing the Offer – Counter Offers and Negotiations – Choosing Affiliates Reviewing the Offer You got the listing, you priced it right, you did the marketing and open houses. The offers are coming in, now what?

How to Review the Offer(s)

a. Single Offer vs Multiple Offers i. Deadline for offers b. Page 1,2, 3 & 6 of the Residential Purchase Agreement (see example) c. Complete Offers (Contract, Proof of Funds, Pre-Approval Letter, FICO scores)

1. Price Below, Asking, Above 2. Close of Escrow 30 Days is Standard 3. Initial Deposit 3% of Purchase Price 4. Loan Amount Down Payment, Interest Rate, Points Not to Exceed 5. Additional Financing Terms Seller Credits to Buyer, Special Loans 6. Verification of Funds and Appraisal Boxes are Checked, Proof attached 7. Loan Terms Loan Terms and Contingencies

8. 9. 10. 11. 12. 13. 14.

Other Terms & Buyer Sale Extra space to write in items Allocation of Costs NHD, Retrofitting, Title Insurance Government Requirements & Retrofit Seller Pays, Check with Select City Escrow and Title Each to Pay Their Own Seller’s Title Insurance Other Costs Seller Pays: County, City, Home Warranty Items Included in the Sale Stove, Refrigerator, Washer/Dryer, Etc. Inspection Contingency 14 B (1.)

* Review each of the above items for all offers. * Check for agent errors, missed signatures, missed dates, etc. * Fill out a multiple offer summary worksheet (if applicable) * Prepare a standard counter and decide to either counter 1 offer, top offer or all offers


Counter Offers and Negotiations A Real Estate counter offer is generated by a home seller after a buyer has submitted an offer to purchase and the terms are not agreeable to the seller.

Examples of Items to Counter A. B. C. D. E. F. G. H. I. J.

Total consideration (generally a higher price) Increasing the size of the earnest money deposit Refusals to pay for certain reports or fees Changing service providers Altering closing or possession date Excluding or adding personal property from the contract Modifying contingency time frames Early release of deposits Including amendments or addendums Fixing a buyer's agent mistake

Examples of Terms (See SCO #1 and SMCO #1) 1. 2. 3. 4. 5. 6. 7. 8. 9.

Purchase Price to be Highest and Best Close of Escrow to Be 30 Days or sooner Initial Deposit to be 3% of the purchase price No credits will be given to buyer Verification of down payment and Pre-Approval Letter to be included with Counter Offer (3H & 3J) Inspection Contingency to be 10 days 14B.(1) Escrow to be Inter Valley Escrow with (Insert Escrow Officer), Title to be Orange Coast Title with (Insert Office) Seller to choose Home Warranty Company and NHD report

- Discuss with your seller the varies items they will be paying for and what the buyer is paying for at the close of escrow. - Once all parties have agreed to terms, you have completed and now have a ‘Fully Executed Contract’. At this point you can begin the transaction and open escrow. Congratulations!

Choosing Affiliates As a listing agent you control the sale by using your affiliates that have a proven record of excellence.


07/21/2020 Buyer One 123 Main Street, Pasadena, CA 91101 Pasadena

Los Angeles

91101

One Million

1234567890

X

1,000,000.00 45

X

Dilbeck Real Estate X Brian Reed

01345642 01891779 X

Dilbeck Real Estate X Brian Reed

01345642 01891779 X X 5,000.00

800,000.00 5.000

1.000

Seller to pay for $10,000 in closing costs. 195,000.00 1,000,000.00 X

La Canada Flintridge Office, 1030 E. Foothill Boulevard La Canada Flintridge CA 91011 Brian Reed

8187310840

818-790-8967

ETS Offer -


123 Main Street, Pasadena, CA 91101

July 21, 2020

X

X

Buyer's Choice

X

X

X

ETS Offer -


123 Main Street, Pasadena, CA 91101

July 21, 2020

X X

X

X

Each to Pay Their Own Seller's Choice

X

Seller's Choice

X X

750.00 Buyer's Choice

X

X

X

X

X

X

X

ETS Offer -


123 Main Street, Pasadena, CA 91101

July 21, 2020

21

X

ETS Offer -


123 Main Street, Pasadena, CA 91101

July 21, 2020

Seller One

Dilbeck Real Estate

01345642 Brian Reed

1030 Foothill Blvd (818)949-7823 (818)845-9703 Dilbeck Real Estate

La Canada Flintridge CA brian.reed@dilbeck.com

(818)845-9703

91011-3285 01345642

Brian Reed 1030 Foothill Blvd (818)949-7823

01891779

01891779

La Canada Flintridge CA brianreed@dilbeck.com

91011-3285

ETS Offer -


123 Main Street, Pasadena, CA 91101

1 1,000,000.00 X 5,000.00 0.500% 0.500% 800,000.00 80.000% 45

21 X X X

X

Brian Reed

La Canada Flintridge Office, 1030 E. Foothill Boulevard La Canada Flintridge CA 91011 Brian Reed

8187310840

818-790-8967

ETS Offer -


July 22, 2020 X

July 21, 2020

123 Main Street, Pasadena, CA 91101 Buyer One Seller One

1. 2. 3. 4. 5. 6. 7. 8. 9. X

1

Seller One

Buyer One

La Canada Flintridge Office, 1030 E. Foothill Boulevard La Canada Flintridge CA 91011 Brian Reed

8187310840

818-790-8967

ETS Offer -


1 07/22/2020 07/21/2020

123 Main Street, Pasadena, CA 91101 Seller One

1. 2. 3. 4. 5. 6. 7. 8. 1

X

Seller One

La Canada Flintridge Office, 1030 E. Foothill Boulevard La Canada Flintridge CA 91011 Brian Reed

8187310840

818-790-8967

ETS Offer -


1

X

Seller Counter Offer #1 or Seller Multiple Counter Offer #1 123 Main Street Pasadena, CA 91101 Buyer One Seller One

10. 11. 12.

X Buyer One

La Canada Flintridge Office, 1030 E. Foothill Boulevard La Canada Flintridge CA 91011 Brian Reed

Seller One

8187310840

818-790-8967

ETS Offer -


Buyer One

123 Main Street, Pasadena, CA 91101 Seller One

Buyer One

Seller One

La Canada Flintridge Office, 1030 E. Foothill Boulevard La Canada Flintridge CA 91011 Brian Reed

8187310840

818-790-8967

ETS Offer -


E X PR ESS TO S UCCESS

22| Bio/Profile Book


E X PR ESS TO S UCCESS

23| Escrow


Wire Fraud Is On The Rise! Inter Valley Escrow is committed to taking every precaution to protect our Clients funds during the course of an Escrow Transaction. This includes keeping up-to-date on the latest advancements in Wire Fraud Protection. An FBI Agent Representative recently presented steps to follow in the event of a suspected case of Wire Fraud. Inter Valley was able to utilize these steps in the following actual transaction. *Please Note: Names and Details have been omitted to retain our clients privacy*

Recently, an agent, using a Yahoo email account unbeknownst to them had their account hacked. The bad guys began monitoring the account for escrows, and to track their progress. So just last week as it came time to close, the bad guys created an ivescrovv.com domain, to send wiring instructions {Note the two “v’s” replacing the “w” in our domain}

They then sent fraudulent wiring instructions to the buyer in the escrow, and encrypted them to make them look legit. The Buyer received the encrypted instructions and wired the funds to the Bad Guys account. The Buyer called Inter Valley Escrow to verify the funds arrived, but because the funds were sent to the Bad Guys, Inter Valley did not receive the funds. The Buyer contacted their bank, while Inter Valley contacted the FBI. The following is an excerpt from that email conversation: I am very happy and encouraged that this was caught so quickly and (the fraudulent account) was successfully frozen this morning thanks to our (Bank) partner. Chances of full recovery were greatly enhanced due to the swiftness of your action in contacting us. (It is also a wonderful testament to the importance of our public awareness speaking engagements. If your

boss had not been at the FBI presentation and you hadn’t contacted us directly, I think we would be looking at a much more horrible outcome.)

At this point, the banks will go through their checks and balances in the wire reversal process and I (FBI Agent) will initiate a criminal investigation to determine who perpetrated the crime.

Inter Valley Escrow is committed to taking every precaution to protect our clients funds, and we need your help! Protect your clients by not using Yahoo, Hotmail, Gmail, AOL or other free easily-hacked email accounts. Encourage your clients to not email financial information, be cautious about opening attachments of files from emails, and keep their software up to date. Remember, if you suspect Wire Fraud, contact the FBI and state you have a “Business Email Compromise” Please Note: Inter Valley Escrow was not hacked during this escrow transaction.


447 Burchett St., Glendale, CA 91203 (818) 547-9999 • Fax (818) 658-2214

DATES TO REMEMBER Inter Valley Escrow 447 Burchett St. Glendale, CA 91203 (818) 547-9999

The following items must be completed by the following dates:

LOAN APPLICATION ------------------------------------------------------- June 24, 2020 BUYER INSPECTIONS/INVESTIGATIONS ----------------------------- July 6, 2020 REMOVE LOAN CONTINGENCY ------------------------------------------ July 9, 2020 APPRAISAL----------------------------------------------------------------------- July 6, 2020 CLOSE OF ESCROW

July 16, 2020

THE ABOVE DATES ARE PROVIDED AS A COURTESY FOR INFORMATION PURPOSES ONLY, AND MAY NOT INCLUDE ALL OF THE CONTINGENCIES/DATES THAT ARE REQUIRED FOR YOUR TRANSACTION. PLEASE REFER TO YOUR CONTRACT AND SUPPLEMENTAL ESCROW INSTRUCTIONS FOR EXACT TERMS AND TIME FRAMES.


Seller’s Escrow Instruction Package


447 Burchett St., Glendale, CA 91203 (818) 547-9999 • Fax (818) 240-5840 www.IVEscrow.com

INTER VALLEY ESCROW IS AN INDEPENDENT ESCROW COMPANY LICENSED BY THE DEPARTMENT OF BUSINESS OVERSIGHT OF THE STATE OF CALIFORNIA, LICENSE NUMBER 9631502 SALE ESCROW INSTRUCTIONS

Escrow No.: 01-00227-014 Date: July 6, 2020

Erik Okland Escrow Officer

We, the undersigned, hand you a copy of the _Residential Purchase Agreement and Joint Escrow Instructions (and Receipt for Deposit) dated _, (hereinafter referred to as Agreement), Counter Offer #_ and _ Addendum to Real Estate Purchase Agreement. Your duties and responsibilities are limited to those paragraphs specified in paragraph #28 of said Agreement and those stated herein below. Buyer will hand INTER VALLEY ESCROW initial deposit in the amount of ---------------------------------------------------------------Prior to close of escrow, buyer will deposit an additional amount of --------------------------Buyer herein to obtain a new first trust deed loan in the amount of ----------------------------

25,500.00 144,500.00 680,000.00

Total Consideration --------------------------------------------------------------------------------------

$850,000.00

Buyer herein will deliver to escrow Buyer's personal check_electronic transfer in the amount of $25,500.00 which will be deposited into the escrow trust account, but as of this date is not deemed by escrow to be cleared "good funds". Buyer/Seller will deliver to Inter Valley Escrow as Escrow Holder (herein after referred to "IVE") any instruments which this escrow requires, fully executed, all of which "IVE" is instructed to use provided that on or before August 20, 2020 "IVE" holds a policy of title insurance with title company's usual exceptions, with a liability of $850,000.00 covering the following described property: LEGAL DESCRIPTION ATTACHED HERETO AS EXHIBIT "A" AND MADE A PART HEREOF SELLER STATES THAT THE PROPERTY ADDRESS IS: 1234 Main Street (SAMPLE FILE), Los Angeles, CA 90039 TITLE POLICY TO SHOW TITLE VESTED IN: Brett Buyer and Bonnie Buyer, Husband and Wife as Joint Tenants FREE FROM ENCUMBRANCES EXCEPT: (1)

General and special Taxes for the fiscal year, including bonds, special assessments and personal property taxes, if any, assessed against former owner, and/or supplemental taxes assessed pursuant to the provisions of Chapter 498, Statutes of 1983 of the State of California. (Change of Ownership will affect the taxes to be paid. A Supplemental Tax Bill will be issued and BUYER accepts all responsibility for all additional taxes due because of said reassessment. TAX BILLS ISSUED AFTER THE CLOSE OF ESCROW SHALL BE HANDLED DIRECTLY BETWEEN BUYERS AND SELLERS.)

(2)

Covenants, conditions, restrictions, reservations, rights, rights of way, and easements, and any oil, gas, or mineral reservations now of record, if any, or known to Seller.

(3)

First Deed of Trust to record securing a note in the amount of $680,000.00. (CONTINUED)

Seller's Initials: ______ / ___________________________________________________ Buyer's Initials: ______ /


Date: July 6, 2020

Escrow No.: 01-00227-014

Page 2 of 8: Additional instructions made a part of previous pages as fully incorporated therein.

(4)

Second Deed of Trust to record securing a note.

INSTRUCTIONS: A.

FINANCE: First Deed of Trust to file, and note secured thereby in the amount of $ 680,000.00 in favor of lender of Buyer's choice as per their terms, to be obtained by buyer at buyer's expense. Said loan to be a fixed rate loan with an interest rate not to exceed 20.0000% per annum, payable over 6 years. Buyer agrees to comply with lenders loan requirements and to pay lender's loan fees in an amount not to exceed 1.00 points. Buyer's signature on said documents shall be indication of their approval of all terms and conditions contained therein and Escrow Holder's authorization for the use of same. Said Note and/or Deed of Trust shall contain the following clause(s): "Should the trustor or his successors in interest, without the consent in writing of the beneficiary, sell, transfer or convey or permit to be sold, transferred or conveyed, his interest in the property, or any part thereof, then the beneficiary may, at his option, declare all sums secured hereby immediately due and payable." "A late charge of 5.0000 percent of the monthly payment shall be due on each installment not received within 10 days of the due date." "This Note is subject to Section 2966 of the Civil Code, which provides that the holder of this Note shall give written notice to the Trustor, or his successor in interest, of prescribed information at least ninety days and not more than one hundred and fifty days before any balloon payment is due."

B.

CLOSING FUNDS: Each party acknowledges that the close of escrow is conditioned on check clearances. Funds to close must be in the form of a Cashiers Check drawn on a bank with a clearing house in the State of California OR a wire transfer to Inter Valley Escrow Trust Account, and be deposited at least (2) two business days prior to recording of documents.

C.

REPORT OF RESIDENTIAL PROPERTY RECORDS AND PENDING ASSESSMENT LIENS (Form 9): Seller shall hand Escrow Holder a completed Report of Residential Property Records Declarations Attachment, together with payment in the amount of $70.20, payable to the Department of Building and Safety, to cover the cost of said report. Escrow Holder will forward the aforementioned declaration and payment, along with the Application for Report of Residential Property Records and Pending Special Assessment Liens (aka 9A), to the Department of Building and Safety. Upon receipt of said report, Escrow Holder shall forward a copy of same to Buyer for approval, prior to the close of escrow. NOTE: THE PARTIES HEREBY ACKNOWLEDGE THAT SECTION 96.300 OF THE LOS ANGELES MUNICIPAL CODE REQUIRES THAT THE BUYER RECEIVE A COPY OF THE REPORT OF RESIDENTIAL PROPERTY RECORDS AND PENDING ASSESSMENT LIENS, PRIOR TO THE CLOSE OF ESCROW.

D.

RELEASE: Upon receipt of signed escrow instructions from both parties, if Escrow Holder has not yet received payment in the amount of $70.20 payable to the Department of Building and Safety, Escrow Holder is authorized and instructed to release, from deposit(s) made by Buyer, funds as described above and forward said funds to the Department of Building and Safety in order to obtain the Report of Residential Property Records and Pending Special Assessment Liens. At the close of escrow, Escrow Holder shall deduct said funds from Seller's net proceeds. Escrow Holder is not liable for recovery of said money for any reason whatsoever.

E.

CERTIFICATE OF COMPLIANCE - Municipal Water Conservation Ordinance: The parties are aware that Section 122.03 of the Los Angeles Municipal Code requires Sellers of real property to install low-flow showerheads and water closet flush-reduction devices, where required, prior to the close of escrow. The parties are aware that it is their responsibility to read and understand said code and its requirements. The Seller shall (CONTINUED)

Seller's Initials: ______ / __________________________________________________ Buyer's Initials: ______ /


Date: July 6, 2020

Escrow No.: 01-00227-014

Page 3 of 8: Additional instructions made a part of previous pages as fully incorporated therein. provide a "Certificate of Compliance", thereby giving written notice of the requirements of the ordinance and written confirmation of compliance, through escrow. Furthermore, at the close of escrow, Escrow Holder is hereby authorized and instructed to debit Seller's net proceeds in the appropriate amount as described on said Certificate of Compliance. Said funds are to be made payable to the Los Angeles Department of Water and Power and forwarded with the Certificate of Compliance to the Los Angeles Department of Water and Power - Account Services Unit. F.

1099 FORM If required by law, the seller shall hand to Escrow holder an IRS 1099 gross proceeds report, which you are to forward to the IRS in accordance with the law, and a copy thereof is to be delivered to the seller at the close of escrow. This is NOT in lieu of any tax withholding which may become applicable under FIRPTA. Escrow holder is authorized and instructed to insert buyer's part of real estate tax paid, over the signature of the seller on said 1099 at the close of escrow, without any liability on the part of escrow holder for so doing.

G.

TAX WITHHOLDING: ("FIRPTA") Under the Foreign Investment Real Property Tax Act (FIRPTA), IRC Section 1445, every Buyer must, unless an exemption applies, deduct and withhold 10% of the gross sales price from Seller's proceeds and send it to the Internal Revenue Service within 20 days of the closing, if the Seller is considered a "foreign person" under the statute. The IRS withholding regulations if the Seller is a non-individual entity are more complex, and may require differing withholding amounts. In addition, in a disposition of a U.S. real property interest by a foreign corporation or nonresident alien individual when the tax due on the transferor's gain from the sale is less than the withholding, the foreign transferor of the transferee can submit a request for a reduction or elimination of withholding on a transfer of a USRPI. Refer to IRC Regulation 1.1445-3 or -6 for the different categories of withholding certificates. In addition, under California Revenue and Taxation Code Sections 18662 and 18668, as amended by AB 2962, every Buyer must, unless an exception applies, deduct and withhold 3.33% of the gross sales price OR an alternative withholding amount as stipulated by the Seller from Seller's proceeds and send it to the Franchise Tax Board. Penalties may be imposed on a responsible party for non-compliance with the requirements of these statutes and related regulations. Seller and Buyer agree to complete, execute and deliver any instrument, affidavit, statement or instruction reasonably necessary to carry out these requirements, and to withhold tax under those statutes if required. (SELLER'S AFFIDAVIT OF NON-FOREIGN STATUS AND COMPLETED 593 FORM, AS APPLICABLE, AND/OR BUYER'S AFFIDAVIT (DECLARATION OF TRANSFEREE), IF APPLICABLE, SHALL SATISFY THESE REQUIREMENTS. ("CAL-FIRPTA") NOTIFICATION TO BUYER AND SELLER REGARDING TAX WITHHOLDING REQUIREMENTS OF CALIFORNIA REVENUE AND TAXATION CODE SECTION 18662 AND 18668 AS AMENDED BY AB2962 ON SALE OF REAL PROPERTY:

Buyer is hereby notified of withholding requirements of California Revenue and Taxation Code Sections 18662 and 18668 as amended by AB 2962, which are applicable to certain sales of California real estate. Buyer and Seller understand that in no event will Escrow Holder undertake to advise Buyer and/or Seller (and/or Buyer's and Seller's representative(s)) on the possible application of the above code sections to this specific transaction. Should instructions by Buyer and Seller herein direct Escrow Holder to undertake any activities pursuant to the withholding provisions in California law, Buyer and Seller agree to cooperate fully in providing necessary information and to indemnify Escrow Holder and hold Escrow Holder harmless in the event of non-compliance resulting from information supplied by Buyer and/or Seller. California Revenue and Taxation Code Sections 18662 and 18668, as amended by AB 2962 require a Buyer of California real property to withhold a prepayment of California state income tax for Sellers of California real property. Though the Escrow Holder, on behalf of the Buyer, may perform the withholding, send payment to the (CONTINUED) Seller's Initials: ______ / __________________________________________________ Buyer's Initials: ______ /


Date: July 6, 2020

Escrow No.: 01-00227-014

Page 4 of 8: Additional instructions made a part of previous pages as fully incorporated therein. Franchise Tax Board, and/or collect documentation as to why no withholding was done, if the Buyer has been notified of the withholding requirements, the Buyer is liable for any penalty for failing to withhold. Withholding is required on all transfers of real property unless: 1. The total sales price does not exceed $100,000.00. 2. The property is being foreclosed upon. 3. The Seller is a bank acting as a trustee other than a trustee of a deed of trust. 4. The Seller qualifies for one of the following exemptions as certified under penalty of perjury on Form 593: a. The property qualifies as the Seller's principal residence under Internal Revenue Code (IRC) Section 121. (Generally, a home will qualify as a principal residence if, during the five-year period ending on the date of sale, the Sellers owned and lived in the property as their main home for at least two years. There may be other restrictions, limitations, or exceptions for special circumstances.) b. The property was last used by the Sellers as their principal residence under IRC Section 121, even if the Seller did not meet the two out of the last five years requirement or one of the special circumstances. c. The Seller will incur a loss or zero gain on the sale for California income tax purposes. The Seller must complete Form 593. d. The property is being involuntarily converted and will qualify for non-recognition of gain for California income tax purposes under IRC Section 1033. e. The Seller is transferring the property to the Seller's corporation or partnership and the transfer will qualify for non-recognition under IRC Section 351 or 721. f. The Seller is a corporation (or an LLC classified as a corporation for federal and California income tax purposes) that is either qualified through the California Secretary of State or has permanent place of business in California. g. The Seller is a partnership (or an LLC that is not a disregarded single member LLC and is classified as a partnership for federal and California income tax purposes) with recorded title to the property in the name of the partnership or LLC. h. The Seller is a tax-exempt entity under either California or federal law. i. The Seller is an insurance company, individual retirement account, qualified pension/profit sharing plan, or charitable remainder trust. Withholding may also be reduced or deferred when: a. The sale qualifies as an IRC Section 1031 exchange. However, withholding will be required on any cash or cash equivalent the Seller receives unless the cash or cash equivalent does not exceed $1,500.00. b. The sale is an installment sale and the Buyer agrees in writing to withhold on the down payment, each principal payment, and any balloon payment. The Buyer must complete Form 593. THE WITHHOLDING RATE IS CALCULATED AT THE SELLER'S CHOICE OF: 1) THE TOTAL SALE PRICE METHOD (THREE AND ONE-THIRD PERCENT (3.33%) OF THE GROSS SALES PRICE, OR THE AMOUNT OF THE SALES PRICE SUBJECT TO WITHHOLDING (AS APPLICABLE) OR 2) THE ALTERNATIVE WITHHOLDING AMOUNT METHOD (AN ALTERNATIVE WITHHOLDING AMOUNT AS CALCULATED BY THE SELLER AND HANDED TO ESCROW HOLDER UNDER PENALTY OF PERJURY) SELLER MUST COMPLETE FORMS 593. FOR ADDITIONAL INFORMATION CONCERNING THE WITHHOLDING PROVISIONS REFERENCED ABOVE, PLEASE CONTACT THE FRANCHISE TAX BOARD WITHHOLDING SERVICES AND COMPLIANCE SECTION, P.O. BOX 942867, SACRAMENTO, CA 94267-0651 OR PHONE (888) 792-4900. WEBSITE: WWW.ftb.ca.gov H.

IN THE EVENT EITHER PARTY REQUESTS CANCELLATION OF THIS ESCROW AT ANY TIME, ALL PARTIES ARE AWARE THAT THIS ESCROW WILL NOT BE CONSIDERED CANCELLED, AND NO FUNDS WILL BE DISBURSED UNTIL ESCROW HOLDER HAS RECEIVED MUTUALLY SIGNED CANCELLATION INSTRUCTIONS FROM ALL BUYERS AND SELLERS. (CONTINUED)

Seller's Initials: ______ / __________________________________________________ Buyer's Initials: ______ /


Date: July 6, 2020

Escrow No.: 01-00227-014

Page 5 of 8: Additional instructions made a part of previous pages as fully incorporated therein. I.

PRORATIONS: Prorate as of Close of Escrow: Real Property taxes based on lastest tax bill or on amount furnished by title company.

THESE ESCROW INSTRUCTIONS ARE NOT INTENDED TO SUPERSEDE THE REAL ESTATE PURCHASE CONTRACT AND RECEIPT FOR DEPOSIT, BUT TO CARRY OUT ITS TERMS AND CONDITIONS IN CONSUMMATING THE PURCHASE AND SALE, EXCEPT AS MAY BE AMENDED OR MODIFIED BY THE MUTUAL WRITTEN INSTRUCTIONS OF THE PARTIES. IMPORTANT: IN A PURCHASE OR EXCHANGE OF REAL PROPERTY, IT MAY BE ADVISABLE TO OBTAIN TITLE INSURANCE IN CONNECTION WITH THE CLOSE OF ESCROW, SINCE THERE MAY BE PRIOR RECORDED LIENS AND ENCUMBRANCES WHICH AFFECT YOUR INTEREST IN THE PROPERTY BEING ACQUIRED. A NEW POLICY OF TITLE INSURANCE SHOULD BE OBTAINED IN ORDER TO ENSURE YOUR INTEREST IN THE PROPERTY THAT YOU ARE ACQUIRING.

(CONTINUED) Seller's Initials: ______ / __________________________________________________ Buyer's Initials: ______ /


Date: July 6, 2020

Escrow No.: 01-00227-014

Page 6 of 8: Additional instructions made a part of previous pages as fully incorporated therein. GENERAL PROVISIONS YOU ARE FURTHER INSTRUCTED AS FOLLOWS: ALTHOUGH THE OPENING OF ESCROW SHALL BE DEEMED THE DATE OF THESE INSTRUCTIONS, UNLESS PROVIDED HEREIN TO THE CONTRARY, YOUR DUTY TO ACT AS ESCROW HOLDER SHALL NOT COMMENCE UNTIL THESE INSTRUCTIONS, SIGNED BY ALL PARTIES, ARE RECEIVED BY YOU. UNTIL SUCH TIME, EITHER PARTY MAY UNILATERALLY CANCEL, AND UPON WRITTEN REQUEST TO YOU, MAY WITHDRAW FUNDS AND/OR DOCUMENTS SUCH PARTY MAY HAVE PREVIOUSLY HANDED YOU. NO NOTICE, DEMAND, OR CHANGE IN THESE INSTRUCTIONS WILL BE OF ANY EFFECT UNLESS GIVEN IN WRITING, SIGNED, AND ACTUALLY DELIVERED TO THE ESCROW HOLDER. NO CHANGE IN THESE PRINTED INSTRUCTIONS OR ANY OTHER INSTRUCTION, EITHER BY INTERLINEATION OR CROSSING OUT, SHALL BE BINDING, OR HAVE ANY EFFECT, ON THE ESCROW HOLDER UNLESS MADE BY ALL PARTIES TO THE ESCROW AND AGREED TO IN WRITING BY THE ESCROW HOLDER. You are hereby authorized and instructed to: • Transmit and deposit funds and/or documents received in this escrow with any bank, trust company or authorized title company and/or subescrow agent. • Furnish any information concerning this escrow to any lender or broker involved herewith. • Comply with lender's instructions, if any. • Make Prorations and adjustments to the day escrow closes on the following basis: • On 30 day month. • Taxes and assessments on latest information from title company or handed you. (In the event that a supplemental tax bill is received by either party hereto, after the close of escrow, no adjustment shall be made by the escrow holder, and escrow holder shall not be held liable or responsible in connection with said supplemental tax bill.) • Fire insurance from premiums shown in policy(s) as handed you and/or as shown on Beneficiary's Statement, and you may assume that necessary premiums have been paid and policy(s) is in force and may be assigned. IT IS THE OBLIGATION OF THE BUYER/BORROWER OR HIS REPRESENTATIVE TO VERIFY THE ACCEPTANCE OF INSURANCE POLICY OF ISSUING COMPANY. • Interest, impounds, and/or loan payments from information as shown on Beneficiary's Statement. • Rents, cleaning and/or security deposits received by seller from tenants shall be credited to the buyer in accordance with a rent and deposit schedule to be handed you by seller or agent thereto and approved by buyer. Any rents in arrears are to be disregarded in your prorations you are to assume seller will collect all rents which fall due prior to close of escrow. • Show future tax statements to be mailed to buyer at the property's street address, or, if none, the address shown for buyer on last page hereof, on deed conveying title to buyer. • Use your usual instrument forms and insert dates on instruments if executed incomplete in such particulars, provided the insertions comply with your written instructions. • Pay all funds due seller by joint check to all parties signing as "Seller" and pay all funds due buyer by joint check to all parties by signing "Buyer" upon close of escrow unless instructed otherwise in writing. • Destroy these instructions, and all other subsequent instructions, regardless of date of same, and all records of this escrow at any time after five (5) years from date of close of escrow or cancellation thereof, without liability to the escrow holder or further notice from the parties. • Deliver the original assurances of title and insurance policies if any to the holder of the senior encumbrances, or order with copies of same to any junior encumbrance holder or if none then to Buyer. All funds received in this escrow shall be deposited with a state or federal bank with other escrow funds, and all disbursements shall be made by check of INTER VALLEY ESCROW. "Close of escrow" is the day documents are recorded. All documents and/or funds due the respective parties herein are to be mailed, unregistered, to the address set out below their respective signatures, unless otherwise instructed. OUR SIGNATURE ON ANY DOCUMENTS AND INSTRUCTIONS PERTAINING TO THIS ESCROW INDICATE OUR UNCONDITIONAL APPROVAL OF SAME. WHENEVER PROVISION IS MADE HEREIN FOR THE PAYMENT OF ANY SUM, THE DELIVERY OF ANY DOCUMENT, OR THE PERFORMANCE OF ANY ACT, "OUTSIDE OF ESCROW", YOU AS ESCROW HOLDER SHALL HAVE NO RESPONSIBILITY THEREFOR, SHALL NOT BE CONCERNED THEREWITH AND ARE SPECIFICALLY RELIEVED OF ANY OBLIGATION RELATIVE THERETO. BUYER'S DEPOSIT OF FINAL FUNDS SHALL BE DEEMED FULL APPROVAL OF ALL CONTINGENCIES OR A WAIVER THEREOF. All the parties to this escrow hereby jointly and severally promise and agree to pay promptly on demand, as well as to indemnify you and hold you harmless from and against all litigation and interpleader costs, damages, judgments, attorney's fees, expenses, obligations and liabilities of every kind which, in good faith, you may incur or suffer in connection with or arising out of this escrow, whether said litigation, interpleader, obligation, liabilities or expenses arise during the performance of this escrow or subsequent thereto, directly or indirectly. In the event of failure to pay fees or expenses due you hereunder, on demand buyer and/or seller agree to pay a reasonable fee for any attorney's services which may be required to collect such fees or expenses. Time is of the essence of this escrow, if, for any reason, this escrow cannot be closed by the date set forth herein, you shall nevertheless close it as soon as possible thereafter, unless notice of cancellation is given by either party. Any notice of cancellation affecting this escrow, for whatever reason and whenever given, must be given in writing. Upon receipt of such notice you shall within five (5) days mail a copy of said notice to all other parties in the escrow. If no written objection is received by you from any other party within ten days (10) after the date of mailing you may withhold and stop all further proceedings in the performance of this escrow until receipt of mutual cancellation instructions signed by all parties, including there herein named broker(s), if any, OR you may at your election, file a suit in interpleader against the various disputants requiring them to interplead and litigate in court their several claims and rights amongst themselves. In the event written objections is received within the time stated or in the event conflicting claims are made upon you in this escrow, you may refuse to take further action hereunder without liability for interest on funds held or for damages of any sort until receipt of mutual cancellation instructions signed by all parties, including those of the herein named broker(s), if any, or other instruction, or you may at your election, file a suit in interpleader against the various disputants requiring them to interplead and litigate in court their several claims and rights

(CONTINUED)

Seller's Initials: ______ / __________________________________________________ Buyer's Initials: ______ /


Date: July 6, 2020

Escrow No.: 01-00227-014

Page 7 of 8: Additional instructions made a part of previous pages as fully incorporated therein. amongst themselves. If such interpleader suit is filed, the escrow holder is discharged from all obligations to further perform the duties of escrow holder and shall be entitled to recover, jointly and severally from the parties, all costs, expenses, escrow fees, and reasonable attorney fees incurred. THE ESCROW HOLDER HAS NO DUTY, LIABILITY AND/OR RESPONSIBILITY WITH ANY OF THE FOLLOWING: * TO MAKE DISCLOSURES REQUIRED UNDER FEDERAL OR STATE LAW, INCLUDING "Regulation Z". * TO DETERMINE WHETHER ANY EXISTING FINANCING CONTAINS A DUE-ON-SALE CLAUSE, AND IF SO, WHETHER SUCH CLAUSE WILL MAKE THE ENTIRE BALANCE OF THE UNDERLYING FINANCING DUE AND PAYABLE AS A RESULT OF THIS TRANSACTION. * TO DETERMINE ANY ZONING OR OTHER LAW, REGULATION, OR ORDINANCE AFFECTING THE PROPERTY. * TO DISCOVER AND THE EFFECTS ON CONTENTS OF ANY COVENANTS, CONDITIONS, AND RESTRICTIONS, HOMEOWNER'S ASSOCIATION RULES, AND THE LIKE. * TO DETERMINE LAWS, ORDINANCES, OR REGULATIONS CONCERNING SUBDIVISION OF LAND AND/OR DISCLOSURES, IF ANY REQUIRED TO BE MADE TO THE BUYER OF REAL PROPERTY. * THE TERMS OF ANY DEPOSIT RECEIPT, SALES AGREEMENT, OR ANY OTHER DOCUMENT DEPOSITED WITH THE ESCROW HOLDER. * ANY MATTERS NOT SPECIFICALLY MENTIONED IN THESE INSTRUCTIONS. * TO DETERMINE WHETHER OR NOT ANY NEW FINANCING CONTAINS DUE-ON-SALE CLAUSE, AND IF SO, WHETHER SUCH CLAUSE WILL MAKE THE ENTIRE BALANCE OF THE FINANCING DUE AND PAYABLE AS A RESULT OF A FUTURE TRANSACTION. * ANY QUESTION OF USURY IN ANY LOAN OR ENCUMBRANCE INVOLVED IN THE PROCESSING OF THIS ESCROW AND YOU ARE HEREBY RELEASED OF ANY RESPONSIBILITY OR LIABILITY THEREFORE. * TO REPRESENT TERMS OF LOAN IN REFERENCE TO ANY LOAN DOCUMENTS, BORROWER'S/BUYER'S EXECUTION OF LOAN DOCUMENTS SHALL CONSTITUTE FULL APPROVAL OF ALL RATES AND TERMS CONTAINED THEREIN.

(CONTINUED) Seller's Initials: ______ / __________________________________________________ Buyer's Initials: ______ /


Date: July 6, 2020

Escrow No.: 01-00227-014

Page 8 of 8: Additional instructions made a part of previous pages as fully incorporated therein.

The agreed fee is for ordinary services only. If extraordinary services, including but not limited to, telephone or telegraph bills, wire transfers and overnight mail, and being called to testify or produce documents in any lawsuit or other proceeding, the parties jointly and severally agree to pay for such services. A facsimile (fax) of an executed escrow instruction, addendum or supplement delivered to you shall be binding and you may rely on it as if it were an original signed document EXCEPT any instructions for disbursing of funds. These instructions and addenda may be executed in counterparts, each of which shall be deemed an original regardless of the date of its execution and delivery. Fees and charges will be paid as follows: Buyer agrees to pay on demand all prorata adjustments chargeable to him; Lender's fees and charges, if any, and costs incurred therein, including A.L.T.A. Lender's Policy of Title Insurance, if required by Lender, title charges, recording charges, notary fees, and costs of drawing any documents necessary on the part of the Buyer to complete this escrow; and Buyer's escrow fees and costs as charged. Seller agrees to pay on demand all prorata adjustments chargeable to him; any encumbrances of record to show title as called for, any bonds, assessments and/or taxes; Title charges including C.L.T.A. (or A.L.T.A.-Residential) Owner's Policy of Title Insurance, beneficiaries' statements and/or demands, documentary transfer tax on deed, and any filling in, acknowledging, conveyancing, and recording of any documents necessary on the part of the Seller to complete this escrow; and Seller's escrow fees and costs as charged. No action shall lie against escrow holder for any claim, loss, liability or alleged cause of action of any kind or nature, whatsoever, however caused or occurred under this escrow or in connection with the handling or processing of this escrow unless brought within twelve (12) months after the cancellation, close of escrow or the termination of escrow for any reason whatsoever. ESCROW COMPANIES ARE NOT AUTHORIZED TO GIVE LEGAL ADVISE. IF YOU DESIRE LEGAL ADVISE, CONSULT YOUR ATTORNEY BEFORE SIGNING.

I/WE AGREE TO PAY FUNDS REQUIRED TO CLOSE ESCROW, IF ANY, UPON DEMAND. PURSUANT TO AB512, JANUARY 1, 1990, ALL LENDER'S FUNDS (IF APPLICABLE) AND BORROWER'S FUNDS TO BE DEPOSITED MUST BE CLEARED FUNDS PRIOR TO RECORDATION OF THIS TRANSACTION. IF IT IS DEEMED NECESSARY TO WIRE FUNDS, TO EXPEDITE THE CLOSE OF THIS ESCROW, ESCROW HOLDER IS INSTRUCTED TO PROCEED ACCORDINGLY AND TO CHARGE BORROWER, AT THE CLOSE OF ESCROW. The foregoing terms, provisions, conditions, and instructions, and those "General Provisions" contained herein are hereby approved and accepted in their entirety and concurred in by me. I will hand you necessary documents called for on my part to cause title to be shown as above which you are authorized to deliver when you hold for my account the sum of $850,000.00 within the time as above provided. I agree to pay your escrow charges, my recording fees, charges for evidence of title as called for, whether or not this escrow is consummated. You are hereby authorized to pay bonds, assessments, taxes, and any liens of record to show title as called for, affix documentary tax on deed as required.

SELLERS:

BUYERS:

Samuel Seller

Brett Buyer

Susan Seller

Bonnie Buyer

CURRENT ADDRESS:

CURRENT ADDRESS:

Telephone:

Telephone:


447 Burchett St., Glendale, CA 91203 (818) 547-9999 • Fax (818) 240-5840 www.IVEscrow.com Erik Okland Escrow Officer

Date: July 7, 2020 Escrow No.: 01-00227-014

AMENDED ESCROW INSTRUCTIONS

AMENDMENT Property Address:

1234 Main Street (SAMPLE FILE), Los Angeles, CA 90039

THE ABOVE NUMBERED ESCROW IS HEREBY AMENDED AND/OR SUPPLEMENTED AS FOLLOWS: ACCEPTANCE DATE: Buyer and Seller agree that the acceptance date of the Agreement is _. ASSESSOR'S PARCEL NO.: The real property to be acquired is described as Assessor's Parcel No. REPORT OF RESIDENTIAL PROPERTY RECORDS AND PENDING ASSESSMENT LIENS (Form 9): Seller shall hand Escrow Holder a completed Report of Residential Property Records Declarations Attachment, together with payment in the amount of $70.85, payable to the Department of Building and Safety, to cover the cost of said report and in the event a credit card is used a $1.91 additional fee will be charged by the Department of Building and Safety total debit billed to Seller shall be $72.76. Escrow Holder will forward the aforementioned declaration and payment, along with the Application for Report of Residential Property Records and Pending Special Assessment Liens (aka 9A), to the Department of Building and Safety. Upon receipt of said report, Escrow Holder shall forward a copy of same to Buyer for approval, prior to the close of escrow. NOTE: THE PARTIES HEREBY ACKNOWLEDGE THAT SECTION 96.300 OF THE LOS ANGELES MUNICIPAL CODE REQUIRES THAT THE BUYER RECEIVE A COPY OF THE REPORT OF RESIDENTIAL PROPERTY RECORDS AND PENDING ASSESSMENT LIENS, PRIOR TO THE CLOSE OF ESCROW. CERTIFICATE OF COMPLIANCE - Municipal Water Conservation Ordinance: The parties are aware that Section 122.03 of the Los Angeles Municipal Code requires Sellers of real property to install low-flow showerheads and water closet flush-reduction devices, where required, prior to the close of escrow. The parties are aware that it is their responsibility to read and understand said code and its requirements. The Seller shall provide a "Certificate of Compliance", thereby giving written notice of the requirements of the ordinance and written confirmation of compliance, through escrow. Furthermore, at the close of escrow, Escrow Holder is hereby authorized and instructed to debit Seller's net proceeds in the appropriate amount as described on said Certificate of Compliance. Said funds are to be made payable to the Los Angeles Department of Water and Power and forwarded with the Certificate of Compliance to the Los Angeles Department of Water and Power - Account Services Unit. HOMEOWNER'S ASSOCIATION STATEMENT: Escrow Holder is hereby authorized and instructed to obtain a statement from the Homeowner's Association showing the condition of the Seller's account and to disburse from Seller's proceeds to the homeowner's association any amount required to bring the monthly assessment current to the close of escrow. IN THE EVENT THE SUBJECT PROPERTY IS COVERED BY A MASTER FIRE INSURANCE POLICY, BUYER IS ADVISED TO OBTAIN THEIR OWN FIRE INSURANCE COVERAGE FOR THEIR PERSONAL PROPERTY AND ANY LIABILITY COVERAGE AT BUYER'S OWN EXPENSE AND OUTSIDE OF ESCROW.


Date: July 7, 2020

Page 2

Escrow No.: 01-00227-014

RENT STATEMENT: Seller shall hand Escrow Holder a completed Rent Statement for Buyer's acknowledgement prior to the close of escrow. At the close of escrow, Escrow Holder is authorized and instructed to prorate rent(s) based solely on the information contained in said statement regardless of any other documentation that may be handed you to the contrary. Escrow Holder is to consider that Seller has collected, or will collect all rents which fall due prior to close to escrow, and Escrow Holder shall prorate rent(s) accordingly. Escrow Holder is further authorized and instructed to adjust security deposits by debiting Seller and crediting Buyer for same at close of escrow, based solely on the amounts reflected on said Rent Statement. Any interest accrued on Security Deposits shall be adjusted between the parties outside of Escrow. WATER COMPANY: Escrow Holder is hereby authorized and instructed to contact _ Water Company prior to the close of escrow to request the final water bill and to disburse from Seller's proceeds to _ Water Company any amount required to pay final water bill at the close of escrow. SELLER assumes all responsibility for any excess amount due, and releases Escrow Holder of any liability for same. NATURAL HAZARDS/ZONE DISCLOSURE REPORT: Page 2, Item 7A(1), of the _Residential Purchase Agreement and Joint Escrow Instructions is hereby amended as follows: Seller shall pay for a Natural Hazards/Zone Disclosures Report prepared by _. ESCROW COMPANY: Page 3, Item 7C(1 _A and B) , of the _ Residential Purchase Agreement and Joint Escrow Instructions is hereby amended as follows: Escrow company shall be Inter Valley Escrow, Seller and Buyer each to pay their own fees. TITLE COMPANY FEES: Page 3, Item 7C(2 A and B), of the _ Residential Purchase Agreement and Joint Escrow Instructions is hereby amended as follows: _Seller shall pay for owner's title insurance policy. Owner's title policy to be issued by _. Buyer shall pay for any title insurance policy insuring Buyer's lender. HOME PROTECTION POLICY/HOME WARRANTY POLICY : Page 3, Item 7D(10), of the _Residential Purchase Agreement and Joint Escrow Instructions is hereby amended as follows: _Seller shall pay the cost, not to exceed $_ , for a one-year Home Warranty Plan, issued by _. NO CITY TRANSFER TAX: Escrow Holder is hereby authorized and instructed to eliminate item number 7D2 of the _Residential Purchase Agreement and Joint Escrow Instructions, in its entirety due to there is NO City Transfer Tax in the City of _. PRIVATE TRANSFER FEE: Page 3, Item 7D(7), of the _Residential Purchase Agreement and Joint Escrow Instructions Is hereby supplemented as follows: Seller has agreed to pay the private transfer fee. Escrow to determine private transfer fee amount upon receipt of the Preliminary Title Report issued by Title Company. In the event no such private transfer fee appears in the Preliminary Title Report, Escrow Holder is hereby authorized and instructed to eliminate item number 7D(7), of the _ Residential Purchase Agreement and Joint Escrow Instructions, in its entirety. ALL OTHER TERMS AND CONDITIONS TO REMAIN THE SAME. SELLERS:

BUYERS:

Samuel Seller

Brett Buyer

Susan Seller

Bonnie Buyer


447 Burchett St., Glendale, CA 91203 (818) 547-9999 • Fax (818) 240-5840 www.IVEscrow.com

E-SIGNATURE ESCROW INSTRUCTION AND MODIFICATION

Erik Okland Escrow Officer Property Address:

Date: July 7, 2020 Escrow No.: 01-00227-014 1234 Main Street (SAMPLE FILE) Los Angeles, CA 90039

To: Inter Valley Escrow The Buyer(s) and Seller(s) agree that the Real Estate Purchase Agreement and previous escrow instructions in the above numbered escrow are modified/supplemented in the following particulars only: ELECTRONIC SIGNATURE(S): Upon Escrow Holders receipt of this instruction signed with traditional live signatures from all parties, Escrow Holder is authorized to accept electronic signatures as original signatures of the parties on the Purchase Agreement, Addendum(s), and Listing Agreement; and all future documents and instructions received. The undersigned parties are advised they may be required to submit documents with traditional live signatures into this escrow in the following circumstances, which include but are not limited to: (1) Where traditional live signatures are mandatory (such as recordable documents, city reports, government and/or lender documents); (2) As required by lenders; and (3) As required by Escrow Holder on any document in its sole discretion it deems a traditional live signatures is required. Escrow Holder is not liable or responsible for any loss that may occur by its receipt or reliance on documents or instructions with an electronic signature and Escrow Holder has no liability for forgeries, fraud, impersonations, or false representations made by anyone (including but not limited to principals to this escrow or any third parties.) Please confirm the following: Name (s): Mailing Address:

Email:

(Print) (Print)

Email:

Traditional Live Signatures: SELLERS:

BUYERS:

Samuel Seller

Brett Buyer

Susan Seller

Bonnie Buyer


1099 CERTIFICATION TO:

INTER VALLEY ESCROW

ESCROW NO.: 01-00227-014 We understand that you must provide information pertaining to this escrow to the Internal Revenue Service as required by the Tax Reform Act of 1986, Internal Revenue Code Section 6045(e), 6676, 6722, 6723 and 7203 and issue a Form 1099. The undersigned Seller(s) hereby provide and authorize the use of the following information for this reporting purpose and understand that if the correct information is not provided, civil or criminal penalties may be imposed by law. PURCHASE PRICE:

$850,000.00

PROPERTY ADDRESS:

1234 Main Street (SAMPLE FILE), Los Angeles, CA 90039

This is to advise that the TIN Taxpayor's Identification Number (or Social Security Number) for the Seller(s) in this escrow are as follows: NOTE: If Seller is an entity (Trust, Partnership, etc.), please provide the entity's TIN/FEIN number, otherwise, if providing a social security number, the 1099-S must be filed with the IRS as an individual. SELLER: Full Name (Please Print)

Social Security OR Tax Identification Number

Full Name (Please Print)

Social Security OR Tax Identification Number

PROPERTY OWNERSHIP STATUS:

Individual _________ Husband and Wife _______ Spouses Corporation _______ Partnership _________ Trust _______ LLC ____

No of 1099's forms required for the sale of this property ___________________ (1) ________ (2) _______ (other) Percent of Ownership:_____________________ % (If % of ownership is not 100% another form must be filled out for each Seller). (place check mark to indicate how many 1099's to issue or add number above in other) IS THIS YOUR PRINCIPAL RESIDENCE:

Yes ( )

No ( )

EXCHANGE TRANSACTION:

Yes ( ) No ( )

ARE YOU A FOREIGN PERSON: (nonresident alien, foreign partnership, foreign estate, or foreign trust)

Yes ( ) No ( )

IMPORTANT: Address for mailing the 1099 at or after the close of escrow will be:

Under penalty of perjury, I/We hereby certify the above number(s) and information are true and accurate. Seller: Signature Seller:

Signature


Escrow No.: 01-00227-014 Order No.:

PLEASE COMPLETE, SIGN AND RETURN

STATEMENT OF INFORMATION Proper completion of this form will help protect you by enabling the title company to eliminate the problems that might arise through similarity of your name with the name of another person against whom there may be judgments, tax liens, or other matters affecting property ownership.

COMPLETION OF THIS FORM WILL EXPEDITE YOUR ORDER AND WILL HELP PROTECT YOU Name (1st Party) Name (2nd Party)

First

Middle

Last

First

Middle

Last

Date of Birth

Birthplace

I have lived in CA since

Date of Birth

Birthplace

I have lived in CA since

Social Security #

Driver's License #

Home Phone

Business Phone

Cell Phone

Social Security # Home Phone

Name of Spouse or Domestic Partner (if not 2nd Party) First

Middle

Driver's License # Business Phone

Cell Phone

Name of Spouse or Domestic Partner (if not 1st Party)

Last

First

ARE PARTIES 1 and 2 ( ) Married ( ) Domestic Partners If so, married on

Middle at

Last

Maiden Name/Previous Last Name

RESIDENCE(S) DURING PRECEDING 10 YEARS NUMBER AND STREET

CITY

NUMBER AND STREET

CITY

NUMBER AND STREET

CITY

NUMBER AND STREET

FRO M

CITY (If more space is needed, use reverse side of form) OCCUPATION (S)

TO

FROM

TO

FROM

TO

FROM

TO

1st Party PRESENT OCCUPATION

FIRM NAME

ADDRESS

NO. YEARS

PRIOR OCCUPATION

FIRM NAME

ADDRESS

NO. YEARS

2nd Party PRESENT OCCUPATION

FIRM NAME

ADDRESS

NO. YEARS

PRIOR OCCUPATION If no former marriages/Domestic Partnerships, write "none"

FIRM NAME ADDRESS (If more space is needed, use reverse side of form) FORMER MARRIAGE(S)/PARTNERSHIPS

1st Party - Name of former Spouse/Domestic Partner Deceased

Divorced/Termination

When

Where

2nd Party - Name of former Spouse/Domestic Partner Deceased

Divorced/Termination

When Where (If more space is needed, use reverse side of form)

THE STREET ADDRESS of the property in this transaction is: 1234 Main Street (SAMPLE FILE), Los Angeles, CA 90039 IMPROVE MENT: ( ) SIN GLE RES IDENCE ( ) MULTIPLE RESIDEN CE ( ) CO MMERC IAL OCCUPIED BY: ( ) OWNER ( ) LESSEE ( ) TENANTS ANY PORTION OF NEW LOAN FUNDS TO BE USED FOR CONSTRUCTION: ( ) YES ( ) NO HAS ANY CONSTRUCTION OR IMPROVEMENTS BEEN MADE TO THE PROPERTY IN THIS TRANSACTION DURING THE LAST SIX MONTHS? ( ) YES ( ) NO

SIGNATURE

SIGNATURE

DATE

DATE

NO. YEARS


447 Burchett St., Glendale, CA 91203 (818) 547-9999 • Fax (818) 240-5840 www.IVEscrow.com

CERTIFICATION OF NON-FOREIGN STATUS BY INDIVIDUAL TRANSFEROR (S 1445) Section 1445 of the Internal Revenue Code provides that a Transferee (Buyer) of a U.S. real property interest must withhold tax if the transferor (seller) is a foreign person. To inform the transferee (buyer) that withholding of tax is not required upon my disposition of a U.S. real property interest, I/WE, Samuel Seller and Susan Seller (Name of Transferor), hereby certify the following: 1.

The real property interest being transferred by me consists of an interest in the real property commonly known as: 1234 Main Street (SAMPLE FILE) Los Angeles, CA 90039 (Address)

2.

I am not a nonresident alien for purposes of U.S. income taxation.

3.

My U.S. taxpayer identification number (Social Security Number) is:

4.

My home address is:

I understand that this certification may be disclosed to the Internal Revenue Service by the transferee and that any false statement I have made here could be punished by fine, imprisonment, or both. Under penalties of perjury, I declare that I have examined this certification and to the best of my knowledge and belief it is true, correct and complete. Dated: Samuel Seller

Susan Seller

NOTE: For further information furnished concerning the form of this certification, see Temp. Reg 1.1445T(b), (2).


TAXABLE YEAR

2020

CALIFORNIA FORM

Real Estate Withholding Tax Statement

593

AMENDED: • [ ]

Part I Remitter Information Business name

[ X ] REEP [ ] QUALIFIED INTERMEDIARY [ ] BUYER/TRANSFEREE [ ] OTHER

Inter Valley Escrow First name

Erik Okland

[ ]FEIN Initial

Last name

Address (apt./ste. room, PO box, or PMB no.) 447 Burchett St. City (if you have a foreign address, see instructions.)

State

Glendale, CA 91203

[ ] CA Corp no.

[ ] CA SOS file no.

95-4224700

SSN or ITIN

Telephone number

Zip

(818) 547-9999

Part II Seller/Transferor Information If a grantor or nongrantor trust, check the box that applies:

• [ ] Grantor [ ] Nongrantor Trust

First name (Grantor)

Initial

Last name (Grantor)

SSN or ITIN

Spouse's/RDP's first name (if jointly owned)

Initial

Last name

Spouse's/RDP's SSN or ITIN (if jointly owned)

Business/Nongrantor Trust name (if applicable)

[ ]FEIN

[ ] CA Corp no.

[

] CA SOS file no.

Address (apt./ste. room, PO box, or PMB no.) City (if you have a foreign address, see instructions.)

State

Zip

Property address (provide street address, parcel number, and county)

1234 Main Street (SAMPLE FILE), Los Angeles, CA 90039

2544-019-003

Telephone number

Los Angeles

Ownership percentage

%

Part III Certifications which fully exempt the sale from withholding (See instructions)

Determine whether you qualify for a full withholding exemption. Check all boxes that apply ot the property being sold or transferred.

1. ® [ ] The property qualifies as the seller's principal residence under Internal Revenue Code (IRS) Section 121. 2. [ ] The seller last used the property as the seller's principal residence under IRC 121 without regard to the two-year time period. 3. [ ] The seller has a loss or zero gain for California (CA) income tax purposes on this sale. Complete part VI, Computation. 4. ® [ ] The property is compulsorily converted, and the seller intends to acquire property that will qualify for nonrecognition of gain under IRC

Section 1033.

5. [ ] The transfer qualifies for nonrecognition treatment under IRC Section 351 or IRC Section 721. 6. [ ] The seller is a corporation (or a limited liability company (LLC) classified as a corporation), qualified through the CA Secretary of Sate or has

a permanent place of business in CA.

7. [ ] The seller is a CA partnership or a partnership qualified to do business in CA (or an LLC classified as a partnership for income tax

purposes that is not a single member LLC disregarded for income tax purposes).

8. [ ] The seller is a tax-exempt entity under California or federal law. 9. [ ] The seller is an insurance company, individual retirement account, qualified pension/profit sharing plan, or charitable remainder trust.

Part IV Certifications that may partially or fully exempt the sale from withholding or if no exemptions apply (See instructions) Determine whether you qualify for a full, partial, or no withholding exemption. Check all boxes that apply to the property being sold or transferred. 10. ® [ ] The transfer qualifies as either a simultaneous or deferred like-kind exchange under IRC Section 1031. 11. ® [ ] The transfer of this property is an installment sale where the buyer must withhold on the principal portion of each installment payment.

Copy of the promissory note is attached. Complete Part V Buyer/Transferee Information on Side 2. 12. ® [ ] No exemptions apply. Go to Part VII, Line 31.

If you checked one or more boxes in 1-9, go to Side 3, complete the perjury statement and sign. Provide Sides 1-3 to the remitter before the close of escrow or exchange transaction to submit to the Franchise Tax Board, STOP here. Withholding is not required. If you checked box 10, go to specific line instructions on Page 4, Part IV. If you check box 11, go to Part V on Side 2. Withholding may be required. if you checked box 12, go to Part VII on Side 3 for amounts to withhold. Withholding is required.

147

8601204

Form 593 2019 Side 1


Remitter Name

SSN, ITIN, FEIN, CA corp no., or CA SOS file no.

Inter Valley Escrow

Part V Buyer/Transferee Information Complete if you checked box 11 in Part IV for an installment agreement. First name (Grantor)

Initial

Spouse's/RDP's first name (if jointly purchased) Initial

95-4224700

Last name (Grantor)

SSN or ITIN

Last name

Spouse's/RDP's SSN or ITIN

Business/Nongrantor Trust name (if applicable)

[ ]FEIN [ ] CA Corp no. [ ] CA SOS file no.

Address (apt./ste. room, PO box, or PMB no.) City (if you have a foreign address, see instructions.) Principal Amount of Promissory Note

Telephone number

Installment Amount

Interest Rate

%

Repayment Period Number of months

Buyer's/Transferee's Acknowledgment to Withhold Read the "Buyer/Transferee" Information below. Go to Side 3, complete the perjury statement and sign. I acknowledge that I am required to withhold on the principal portion of each installment payment to the seller/transferor for the above shown California real property either at the rate of 3 1/3% (.0333) of the total sales price or the Alternative Withholding Calculation, as specified by the seller/transferor on Form 593, Real Estate Withholding Statement, of the principal portion of each installment payment. I will complete Form 593 for the principal portion of each installment payment and send one copy of each to the Franchise Tax Board along with Form 593-V, Payment Voucher for Real Estate Withholding, the withholding payment, and give one copy of Form 593 to the seller/transferor. I will send each withholding payment to the Franchise Tax Board by the 20th day of the month following the month of the installment payment. If the terms of the installment sale, promissory note, or payment schedule change, I will promptly inform the Franchise Tax Board. I understand that the Franchise Tax Board may review relevant escrow documents to ensure withholding compliance. I also understand that I am subject to withholding penalties if I do not withhold on the principal portion of each installment payment and do not send the withholding along with Form 593 to the Franchise Tax Board by the due date, or if I do not send one copy of Form 593 to the seller/transferor by the due date.

Part VI Computation Complete this part if you checked and certified box 3 in Part III, or to calculate an alternative withholding calculation amount. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28.

Selling price 速 13 $850,000.00 Selling expenses----------------------------------------------------------------------------------------------------------------------------------------------------- 14 A m o u n t R e a l i z e d . S u b t r a c t l i n e 1 4 f r o m l i n e 1 3 1 5 Enter the price you paid to purchase the property (see instructions, How to Figure Your Basis.) 16 Seller/Transferor-paid points --------------------------------------------------------------------------- 17 ______________ Depreciation ----------------------------------------------------------------------------------------------- 18 ______________ O t h e r d e c r e a s e s t o b a s i s 1 9 Total decreases to basis. Add line 17 through line 19 20 S u b t r a c t l i n e 2 0 f r o m l i n e 1 6 2 1 Cost of additions and improvements _________________________________________________________________速 22 O t h e r i n c r e a s e s t o b a s i s 速 2 3 Total increases to basis. Add line 22 and line 23 ______________________________________________________________________ 24 Adjusted basis. Add line 21 and line 24 ---------------------------------------------------------------------------------------------------------------------- 速 25 Enter any suspended passive activity losses from this property 26 A d d l i n e 2 5 a n d l i n e 2 6 2 7 Estimated gain or loss on sale Subtract line 27 from line 15 and enter the amount here. If you have a loss or zero gain, certify on Side 3. No withholding is required. If you have a gain, go to line 29 and30 to calculate your withholding 28

Form 593 2019 Side 2

147

8602204


Remitter Name

SSN, ITIN, FEIN, CA corp no., or CA SOS file no.

95-4224700

Inter Valley Escrow

29. Alternative withholding calculation amount. Check the applicable box for the filing type:

[ ] Individual 12.3% [ ] Corporation 8.84% [ ] Bank and Financial Corporation 10.84% [ ] Non-California Partnership 12.3% [ ] S Corporation 13.8% [ ] Financial S Corporation 15.8% Multiply the amount on line 28 by the tax rate for the filing type selected above and enter the amount here. This is the alternative withholding calculation amount. If you elect the alternative withholding calculation amount, then check the appropriate box on line 35, Boxes B-H, and enter the amount of line 36 30. Total sales price withholding amount. Multiply the selling price on line 13 by 3 1/3% (.0333). This is the total sales price withholding amount. If you select the total sales price withholding amount, check box A on line 35 below and enter the amount on line 36

Part VII Escrow or Exchange Information 31. E s c r o w o r E x c h a n g e n u m b e r 32. Date of Transfer, Exchange Completion, Failed Exchange, or Installment Payment 33. Total Sales Price, Failed Exchange, or Boot Amount $

3 1

[ ] Trust 12.3%

29 30

0 1 - 0 0 2 2 7 - 0 1 4

(mm/dd/yyyy) • 32 ___________________________

x Ownership Percentage

%

• 33

34. Type of Transaction (Check One Only): A [ ] Conventional Sale/Transfer C [ ] Boot B [ ] Installment Sale Payment D [ ] Failed Exchange 35. Withholding Calculation (Check One Only): Total Sales Price Method A [ ] 3 1/3% (.0333) x Total Sales Price, Boot, or Installment Sale Payment Alternative Withholding Calculation Election B [ ] Individual 12.3% x Gain on Sale F [ ] S Corporation 13.8% x Gain on Sale C [ ] Non-California Partnership 12.3% x Gain on Sale G [ ] Financial S Corporation 15.8% x Gain on Sale D [ ] Corporation 8.84% x Gain on Sale H [ ] Trust 12.3% x Gain on Sale E [ ] Bank and Financial Corp. 10.84% x Gain on Sale 36. Amount Withheld from this Seller/Transferor  36 $

Title and escrow persons, and exchange accommodators are not authorized to provide legal or accounting advice for purposes of determining withholding amounts. Transferors are strongly encouraged to consult with a competent tax professional for this purpose. To learn about your privacy rights, how we may use your information, and the consequences for not providing the requested information, go to ftb.ca.gov/forms and search for 1131. To request this notice by mail, call 800.852.5711. Under penalties of perjury, I hereby certify that the information provided above is, to the best of my knowledge, true and correct. I further certify that: Check the applicable box(s): [ ] The sale is fully exempt from withholding as indicated by a check mark(s) in Part III. [ ] The sale is fully or partially exempt from withholding as indicated by a check mark(s) in Part IV. [ ] The seller has elected the Alternative Withholding Calculation as indicated by a check mark in Part VII, line 35 (B-H). [ ] The Buyer/Transferee understands and accepts the withholding requirements as stated on the Buyer's/Transferee's Acknowledgment to Withhold in Part V. This box should only be checked by those who are involved in an installment sale. Seller's/Transferor's signature

Sign Here

It is unlawful to forge a spouse's/RDP's signature.

Date

X

Seller's/Transferor's spouse's/RDP's signature

Date

X

Buyer's/Transferee's signature

Date

Buyer's/Transferee's spouse's/RDP's signature

Date

Preparer's name and Title/Escrow business name

Telephone Number

X X

XErik Okland Escrow Officer/Inter Valley Escrow

147

8603204

(818) 547-9999

Form 593 2019 Side 3


2020

Instructions for Form 593

Real Estate Withholding Statement What's New

Effective January 1, 2020, the following real estate withholding forms and instructions have been consolidated into one new Form 593, Real Estate Withholding Statement: • Form 593, Real Estate Withholding Tax Statement • Form 593-C, Real Estate Withholding Certificate • Form 593-E, Real Estate Withholding Computation of Estimated Gain or Loss • Form 593-I, Real Estate Withholding Installment Sale Acknowledgment All remitters are required to complete the applicable part(s) of Form 593 and submit Sides 1-3 to the Franchise Tax Board (FTB) regardless of real estate transaction.

General Information

In general, for taxable years beginning on or after January 1, 2015, California law conforms to the Internal Revenue Code (IRC) as of January 1, 2015. However, there are continuing differences between California and federal law. When California conforms to federal tax law changes, we do not always adopt all of the changes made at the federal level. For more information, go to ftb.ca.gov and search for conformity. Additional information can be found in FTB Pub. 1001. Supplemental Guidelines to California Adjustments, the instructions for California Schedule CA (540 or 540NR), and the Business Entity tax booklets. The instructions provided with California tax forms are a summary of California tax law and are only intended to aid taxpayers in preparing their state income tax returns. We include information that is most useful to the greatest number of taxpayers in the limited space available. It is not possible to include all requirements of the California Revenue and Taxation Code (R&TC) in the instructions. Taxpayers should not consider the instructions as authoritative law. Real Estate Withholding Requirement Withholding is required when California real estate is sold or transferred. The real estate escrow person (REEP) is required to notify buyers of withholding requirements, unless the buyer is a Qualified Intermediary (QI) in a deferred exchange. The amount withheld from the seller or transferor is sent to the FTB as required by R&TC Section 18662. For more information about real estate withholding get FTB Publication 1016, Real Estate Withholding Guidelines. Real Estate Escrow Person (REEP) - The REEP is anyone involved in closing the real estate transaction which includes any attorney, escrow company, title company, QI, or anyone else who receives and disburses payment for the sale of real property.

Remitter - The person who will remit the withheld tax on any disposition from the sale or exchange of California real estate and file the prescribed forms on the buyer's/transferee's behalf with the FTB. Like-Kind Exchanges - California requires taxpayers who exchange property located in California for like-kind property located outside of California, and meet all of the requirements of the IRC Section 1031, to file an annual information return with the FTB. For more information, get form FTB 3840, California Like-Kind Exchanges, or go to ftb.ca.gov and search for like kind. Installment Sales - The REEP reports the sale or transfer as an installment sale if there will be at least one payment made after the tax year of the sale. The withholding is 3 1/3% (.0333) of the down payment during escrow. Buyers/Transferees are required to withhold on the principal portion of all payments made following the close of the real estate transaction, unless an approval letter for electout method is received as described below. See Specific Instructions for more information on installment sales. Elect Out of Subsequent Installment Payment Withholding - Sellers or transferors can elect to not report the sale on the installment method. If the seller/transferor chooses not to use the installment method, the seller/ transferor generally reports the entire gain in the year of sale, even though the seller/ transferor does not receive all the sale proceeds in that year. To do this, the seller/ transferor must: • File a California income tax return and report the entire gain on Schedule D, California Capital Gain or Loss Adjustment, or Schedule D-1, Sale of Business Property. • Submit to the FTB a written request to release the buyer/transferee from withholding on subsequent installment payments after filing the income tax return and reporting the entire gain. The FTB will approve or deny the request within 30 days from when received. The buyer must continue to withhold until the FTB approves the request. For more information, get FTB 4010, Withholding on California Real Estate Installment Sales, or go to ftb.ca.gov and search for installment sales. Alternative Withholding Calculation Amount is calculated when the alternative withholding calculation election has been made by the seller/transferor. The withholding amount is calculated by multiplying the seller's/ transferor's applicable tax rate by the estimated gain determined in Part VI, Computation. You may use estimates when you complete Part VI, but the estimates must not result in the calculation of a loss when you actually have a

gain. Any seller/transferor who, for the purpose of avoiding the withholding requirements, knowingly executes a false certificate is liable for a penalty of $1,000 or 20% of the required withholding amount, whichever is greater. Registered Domestic Partners (RDP) - For purposes of California income tax, references to a spouse, husband, or wife also refer to a California RDP, unless otherwise specified. When we use the initials RDP they refer to both a California registered domestic "partner" and a California registered domestic "partnership," as applicable. For more information on RDPs, get FTB Pub. 737, Tax Information for Registered Domestic Partners.

Important Information

Seller/Transferor filing requirement Qualifying for an exemption from withholding or being withheld upon does not relieve you of your obligation to file a California income tax return and pay any tax due on the sale of California real estate. You may be assessed penalties if: • You do not file a tax return. • You file your tax return late. • The amount of withholding does not satisfy your tax liability. The seller/transferor must submit Form 593 before the close of the real estate transaction to prevent withholding on the transaction. After the real estate transaction has closed, amounts withheld may be recovered only by claiming the withholding as a credit on the appropriate year's tax return. How to Claim the Withholding To claim the withholding credit you must file a California tax return. Report the sale or transfer as required. Enter the amount from Form 593, line 36, Amount Withheld from this Seller/ Transferor, on your California tax return as withholding from Form(s) 592-B, Resident and Nonresident Withholding Tax Statement, or 593. If your filing status changed after escrow closed and before filing your California tax return, please call Withholding Services and Compliance at 888.792.4900 or 916.845.4900 prior to filing your tax return for instructions on how to claim your withholding credit. Claim your withholding credit on one of the following: • Form 540, California Resident Income Tax Return • Form 540NR, California Nonresident or Part-Year Resident Income Tax Return • Form 541, California Fiduciary Income Tax Return • Form 100, California Corporation Franchise or Income Tax Return • Form 100S, California S Corporation Franchise of Income Tax Return • Form 100W, California Corporation Franchise or Income Tax Return - Water'sEdge Filers

Form 593 Instructions 2019 Page 1


• Form 109, California Exempt Organization Business Income Tax Return • Form 565, Partnership Return of Income • Form 568, Limited Liability Company Return of Income Attach a copy of Form(s) 593 to the lower front of your California tax return. Make a copy for your records. If withholding was done for a failed exchange or on boot in the year following the year the property was sold, the withholding is shown as a credit for the taxable year the withholding occurred since you qualify for installment sale reporting. If you elect to report the gain in the year the property was sold, instead of in the year you received the payment, contact Withholding Services and Compliance at 888.792.4900 or 916.845.4900 prior to filing your California tax return for instructions to have the credit transferred to the prior year.

A Purpose

Use form 593, Real Estate Withholding Statement to: • Certify the seller/transferor qualifies for a full, partial, or no withholding exemption. • Estimate the amount of the seller's/ transferor's loss or zero gain for withholding purposes and to calculate an alternative withholding calculation amount. • Report real estate withholding on sales closing in 2020, installment payments made in 2020, or exchanges that were completed or failed in 2020. Use a separate Form 593 to report the amount withheld from each seller/transferor. If the sellers/transferors are married or RDPs and they plan to file a joint return, include both spouses RDPs on the same Form 593. If the sellers/transferors are married or RDPs and they are entered as one seller/transferor, we treat them as having equal ownership interest. If the ownership interest is not equal, file separate Forms 593 for each seller/transferor to represent the correct ownership interest percentage. If the information submitted is incorrect, an amended Form 593 must be filed with the FTB. See Important Information E, Amending Form 593, for more information. Use Form 593-V, Payment Voucher for Real Estate Withholding, to remit real estate withholding payments to the FTB. Submit Form 593-V when Form(s) 593 is submitted electronically or by mail. The remitter must use Form 593-V when remitting a payment by check or money order.

Page 2 Form 593 Instructions 2019

B Who Must File

A seller/transferor that qualifies for a full, partial, or no withholding exemption must file Form 593. Any remitter (individual, business entity, trust, estate, or REEP) who withheld on the sale/ transfer of California real property must file Form 593 to report the amount withheld. If this is an installment sale payment after escrow closed, the buyer/transferee is the responsible person. See instructions for Part V, Buyer/ Transferee information. All remitters are required to complete the applicable part(s) of Form 593 and submit Sides 1-3 to the FTB regardless of the real estate transaction. C When and Where to File If the seller/transferor is exempt from withholding, this form must be sent to the real estate escrow person or QI prior to the close of the real estate transaction. The form must be sent to the FTB by the 20th day of the calendar month following the month in which escrow closes. For withholding on a sale, the remitter will need the original completed Form 593 and two copies: • File the original Form 593, along with completed Form 593-V and the withholding payment. Mail to FTB using the address shown in this section within 20 days following the end of the month in which this transaction closed. • Provide one copy to the seller/transferor within 20 days following the end of the month in which the transaction closed. • Retain one copy for the remitter records for a minimum of five years. For installment sales, submit the following at the close of the real estate transaction: • Form 593 • Form 593-V with the amount withheld on the down payment. • A copy of the promissory note. When making installment payments following the close of the real estate transaction, withhold either 3 1/3% (.0333) of the total sales price, or the Alternative Withholding Calculation percentage on the principal portion of each installment payment, as specified by the seller/transferor on Form 593. A copy of the promissory note, and the seller's/transferor's signature are not required. File only a completed current year Form 593 and Form 593-V with each withholding payment. For example, if the buyer withholds on a payment to a seller on June 1, 2020, then use a 2020 Form 593 and Form 593-V. Mail to: WITHHOLDING SERVICES AND COMPLIANCE MS F182 FRANCHISE TAX BOARD PO BOX 942867 SACRAMENTO, CA 94267-0651

D Electronic Filing Requirements Form 593 information may be filed with the FTB electronically, using FTB's Secure Web Internet File Transfer (SWIFT). However, the REEP must provide the seller/transferor with a copy of Form 593. For installment sales, the REEP must also mail a copy of the promissory note to the FTB with the down payment only. For electronic filing, the REEP can submit the file using the SWIFT process as outlined in FTB Pub. 923. Secure Web Internet File Transfer (SWIFT) Guide for Resident, Nonresident, and Real Estate Withholding. For the required file format and record layout for electronic filing, get FTB Pub. 1023R, Real Estate Withholding Electronic Submission Requirements. If you are the preparer for more than one REEP, provide a separate electronic file for each REEP. For electronic filing of Form 593, mail your payment along with Form 593-V. Electronic signatures shall be considered as valid as the originals. E Amending form 593

If an error is discovered after the remitter files Form 593, the REEP files an amended Form 593 with the FTB to correct the error. An amended Form 593 can only be filed by the REEP. If a seller/transferor notices an error, contact the REEP. Important: For assistance to correct error(s), prepare, and file amended forms, call Withholding Services and Compliance at 888.792.4900 or 916.845.4900. If you previously filed with a correct taxable year form, but reported incorrect information, follow the steps below: 1. Complete a new Form 593 with the same taxable year form as originally filed. • Check the "Amended" box at the top left corner of the form. • Enter all the correct withholding and seller/transferor information. Do not enter negative numbers. • Attach a letter to the back of the form to explain your reasons for the corrections. • Keep the original Form 593 for you records. 2. Mail the amended form and attached letter to the address shown under Important Information C, When and Where to File. If you previously filed a Form 593 using an incorrect year form, call us for assistance. Whenever an amended Form 593 is filed with the FTB, provide a copy to the seller/transferor. Do not file an amended Form 593 to cancel the withholding amount after the close of the real estate transaction. After escrow has closed, amounts withheld may be recovered only by claiming the withholding as a credit on the appropriate year's tax return.


F Interest and Penalties

Interest will be assessed on late withholding payments and is computed from the due date to the date paid. If the REEP does not notify the buyer/transferee, other than a QI, of the withholding requirements in writing, the penalty is greater of $500 or 10% of the required withholding. If after notification, the buyer/transferee, unless the buyer is a QI in a deferred exchange, does not withhold, the penalty is the greater of $500 or 10% of the required withholding. If the buyer/transferee or REEP does not furnish complete and correct copies of Form 593 to the seller/transferor by the due date, the penalty is $270 per Form 593. If the failure is due to an intentional disregard of the requirement, the penalty is the greater of $550 or 10% of the required withholding. We assess a penalty for failure to file complete, correct, and timely information returns. The penalty is calculated per seller: • $50 if filed 1 to 30 days after the due date. • $110 if filed 31 days to 6 months after the due date. • $270 if filed more than 6 months after the due date. (R&TC Section 19183) If the failure is due to an intentional disregard of the requirement, the penalty is the greater of $550 or 10% of the required withholding. For more information, get FTB 1150. Penalties referenced in this section will be assessed unless it is shown that the failure to notify, withhold, or timely furnish returns was due to reasonable cause.

G Helpful Hints

Taxable Year - The taxable year at the top of Form 593 must match the taxable year on line 32. See instructions for Part VII, Line 32. We cannot process a Form 593 with an incorrect taxable year. To avoid processing delays, go to ftb.ca.gov/forms to get the correct taxable year Form 593. Identification Numbers - Check to see that the Remitter and seller's/transferor's identification numbers are correct and listed in the same order as the names. If both a husband/RDP and wife/RDP are listed, make sure both social security numbers (SSNs) or individual taxpayer identification numbers (ITINs) are listed in the same order as their names. Trusts and Trustees - It is important to report the correct name and identification number when title is held in the name of a trust. If the seller/transferor is a trust, see the Specific Instructions for Part II, Seller/Transferor Information.

Specific Instructions

Private Mail Box (PMB) - Include the PMB in the address field. Write "PMB" first, then the box number. Example: 111 Main Street PMB 123. Foreign Address - Follow the country's practice for entering the city, county, province, state, country, and postal code, as applicable, in the appropriate boxes. Do not abbreviate the country name. Complete fields applicable to your transaction.

Part I - Remitter Information

Check the box for the type of remitter that applies to your transaction. Enter the business or individual name, identification number, and address of the party responsible for closing the transaction or any other party who receives and disburses payment and remits withholding to the FTB for the sale of real property. Enter a business name or individual name,not both. If the party is an escrow company, title company, exchange company, corporation, partnership, limited liability company, nongrantor trust, or estate, enter the business name and business identification number (FEIN, CA Corp no., CA SOS file no.). If the business name is not applicable, include the individual's or grantor's first name, initial, last name, and identification number (SSN or ITIN).

Part II - Seller/Transferor Information

Enter only business or individual name, not both, mailing address, and identification number of the seller/transferor. If the seller/transferor does not provide a tax identification number, withhold is still required. If you do not have an SSN because you are a nonresident or a resident alien for federal tax purposes, and the Internal Revenue Service (IRS) issued you an ITIN, enter the ITIN in the space provided for the SSN. An ITIN is a tax processing number issued by the IRS to individuals who have a federal tax filing requirement and do not qualify for an SSN. It is a nine-digit number that always starts with the number 9. If the seller/transferor has applied for an identification number, but it has not been received, enter, "Applied For" in the space for the seller/transferor identification number and attach a copy of the federal application behind Form 593. After the identification number is received, call Withholding Services and Compliance at 888.792.4900 or 916.845.4900. Note: If you choose to provide a copy of Form 593 to the buyer/transferee, delete the seller/ transferor tax identification number on the buyer/transferee copy. If the seller/transferor is an/a: • Individual, enter the SSN or ITIN. If the sellers/transferors are husband/RDP and wife/RDP and plan to file a joint return, enter the name and SSN or ITIN for each spouse/ RDP. Otherwise, do not enter information

for more than one seller/transferor. Instead, complete a separate Form 593 for each seller/transferor. • Business, enter the business name in the business name field along with the federal employer identification number (FEIN). California Corporation number (CA Corp no.), or California Secretary of State (CA SOS) file number. • Grantor trust, enter the individual name and SSN or ITIN of the grantor that is required to file a tax return and report the income. Do not enter the name of the grantor trust or trustee information. The grantor trust is disregarded for the tax purposes and the individual seller/transferor must report the Sale and claim the withholding on the grantor's individual tax return. If the trust was a grantor trust that became irrevocable upon the grantor's death, enter the name of the Trust and the trust's FEIN. Do not enter the decedent's or trustee's name or SSN. • Nongrantor trust, enter the name of the nongrantor trust and the nongrantor trust's FEIN. If the nongrantor trust has not applied for a FEIN, leave the identification number blank. Do not enter the trustee information. When the nongrantor trust receives their FEIN, contact Withholding Services and Compliance at 888.792.4900 or 916.845.4900. • Single member limited liability company (SMLLC), enter the name and identification number of the single member. For all other non-individual sellers/transferors, enter the FEIN, CA Corp number, or CA SOS file number. Property Address - Enter the address of the CA real property transferred. Include the street address, parcel number, and county. Conventional Sale/Transfer and Installment Sale - Enter the address of the CA real property transferred. Exchange - Enter the address of the relinquished property.

Ownership Percentage

Enter your ownership percentage rounded to two decimal places (e.g. 66.67%). If you are on the title for incidental purposes and you have no financial ownership, enter 0.00 and skip to Seller/Transferor Signature. You will not be withheld upon. Examples of sellers/transferors who are on title for incidental purposes are: • Co-signers on title (e.g. , parents co-signed to help their child qualify for the loan). • Family members on title to receive property upon the owner's death.

Form 593 Instructions 2019 Page 3


Part III - Certifications Which Fully Exempt the Sale From Withholding

Line 1 through Line 9 Check all boxes that apply to the property being sold or transferred. Line 1 - Principal residence To qualify as your principal residence under IRS Section 121, you (or the decedent) generally must have owned and lived in the property as your main home for at least two years during the five-year period ending on the date of sale. Military and Foreign Service, get FTB Pub. 1032, Tax Information for Military Personnel. You have have only one main home at a time. If you have two homes and live in both of them, the main home is the one you lived in most of the time. There are exceptions to the two-year rule if the primary reason you are selling the home is for a change in the place of employment, health, or unforeseen circumstances such as death, divorce or termination of registered domestic partnership, or loss of job, etc For more information about what qualifies as your principal residence or exceptions to the twoyear rule, get federal Publication 523, Selling Your Home. To get federal publication, go to irs.gov, or call 800.829.3676. If only a portion of the property qualifies as your principal residence, a second Form 593 will need to be completed to certify an exemption on the portion not used as a principal residence. The allocation method should be the same as the seller/transferor used to determine depreciation. Line 2 - Property last used as your principal residence If the property was last used as the seller's/ transferor's, or decedent's principal residence within the meaning of IRC Section 121 without regard to the two-year time period, no withholding is required. If the last use of the property was as a vacation home, second home, or rental, you do not qualify for the exemption. You must have lived in the property as your main home. If you have two homes and live in both of them, the main home is the one you lived in most of the time. Line 3 - Loss of Zero Gain You have a loss or zero gain for California income tax purposes when the amount realized is less than or equal to your adjusted basis. You must complete Part VI and have a loss or zero gain on line 28 to certify that the transaction is fully exempt from withholding. You may not certify that you have a net loss or zero gain just because you do not receive any proceeds from the sale or because you feel you are selling the property for less than what it is worth. Page 4 Form 593 Instructions 2019

Line 4 - Involuntary Conversion The property is being involuntarily or compulsorily converted when both of the following apply: • The California real property is transferred because it was (or threatened to be) seized, destroyed, or condemned within the meaning of IRC Section 1033. • The seller/transferor intends to acquire property that is similar or related in service or use in order to be eligible for nonrecognition of gain for California income tax purposes. Get federal Publication 544, Sales and Other Dispositions of Assets, for more information about involuntary conversions. Line 5 - Non-recognition Under IRS Section 351 or 721 The transfer must qualify for nonrecognition treatment under IRC Section 351 (transfer to a corporation controlled by transferor) or IRC Section 721 (contribution to a partnership in exchange for a partnership interest). Line 6 Corporation A corporation has a permanent place of business in California when it is organized and existing under the laws California or it has qualified through the CA SOS to transact intrastate business. A corporation not qualified to transact intrastate business (such as a corporation engaged exclusively in interstate commerce) will be considered as having a permanent place of business in California only if it maintains an office in California that is permanently staffed by its employees after the sale. S corporations must withhold on nonresident S corporation shareholders. Get FTB Pub. 1017, Resident and Nonresident Withholding Guidelines, for more information. Line 7 - Partnership or Limited Liability Company (LLC) Partnerships and LLCs are required to withhold on nonresident partners and members. Withholding is not required if the title to the property transferred is recorded in the name of a California partnership or it is qualified to do business in California. Withholding is not required if the title to the property transferees is in the name of an LLC, and the LLC meets both of the following: • It is classified as a partnership for federal and California income tax purposes. • It is not an SMLLC that is disregarded for federal and California income tax purposes. If the LLC meets these conditions, the LLC must still withhold on nonresident members. Get FTB Pub. 1017 for more information. If the SMLLC is classified as a corporation for federal and California income tax purposes, then the seller/transferor is considered a corporation for withholding purposes. Refer to Line 6.

If the LLC is an SMLLC that is disregarded for federal and California income tax purposes, then that single member is considered the seller/transferor and title to the property is considered to be in the name of the single member for withholding purposes. When completing Form 593 as the single member of a disregarded LLC, write on the bottom of Side 1 of Form 593 that the information on the form is for the single member of the LLC, so the REEP will understand why it is different form the recorded title holder. If the single Complete Form 593 member is: using: The individual's An individual information A corporation The corporation's information The partnership's A partnership information An LLC The single member's information Line 8 - Tax-Exempt Entity Withholding is not required if the seller/ transferor is tax-exempt under either California or federal law (e.g., religious, charitable, educational, not for profit organizations, etc.). Line 9 - Insurance Company, Individual Retirement Account, Qualified Pension or Profit-Sharing Plan, or Charitable Remainder Trust Withholding is not required when the seller/ transferor is an insurance company, individual retirement account, qualified pension or profitsharing plan, or a charitable remainder trust.

Part IV - Certifications That May Partially or Fully Exempt the Sale From Withholding or if No Exemptions Apply

Complete Part IV only if you did not meet any of the exemptions in Part III. Check all boxes that apply to the property being sold. Line 10 Simultaneous or Deferred Exchange If the California real property is part of a simultaneous like-kind exchange within the meaning of IRC Section 1031, the transfer is exempt from withholding. However, if the seller/transferor receives money or other property (in addition to property that is a part of the like-kind exchange) exceeding $1,500 from the sale, the REEP must withhold. If the California real property is part of a deferred like-kind exchange within the meaning of IRC Section 1031, the sale is exempt from withholding at the time of the initial transfer. However, if the seller/transferor receives money or other property (in addition to property that is a part of the like-kind exchange) exceeding 1,500 form the sale, the QI must withhold.


If the exchange does not take place or if the exchange does not qualify for nonrecognition treatment, the intermediary or accommodator must withhold 3 13% (.0333) of the total sales price. Complete the perjury statement and sign. Line 11 - Installment Sale The REEP reports the sale or transfer as an installment sale if there will be at least one payment made after the tax year of the sale. The withholding is 3 1/3 (.0333) of the down payment during escrow. Buyers/Transferees are required to withhold on the principal portion of all payments made following the close of the real estate transaction unless an approval letter for the elect- out method is received. When the withholding amount on the down payment is sent to the FTB, the FTB must also receive a Form 593 with Buyer/Transferee information section completed, along with a copy of the promissory note. Line 12 - No Exemptions Apply Check this box if the exemptions in Part III or Part IV, line 10 and line11, do not apply. This form is signed under penalty of perjury. The seller/transferor must provide this form to the REEP or remitter to provide to the FTB. You must complete and sign this form and return it to your REEP or remitter by the close of the real estate transaction for it to be valid. Otherwise, the REEP must withhold the full 3 1/3% (.0333) of the total sales price or the alternative withholding calculation amount shown on line 36, Amount Withheld from this Seller/Transferor. Penalty - Any seller/transferor who, for the purpose of avoiding the withholding requirements, knowingly executes a false certificate is liable for a penalty of $1,000 or 20% of the required withholding amount, whichever is greater.

Part IV - Buyer/Transferee Information

Buyer/Transferee Instructions If the sale or transaction is an installment sale, the buyer/transferee must complete the Buyer/ Transferee Information section of Form 593 for the correct taxable year. The buyer/transferee must withhold on the principal portion of each installment payment. However, the buyer/ transferee may authorize the REEP to withhold on the down payment. In this case the buyer/ transferee withholds on the principal portion of all subsequent payments (including payoff or balloon payments). After the form is complete, the buyer/transferee copies all pages to keep the instructions for withholding on subsequent payments. The buyer/transferee submits the following to the REEP: • Form 593 • Form 593-V, with the amount withheld on the down payment. • A copy of the promissory note.

At the close of the real estate transaction, if no down payment is received, submit Form 593 with Part VII, Line 34, Box B, Installment Sale Payment checked and $0 reported on Line 36, Amount Withheld from this Seller/Transferor. The REEP will mail the documents to the FTB with the withholding on the down payment to the address in C When and Where to File. When making installment payments following the close of the real estate transaction, withhold either 3 1/3% (0.333) of the total sales price, or the Alternative withholding calculation percentage on the principal portion of each installment payment, as specified by the seller/ transferor on Form 593. File only a completed current year Form 593 and Form 593-V with each withholding payment. For example, if you withhold on a payment to a seller on June 1, 2020, then use a 2020 Form 593 and Form 593-V. A copy of the promissory note and the seller/ transferor signature are not required with any subsequent installment payments. When the buyer/transferee sends the withholding on the final installment payment, write "Final Installment Payment" on the bottom of Side 1 of Form 593. For more information on withholding on installment payments, call Withholding Services and Compliance at 888.792.4900 or 916.845.4900. Buyer/Transferee Information Enter the buyer's/transferee's name as it is shown on the escrow instructions. Each buyer/ transferee is required to withhold on individual payments and must complete a separate Form 593. However, if the buyers/transferees are spouses/RDPs and both of them will be on the promissory note, then include both names, social security numbers (SSNs) or individual taxpayer identification numbers (ITINs), and signatures on one form. If the buyer/transferee is a business, enter the business name in the business name field. The buyer's/transferee's identification number (SSN, ITIN, federal employer identification number (FEIN), CA corporation (CA Corp no.), or CA Secretary of Sate (CA SOS) file number) is required on each form to be valid. Installment Sale Terms - Enter the terms of the promissory note and include the principal amount, installment amount, interest rate, and the number of months of the repayment period. Attach a copy of the signed promissory note to Form 593.

Buyer's/Transferee's Acknowledgement to Withhold By signing the perjury statement, you acknowledge that you will: • Withhold on the principal portion of each installment payment. • Authorize the REEP to withhold the required amount only on the down payment. • Withhold 3 1/3% (.0333) of the total sales price or the Alternative Withholding Calculation, as specified by the seller/ transferor on Form 593, on the principal portion of all subsequent installment payments. • Give one copy of Form 593 to the seller/ transferor by the 20th day of the month following the month of the installment payments. • Send each withholding payment, with Form 593-V, and the completed Form 593 to the FTB by the 20th day of the month following the month of the installment payment. • Inform the FTB within 60 days if the terms of the installment sale, promissory note, or payment schedule change. • Be subject to penalties if you do not: - Withhold on the principal portion of each installment payment. - Send the withholding payment with Form 593 to the FTB by the due date. - Send one copy of Form 593 to the seller/ transferor by the due date.

Part IV - Computation

Line 13 - Selling Price The selling price is the total amount you will receive for your property. It includes money, as well as, all notes, mortgages, or other debts assumed by the buyer/transferee as part of the sale, plus the fair market value of any other property or any services you receive. Line 14 - Selling Expenses Selling expenses include commissions, advertising fees, legal fees, and loan charges that will be paid by the seller/transferor, such as loan placement fees or points. Line 15 - Amount Realized The amount realized is the selling price minus the selling expenses. Line 16 - Purchase Price If you acquired this property by purchase, enter your purchase price. Your purchase price includes the down payment and you debt you incurred; such as a first or second mortgage or promissory notes you gave the seller/transferor in payment for the property. If you acquired the property by gift, inheritance, exchange, or any way other than purchase, see How to Figure Your Basis in these instructions.

Form 593 Instructions 2019 Page 5


Line 17 - Seller/Transferor- Paid Points Points are charges paid to obtain a loan. They may also be called loan origination fees, maximum loan charges, loan discount, or discount points. If the seller/transferor paid points for you when you acquired the property, enter the amount paid by the seller/transferor on your behalf on line 17, unless you already subtracted this item to arrive at the amount for line 16. Line 18 - Depreciation Enter the amount of depreciation you deducted, or could have deducted, on your California income tax return for business or investment use of the property under the method of depreciation you chose. If you took less depreciation on your tax return than you could have under the the method chosen, you must enter the amount you could have taken under that method. If you did not take a depreciation deduction, enter the full amount of depreciation you could have taken. Get federal Publication 946, How to Depreciate Property, for more information. If you do not know how much depreciation you deducted or were allowed, you can make an estimate of the amount of depreciation (for withholding purposes only). To estimate the depreciation, divide the purchase price plus the cost of additions and improvements by 27.5 and multiply that by the number of years you used the property for business use (up to 27.5 years). Do not include the cost of the land in the purchase price. Example: Mary brought a house 20 years ago for $150,000 and has used it a a rental property for the last 18 years. Prior to renting the house, she added a pool which cost her $25,000. Mary's depreciation is estimated as follows: Cost $150,000 Plus additions 25,000 Total 175,000 Divided by 27.5 = 6,364 Multiply by 18 years = $114,552 Mary's estimated depreciation to enter on line 18 is $114,552. Line 19 - Other Decreases to Basis Include any other amounts that decrease your basis, such as: • Casualty or theft loss deductions and insurance reimbursements. • Energy credits claimed for the cost of energy improvements added to your basis. • Payments received for granting an easement or right-of-way. Line 22 - Additions and Improvements These add to the value of your property, prolong its useful life, or adapt it to new uses. Examples include room additions, landscaping, new roof, insulation, new furnace or air conditioner, remodeling, restoration project, etc. The cost of repairs are not included. Do Page 6 Form 593 Instructions 2019

not include any additions or improvements on line 22 that were included on line 16. Line 23 - Other Increases to Basis Include the amounts paid for any other items that increase the basis of the property, such as: • Settlement fees and closing costs you incurred when you bought the property. • The amount you paid for special assessments for items such as water connections, paving roads, and building ditches. • The cost of restoring damaged property from a casualty loss, or cost of extending utility service lines to the property. Line 26 - Passive Activity Losses You may only use suspended passive activity losses that directly relate to the property sold. Other losses such as net operating losses, capital loss carry forwards, stock losses, and passive activity losses from other properties cannot be used. Line 28 - Estimated Gain or Loss on Sale If you have a zero gain or loss, check the box for line 3 in Part III. Complete and sign Form 593 and give it to your REEP. You will not be subject to withholding on this sale. Note: A loss or zero gain can only be claimed on Form 593 if the taxpayer has a tax identification number. If you have a gain, this is your estimated amount of gain on the sale of your California property. Go to line 29. Line 29 - Alternative Withholding Calculation Amount Check the applicable box for the filing type and multiply the amount on line 28 by the tax rate for the filing type selected. Enter the result on line 29. Compare this amount to the withholding amount on the total sales price shown on line 30. If you elect the alternative withholding calculation amount on line 29, check the appropriate box in Part VII, line 35 (Boxes B-H), Alternative Withholding Calculation Election, then transfer the amount on line 29 to line 36. Sign Form 593 to certify the election. Keep Form 593 for five years to document your calculations. Line 30 - total Sales Price Withholding Amount Multiply the selling price on line 13 by 3 1/3% (0.333) and enter the amount on line 30. If you select the standard withholding amount on line 30, check Box A on line 35 in Part VII, and transfer the amount on line 30 to line 36.

Part VII - Escrow or Exchange Information

Line 31 - Escrow or Exchange Number Enter the escrow or exchange number for the property transferred. Do not include dashes and/or spaces in the escrow or exchange number.

Line 32 - Date of Transfer, Exchange Completion, Failed Exchange, or Installment Payment If the date is left blank, we will use a default date of January 1 of the tax year in which the Form 593 is received. Penalties may apply for failure to file a complete, correct, and timely information return. For additional information, see Important Information F, Interest and Penalties. Conventional Sale/Transfer: Enter the date escrow closed. Exchange: For completed exchanges, enter the date that the boot (cash or cash equivalent) was distributed to the exchanger. For failed exchanges, enter the date when it was determined that the exchange would not meet the deferred exchange requirements and any cash was distributed to the seller/transferor. When withholding on boot or a failed exchange, be sure to use the forms for the year that you entered on line 32 (rather than the year of the sale). Since the seller/transferor will be able to use installment sale reporting for the gain. Installment Sale: For withholding on the down payment, enter the date escrow closed. For withholding on the principal portion of each installment payment, enter the due date of the installment payment. Line 33 - Enter the sales price, failed exchange amount, or boot amount, and the ownership percentage. Multiply the two amounts and enter the result on this line. Line 34 - Type of Transaction Check one box that represents the type of real estate transaction for which the withholding is being calculated. Conventional Sale/Transfer: Check this box if the conventional sale/transfer represents the close of the real estate transaction. This sale/ transfer does not contain any conditions such as an installment sale, boot, or failed exchange. Installment Sale Payment: Check this box to report the sale or transfer as an installment sale if there will be at least one payment made after the tax year of the sale or transfer, or if you are withholding on the down payment or principal portion of any installment payment. Attach a copy of the promissory note with the down payment only. At the close of the real estate transaction, if no down payment is received, submit form 593 with Part VII, Line 34, Box B, Installment Sale payment checked and $0 reported on LIne 36. Amount Withheld from this Seller/Transferor. Boot: Check this box if the seller/transferor intends to complete a deferred exchange, but receives a boot (cash or cash equivalent) out of escrow. Failed Exchange: Check this box for any failed exchange, including if a failed deferred exchange had boot withheld upon in the original relinquished property.


Line 35 - Withholding Calculation Check one box that represents the method to be used to calculate the withholding amount on line 36. Either the Total Sales Price Method (3 1/3% (.0333) of the total sales price, boot, or installment sale payment) or the Alternative Withholding Calculation Election based on the applicable tax rate as applied to the gain on sale. Check only one box, A-H. Line 36 - Amount Withheld from this Seller/ Transferor Enter the amount withheld from this transaction or installment payment based upon the appropriate calculation for either the Total Sales Price Method or the Alternative Withholding Calculation Election, below.

Failed Exchange: a. Total Sales Price. If a deferred exchange is not completed or does not meet the deferred requirements, enter the total sales price $

not attach a copy of the promissory note with withholding on installment payments sent in after the close of the real estate transaction. Exchange: a. Boot Amount. Not to exceed recognized gain

$ b. Ownership Percentage. If b. Withholding Amount. Multiply multiple sellers/transferors line a by the applicable tax attempted to exchange this rate* and enter the result property, enter this here and on Form 593, seller's/transferor's line 36 $ ownership percentage Otherwise, enter 100.00% ------------------------------ % Failed Exchange: a. Gain on Sale from c. Amount Subject to Form 593, line 28 -----------------$ _____________ Withholding. Multiply line a by line b $ Withholding Calculation Using b. Ownership Percentage. If Total Sales Price Method multiple sellers/transferors d. Withholding Amount. Multiply attempted to exchange this line c by 3 1/3% (.0333) and Conventional Sale/Transfer: property, enter this enter the result here and a. Totals Sales Price $ on Form 593, line 36 --------------- $ _____________ seller's/transferor's ownership percentage. b. Enter the seller's/transferor's Otherwise, enter 100.00% ----------------------------- % ownership percentage ----------------------------------- % Withholding Calculation c. Amount Subject to Withholding. Multiply line a by line b and enter the result $ d. Withholding Amount. Multiply line c by 3 1/3% (.0333) and enter the result here and on Form 593, line 36 ------------------- $______________ Installment Sale: a. Amount Subject to Withholding. If you are withholding on the down payment in escrow, enter the required amount of the down payment. If you are withholding on installment payments received after the close of the real estate transaction or the final payoff in escrow, enter the principal portion of the payment $ b. Withholding Amount. Multiply line a by 3 1/3% (0.333) and enter the result here and on Form 593, line 36 $______________ Exchange: a. Amount Subject to Withholding. For completed deferred exchanges, enter the amount of boot (cash or cash equivalent) received by the seller/transferor $

Using Alternative Withholding Calculation Election Conventional Sale/Transfer: Enter the amount from line 29 on line 36. Step 1: Calculate the installment sale withholding percent that will be applied to all installment payments, including any deposits, down payments, or amounts paid for the seller/ transferor received during escrow: a. Estimated Gain on Sale. Gain on sale from Form 593, line 28 $

b. Total Sale Price. Selling price from Form 593, line 13 $ c. Installment sale withholding percent, divide line a by line b ------------------------ % Step 2: Calculate the withholding amount: a. Installment payment or down payment $ b. Multiply line a by installment sale withholding percent calculated in Step 1 ---------------- $ _____________ c. Withholding amount. Multiply line b by the applicable tax rate* and enter the result here and on Form 593, line 36 --------------- $ _____________

When withholding on the principal portion of each installment payment using the Alternative _______________ Withholding Calculation Election, the seller/ b. Withholding Amount. Multiply transferor must provide the buyer/transferee with line a by 3 1/3% (0.333) and the Installment Sale Withholding percent. Send enter the result here and on the original Form 593, the required withholding Form 593, line 36 $ payment on the down payment, and a copy of the promissory note to the FTB. Do Form 593 Instructions 2019

c. Amount Subject to Withholding. Multiply line a by line b

$ _____________

d. Withholding Amount. Multiply line c by the applicable tax rate* and enter the result here and on Form 593, line 36 $ If a failed deferred exchange had boot withheld upon in the original relinquished property, reduce the withholding amount by the amount previously remitted to the FTB.

*Tax Rates Individual 12.3% Non-California Partnership 12.3% Corporation -------------------------------------8.84% Bank and Financial Corporation 10.84% S Corporation 13.8 Financial S Corporation 15.8% Trusts (Grantor and Nongrantor) 12.3% Preparer's Name and Title/Escrow Business Name Provide the preparer's name and title/escrow's business name and phone number.

Page 7


How To Figure Your Basis The cost or purchase price of property is usually its basis for figuring gain or loss from its sale or other disposition. However, if you acquired the property by gift, inheritance, exchange, or in some way other than purchase, you must use a basis other than its cost. The following instructions only reflect the general rules. Exceptions may apply. Get federal Publication 551, Basis of Assets, for more information. Sellers/transferors are stronly encouraged to consult with a tax professional for this purpose. How Property Was Received Property was received as a gift

Property was inherited from someone other than your spouse/RDP

You owned the property as community property with your spouse/RDP who died You owned the property in joint tenancy with your spouse/RDP who died Property received from your spouse/RDP in connection to your divorce/termination of registered domestic partnership Property received in exchange for other property

You built the house (or other improvements) on the property being sold You received the property in a foreclosure

Page 8 Form 593 Instructions 2019

How to Figure Your Basis Usually, your basis is the donor's adjusted basis at the time of the gift. Enter the donor's adjusted basis on line 16. Then complete the rest of Part VI (except line 17) with your information after you received the property. If the fair market value (FMV) of the property at the time of the gift was less than the donor's adjusted basis, get federal Publication 551 to determine your basis. Usually, your basis is the FMV at the date of the individual's death. You can get that valuation from the probate documents, or, if there was no probate, use the appraised value at the date of death. Enter the FMV on line 16. Then complete the rest of Part VI (except line 17) with your information after you received the property. If you or your spouse/RDP originally gave the property to the decedent within one year of the decedent's death, get federal Publication 551 to determine your basis. Your basis is the FMV of the total property at the date of your spouse's/RDP's death. Enter the FMV on line 16. Then complete the rest of Part VI (except line 17) with your information after the date of death. Your basis is the sum of: 1) the FMV of your spouse's/RDP's half of the property at the date of your spouse's/RDP's death; and, 2) the existing basis of your half of the property at the date of your spouse's/RDP's death. Enter the sum on line 16. Then complete the rest of Part VI (except line 17) with your information after the date of death. Usually, your basis is the same as it would have been without this transfer. Complete Part VI as if you had been the only owner before and after the transfer. If your spouse/RDP transferred the property to you before July 18, 1984, get federal Publication 551 to determine your basis. Your basis will depend on whether you received the property in a nontaxable, taxable, or partially taxable exchange. Get federal Publication 551 to determine your basis. Enter your basis on line 16. The complete the rest of Part VI. However, do not include any amounts on line 17 through line 22 that you included on line 16. Add the purchase price of the land and the cost of the building. Enter the total on line 16 and complete the rest of Part VI. If you deferred the gain from a previous home to this property, get federal Publication 551. Enter your basis in the property after the foreclosure on line 16. (You may need to get a tax professional to help you with this calculation). Then complete the rest of Part VI (except for line 17) with your information after the foreclosure.


447 Burchett St., Glendale, CA 91203 (818) 547-9999 • Fax (818) 240-5840 www.IVEscrow.com Escrow No.: 01-00227-014 Property Address: 1234 Main Street (SAMPLE FILE), Los Angeles, CA 90039 SELLER INFORMATION SHEET EXISTING FIRST TRUST DEED LOAN: Name of Lender: _____________________________________ Current Balance: Address: Loan No.: Phone No.: Existing Loan Impounded: Taxes: Yes ________ No ________ EXISTING SECOND TRUST DEED LOAN, IF ANY Name of Lender: _____________________________________ Current Balance: Address: Loan No.: Phone No.: SOLAR LIEN,THIRD TRUST DEED LOAN, OTHER LIEN IF ANY Name of Lien Holder/Lender: ___________________________ Current Balance: Address: Lien/Loan No.: Phone No.: HOMEOWNERS' ASSOCIATION INFORMATION Name of Association: Management Company, if any ____________________________________ Address: _____________________________________________________ Account No.: ________________________________________ Phone No.: Dues per Month: $ ______________________________ Paid to: _______ SECOND HOMEOWNERS' ASSOCIATION INFORMATION, IF ANY Name of Association: Management Company, if any ____________________________________ Address: _____________________________________________________ Account No.: ________________________________________ Phone No.: Dues per Month: $ ____________________________________ Paid to: __ WATER STOCK COMPANY Water Stock No. Shares: _ Water Company: ________ Address Payment sent to: _ MELLO-ROOS Is the property subject to "Mello-Roos Community Facilities Act" tax? (circle one) YES / NO MAILING ADDRESS AFTER CLOSE OF ESCROW:

Gate Code/Special Delivery Instructions: ____ Seller's E-Mail Address: __________________ USE REVERSE FOR ANY ADDITIONAL LOANS. PLEASE COMPLETE AND RETURN THIS FORM WITH YOUR SIGNED ESCROW INSTRUCTIONS. Our signatures below may be considered as our instruction to Inter Valley Escrow, to comply with the instructions of the above named companies, to discuss our account(s) in any manner necessary for our escrow transaction (including but not limited to releasing lender, loan, and payoff information and speaking with any Inter Valley Escrow employee) and our authorization to pay from funds due us at the close of escrow said companies' fees, including, but not limited to: Statement Fees, Demand Fees, Transfer Fees, Prepayment Penalties, Impound Account shortages, if any, without further approval. In the event there is a "Line of Credit" affecting subject property, our signatures below shall constitute our authorization to "freeze" and close said credit line. THANK YOU.

Samuel Seller Susan Seller


447 Burchett St., Glendale, CA 91203 (818) 547-9999 • Fax (818) 240-5840 www.IVEscrow.com Escrow No.: 01-00227-014

DISBURSEMENT OF SELLER NET PROCEEDS

Date: July 7, 2020

TO: INTER VALLEY ESCROW THE UNDERSIGNED HEREBY INSTRUCTS ESCROW HOLDER TO DISBURSE THE NET PROCEEDS DUE AT THE CLOSE OF ESCROW AS FOLLOWS (Please check one box and fill in the corresponding section completely): 

CONTACT ME WHEN PROCEEDS CHECK IS READY FOR PICK UP. Phone Number: ___________________________ I/We authorize the proceeds check to be picked up by: __________________________________________________

OVERNIGHT or MAIL (circle one) PROCEEDS CHECK TO: __________________________________________________

TRANSFER PROCEEDS TO AN ESCROW COMPANY OR TO AN EXCHANGE ACCOMMODATOR: Company Name: _________________________________ Reference Number: _______________ Phone Number:

Fax Number:

* WIRE PROCEEDS TO (Name of Bank/Financial Institution): ________________________________________________ Bank/Financial Institution Address: _____________________________________________________________________ ABA Routing No.:

Account No.:

Name on Account: Address Bank/Financial Institution has on file for you (Mandatory): Sub Account No. (If applicable):________________________ Name on Sub Account: * IMPORTANT INFORMATION ABOUT WIRES: Please contact your financial institution for accurate federal wiring instructions. Voided checks and bank deposit slips cannot be accepted as valid wiring instructions. Incomplete or incorrect information will delay the wiring of funds. This form must be notarized if proceeds are to be wired. THE UNDERSIGNED IS/ARE AWARE AND HEREBY ACKNOWLEDGE AND ACCEPT THE FOLLOWING: Funds may not be available for disbursement at the close of escrow until the next business day. Unless otherwise instructed, net proceeds will be issued in the form of a trust account check; some financial institutions may place a hold and not allow immediate access to funds issued in this manner. If funds are wired or sent by overnight delivery, the cost of same may be charged to the undersigned. IF TITLE IS HELD IN A TRUST, PROCEEDS FROM THIS TRANSACTION MUST BE MADE PAYABLE TO SAID TRUST AND NOT TO AN INDIVIDUAL. IF YOU DO NOT HAVE AN ACCOUNT IN SAID TRUST’S NAME, PLEASE CONTACT YOUR FINANCIAL INSTITUTION TO ENSURE PROCEEDS WILL BE ACCEPTED IF ISSUED IN THIS MANNER OR FOR INFORMATION REGARDING OPENING AN ACCOUNT IN SAID TRUST’S NAME.

Samuel Seller Susan Seller

THIS DOCUMENT NEEDS TO BE NOTARIZED ONLY IF PROCEEDS ARE BEING WIRED. A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF

COUNTY OF

On

Before me,

Notary Public,

personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under Penalty of Perjury under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal.

Signature


RECORDING REQUESTED BY: Orange Coast Title Company of Southern California AND WHEN RECORDED MAIL TO: Mr. and Mrs. Brett Buyer

Title Order No.: AP#: 2544-019-003

THIS SPACE FOR RECORDER'S USE ONLY: Escrow No.: 01-00227-014

GRANT DEED

THE UNDERSIGNED GRANTOR(S) DECLARE(S) DOCUMENTARY TRANSFER TAX is $1,974.50 CITY TRANSFER TAX $8,077.50 [X] computed on full value of property conveyed, or [ ] computed on full value less value of liens or encumbrances remaining at time of sale. [ ] Unincorporated area [X] City of Los Angeles AND FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, Samuel Seller and Susan Seller, Husband and Wife as Joint Tenants hereby GRANT(s) to: Brett Buyer and Bonnie Buyer, Husband and Wife as Joint Tenants the real property in the City of Los Angeles, County of Los Angeles, State of California, described as: LEGAL DESCRIPTION ATTACHED HERETO AS EXHIBIT "A" AND MADE A PART HEREOF Also Known as: 1234 Main Street (SAMPLE FILE), Los Angeles, CA 90039 Dated July 7, 2020 Samuel Seller Susan Seller A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA COUNTY OF On , 2020 before me, _________________________________________ A Notary Public personally appeared ________________________________________________________________________ who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal.

Signature MAIL TAX STATEMENTS TO PARTY SHOWN BELOW; IF NO PARTY SHOWN, MAIL AS SHOWN ABOVE:

(Seal)


Escrow No.: 01-00227-014 Date: July 7, 2020 "EXHIBIT A" LEGAL DESCRIPTION

LEGAL DESCRIPTION ATTACHED HERETO AS EXHIBIT "A" AND MADE A PART HEREOF


Buyer’s Escrow Instruction Package


447 Burchett St., Glendale, CA 91203 (818) 547-9999 • Fax (818) 240-5840 www.IVEscrow.com

INTER VALLEY ESCROW IS AN INDEPENDENT ESCROW COMPANY LICENSED BY THE DEPARTMENT OF BUSINESS OVERSIGHT OF THE STATE OF CALIFORNIA, LICENSE NUMBER 9631502 SALE ESCROW INSTRUCTIONS

Escrow No.: 01-00227-014 Date: July 6, 2020

Erik Okland Escrow Officer

We, the undersigned, hand you a copy of the _Residential Purchase Agreement and Joint Escrow Instructions (and Receipt for Deposit) dated _, (hereinafter referred to as Agreement), Counter Offer #_ and _ Addendum to Real Estate Purchase Agreement. Your duties and responsibilities are limited to those paragraphs specified in paragraph #28 of said Agreement and those stated herein below. Buyer will hand INTER VALLEY ESCROW initial deposit in the amount of ---------------------------------------------------------------Prior to close of escrow, buyer will deposit an additional amount of --------------------------Buyer herein to obtain a new first trust deed loan in the amount of ----------------------------

25,500.00 144,500.00 680,000.00

Total Consideration --------------------------------------------------------------------------------------

$850,000.00

Buyer herein will deliver to escrow Buyer's personal check_electronic transfer in the amount of $25,500.00 which will be deposited into the escrow trust account, but as of this date is not deemed by escrow to be cleared "good funds". Buyer/Seller will deliver to Inter Valley Escrow as Escrow Holder (herein after referred to "IVE") any instruments which this escrow requires, fully executed, all of which "IVE" is instructed to use provided that on or before August 20, 2020 "IVE" holds a policy of title insurance with title company's usual exceptions, with a liability of $850,000.00 covering the following described property: LEGAL DESCRIPTION ATTACHED HERETO AS EXHIBIT "A" AND MADE A PART HEREOF SELLER STATES THAT THE PROPERTY ADDRESS IS: 1234 Main Street (SAMPLE FILE), Los Angeles, CA 90039 TITLE POLICY TO SHOW TITLE VESTED IN: Brett Buyer and Bonnie Buyer, Husband and Wife as Joint Tenants FREE FROM ENCUMBRANCES EXCEPT: (1)

General and special Taxes for the fiscal year, including bonds, special assessments and personal property taxes, if any, assessed against former owner, and/or supplemental taxes assessed pursuant to the provisions of Chapter 498, Statutes of 1983 of the State of California. (Change of Ownership will affect the taxes to be paid. A Supplemental Tax Bill will be issued and BUYER accepts all responsibility for all additional taxes due because of said reassessment. TAX BILLS ISSUED AFTER THE CLOSE OF ESCROW SHALL BE HANDLED DIRECTLY BETWEEN BUYERS AND SELLERS.)

(2)

Covenants, conditions, restrictions, reservations, rights, rights of way, and easements, and any oil, gas, or mineral reservations now of record, if any, or known to Seller.

(3)

First Deed of Trust to record securing a note in the amount of $680,000.00. (CONTINUED)

Seller's Initials: ______ / ___________________________________________________ Buyer's Initials: ______ /


Date: July 6, 2020

Escrow No.: 01-00227-014

Page 2 of 8: Additional instructions made a part of previous pages as fully incorporated therein.

(4)

Second Deed of Trust to record securing a note.

INSTRUCTIONS: A.

FINANCE: First Deed of Trust to file, and note secured thereby in the amount of $ 680,000.00 in favor of lender of Buyer's choice as per their terms, to be obtained by buyer at buyer's expense. Said loan to be a fixed rate loan with an interest rate not to exceed 20.0000% per annum, payable over 6 years. Buyer agrees to comply with lenders loan requirements and to pay lender's loan fees in an amount not to exceed 1.00 points. Buyer's signature on said documents shall be indication of their approval of all terms and conditions contained therein and Escrow Holder's authorization for the use of same. Said Note and/or Deed of Trust shall contain the following clause(s): "Should the trustor or his successors in interest, without the consent in writing of the beneficiary, sell, transfer or convey or permit to be sold, transferred or conveyed, his interest in the property, or any part thereof, then the beneficiary may, at his option, declare all sums secured hereby immediately due and payable." "A late charge of 5.0000 percent of the monthly payment shall be due on each installment not received within 10 days of the due date." "This Note is subject to Section 2966 of the Civil Code, which provides that the holder of this Note shall give written notice to the Trustor, or his successor in interest, of prescribed information at least ninety days and not more than one hundred and fifty days before any balloon payment is due."

B.

CLOSING FUNDS: Each party acknowledges that the close of escrow is conditioned on check clearances. Funds to close must be in the form of a Cashiers Check drawn on a bank with a clearing house in the State of California OR a wire transfer to Inter Valley Escrow Trust Account, and be deposited at least (2) two business days prior to recording of documents.

C.

REPORT OF RESIDENTIAL PROPERTY RECORDS AND PENDING ASSESSMENT LIENS (Form 9): Seller shall hand Escrow Holder a completed Report of Residential Property Records Declarations Attachment, together with payment in the amount of $70.20, payable to the Department of Building and Safety, to cover the cost of said report. Escrow Holder will forward the aforementioned declaration and payment, along with the Application for Report of Residential Property Records and Pending Special Assessment Liens (aka 9A), to the Department of Building and Safety. Upon receipt of said report, Escrow Holder shall forward a copy of same to Buyer for approval, prior to the close of escrow. NOTE: THE PARTIES HEREBY ACKNOWLEDGE THAT SECTION 96.300 OF THE LOS ANGELES MUNICIPAL CODE REQUIRES THAT THE BUYER RECEIVE A COPY OF THE REPORT OF RESIDENTIAL PROPERTY RECORDS AND PENDING ASSESSMENT LIENS, PRIOR TO THE CLOSE OF ESCROW.

D.

RELEASE: Upon receipt of signed escrow instructions from both parties, if Escrow Holder has not yet received payment in the amount of $70.20 payable to the Department of Building and Safety, Escrow Holder is authorized and instructed to release, from deposit(s) made by Buyer, funds as described above and forward said funds to the Department of Building and Safety in order to obtain the Report of Residential Property Records and Pending Special Assessment Liens. At the close of escrow, Escrow Holder shall deduct said funds from Seller's net proceeds. Escrow Holder is not liable for recovery of said money for any reason whatsoever.

E.

CERTIFICATE OF COMPLIANCE - Municipal Water Conservation Ordinance: The parties are aware that Section 122.03 of the Los Angeles Municipal Code requires Sellers of real property to install low-flow showerheads and water closet flush-reduction devices, where required, prior to the close of escrow. The parties are aware that it is their responsibility to read and understand said code and its requirements. The Seller shall (CONTINUED)

Seller's Initials: ______ / __________________________________________________ Buyer's Initials: ______ /


Date: July 6, 2020

Escrow No.: 01-00227-014

Page 3 of 8: Additional instructions made a part of previous pages as fully incorporated therein. provide a "Certificate of Compliance", thereby giving written notice of the requirements of the ordinance and written confirmation of compliance, through escrow. Furthermore, at the close of escrow, Escrow Holder is hereby authorized and instructed to debit Seller's net proceeds in the appropriate amount as described on said Certificate of Compliance. Said funds are to be made payable to the Los Angeles Department of Water and Power and forwarded with the Certificate of Compliance to the Los Angeles Department of Water and Power - Account Services Unit. F.

1099 FORM If required by law, the seller shall hand to Escrow holder an IRS 1099 gross proceeds report, which you are to forward to the IRS in accordance with the law, and a copy thereof is to be delivered to the seller at the close of escrow. This is NOT in lieu of any tax withholding which may become applicable under FIRPTA. Escrow holder is authorized and instructed to insert buyer's part of real estate tax paid, over the signature of the seller on said 1099 at the close of escrow, without any liability on the part of escrow holder for so doing.

G.

TAX WITHHOLDING: ("FIRPTA") Under the Foreign Investment Real Property Tax Act (FIRPTA), IRC Section 1445, every Buyer must, unless an exemption applies, deduct and withhold 10% of the gross sales price from Seller's proceeds and send it to the Internal Revenue Service within 20 days of the closing, if the Seller is considered a "foreign person" under the statute. The IRS withholding regulations if the Seller is a non-individual entity are more complex, and may require differing withholding amounts. In addition, in a disposition of a U.S. real property interest by a foreign corporation or nonresident alien individual when the tax due on the transferor's gain from the sale is less than the withholding, the foreign transferor of the transferee can submit a request for a reduction or elimination of withholding on a transfer of a USRPI. Refer to IRC Regulation 1.1445-3 or -6 for the different categories of withholding certificates. In addition, under California Revenue and Taxation Code Sections 18662 and 18668, as amended by AB 2962, every Buyer must, unless an exception applies, deduct and withhold 3.33% of the gross sales price OR an alternative withholding amount as stipulated by the Seller from Seller's proceeds and send it to the Franchise Tax Board. Penalties may be imposed on a responsible party for non-compliance with the requirements of these statutes and related regulations. Seller and Buyer agree to complete, execute and deliver any instrument, affidavit, statement or instruction reasonably necessary to carry out these requirements, and to withhold tax under those statutes if required. (SELLER'S AFFIDAVIT OF NON-FOREIGN STATUS AND COMPLETED 593 FORM, AS APPLICABLE, AND/OR BUYER'S AFFIDAVIT (DECLARATION OF TRANSFEREE), IF APPLICABLE, SHALL SATISFY THESE REQUIREMENTS. ("CAL-FIRPTA") NOTIFICATION TO BUYER AND SELLER REGARDING TAX WITHHOLDING REQUIREMENTS OF CALIFORNIA REVENUE AND TAXATION CODE SECTION 18662 AND 18668 AS AMENDED BY AB2962 ON SALE OF REAL PROPERTY:

Buyer is hereby notified of withholding requirements of California Revenue and Taxation Code Sections 18662 and 18668 as amended by AB 2962, which are applicable to certain sales of California real estate. Buyer and Seller understand that in no event will Escrow Holder undertake to advise Buyer and/or Seller (and/or Buyer's and Seller's representative(s)) on the possible application of the above code sections to this specific transaction. Should instructions by Buyer and Seller herein direct Escrow Holder to undertake any activities pursuant to the withholding provisions in California law, Buyer and Seller agree to cooperate fully in providing necessary information and to indemnify Escrow Holder and hold Escrow Holder harmless in the event of non-compliance resulting from information supplied by Buyer and/or Seller. California Revenue and Taxation Code Sections 18662 and 18668, as amended by AB 2962 require a Buyer of California real property to withhold a prepayment of California state income tax for Sellers of California real property. Though the Escrow Holder, on behalf of the Buyer, may perform the withholding, send payment to the (CONTINUED) Seller's Initials: ______ / __________________________________________________ Buyer's Initials: ______ /


Date: July 6, 2020

Escrow No.: 01-00227-014

Page 4 of 8: Additional instructions made a part of previous pages as fully incorporated therein. Franchise Tax Board, and/or collect documentation as to why no withholding was done, if the Buyer has been notified of the withholding requirements, the Buyer is liable for any penalty for failing to withhold. Withholding is required on all transfers of real property unless: 1. The total sales price does not exceed $100,000.00. 2. The property is being foreclosed upon. 3. The Seller is a bank acting as a trustee other than a trustee of a deed of trust. 4. The Seller qualifies for one of the following exemptions as certified under penalty of perjury on Form 593: a. The property qualifies as the Seller's principal residence under Internal Revenue Code (IRC) Section 121. (Generally, a home will qualify as a principal residence if, during the five-year period ending on the date of sale, the Sellers owned and lived in the property as their main home for at least two years. There may be other restrictions, limitations, or exceptions for special circumstances.) b. The property was last used by the Sellers as their principal residence under IRC Section 121, even if the Seller did not meet the two out of the last five years requirement or one of the special circumstances. c. The Seller will incur a loss or zero gain on the sale for California income tax purposes. The Seller must complete Form 593. d. The property is being involuntarily converted and will qualify for non-recognition of gain for California income tax purposes under IRC Section 1033. e. The Seller is transferring the property to the Seller's corporation or partnership and the transfer will qualify for non-recognition under IRC Section 351 or 721. f. The Seller is a corporation (or an LLC classified as a corporation for federal and California income tax purposes) that is either qualified through the California Secretary of State or has permanent place of business in California. g. The Seller is a partnership (or an LLC that is not a disregarded single member LLC and is classified as a partnership for federal and California income tax purposes) with recorded title to the property in the name of the partnership or LLC. h. The Seller is a tax-exempt entity under either California or federal law. i. The Seller is an insurance company, individual retirement account, qualified pension/profit sharing plan, or charitable remainder trust. Withholding may also be reduced or deferred when: a. The sale qualifies as an IRC Section 1031 exchange. However, withholding will be required on any cash or cash equivalent the Seller receives unless the cash or cash equivalent does not exceed $1,500.00. b. The sale is an installment sale and the Buyer agrees in writing to withhold on the down payment, each principal payment, and any balloon payment. The Buyer must complete Form 593. THE WITHHOLDING RATE IS CALCULATED AT THE SELLER'S CHOICE OF: 1) THE TOTAL SALE PRICE METHOD (THREE AND ONE-THIRD PERCENT (3.33%) OF THE GROSS SALES PRICE, OR THE AMOUNT OF THE SALES PRICE SUBJECT TO WITHHOLDING (AS APPLICABLE) OR 2) THE ALTERNATIVE WITHHOLDING AMOUNT METHOD (AN ALTERNATIVE WITHHOLDING AMOUNT AS CALCULATED BY THE SELLER AND HANDED TO ESCROW HOLDER UNDER PENALTY OF PERJURY) SELLER MUST COMPLETE FORMS 593. FOR ADDITIONAL INFORMATION CONCERNING THE WITHHOLDING PROVISIONS REFERENCED ABOVE, PLEASE CONTACT THE FRANCHISE TAX BOARD WITHHOLDING SERVICES AND COMPLIANCE SECTION, P.O. BOX 942867, SACRAMENTO, CA 94267-0651 OR PHONE (888) 792-4900. WEBSITE: WWW.ftb.ca.gov H.

IN THE EVENT EITHER PARTY REQUESTS CANCELLATION OF THIS ESCROW AT ANY TIME, ALL PARTIES ARE AWARE THAT THIS ESCROW WILL NOT BE CONSIDERED CANCELLED, AND NO FUNDS WILL BE DISBURSED UNTIL ESCROW HOLDER HAS RECEIVED MUTUALLY SIGNED CANCELLATION INSTRUCTIONS FROM ALL BUYERS AND SELLERS. (CONTINUED)

Seller's Initials: ______ / __________________________________________________ Buyer's Initials: ______ /


Date: July 6, 2020

Escrow No.: 01-00227-014

Page 5 of 8: Additional instructions made a part of previous pages as fully incorporated therein. I.

PRORATIONS: Prorate as of Close of Escrow: Real Property taxes based on lastest tax bill or on amount furnished by title company.

THESE ESCROW INSTRUCTIONS ARE NOT INTENDED TO SUPERSEDE THE REAL ESTATE PURCHASE CONTRACT AND RECEIPT FOR DEPOSIT, BUT TO CARRY OUT ITS TERMS AND CONDITIONS IN CONSUMMATING THE PURCHASE AND SALE, EXCEPT AS MAY BE AMENDED OR MODIFIED BY THE MUTUAL WRITTEN INSTRUCTIONS OF THE PARTIES. IMPORTANT: IN A PURCHASE OR EXCHANGE OF REAL PROPERTY, IT MAY BE ADVISABLE TO OBTAIN TITLE INSURANCE IN CONNECTION WITH THE CLOSE OF ESCROW, SINCE THERE MAY BE PRIOR RECORDED LIENS AND ENCUMBRANCES WHICH AFFECT YOUR INTEREST IN THE PROPERTY BEING ACQUIRED. A NEW POLICY OF TITLE INSURANCE SHOULD BE OBTAINED IN ORDER TO ENSURE YOUR INTEREST IN THE PROPERTY THAT YOU ARE ACQUIRING.

(CONTINUED) Seller's Initials: ______ / __________________________________________________ Buyer's Initials: ______ /


Date: July 6, 2020

Escrow No.: 01-00227-014

Page 6 of 8: Additional instructions made a part of previous pages as fully incorporated therein. GENERAL PROVISIONS YOU ARE FURTHER INSTRUCTED AS FOLLOWS: ALTHOUGH THE OPENING OF ESCROW SHALL BE DEEMED THE DATE OF THESE INSTRUCTIONS, UNLESS PROVIDED HEREIN TO THE CONTRARY, YOUR DUTY TO ACT AS ESCROW HOLDER SHALL NOT COMMENCE UNTIL THESE INSTRUCTIONS, SIGNED BY ALL PARTIES, ARE RECEIVED BY YOU. UNTIL SUCH TIME, EITHER PARTY MAY UNILATERALLY CANCEL, AND UPON WRITTEN REQUEST TO YOU, MAY WITHDRAW FUNDS AND/OR DOCUMENTS SUCH PARTY MAY HAVE PREVIOUSLY HANDED YOU. NO NOTICE, DEMAND, OR CHANGE IN THESE INSTRUCTIONS WILL BE OF ANY EFFECT UNLESS GIVEN IN WRITING, SIGNED, AND ACTUALLY DELIVERED TO THE ESCROW HOLDER. NO CHANGE IN THESE PRINTED INSTRUCTIONS OR ANY OTHER INSTRUCTION, EITHER BY INTERLINEATION OR CROSSING OUT, SHALL BE BINDING, OR HAVE ANY EFFECT, ON THE ESCROW HOLDER UNLESS MADE BY ALL PARTIES TO THE ESCROW AND AGREED TO IN WRITING BY THE ESCROW HOLDER. You are hereby authorized and instructed to: • Transmit and deposit funds and/or documents received in this escrow with any bank, trust company or authorized title company and/or subescrow agent. • Furnish any information concerning this escrow to any lender or broker involved herewith. • Comply with lender's instructions, if any. • Make Prorations and adjustments to the day escrow closes on the following basis: • On 30 day month. • Taxes and assessments on latest information from title company or handed you. (In the event that a supplemental tax bill is received by either party hereto, after the close of escrow, no adjustment shall be made by the escrow holder, and escrow holder shall not be held liable or responsible in connection with said supplemental tax bill.) • Fire insurance from premiums shown in policy(s) as handed you and/or as shown on Beneficiary's Statement, and you may assume that necessary premiums have been paid and policy(s) is in force and may be assigned. IT IS THE OBLIGATION OF THE BUYER/BORROWER OR HIS REPRESENTATIVE TO VERIFY THE ACCEPTANCE OF INSURANCE POLICY OF ISSUING COMPANY. • Interest, impounds, and/or loan payments from information as shown on Beneficiary's Statement. • Rents, cleaning and/or security deposits received by seller from tenants shall be credited to the buyer in accordance with a rent and deposit schedule to be handed you by seller or agent thereto and approved by buyer. Any rents in arrears are to be disregarded in your prorations you are to assume seller will collect all rents which fall due prior to close of escrow. • Show future tax statements to be mailed to buyer at the property's street address, or, if none, the address shown for buyer on last page hereof, on deed conveying title to buyer. • Use your usual instrument forms and insert dates on instruments if executed incomplete in such particulars, provided the insertions comply with your written instructions. • Pay all funds due seller by joint check to all parties signing as "Seller" and pay all funds due buyer by joint check to all parties by signing "Buyer" upon close of escrow unless instructed otherwise in writing. • Destroy these instructions, and all other subsequent instructions, regardless of date of same, and all records of this escrow at any time after five (5) years from date of close of escrow or cancellation thereof, without liability to the escrow holder or further notice from the parties. • Deliver the original assurances of title and insurance policies if any to the holder of the senior encumbrances, or order with copies of same to any junior encumbrance holder or if none then to Buyer. All funds received in this escrow shall be deposited with a state or federal bank with other escrow funds, and all disbursements shall be made by check of INTER VALLEY ESCROW. "Close of escrow" is the day documents are recorded. All documents and/or funds due the respective parties herein are to be mailed, unregistered, to the address set out below their respective signatures, unless otherwise instructed. OUR SIGNATURE ON ANY DOCUMENTS AND INSTRUCTIONS PERTAINING TO THIS ESCROW INDICATE OUR UNCONDITIONAL APPROVAL OF SAME. WHENEVER PROVISION IS MADE HEREIN FOR THE PAYMENT OF ANY SUM, THE DELIVERY OF ANY DOCUMENT, OR THE PERFORMANCE OF ANY ACT, "OUTSIDE OF ESCROW", YOU AS ESCROW HOLDER SHALL HAVE NO RESPONSIBILITY THEREFOR, SHALL NOT BE CONCERNED THEREWITH AND ARE SPECIFICALLY RELIEVED OF ANY OBLIGATION RELATIVE THERETO. BUYER'S DEPOSIT OF FINAL FUNDS SHALL BE DEEMED FULL APPROVAL OF ALL CONTINGENCIES OR A WAIVER THEREOF. All the parties to this escrow hereby jointly and severally promise and agree to pay promptly on demand, as well as to indemnify you and hold you harmless from and against all litigation and interpleader costs, damages, judgments, attorney's fees, expenses, obligations and liabilities of every kind which, in good faith, you may incur or suffer in connection with or arising out of this escrow, whether said litigation, interpleader, obligation, liabilities or expenses arise during the performance of this escrow or subsequent thereto, directly or indirectly. In the event of failure to pay fees or expenses due you hereunder, on demand buyer and/or seller agree to pay a reasonable fee for any attorney's services which may be required to collect such fees or expenses. Time is of the essence of this escrow, if, for any reason, this escrow cannot be closed by the date set forth herein, you shall nevertheless close it as soon as possible thereafter, unless notice of cancellation is given by either party. Any notice of cancellation affecting this escrow, for whatever reason and whenever given, must be given in writing. Upon receipt of such notice you shall within five (5) days mail a copy of said notice to all other parties in the escrow. If no written objection is received by you from any other party within ten days (10) after the date of mailing you may withhold and stop all further proceedings in the performance of this escrow until receipt of mutual cancellation instructions signed by all parties, including there herein named broker(s), if any, OR you may at your election, file a suit in interpleader against the various disputants requiring them to interplead and litigate in court their several claims and rights amongst themselves. In the event written objections is received within the time stated or in the event conflicting claims are made upon you in this escrow, you may refuse to take further action hereunder without liability for interest on funds held or for damages of any sort until receipt of mutual cancellation instructions signed by all parties, including those of the herein named broker(s), if any, or other instruction, or you may at your election, file a suit in interpleader against the various disputants requiring them to interplead and litigate in court their several claims and rights

(CONTINUED)

Seller's Initials: ______ / __________________________________________________ Buyer's Initials: ______ /


Date: July 6, 2020

Escrow No.: 01-00227-014

Page 7 of 8: Additional instructions made a part of previous pages as fully incorporated therein. amongst themselves. If such interpleader suit is filed, the escrow holder is discharged from all obligations to further perform the duties of escrow holder and shall be entitled to recover, jointly and severally from the parties, all costs, expenses, escrow fees, and reasonable attorney fees incurred. THE ESCROW HOLDER HAS NO DUTY, LIABILITY AND/OR RESPONSIBILITY WITH ANY OF THE FOLLOWING: * TO MAKE DISCLOSURES REQUIRED UNDER FEDERAL OR STATE LAW, INCLUDING "Regulation Z". * TO DETERMINE WHETHER ANY EXISTING FINANCING CONTAINS A DUE-ON-SALE CLAUSE, AND IF SO, WHETHER SUCH CLAUSE WILL MAKE THE ENTIRE BALANCE OF THE UNDERLYING FINANCING DUE AND PAYABLE AS A RESULT OF THIS TRANSACTION. * TO DETERMINE ANY ZONING OR OTHER LAW, REGULATION, OR ORDINANCE AFFECTING THE PROPERTY. * TO DISCOVER AND THE EFFECTS ON CONTENTS OF ANY COVENANTS, CONDITIONS, AND RESTRICTIONS, HOMEOWNER'S ASSOCIATION RULES, AND THE LIKE. * TO DETERMINE LAWS, ORDINANCES, OR REGULATIONS CONCERNING SUBDIVISION OF LAND AND/OR DISCLOSURES, IF ANY REQUIRED TO BE MADE TO THE BUYER OF REAL PROPERTY. * THE TERMS OF ANY DEPOSIT RECEIPT, SALES AGREEMENT, OR ANY OTHER DOCUMENT DEPOSITED WITH THE ESCROW HOLDER. * ANY MATTERS NOT SPECIFICALLY MENTIONED IN THESE INSTRUCTIONS. * TO DETERMINE WHETHER OR NOT ANY NEW FINANCING CONTAINS DUE-ON-SALE CLAUSE, AND IF SO, WHETHER SUCH CLAUSE WILL MAKE THE ENTIRE BALANCE OF THE FINANCING DUE AND PAYABLE AS A RESULT OF A FUTURE TRANSACTION. * ANY QUESTION OF USURY IN ANY LOAN OR ENCUMBRANCE INVOLVED IN THE PROCESSING OF THIS ESCROW AND YOU ARE HEREBY RELEASED OF ANY RESPONSIBILITY OR LIABILITY THEREFORE. * TO REPRESENT TERMS OF LOAN IN REFERENCE TO ANY LOAN DOCUMENTS, BORROWER'S/BUYER'S EXECUTION OF LOAN DOCUMENTS SHALL CONSTITUTE FULL APPROVAL OF ALL RATES AND TERMS CONTAINED THEREIN.

(CONTINUED) Seller's Initials: ______ / __________________________________________________ Buyer's Initials: ______ /


Date: July 6, 2020

Escrow No.: 01-00227-014

Page 8 of 8: Additional instructions made a part of previous pages as fully incorporated therein.

The agreed fee is for ordinary services only. If extraordinary services, including but not limited to, telephone or telegraph bills, wire transfers and overnight mail, and being called to testify or produce documents in any lawsuit or other proceeding, the parties jointly and severally agree to pay for such services. A facsimile (fax) of an executed escrow instruction, addendum or supplement delivered to you shall be binding and you may rely on it as if it were an original signed document EXCEPT any instructions for disbursing of funds. These instructions and addenda may be executed in counterparts, each of which shall be deemed an original regardless of the date of its execution and delivery. Fees and charges will be paid as follows: Buyer agrees to pay on demand all prorata adjustments chargeable to him; Lender's fees and charges, if any, and costs incurred therein, including A.L.T.A. Lender's Policy of Title Insurance, if required by Lender, title charges, recording charges, notary fees, and costs of drawing any documents necessary on the part of the Buyer to complete this escrow; and Buyer's escrow fees and costs as charged. Seller agrees to pay on demand all prorata adjustments chargeable to him; any encumbrances of record to show title as called for, any bonds, assessments and/or taxes; Title charges including C.L.T.A. (or A.L.T.A.-Residential) Owner's Policy of Title Insurance, beneficiaries' statements and/or demands, documentary transfer tax on deed, and any filling in, acknowledging, conveyancing, and recording of any documents necessary on the part of the Seller to complete this escrow; and Seller's escrow fees and costs as charged. No action shall lie against escrow holder for any claim, loss, liability or alleged cause of action of any kind or nature, whatsoever, however caused or occurred under this escrow or in connection with the handling or processing of this escrow unless brought within twelve (12) months after the cancellation, close of escrow or the termination of escrow for any reason whatsoever. ESCROW COMPANIES ARE NOT AUTHORIZED TO GIVE LEGAL ADVISE. IF YOU DESIRE LEGAL ADVISE, CONSULT YOUR ATTORNEY BEFORE SIGNING.

I/WE AGREE TO PAY FUNDS REQUIRED TO CLOSE ESCROW, IF ANY, UPON DEMAND. PURSUANT TO AB512, JANUARY 1, 1990, ALL LENDER'S FUNDS (IF APPLICABLE) AND BORROWER'S FUNDS TO BE DEPOSITED MUST BE CLEARED FUNDS PRIOR TO RECORDATION OF THIS TRANSACTION. IF IT IS DEEMED NECESSARY TO WIRE FUNDS, TO EXPEDITE THE CLOSE OF THIS ESCROW, ESCROW HOLDER IS INSTRUCTED TO PROCEED ACCORDINGLY AND TO CHARGE BORROWER, AT THE CLOSE OF ESCROW. The foregoing terms, provisions, conditions, and instructions, and those "General Provisions" contained herein are hereby approved and accepted in their entirety and concurred in by me. I will hand you necessary documents called for on my part to cause title to be shown as above which you are authorized to deliver when you hold for my account the sum of $850,000.00 within the time as above provided. I agree to pay your escrow charges, my recording fees, charges for evidence of title as called for, whether or not this escrow is consummated. You are hereby authorized to pay bonds, assessments, taxes, and any liens of record to show title as called for, affix documentary tax on deed as required.

SELLERS:

BUYERS:

Samuel Seller

Brett Buyer

Susan Seller

Bonnie Buyer

CURRENT ADDRESS:

CURRENT ADDRESS:

Telephone:

Telephone:


447 Burchett St., Glendale, CA 91203 (818) 547-9999 • Fax (818) 240-5840 www.IVEscrow.com Erik Okland Escrow Officer

Date: July 7, 2020 Escrow No.: 01-00227-014

AMENDED ESCROW INSTRUCTIONS

AMENDMENT Property Address:

1234 Main Street (SAMPLE FILE), Los Angeles, CA 90039

THE ABOVE NUMBERED ESCROW IS HEREBY AMENDED AND/OR SUPPLEMENTED AS FOLLOWS: ACCEPTANCE DATE: Buyer and Seller agree that the acceptance date of the Agreement is _. ASSESSOR'S PARCEL NO.: The real property to be acquired is described as Assessor's Parcel No. REPORT OF RESIDENTIAL PROPERTY RECORDS AND PENDING ASSESSMENT LIENS (Form 9): Seller shall hand Escrow Holder a completed Report of Residential Property Records Declarations Attachment, together with payment in the amount of $70.85, payable to the Department of Building and Safety, to cover the cost of said report and in the event a credit card is used a $1.91 additional fee will be charged by the Department of Building and Safety total debit billed to Seller shall be $72.76. Escrow Holder will forward the aforementioned declaration and payment, along with the Application for Report of Residential Property Records and Pending Special Assessment Liens (aka 9A), to the Department of Building and Safety. Upon receipt of said report, Escrow Holder shall forward a copy of same to Buyer for approval, prior to the close of escrow. NOTE: THE PARTIES HEREBY ACKNOWLEDGE THAT SECTION 96.300 OF THE LOS ANGELES MUNICIPAL CODE REQUIRES THAT THE BUYER RECEIVE A COPY OF THE REPORT OF RESIDENTIAL PROPERTY RECORDS AND PENDING ASSESSMENT LIENS, PRIOR TO THE CLOSE OF ESCROW. CERTIFICATE OF COMPLIANCE - Municipal Water Conservation Ordinance: The parties are aware that Section 122.03 of the Los Angeles Municipal Code requires Sellers of real property to install low-flow showerheads and water closet flush-reduction devices, where required, prior to the close of escrow. The parties are aware that it is their responsibility to read and understand said code and its requirements. The Seller shall provide a "Certificate of Compliance", thereby giving written notice of the requirements of the ordinance and written confirmation of compliance, through escrow. Furthermore, at the close of escrow, Escrow Holder is hereby authorized and instructed to debit Seller's net proceeds in the appropriate amount as described on said Certificate of Compliance. Said funds are to be made payable to the Los Angeles Department of Water and Power and forwarded with the Certificate of Compliance to the Los Angeles Department of Water and Power - Account Services Unit. HOMEOWNER'S ASSOCIATION STATEMENT: Escrow Holder is hereby authorized and instructed to obtain a statement from the Homeowner's Association showing the condition of the Seller's account and to disburse from Seller's proceeds to the homeowner's association any amount required to bring the monthly assessment current to the close of escrow. IN THE EVENT THE SUBJECT PROPERTY IS COVERED BY A MASTER FIRE INSURANCE POLICY, BUYER IS ADVISED TO OBTAIN THEIR OWN FIRE INSURANCE COVERAGE FOR THEIR PERSONAL PROPERTY AND ANY LIABILITY COVERAGE AT BUYER'S OWN EXPENSE AND OUTSIDE OF ESCROW.


Date: July 7, 2020

Page 2

Escrow No.: 01-00227-014

RENT STATEMENT: Seller shall hand Escrow Holder a completed Rent Statement for Buyer's acknowledgement prior to the close of escrow. At the close of escrow, Escrow Holder is authorized and instructed to prorate rent(s) based solely on the information contained in said statement regardless of any other documentation that may be handed you to the contrary. Escrow Holder is to consider that Seller has collected, or will collect all rents which fall due prior to close to escrow, and Escrow Holder shall prorate rent(s) accordingly. Escrow Holder is further authorized and instructed to adjust security deposits by debiting Seller and crediting Buyer for same at close of escrow, based solely on the amounts reflected on said Rent Statement. Any interest accrued on Security Deposits shall be adjusted between the parties outside of Escrow. WATER COMPANY: Escrow Holder is hereby authorized and instructed to contact _ Water Company prior to the close of escrow to request the final water bill and to disburse from Seller's proceeds to _ Water Company any amount required to pay final water bill at the close of escrow. SELLER assumes all responsibility for any excess amount due, and releases Escrow Holder of any liability for same. NATURAL HAZARDS/ZONE DISCLOSURE REPORT: Page 2, Item 7A(1), of the _Residential Purchase Agreement and Joint Escrow Instructions is hereby amended as follows: Seller shall pay for a Natural Hazards/Zone Disclosures Report prepared by _. ESCROW COMPANY: Page 3, Item 7C(1 _A and B) , of the _ Residential Purchase Agreement and Joint Escrow Instructions is hereby amended as follows: Escrow company shall be Inter Valley Escrow, Seller and Buyer each to pay their own fees. TITLE COMPANY FEES: Page 3, Item 7C(2 A and B), of the _ Residential Purchase Agreement and Joint Escrow Instructions is hereby amended as follows: _Seller shall pay for owner's title insurance policy. Owner's title policy to be issued by _. Buyer shall pay for any title insurance policy insuring Buyer's lender. HOME PROTECTION POLICY/HOME WARRANTY POLICY : Page 3, Item 7D(10), of the _Residential Purchase Agreement and Joint Escrow Instructions is hereby amended as follows: _Seller shall pay the cost, not to exceed $_ , for a one-year Home Warranty Plan, issued by _. NO CITY TRANSFER TAX: Escrow Holder is hereby authorized and instructed to eliminate item number 7D2 of the _Residential Purchase Agreement and Joint Escrow Instructions, in its entirety due to there is NO City Transfer Tax in the City of _. PRIVATE TRANSFER FEE: Page 3, Item 7D(7), of the _Residential Purchase Agreement and Joint Escrow Instructions Is hereby supplemented as follows: Seller has agreed to pay the private transfer fee. Escrow to determine private transfer fee amount upon receipt of the Preliminary Title Report issued by Title Company. In the event no such private transfer fee appears in the Preliminary Title Report, Escrow Holder is hereby authorized and instructed to eliminate item number 7D(7), of the _ Residential Purchase Agreement and Joint Escrow Instructions, in its entirety. ALL OTHER TERMS AND CONDITIONS TO REMAIN THE SAME. SELLERS:

BUYERS:

Samuel Seller

Brett Buyer

Susan Seller

Bonnie Buyer


447 Burchett St., Glendale, CA 91203 (818) 547-9999 • Fax (818) 240-5840 www.IVEscrow.com

E-SIGNATURE ESCROW INSTRUCTION AND MODIFICATION

Erik Okland Escrow Officer Property Address:

Date: July 7, 2020 Escrow No.: 01-00227-014 1234 Main Street (SAMPLE FILE) Los Angeles, CA 90039

To: Inter Valley Escrow The Buyer(s) and Seller(s) agree that the Real Estate Purchase Agreement and previous escrow instructions in the above numbered escrow are modified/supplemented in the following particulars only: ELECTRONIC SIGNATURE(S): Upon Escrow Holders receipt of this instruction signed with traditional live signatures from all parties, Escrow Holder is authorized to accept electronic signatures as original signatures of the parties on the Purchase Agreement, Addendum(s), and Listing Agreement; and all future documents and instructions received. The undersigned parties are advised they may be required to submit documents with traditional live signatures into this escrow in the following circumstances, which include but are not limited to: (1) Where traditional live signatures are mandatory (such as recordable documents, city reports, government and/or lender documents); (2) As required by lenders; and (3) As required by Escrow Holder on any document in its sole discretion it deems a traditional live signatures is required. Escrow Holder is not liable or responsible for any loss that may occur by its receipt or reliance on documents or instructions with an electronic signature and Escrow Holder has no liability for forgeries, fraud, impersonations, or false representations made by anyone (including but not limited to principals to this escrow or any third parties.) Please confirm the following: Name (s): Mailing Address:

Email:

(Print) (Print)

Email:

Traditional Live Signatures: SELLERS:

BUYERS:

Samuel Seller

Brett Buyer

Susan Seller

Bonnie Buyer


447 Burchett St., Glendale, CA 91203 (818) 547-9999 • Fax (818) 240-5840 www.IVEscrow.com Escrow No.: 01-00227-014

DECLARATION OF TRANSFEREE (BUYER) UNDER IRS SECTION 1445 - FOREIGN INVESTMENT IN REAL PROPERTY ACT

Pursuant to the Foreign Investment in Real Property Tax Act (“FIRPTA”) codified in Internal Revenue Service (“IRS”) Code Section 1445 as amended by the “Protecting Americans from Tax Hikes Act of 2015” (the “Act”), the undersigned declares the following: A.

I am the Transferee (Buyer) of the real property known as: 1234 Main Street (SAMPLE FILE), Los Angeles, CA, 90039

B.

I am an individual acquiring the real property being transferred in this transaction

C.

I and/or my family have definite plans to reside on this property for at least fifty percent (50%) of the number of days that the property is used by any person during each of the first two (2) twelve (12)-month periods following the closing date.

I have been made aware that: 1.

If the Seller is a foreign person and the sale price for the property does not exceed $300,000.00, then no withholding will be required by me, the Transferee.

2.

If the Seller is a foreign person and the sale price of the property is between $300,001.00 and $1,000,000.00 then, as the Transferee I must withhold ten percent (10%) of the total sales price, to be remitted to the IRS under the currently enacted FIRPTA guidelines.

3.

If the Seller is a foreign person and the sale price of the property is $1,000,000.01 or more then, as the Transferee I must withhold fifteen percent (15%) of the total sales price, to be remitted to the IRS under the currently enacted FIRPTA guidelines.

Note that the IRS defines a person subject to withholding as a “foreign person” and defines a “foreign person” as “a nonresident alien individual, foreign corporation that has not made an election under section 897(i) of the Internal Revenue Code to be treated as a domestic corporation, foreign partnership, foreign trust, or foreign estate. It does not include a resident alien individual.” I am making this Declaration for the purpose of establishing an exemption or reduced withholding under the "Act" and declare under penalty of perjury that the foregoing statements are true and correct. This Declaration was signed on

Brett Buyer Bonnie Buyer CONSULT YOUR ATTORNEY OR TAX ADVISOR - No representation or recommendation is made or intended as to the legal sufficiency or tax consequences of this document.


BOE-502-AH (P2) REV. 16 (05-18) ASSR-73 (REV. 7-18)

PRELIMINARY CHANGE OF OWNERSHIP REPORT To be completed by the transferee (buyer) prior to a transfer of subject property, in accordance with section 480.3 of the Revenue and Taxation Code. A Preliminary Change of Ownership Report must be filed with each conveyance in the County Recorder's office for the county where the property is located. 2544-019-003 ASSESSOR'S PARCEL NUMBER Samuel Seller and Susan Seller SELLER/TRANSFEROR

NAME AND MAILING ADDRESS OF BUYER/TRANSFEREE (Make necessary corrections to the printed name and mailing address)

Brett Buyer and Bonnie Buyer

BUYER'S DAYTIME TELEPHONE NUMBER BUYER'S EMAIL ADDRESS STREET ADDRESS OR PHYSICAL LOCATION OF REAL PROPERTY

1234 Main Street (SAMPLE FILE), Los Angeles, CA 90039 (

) YES ( ) NO This property is intended as my principal residence. If YES, please indicate the date of occupancy or intended occupancy. ( ) YES ( ) NO Are you a disabled veteran or an unmarried surviving spouse of a disabled veteran who was compensated at 100% by the Department of Veterans Affairs? MAIL PROPERTY TAX INFORMATION TO (NAME)

MO

DAY

YEAR

Mr. and Mrs. Brett Buyer

MAIL PROPERTY TAX INFORMATION TO (ADDRESS)

PART 1. TRANSFER INFORMATION

) ) )

(

)

(

)

( (

) )

(

)

(

)

(

)

STATE

( (

) )

(

)

( (

) )

ZIP CODE

Please complete all statements.

This section contains possible exclusions from reassessment for certain types of transfers.

YES ( ) ( ) ( ( (

CITY

NO ( ) A. This transfer is solely between spouses (addition or removal of a spouse, death of a spouse, divorce settlement, etc.). ( ) B. This transfer is solely between domestic partners currently registered with the California Secretary of State (addition or removal of a partner, death of a partner, termination settlement, etc.). ( )* C. This is a transfer: ( ) between parent(s) and child(ren) ( ) from grandparent(s) and grandchild(ren). ( )* D. This transfer is the result of a cotenant's death. Date of death ___________________________________________ ( )* E. This transaction is to replace a principal residence by a person 55 years of age or older. Within the same county? ( ) YES ( ) NO ( )* F. This transaction is to replace a principal residence by a person who is severely disabled as defined by Revenue and Taxation Code section 69.5. Within the same county? ( ) YES ( ) NO ( ) G. This transaction is only a correction of the name(s) of the person(s) holding title to the property (e.g., a name change upon marriage). If YES, please explain: ( ) H. The recorded document creates, terminates, or reconveys a lender's interest in the property. ( ) I. This transaction is recorded only as a requirement for financing purposes or to create, terminate, or reconvey a security interest (e.g., cosigner). If YES, please explain: _________________________________________ ( ) J. The recorded document substitutes a trustee of a trust, mortgage, or other similar document. K. This is a transfer of property: () 1. to/from a revocable trust that may be revoked by the transferor and is for the benefit of [ ] the transferor, and/or [ ] the transferor's spouse [ ] registered domestic partner. () 2. to/from an irrevocable trust for the benefit of the [ ] creator/grantor/trustor and/or [ ] grantor's/trustor's spouse [ ] grantor's/trustor's registered domestic partner. ( )L. This property is subject to a lease with a remaining lease term of 35 years or more including written options. ( )M. This is a transfer between parties in which proportional interests of the transferor(s) and transferee(s) in each and every parcel being transferred remain exactly the same after the transfer. ( )N. This is a transfer subject to subsidized low-income housing requirements with governmentally imposed restrictions, or restrictions imposed by specified nonprofit corporations. ( )* O. This transfer is to the first purchaser of a new building containing an active solar energy system. ( ) P. Other. This transfer is to *Please refer to the instructions for Part 1 Please provide any other information that will help the Assessor understand the nature of the transfer. THIS DOCUMENT IS NOT SUBJECT TO PUBLIC INSPECTION


BOE-502-AH (P2) REV. 16 (06-17) ASSR-73 (REV. 8-18)

PART 2. OTHER TRANSFER INFORMATION

Check and complete as applicable.

A.

Date of transfer, if other than recording date: ________________

B.

Type of transfer: ( ) Purchase ( ) Foreclosure ( ) Gift ( ) Trade or Exchange ( ) Contract of sale. Date of contract ( ) Sale/leaseback ( ) Creation of a lease ( ) Assignment of a lease Original term in years (including written options): ________ ( ) Other: Please explain:

C.

Only a partial interest in the property was transferred? ( ) YES ( ) NO

PART 3. PURCHASE PRICE AND TERMS OF SALE

( ) Merger, stock or partnership acquisition (Form BOE-100-B) ( ) Inheritance. Date of death: ( ) Termination of a lease. Date lease began: Remaining term in years (including written options): _________

If YES, indicate the percentage transferred

%

Check and complete as applicable.

A. Total purchase price

$

B. Cash down payment or value of trade or exchange excluding closing costs

Amount $

:C. First deed of trust @ ___________ % Interest rate for_______ years. Monthly Payment $ _________________ Amount $ (

) FHA (__ Discount Points) ( ) Cal-Vet ( ) VA (_________________ Discount Points) ( ) Fixed Rate ( ) Variable Rate

(

) Bank/Savings & Loan/Credit Union ( ) Loan Carried by seller

( ) Balloon Payment $ ________________ Due Date: ______________________ D. Second Deed of Trust @ _______ % interest for __________ years. Monthly Payment $ _________________ Amount $ ( ) Fixed Rate ( ) Variable Rate ( ) Bank/Savings & Loan/Credit Union ( ) Loan carried by seller ( ) Balloon Payment $ ________________ Due Date: ______________________ $ ______________________ E. Was an Improvement Bond or other public financing assumed by the buyer? ( ) YES ( ) NO Outstanding balance $ ______________________ F. Amount, if any, of real estate commission fees paid by the buyer which are not included in the purchase price

$ ______________________

G. The property was purchased: ( ) Through real estate broker. Broker name: ___________________________________ Phone Number( ___ )______ ( ) Direct from seller ( ) From a family member- Relationship _____________________________________________ ( ) Other: Please explain: H. Please explain any special terms, seller concessions,broker/agent fees waived, financing, and any other information (e.g. buyer assumed the existing loan balance) that would assist the Assessor in the valuation of your property:

PART 4. PROPERTY INFORMATION A. Type of property transferred ( ( (

) Single-family residence ) Multiple-family residence. Number of units: ) Other. Description: (i.e., timber, mineral, water rights, etc.)

Check and complete as applicable. ( ) Co-op/Own-your-own ( ) Condominium ( ) Timeshare

( ) Manufactured home ( ) Unimproved lot ( ) Commercial/Industrial

B. ( ) YES ( ) NO Personal/business property, or incentives, provided by seller to buyer are included in the purchase price. Examples of personal property

are furniture, farm equipment, machinery, etc. Examples of incentives are club memberships, etc. Attach list if available. If YES, enter the value of the personal/business property: $ Incentives $ C. ( ) YES ( ) NO A manufactured home is included in the purchase price. If YES, enter the value attributed to the manufactured home: $ _______________________ ( ) YES ( ) NO The manufactured home is subject to local property tax. If NO, enter decal number: D. ( ) YES ( ) NO The property produces rental or other income. If YES, the income is from: ( ) Lease/re nt ( ) Contract ( ) Mineral rights ( ) Othe r: E. The condition of the property at the time of sale was: ( ) Good ( ) Average ( ) Fair ( ) Poor Please describe:

CERTIFICATION

I certify (or declare) that the foregoing and all information hereon, including any accompanying statements or documents, is true and correct to the best of my knowledge and belief. SIGNATURE OF BUYER/TRANSFEREE OR CORPORATE OFFICER

DATE

TELEPHONE

NAME OF BUYER/TRANSFEREE/LEGAL REPRESENTATIVE/CORPORATE OFFICER (PLEASE PRINT)

TITLE

EMAIL ADDRESS

The Assessor's office may contact you for additional information regarding this transaction.

(

)


ADDITIONAL INFORMATION Please answer all questions in each section, and sign and complete the certification before filing. This form may be used in all 58 California counties. If a document evidencing a change in ownership is presented to the Recorder for recordation without the concurrent filing of a Preliminary Change of Ownership Report, the Recorder may charge an additional recording fee of twenty dollars ($20). NOTICE: The property which you acquired may be subject to a supplemental assessment in an amount to be determined by the County Assessor. Supplemental assessments are not paid by the title or escrow company at close of escrow, and are not included in lender impound accounts. You may be responsible for the current or upcoming property taxes even if you do not receive the tax bill. NAME AND MAILING ADDRESS OF BUYER: Please make necessary corrections to the printed name and mailing address. Enter Assessor's Parcel Number, name of seller, buyer's daytime telephone number, buyer's email address, and street address or physical location of the real property. NOTE: Your telephone number and/or email address is very important. If there is a question or a problem, the Assessor needs to be able to contact you. MAIL PROPERTY TAX INFORMATION TO: Enter the name, address, city, state, and zip code where property tax information should be mailed. This must be a valid mailing address. PRINCIPAL RESIDENCE: To help you determine your principal residence, consider (1) where you are registered to vote, (2) the home address on your automobile registration, and (3) where you normally return after work. If after considering these criteria you are still uncertain, choose the place at which you have spent the major portion of your time this year. Check YES if the property is intended as your principal residence, and indicate the date of occupancy or intended occupancy. DISABLED VETERAN: If you checked YES, you may qualify for a property tax exemption. A claim form must be filed and all requirements met in order to obtain the exemption. Please contact the Assessor for a claim form. PART 1: TRANSFER INFORMATION If you check YES to any of these statements, the Assessor may ask for supporting documentation. C, D, E, F: If you checked YES to any of these statements, you may qualify for a property tax reassessment exclusion, which may allow you to maintain your property's previous tax base. A claim for must be filed and all requirements met in order to obtain any of these exclusions. Contact the Assessor for claim forms. NOTE: If you give someone money or property during your life, you may be subject to federal gift tax. You make a gift if you give property (including money), the use of property, or the right to received income from property without expecting to receive something of at least equal value in return. The transferor (donor) may be required to file form 709, Federal Gift Tax Return, with the Internal Revenue Service if they make gifts in excess of the annual exclusion amount. G: Check YES if the reason for recording is to correct a name already on title (e.g., Mary Jones, who acquired title as Mary J. Smith, is granting to Mary Jones). This is not for use when a name is being removed from title. H. Check YES if the change involves a lender, who holds title for security purposes on a loan, and who has no other beneficial interest in the property. "Beneficial interest" is the right to enjoy all the benefits of property ownership. Those benefits include the right to use, sell, mortgage, or lease the property to another. A beneficial interest can be held by the beneficiary of a trust, while legal control of the trust is held by the trustee. I: A "cosigner" is a third party to a mortgage/loan who provides a guarantee that a loan will be repaid. The cosigner signs an agreement with the lender stating that if the borrower fails to repay the loan, the cosigner will assume legal liability for it. M: This is primarily for use when the transfer is into, out of, or between legal entities such as partnerships, corporations, or limited liability companies. Check YES only if the interest held in each and every parcel being transferred remains exactly the same. N: Check YES only if property is subject ot subsidized low-income housing requirements with governmentally imposed restrictions: property may qualify for a restricted valuation method (i.e. may result in lower taxes) O: If you checked YES, you may qualify for a new construction property tax exclusion. A claim form must be filed and all requirements met in order to obtain the exclusion. Contact the Assessor for a claim form. Part 2: OTHER TRANSFER INFORMATION A: The date of recording is rebuttably presumed to be the date of transfer. If you believe the date of transfer was a different date (e.g., the transfer was by an unrecorded contract, or a lease identifies a specific start date), put the date you believe is the correct transfer date. If it is not the date of recording, the Assessor may ask you for supporting documentation. B: Check the box that corresponds to the type of transfer. If OTHER is checked, please provide a detailed description. Attach a separate sheet if necessary.


C. If this transfer was the result of an inheritance following the death of the property owner, please complete a Change of Ownership Statement, Death of Real Property Owner, form BOE-502-D, if not already filed with the Assessor's office. PART 3: PURCHASE PRICE AND TERMS OF SALE It is important to complete this section completely and accurately. The reported price and terms of sale are important factors in determining the assessed value of the property, which is used to calculate your property tax bill. Your failure to provide any required or requested information may result in an inaccurate assessment of the property and in an overpayment or underpayment of taxes. A: Enter the total purchase price, not including closing costs or mortgage insurance. "Mortgage insurance" is insurance protecting a lender against loss from a mortgagor's default, issued by the FHA or a private mortgage insurer. B. Enter the amount of the down payment, whether paid in cash or by an exchange. If through an exchange, exclude the closing costs. "Closing costs" are fees and expenses, over and above the price of the property, incurred by the buyer and/or seller, which include title searches, lawyer's fees, survey charges, and document recording fees. C. Enter the amount of the First Deed of Trust, if any. Check all the applicable boxes, and complete the information requested. A "balloon payment" is the final installment of a loan to be paid in an amount that is disproportionately larger than the regular installment. D. Enter the amount of the Second Deed of Trust, if any. Check all the applicable boxes, and complete the information requested. E. If there was an assumption of an improvement bond or other public financing with a remaining balance, enter the outstanding balance, and mark the applicable box. An "improvement bond or other public financing" is a lien against real property due to property-specific improvement financing, such as green or solar construction financing, assessment district bonds, Mello-Roos (a form of financing that can be used by cities, counties and special districts to finance major improvements and services within the particular district) or general improvement bonds, etc. Amounts for repayment of contractual assessments are included with the annual property tax bill. F. Enter the amount of any real estate commission fees paid by the buyer which are not included in the purchase price. G. If the property was purchased through a real estate broker, check that box and enter the broker's name and phone number. If the property was purchased directly from the seller (who is not a family member of one of the parties purchasing the property), check the "Direct from seller" box. If the property was purchased directly from a member of you family, or a family member of one of the parties who is purchasing the property, check the "From a family member" box and indicate the relationship of the family member (e.g., father, aunt, cousin, etc.). If the property was purchased by some other means (e.g., over the Internet, at auction, etc.), check the "OTHER" box and provide a detailed description (attach a separate sheet if necessary). H. Describe any special terms (e.g., seller retains an unrecorded life estate in a portion of the property, etc.), seller concessions (e.g., seller agrees to replace roof, seller agrees to certain interior finish work, etc.), broker/agent fees waived (e.g., fees waived by the broker/agent for either the buyer or seller), financing, buyer paid commissions, and any other information that will assist the Assessor in determining the value of the property. PART 4: PROPERTY INFORMATION A. Indicate the property type or property right transferred. Property rights may include water, timber, mineral rights, etc. B. Check YES if personal, business property or incentives are included in the purchase price in Part 3. Examples of personal or business property are furniture, farm equipment, machinery, etc. Examples of incentives are club memberships (gold, health, etc.), ski lift tickets, homeowners' dues, etc. Attach a list of items and their purchase price allocation. An adjustment will not be made if a detailed list is not provided. C. Check YES if a manufactured home or homes are included in the purchase price. Indicate the purchase price directly attributable to each of the manufactured homes. If the manufactured home is registered through the Department of Motor Vehicles in lieu of being subject to property taxes, check NO and enter the decal number. D. Check YES if the property was purchased or acquired with the intent to rent or lease it out to generate income, and indicate the source of that anticipated income. Check NO if the property will not generate income, or was purchased with the intent of being owneroccupied. E. Provide your opinion of the condition of the property at the time of purchase. If the property is in "fair" or "poor" condition, include a brief description of repair needed.


447 Burchett St., Glendale, CA 91203 (818) 547-9999 • Fax (818) 240-5840 www.IVEscrow.com BUYERS INFORMATION AND VESTING WORKSHEET Property Address: 1234 Main Street (SAMPLE FILE), Los Angeles, CA 90039

Escrow No.: 01-00227-014

CURRENT mailing address _______________________________________________________________________________ Best Phone Number #1

Number #2

Email:

MAILING Address AFTER closing NOTE: Fill in blanks, check the appropriate boxes. Escrow Holder is hereby instructed by the undersigned that title to the property in this escrow is to be vested as follows: (EXACTLY the way you wish to appear on title, which will be exactly how you will need to sign all documents; You will need a valid driver license, identification card or passport in this name for your signature to be notarized when signing loan documents. 1.

[ ] SPOUSE (Print Your Name Exactly as it should appear on the documents - see section 2A below) SPOUSE:

SPOUSE: A. B. D. F. H. 2.

[ [ [ [ [

] Husband and Wife ] Wife and Husband ] Husband and Husband ] Registered Domestic Partner (males) ] Registered Domestic Partner (Seniors)

C. [ ] Wife and Wife E. [ ] Registered Domestic Partners (male / female) G. [ ] Registered Domestic Partner (females)

[ ] INDIVIDUAL /** PARTNERS (see 2A. below)

BUYER #1): A. C. E. G. I. BUYER #2): A. C. E. G. I.

Print Name Exactly as it should appear on documents) [ [ [ [ [

] A SINGLE MAN (never married) B. [ ] A WIDOWER (wife is deceased) D. [ ] AN UNMARRIED MAN (divorced) F. [ H. [ ] *A MARRIED MAN (provide spouse name) J. [ ] *A MARRIED MAN AS HIS SOLE AND SEPARATE PROPERTY (provide spouse's name above)

Print Name Exactly as it should appear on documents) [ [ [ [ [

*SPOUSE: (Print Full Name of Spouse for Interspousal Deed)

] A SINGLE MAN (never married) ] A WIDOW (husband is deceased) ] AN UNMARRIED MAN (divorced) ] *A MARRIED MAN (provide spouse name) ] *A MARRIED MAN AS HIS SOLE AND SEPARATE PROPERTY (provide spouse's name)

] A SINGLE WOMAN (never married) ] A WIDOW (husband is deceased) ] AN UNMARRIED WOMAN (divorced) ] *A MARRIED WOMAN (provide spouse name) ] *A MARRIED WOMAN AS HER SOLE AND SEPARATE PROPERTY (provide spouse's name above)

*SPOUSE: B. [ D. [ F. [ H. [ J. [

(Print Full Name of Spouse for Interspousal Deed)

] A SINGLE WOMAN (never married) ] A WIDOWER (wife is deceased) ] AN UNMARRIED WOMAN (divorced) ] *A MARRIED WOMAN (provide spouse name) ] *A MARRIED WOMAN AS HER SOLE AND SEPARATE PROPERTY (provide spouse's name)

2A. ALL PARTIES - SELECT A VESTING TO REPRESENT ALL PARTIES A. B. C. D. E.

[ ] As Joint Tenants [ ] As Tenants In Common - Each As to an Undivided _______ Interest - Percentage or Fraction (i.e. 1/2 or 50%) [ ] Other (Please specify) [ ] As Community Property (husband and wife, domestic partners or same sex marriage only) [ ] As Community Property with Right of Survivorship (husband and wife, domestic partners or same sex marriage only)

BUYER #1 INITIALS

/ BUYER #2 INITIALS Continued on page 2


3.

[ ] TRUST NAME:

Dated (Print EXACTLY as it shows on your TRUST DOCUMENTS)

TRUSTEE:

3A.NOTE: ATTACH A COPY OF YOUR TRUST WITH THIS COMPLETED AND SIGNED FORM SHOWING TRUST'S NAME, DATE OF ORIGINATION AND TRUSTEE(S) INVOLVED. 4.

[ ] COMPANY / ENTITY NAME: ______________________________________________________________________

AUTHORIZED SIGNER(S) FOR ENTITY IS/ARE: ______________________________________________ Circle Entity: INC / LLC / LLP / GP in the STATE OF___________________________________________________________

4A.NOTE: ATTACH A COPY OF YOUR ARTICLES OF ORIGINATION/INCORPORATIONS WITH THIS COMPLETED AND SIGNED FORM SHOWING COMPANY'S NAME AND CORPORATIONS AUTHORIZED SIGNATORY(IES). HOW YOU HOLD TITLE TO YOUR PROPERTY CAN HAVE SERIOUS TAX CONSEQUENCES IT IS STRONGLY RECOMMENDED THAT YOU SEEK TAX AND/OR LEGAL COUNSEL WHEN COMPLETING THIS FORM. SIGNATURE:

SIGNATURE: DATE:

DATE:


CONCURRENT - CO-OWNERSHIP INTERESTS Parties Division Title Possession

Conveyance

Tenancy in Common

Joint Tenancy

Any number of persons (can be parties legally married to each other) Ownership can be divided into any number of interests equal or unequal Each co-owner has a separate legal title to his undivided interest Equal right of possession

Any number of persons (can be parties legally married to each other) Ownership interests must be equal

Each co-owner's interest may be conveyed separately by its owner

An conveyance by one of the joint tenants alone breaks the joint tenancy between his interest and the others but does not affect the continuation of the joint tenancy between the interests of any two or more other joint tenants Purchaser will become a tenant in common with the other coowners in the property

Purchaser will become a tenant in common with the other co-owners in the property On co-owner's death this Death interest passes to his devisees under his will or to his heirs. No survivorship right Successor's Status Devisees or heirs become tenants in common. Purchaser's Status

Creditor's Rights

Co-owner's interest may be sold on execution sale to satisfy his creditor. Creditor becomes a tenant in common.

Presumption

Favored in doubtful cases except husband and wife case.

There is only one title to the whole property Equal right of possession

On co-owner's death, his interest ends and cannot be disposed of by will. Survivor owns the property by survivorship. Last survivor owns property in severalty.

Community Property Parties legally married to each other

Community Property with Right Tenancy in Partnership of Survivorship Parties legally married to each Only Partners (any number) other

Ownership interests are equal

Ownership interest is equal

Ownership interest is in relation to interest in partnership There is only one title but each co- Title is in the "community". Each Each co-owner's interest owner has a separate interest interest is separate is owned in partnership for partnership purposes Equal right of management and Equal right of possession for Both co-owners have equal control except in case of personal possession partnership purposes. No right of possession for any other purpose property used in a business except by mutual consent. Interests cannot be conveyed Real property requires written Partner's individual interest in separately. Both co-owners must consent of other spouse, and with specific property cannot be join in conveyance of real property. separate interest cannot be conveyed separately. Any Either co-owner can transfer authorized partner can conveyed except upon death personal property. convey the whole partnership title Purchaser cannot acquire one coowner's interest and hold as community property with other coowner On co-owner's death, 1/2 belongs to survivor in severalty, 1/2 goes by will to decedents devisees or by succession to survivor.

If passing by will, tenancy in common between devisee and survivor results. Co-owner's interest may be sold Community property is liable for on execution sale to satisfy his the debt of either co-owner creditor. Joint tenancy is broken, contracted after marriage. Debtor creditor becomes tenant in co-owner's interest cannot be common. sold separately on execution; whole property must be sold to satisfy creditor. Must be expressly stated. Not favored.

Strong presumption that property acquired by husband and wife is community.

Purchaser can only acquire the whole title unless he becomes a partner On co-owners death the entire tenancy remains to the survivor. This right of survivorship is one of the primary incident of community property with right of survivorship If passing by Will, tenancy in common between devisee and survivor results Property of community is liable for contracts of either spouse which are made after marriage and prior to or after January 1, 1975. Co-owner's interest can note be sold separately; whole property may be sold on execution to satisfy creditor

Purchaser can only acquire the whole title unless he becomes a partner Devisees or heirs have no rights in specific partnership property. Partner's interest cannot be seized or sold separately by his personal creditor, but his share of profits may be obtained by a personal creditor. Whole property may be sold on execution sale to satisfy partnership creditor. Arise only by virtue of partnership status in specific property held in partnership.


447 Burchett St., Glendale, CA 91203 (818) 547-9999 • Fax (818) 240-5840 www.IVEscrow.com ESCROW NO.: 01-00227-014

BUYER'S NEW LENDER FORM In order that we may expedite the closing of your escrow, please furnish us with the following information: NEW LENDER(S): 1st Name of Lender: Loan Agent/Officer: Address: City, State & Zip Code: Phone Number: ____ Fax Number: ______ E-Mail Address: Have you prepaid:

Appraisal: _______________ yes _______________ no Credit Report:____________ yes _______________ no

2nd Name of Lender: Loan Agent/Officer: Address: City, State & Zip Code: Phone Number: ____ Fax Number: ______ E-Mail Address: BUYER'S MAILING ADDRESS AFTER CLOSE OF ESCROW:

Gate Code/Special Delivery Instructions: Buyer's E-Mail Address: PLEASE COMPLETE AND RETURN THIS FORM WITH YOUR SIGNED ESCROW INSTRUCTIONS.

Brett Buyer Bonnie Buyer


447 Burchett St., Glendale, CA 91203 (818) 547-9999 • Fax (818) 240-5840 www.IVEscrow.com ESCROW NO.: 01-00227-014 RE: 1234 Main Street (SAMPLE FILE), Los Angeles, CA 90039

TO THE BUYER: In order that we may expedite the closing of your escrow, please furnish us with the following information:

EVIDENCE OF INSURANCE INFORMATION

At the close of escrow your lender will require a one year hazard/fire insurance policy paid through escrow. To help expedite the task of obtaining insurance quickly and possibly save you money, please check the box below and we will have a competitive insurance company provide you with a no obligation quote. A)

Yes, please provide me with a quote for my property: Print your name Your day time phone number

Buyer's E-Mail Address: B)

No, I have my own insurance agent. The name of my agent is: Insurance Company Name Insurance Company Agent Phone Number Fax Number

C)

Quote for Annual Premium

Please use my existing insurance information above in "B", but I would also like a competitive quote for informational purposes (please provide your printed name and phone number above in "A")

PLEASE COMPLETE AND RETURN THIS FORM WITH YOUR SIGNED ESCROW INSTRUCTIONS. Thank you, Date: Brett Buyer Bonnie Buyer "This form is for informational purposes only so that the insurance company may contact a potential client. Insurance agency/carrier must complete their own due diligence to insure sufficient coverage is provided and that the property address and/or legal description are complete and/or correct. Escrow makes no warranty or representation of any kind regarding same."


Escrow No.: 01-00227-014 Order No.:

PLEASE COMPLETE, SIGN AND RETURN

STATEMENT OF INFORMATION Proper completion of this form will help protect you by enabling the title company to eliminate the problems that might arise through similarity of your name with the name of another person against whom there may be judgments, tax liens, or other matters affecting property ownership.

COMPLETION OF THIS FORM WILL EXPEDITE YOUR ORDER AND WILL HELP PROTECT YOU Name (1st Party) Name (2nd Party)

First

Middle

Last

First

Middle

Last

Date of Birth

Birthplace

I have lived in CA since

Date of Birth

Birthplace

I have lived in CA since

Social Security #

Driver's License #

Home Phone

Business Phone

Cell Phone

Social Security # Home Phone

Name of Spouse or Domestic Partner (if not 2nd Party) First

Middle

Driver's License # Business Phone

Cell Phone

Name of Spouse or Domestic Partner (if not 1st Party)

Last

First

ARE PARTIES 1 and 2 ( ) Married ( ) Domestic Partners If so, married on

Middle at

Last

Maiden Name/Previous Last Name

RESIDENCE(S) DURING PRECEDING 10 YEARS NUMBER AND STREET

CITY

NUMBER AND STREET

CITY

NUMBER AND STREET

CITY

NUMBER AND STREET

CITY (If more space is needed, use reverse side of form) OCCUPATION (S)

FRO M

TO

FRO M

TO

FRO M

TO

FRO M

TO

1st Party PRESENT OCCUPATION

FIRM NAME

ADDRESS

NO. YEARS

PRIOR OCCUPATION

FIRM NAME

ADDRESS

NO. YEARS

2nd Party PRESENT OCCUPATION

FIRM NAME

ADDRESS

NO. YEARS

PRIOR OCCUPATION If no former marriages/Domestic Partnerships, write "none"

FIRM NAME ADDRESS (If more space is needed, use reverse side of form) FORMER MARRIAGE(S)/PARTNERSHIPS

NO. YEARS

1st Party - Name of former Spouse/Domestic Partner Deceased

Divorced/Termination

When

Where

2nd Party - Name of former Spouse/Domestic Partner Deceased

Divorced/Termination

When Where (If more space is needed, use reverse side of form)

THE STREET ADDRESS of the property in this transaction is: 1234 Main Street (SAMPLE FILE), Los Angeles, CA 90039 IMPROVE MENT: ( ) SIN GLE RES IDENCE ( ) MULTIPLE RESIDEN CE ( ) CO MMERC IAL OCCUPIED BY: ( ) OWNER ( ) LESSEE ( ) TENANTS ANY PORTION OF NEW LOAN FUNDS TO BE USED FOR CONSTRUCTION: ( ) YES ( ) NO HAS ANY CONSTRUCTION OR IMPROVEMENTS BEEN MADE TO THE PROPERTY IN THIS TRANSACTION DURING THE LAST SIX MONTHS? ( ) YES ( ) NO

SIGNATURE

SIGNATURE

DATE

DATE


Additional Documents


Communities in the City of Los Angeles SAN FERNANDO VALLEY Arleta Canoga Park Chatsworth Encino Granada Hills Lake View Terrace Mission Hills North Hills North Hollywood Northridge Olive View Pacoima Panorama City Porter Ranch Reseda Shadow Hills Sherman Oaks Studio City Sun Valley Sunland Sylmar Tarzana Toluca Lake Tujunga Valley Village Van Nuys Warner Center West Hills West Toluca Lake Winnetka Woodland Hills

SOUTH CENTRAL Crenshaw Hyde Park Leimert Park Watts

DOWNTOWN/OTHER Atwater Village Boyle Heights Chinatown Country Club Park Cypress Park Eagle Rock Echo Park El Sereno Glassell Park Griffith Park Hancock Park Highland Park Hollywood Jefferson Park Koreatown Lincoln Heights Los Feliz Mid City Montecito Heights Monterey Hills Mount Washington Park La Brea Silverlake Toluca Lake Westlake

SOUTH BAY Harbor City Harbor Gateway San Pedro Terminal Island Wilmington

BEACH AREAS L.A. International Airport Mar Vista Pacific Palisades Palisades Highlands Palms Playa del Rey Venice Westchester WEST SIDE Bel Air Estates Beverly Glen Brentwood Castellammare Century City Ceviot Hills Fairfax Mount Olympus Palisades Highlands Pacific Palisades Park La Brea Rancho Park Sawtelle West Los Angeles Westwood

PLEASE NOTE Any property in an area listed above requires the following:

• Certificate of Compliance (signed by Seller, Retrofitter, and Buyer) • 9 Report/Report of Residential Property Records and Pending Assessment Liens (if the property is a residence)


Los Angeles Department of Water and Power

CERTIFICATE OF COMPLIANCE MUNICIPAL WATER CONSERVATION ORDINANCE

Property Address: _________________________________________________________________

PLEASE PRINT. ADDRESS SHOWN MUST MATCH SERVICE ADDRESS ON MUNICIPAL SERVICES BILL.

City Zip Code: __________________ Number of Floors: Total number of toilets in Residence or Building: Number of new ultra-low flush toilets installed:

Install Date:

THIS IS TO CERTIFY THAT, BASED ON PERSONAL KNOWLEDGE, EACH WATER CLOSET, URINAL AND SHOWERHEAD AT THE ABOVE LISTED ADDRESS COMPLIES WITH THE REQUIREMENTS OF CITY ORDINANCE NO. 172075. ALL PROPERTIES MUST HAVE LOW-FLOW SHOWERHEADS. RESIDENTIAL PROPERTIES MUST HAVE ULTRA-LOW FLUSH TOILETS PRIOR TO THE CLOSE OF ESCROW. THIS CERTIFICATE AND THE APPROPRIATE PROCESSING FEE MUST BE FILED WITH THE DEPARTMENT OF WATER AND POWER NO MORE THAN 15 DAYS AFTER COMPLETION OF THE INSPECTION.

PROCESSING FEE SCHEDULE

No. of Floors

SINGLE FAMILY DWELLING DUPLEX/CONDO COMMERCIAL/INDUSTRIAL/SMALL BUSINESS TRIPLEX/ APARTMENT BUILDING COMMERCIAL/INDUSTRIAL APARTMENT BUILDING

1 to 3 Floors

$25.00

4 to 9 Floors

$50.00

COMMERCIAL/INDUSTRIAL APARTMENT BUILDING

10 Floors

$75.00

N/A

INDICATE TYPE OF BUILDING:

FEE

SINGLE FAMILY DWELLING / DUPLEX/CONDO

$15.00

TRIPLEX APARTMENT BUILDING: SPECIFY NO. OF UNITS_______ COMMERCIAL/INDUSTRIAL BUILDING

COMMERCIAL/INDUSTRIAL APARTMENT BUILDING

Over 10 Floors

SMALL BUSINESS*

$75.00 + $5 per add’l floor

*Small business defined as Commercial/Industrial building with 2 or fewer tank type toilets and 2 or fewer showers. No urinals.

$

TOTAL FEE DUE

PLEASE MAKE CHECK PAYABLE TO: LOS ANGELES DEPARTMENT OF WATER AND POWER ** PRINT PROPERTY ADDRESS ON THE CHECK **

PRINT NAME OF LICENSED PLUMBING CONTRACTOR (C-36 LICENSE,) GENERAL CONTRACTOR (B LICENSE,) RETROFITTER OR REAL ESTATE AGENT/BROKER

LICENSE # OF: PLUMBING CONTRACTOR ( C-36 LICENSE,) GENERAL CONTRACTOR (B LICENSE,) CERTIFIED RETROFITTER OR AGENT/BROKER

ORIGINAL SIGNATURE OF PLUMBER, CONTRACTOR, RETROFITTER OR REAL ESTATE AGENT/BROKER

(

INSPECTION DATE

PRINT NAME OF PROPERTY OWNER (SELLER)

SIGNATURE OF OWNER (SELLER)

DATE

PRINT NAME OF PROPERTY BUYER

SIGNATURE OF BUYER

DATE

NAME OF ESCROW COMPANY ESCROW COMPANY ADDRESS ESCROW COMPANY CITY AND ZIP CODE

)

TELEPHONE NUMBER

RETURN ORIGINAL WITH PAYMENT TO: LOS ANGELES DEPARTMENT OF WATER AND POWER ACCOUNT SERVICES UNIT P O BOX 515406 LOS ANGELES CA 90051-6706 (213) 367-9263

PLEASE COMPLETE THIS FORM IN ITS ENTIRETY TO AVOID DELAYS IN PROCESSING. INCOMPLETE FORMS WILL BE RETURNED. REVISED 8/2/13 PLEASE NOTE: IT IS PERMISSIBLE TO PHOTOCOPY THIS FORM.


CERTIFICATE OF COMPLIANCE PROCESS FREQUENTLY ASKED QUESTIONS These are a few questions about the retrofit requirement to determine if a Certificate of Compliance should be filed. 1)

Is the property in the city of Los Angeles? This specific ordinance only applies to properties in the City of Los Angeles, including all of the City's communities (e.g. Northridge, San Pedro, Hollywood, etc.).

2)

Is this a residential property? Only residential properties are required to have ultralow-flush (ULF) toilets (1.6 gallons per flush Business properties still need to change showerheads and install water displacement bags in toilets when they are sold, hut they don't need to change out the toilets. Only homes, candominiunn: and apartments need to have ULF toilets prior to the close of escrow.

3)

Is the existing toilet already ULF (1.6 gpf)? If the existing toilet is a ULF Toilet then the toilet does not need to be changed.

4)

Is the existing toilet not ULF (1.6 gpf) and does it have to be changed? Yes, if the toilet is greater than 1.6 gpf, then it must be changed to a High Efficiency Toilet (HET 1.28 gpf). The City of Los Angeles Plumbing Ordinance No.180822 mandates that any new toilets installed in a residence (new construction, remodeling, upgrading, retrofitting, etc...) must be 1.28 gpf or less.

4) Is the property being sold? If so, the owner needs to have a completed Certificate of Compliance to complete escrow.

Questions: Can I (the seller) transfer the responsibility of toilet replacement to the buyer of my home? No. The Ordinance places the responsibility of toilet replacement on the property seller and the high efficiency toilet must be installed prior to the close of escrow. •

• What happens if I don't comply? A surcharge can be assessed and added to the water bill • Why do I have to do this? Los Angeles has very limited water supplies. Because of the ULF toilet programs (and other conservation programs), the City's overall water use is the same as in 1972 even


though the population has grown by over I million people. Conservation is an important element of the City's reliable water supply. •

The buyer is going to remodel the bathroom. Do I have to replace the toilets? Yes, just because the buyer says he is remodeling does not mean the toilet will get changed immediately if at all. The toilet must be changed before the close of escrow. Waivers will not be granted for these cases.

• The house is going to be demolished. Do I have to replace the toilets? Yes. If the house is habitable, the toilets must be replaced. If there is an existing toilet, it must be replaced. • This house is being sold "as is". Do I have to replace the toilets? Yes, all properties must comply with the ordinance requirements prior to the close of escrow. •

The bank repossessed this house. Do the toilets have to be replaced? Yes, the bank must comply with the ordinance before it can resell the property.

• The toilets match the rest of the bathroom. Can I get an exemption? In most cases, NO. Exemptions are only granted to homes of historic or architectural significance and then only if the toilets are the same age as the rest of the home and there are no modern HE7 toilet equivalents currently manufactured. The tile floor in my bathroom will be damaged if I change the toilet. Can I get an exemption? No, cost or possible damage are not reasons for exemptions, customers might be able to find toilets with larger foot prints to cover damaged areas. •

• My existing toilets cost $450 each. Can I get an exemption? No, cost is not a reason for an exemption. There also may be rebates available to offset the cost.

• My house was built in the early 1930s. Can I get an exemption? No, unless it is historic or has architectural significance etc. Properties residing in a Historical Preservation Overlay Zone or designated a Cultural Monument can request an exemption. My toilet has a valve instead of a tank. What do I have to do? Residential toilets with flush valves (Sloane valve, tankless) must also be ULF toilets. Certified Retrofitters and licensed plumbers should be able to identify whether or not the

2


toilet is a ULF toilet. Non-ULF.flush valve toilets must be replaced with NET flush valve toilets. • How can I tell if my toilet is an ultra-low-flush toilet? Look at the base of the toilet bowl, from the side. If you can see the outline of the reverse trap in the porcelain (leading out from the bowl, up and then down towards the floor), the toilet may be a ULFT. The lack of the trap outline does not mean that the toilet is not a ULFT, as some of the more expensive ULFT models lack this characteristic. Flush the toilet. If the amount of time that the water swirls in the bowl is six seconds or less, chances are that the toilet is a ULFT. Beginning in 1994 (approximately), most toilet manufacturers began stamping toilets with the flush volume. Look at the bowl section where it meets the tank (lust behind the closed toilet seat). All toilets manufactured in the United States since 1994 are ULFTs. State law has required ULFTs in California since 1992. If the toilet has been replaced since 1992, there is a good chance it is a ULFT. (This is not a sure thing due to the fact that manufacturers were allowed to sell the 3.5 gpf toilets remaining in their inventories at the time the new standard took effect.) Remove the tank lid and mark the water line on the tank. Shut off the water valve and flush the toilet. Add 1.6 gallons of water back into the tank. If the water level reaches the mark, the toilet is a ULFT. If the water goes over the mark, it uses more than 1.6 gallons per flush. It is possible that the toilet is a ULFT, but is improperly adjusted or the wrong flapper valve has been installed. Look inside the tank for a date stamp indicating the date of manufacture. If the date stamp indicates 1992 or later, the toilet is probably a ULFT. If the toilet was installed after 1994, it should be stamped near where the toilet seat attaches. The stamp should say 1.6 gpf/ 6.0 1pf • Who do I call to inspect my toilets and showerheads? Plumbing Contractors with C-36 or B license or a Certified Retrofitter Inspector can inspect and sign the Certificate of Compliance. Plumbers, contractors and Retrofitting companies that provide this service may be found in the yellow pages. Real Estate offices and Escrow Companies often have list of companies. DWP cannot make specific recommendations and does not have a list of plumbers or other qualified individuals. Can I get a rebate for installing a 1.28 gpf toilet? Call 1.800.544-4498 press "5" and select the program you are interested in. Someone at that number can answer most questions about the LADWP Water Conservation rebate programs. a

3


Escrow is closing in 2 days __where can I pick up a certificate, because I don't have enough time to wait for it to be mailed to me? Most DWP offices will have blank forms, as will most real estate offices, retrofitting companies and escrow offices. COC forms can also be downloaded from www./adwp.com

a

• Can I inspect my own toilet and sign the form? No, unless you are a Certified Retrofitter, licensed real estate agent/broker, or a contractor with the correct license. • Can I bring the certificate directly to your office? Yes, you can bring it to any LADWP branch office and the Customer Service Representative will forward it to the COC office. However, most people find it easiest to mail it to the address listed on the bottom of the COC form. • How long is the certificate valid for? The Certificate of Compliance is valid for one year. If the property is sold within one year, a new Certificate is not required. If I send my certificate, how do I know that it has been processed? No return receipt is provided (Call 213-367-9263 and a customer service representative will look up property to determine status). a

• What are 9A forms? 9A forms are the forms that must be completed and sent to Building and Safety for the other requirements needed when a property is sold in the City. This includes smoke alarms, water heater strapping, gas shut off valves etc. Call 213.482-6777 for forms and information. This is a Building and Safety office not a DWP number. DWP only handles Certificate of Compliance for the Water Conservation Ordinance,

4


City of Los Angeles, Department of Building and Safety (LADBS)

INSTRUCTIONS FOR COMPLETING THE APPLICATION FOR REPORT OF RESIDENTIAL PROPERTY RECORDS AND PENDING SPECIAL ASSESSMENT LIENS A. ENSURE THAT THE PROPERTY ADDRESS IS IN THE CITY OF LOS ANGELES. Make this determination before submitting the Application to us for processing. Consult a recent version of the Thomas Guide to verify that the property for which this report is being sought is in the City of Los Angeles. Please be advised that if any work is/was performed on your report, you may not be entitled to a refund, per L.A.M.C. Sec. 22.12, 22.13. This includes but is not limited to duplicate requests and canceled requests. B. A separate application and fee must be submitted for each parcel. It is rare that a property contains more than one parcel. C. Complete the following fields on the Application. 1. Assessor Number From County Tax Bill, Escrow Number, and Post Office City: (Area 1 of Application) U Assessor’s Number: Consists of a Map Book, Page, and Parcel number. Submit one Assessor Number per report. Each condominium unit, or parcel or legally-tied parcels being sold require a separate report and fee. U Escrow Number: Provide the escrow number, if applicable. U Post Office City: Provide the Post Office city of the property, if known. 2. Street Address and Description of Property Being Sold: (Area 2 of Application) Multiple lines are provided to indicate multiple address information along with the associated property description. U Street Address: Include the street beginning number, street ending number (if applicable), and street name and type (such as Ave, Blvd, Pl, St). Provide the condominium unit number when the property being sold is a condominium. U Description of Property Being Sold: Indicate whether the property being sold is a vacant lot, or has either a one-family dwelling or specify other type of structure(s) on the property. 3. Legal Description of Property as Shown on Grant Deed: (Area 3 of Application) U Tract, Block, Lot: The legal description will always contain a tract, but may not have a block or lot. Attach a copy of the legal description when it is a metes and bounds (measured boundaries) or is complex in nature. 4. Mail Completed Report To and Person to Contact for Additional Information: (Area 4 of Application) U Mail Completed Report To: Indicate the name and address where the completed report should be mailed. U Person to Contact for Additional Information: Provide a person’s name and phone number that can be contacted for additional information. If applicable, also include an e-mail address and fax number. 5. Complete and Include the Declarations Attachment: (Area 5 of Application) U No photocopied or altered Declarations Attachments will be accepted: The Declarations Attachment cannot be reworded or altered in any manner, and must contain the original wet signature of the owner and buyer, as applicable. D. Enclose a check or money order for $70.20. Do not send cash. Only pre-printed checks will be accepted. Make check or money order payable to: DEPARTMENT OF BUILDING AND SAFETY. E. Mail the completed Application, the original signed Declarations Attachment, and payment to: Department of Building and Safety 201 North Figueroa Street, 4th Floor, “Cashier” Los Angeles, CA 90012-2623 F. If you have any questions, please contact us at (213) 482-6777. AD/App.12A (Rev. 6/1/2005)

www.ladbs.org


City of Los Angeles - Department of Building and Safety

APPLICATION FOR REPORT OF RESIDENTIAL PROPERTY RECORDS AND PENDING SPECIAL ASSESSMENT LIENS INSTRUCTIONS: Please complete all areas of the application and mail or deliver a check (only pre-printed checks will be accepted) or money order for $70.20, payable to

“DEPARTMENT OF BUILDING AND SAFETY”, to CASHIERS, 4TH FLOOR, 201 N. FIGUEROA ST., LOS ANGELES, CA 90012. Do not mail cash – cash is only accepted in person. A separate application must be submitted and a fee paid for each parcel. For questions call 311 or (866) 4LA-CITY.

NOTE: Please be sure that the property address is in the City of Los Angeles before mailing this form. You may verify this by consulting a current Thomas Guide. Should any work be performed on your report, you may not be entitled to a refund per L.A.M.C. Sec. 22.12 and 22.13.

ESCROW NO.

ASSESSOR NUMBER FROM COUNTY TAX BILL

1

MAP BOOK

PAGE

POST OFFICE CITY

PARCEL

DESCRIPTION OF PROPERTY BEING SOLD

STREET ADDRESS STREET BEGIN NO.

STREET END NO.

(Select one for each address listed)

CONDO UNIT NO.

STREET NAME AND TYPE (BLVD, AVE, ST, PLACE, ETC.)

VACANT LOT

1-FAMILY DWELLING

OTHER (SPECIFY) AND INCLUDE NUMBER OF UNITS

LEGAL DESCRIPTIONS OF PROPERTY AS SHOWN ON GRANT DEED

(Attach any long legal descriptions and include a copy of the title insurance policy map to this application.) TRACT

BLOCK

LOT

LEGAL ATTACHED ? G YES

G NO

NAME

MAIL COMPLETED REPORT TO

PERSON TO CONTACT FOR ADDITIONAL INFORMATION NAME

EMAIL ADDRESS

PHONE NO.

FAX NO.

ADDRESS

CITY

STATE

ZIP CODE

ATTACH CHECK HERE

Please complete and include the Declarations Attachment L.A.M.C. Section 151.00 requires all owners whose rental units are subject to the Rent Stabilization Ordinance to register their rental units with the Rent Stabilization Division. No landlord shall demand or accept rent until such registration has been obtained. Contact the Division at (213) 847-4790.

FOR CASHIER’S USE ONLY

Section 96.300 L.A.M.C. requires that the seller of Residential Property within the City of Los Angeles shall apply to the City for a Report of Residential Property Records and Pending Special Assessment Liens and deliver such report to the buyer prior to entering into an agreement of sale or exchange of the Residential Property or prior to close of escrow in connection therewith. There is a fee of $70.20 for this service.

Residential Property is defined as:

a. Any real property improved with one or more buildings or structures which in whole or in part are used for or are legally permitted to be used for dwelling unit or guest room purposes. b. Any vacant real property located in a zone wherein dwelling units or guest rooms are legally permitted.

A report is not required in the following cases: 1.

Property exempt from taxation under the Documentary Transfer Act of the State of California. 2. The first sale of a residential building located in a subdivision whose final map has been approved and recorded in accordance with the Subdivision Map Act not more than two years prior to the first sale (except for condominium conversions).

No new Report need be obtained by an owner for a period of six months after the issuance of a Report on a Residential Property. However, the seller must still deliver a copy of the previously issued Report to the buyer prior to the sale or exchange of the Residential Property or prior to close of escrow. AD/App.12B (Rev. 6/1/2005)

www.ladbs.org


City of Los Angeles - Department of Building and Safety

REPORT OF RESIDENTIAL PROPERTY RECORDS DECLARATIONS ATTACHMENT (Per L.A.M.C. Sec. 22.12, 22.13., refunds are not granted for a report where ANY work has been done on the report.)

PROJECT ADDRESS

Description of property being sold:

ASSESSOR’S ID

9 Vacant Lot

9 One Family Dwelling

9 Other Residential Building

The Owner must complete item B in Section I for all reports. If the owner cannot complete all declarations under item A of Section I, the Buyer must complete Section “II. Buyer’s Declaration.” I.

OWNER’S DECLARATION: I, as owner, declare under penalty of perjury that the following statements are true and correct for the residential building for which this report is sought. A. The following device(s) and/or material has/have been or will be installed as indicated below. (1) Water conservation devices 9 have been installed 9 will be installed in compliance with Los Angeles Municipal Code (L.A.M.C.) Section 122.03. ***Water Conservation Certificate of Compliance, as specified in L.A.M.C. Section 122.03, must be filed prior to the close of escrow with the Department of Water and Power (LADWP). A Certificate of Compliance form may be obtained by calling LADWP at (888) 284-6130.*** (2) (3) (4)

(5) (6)

Lights and locks 9 have been installed 9 will be installed in compliance with L.A.M.C. Section 91.8607. 9 The Lights and Locks Ordinance does not apply since no apartment building (3 or more units) is currently present on the property for which this report is being sought. Seismic gas shutoff valves 9 have been installed 9 will be installed in compliance with L.A.M.C. Section 94.1219. 9 The Gas Shutoff Valves Ordinance does not apply since no gas fuel lines are provided for any building on the property for which this report is being sought. Metal bars, grills, grates, security roll-down shutters, and similar devices installed over emergency escape windows in sleeping rooms 9 are not installed 9 have been installed in accordance with L.A.M.C. Section 91.310.4 9 will be installed in accordance with L.A.M.C. Section 91.310.4 for the property for which this report is being sought. Smoke Detectors 9 have been installed 9 will be installed in compliance with L.A.M.C. Section 91.310.9. Impact Glazing/Approved Film for sliding glass panels of sliding-type doors 9 has been installed 9 will be installed in compliance with L.A.M.C. Division 24. 9 The Impact Hazard Glazing Ordinance does not apply.

Further, I (Owner) certify that smoke detector and impact glazing/approved film for sliding glass panel of sliding-type doors will be installed prior to entering into an agreement of sale or contracting for an exchange of said residential property, or, where an escrow agreement has been executed in connection therewith, prior to close of escrow, and that within 10 days after installation, I will so advise the Department of Building and Safety in writing to Residential Property Records, c/o Cashier, 201 N. Figueroa St., 4th Floor-- Counter G, Los Angeles, CA 90012-4869. B.

9 The property for which this report is being sought is one acre or less in size.

9 The property for which this report is being sought exceeds one acre in size and I have inspected the property for the existence of oak trees. (For the purpose of this declaration the definition of “oak trees” set forth in L.A.M.C. Section 46.01 shall apply.) The number of oak trees identified as located on this property is ____________ . (If none, write “0".) I authorize the Department of Building and Safety to verify this information by entry upon the subject property. I understand that a fee, as specified in L.A.M.C. Section 98.0412(a), shall be collected by the Department of Building and Safety for any inspection required to verify this declaration.

Signature of Owner _______________________________________ Print Name ____________________________________ Date II. BUYER’S DECLARATION: I, as buyer, declare under penalty of perjury that the following statements are true and correct for the residential building for which this report is sought. A. The following device(s) and/or material has/have been installed as indicated below.

9 Water conservation devices have been installed in compliance with Los Angeles Municipal Code (L.A.M.C.) Section 122.03. (2) 9 Lights and locks have been installed in compliance with L.A.M.C. Section 91.8607. 9 The Lights and Locks Ordinance does not apply since no (1)

(3)

apartment building (3 or more units) is currently present on the property for which this report is being sought. Metal bars, grills, grates, security roll-down shutters, and similar devices installed over emergency escape windows in sleeping rooms 9 are not installed 9 have been installed in accordance with L.A.M.C. Section 91.310.4 for the property for which this report is being sought.

B. Seismic gas shutoff valves 9 have been installed in compliance with L.A.M.C. Section 94.1219. 9 will be installed in compliance with L.A.M.C. Section 94.1219 prior to entering into an agreement of sale or prior to the close of escrow when an escrow agreement has been executed in connection with the sale; and that within 10 days after installation, Buyer will so advise the Department of Building and Safety in writing to Residential Property Records, c/o Cashier, 201 N. Figueroa St., 4th Floor--Counter G, Los Angeles, CA 90012-4869. Failure to comply with this requirement shall subject the buyer to the payment of a noncompliance fee in addition to the other penalties provided by law. 9 The Gas Shutoff Valves Ordinance does not apply since no gas fuel line is provided for any building on the property for which this report is being sought. C. (1) 9 Smoke Detectors will be installed in compliance with L.A.M.C. Section 91.310.9. (2) 9 Impact Glazing/Approved Film for sliding glass panels of sliding-type doors will be installed in compliance with L.A.M.C. Division 24. 9 Impact Hazard Glazing Ordinance does not apply. Further, smoke detectors in compliance with L.A.M.C. Section 91.310.9 and impact glazing/approved film for sliding glass panels of sliding-type doors in compliance with L.A.M.C. Division 24 will be installed by Buyer within 30 days after entering into an agreement of sale or contracting for an exchange of said residential property, or, where an escrow agreement has been executed in connection therewith, within 30 days after the close of escrow, and that within 10 days after installation, will so advise the Department of Building and Safety in writing to Residential Property Records, c/o Cashier, 201 N. Figueroa St., 4th Floor-- Counter G, Los Angeles, CA 90012-4869. Signature of Buyer _______________________________________ Print Name ____________________________________ Date AD/App.12C (Rev. 6/1/2005)

www.ladbs.org


One Time Credit Card Payment Authorization Form

Report of Residential Property Records and Pending Special Assessment Liens (also known as a Residential Property Report, RPR, or 9 Report) To expedite the processing time of the City of Los Angeles’s mandatory 9 Report we request that you complete and return this credit card authorization form as soon as possible. Submitting this form to us is not required but doing so will save the 2 - 3 week processing time of submitting a check to the Department of Building & Safety which can be crucial to closing your escrow on time. Please sign and complete this form to authorize Inter Valley Escrow to make a one-time charge of $70.85 to your credit card listed below. Starting January 1, 2017, the Los Angeles Department of Building & Safety will also charge a 2.70% service fee for credit card transactions. By signing this form, you give us permission to debit your account for the amount indicated on or after the indicated date. This is permission for a single transaction only, and does not provide authorization for any additional unrelated debits or credits to your account.

Please complete the information below: I _____________________________ authorize Inter Valley Escrow to charge my credit card (full name)

account indicated below for $70.85 +2.70% on or after ___________________ . This payment is for (amount)

(date)

the Report of Residential Property Records and Pending Special Assessment Liens. (description of goods/services)

Billing Address _____________________________________ Phone# _______________________ City, State, Zip ______________________________________ Email _______________________

Account Type:

Visa

MasterCard

Discover

Cardholder Name _______________________________________________ Account Number __________________________________________ Expiration Date _____________ CVV2 (3 digit number on back of Visa/MC/Discover) ______

SIGNATURE _________________________________________ DATE __________________ I authorize the above named business to charge the credit card indicated in this authorization form according to the terms outlined above. This payment authorization is for the goods/services described above, for the amount indicated above only, and is valid for one time use only. I certify that I am an authorized user of this credit card and that I will not dispute the payment with my credit card company; so long as the transaction corresponds to the terms indicated in this form.


www.cityofpasadena.net/permitcenter

OCCUPANCY INSPECTION PROGRAM APPLICATION PURPOSE: The intent of the Occupancy Inspection Program is to permit the City to inspect one and two-family dwellings for compliance with the City's Municipal Code, the Zoning Code , and other ordinances of the City relating to health and safety of residents. (PMC Sec. 14.16.050) PASADENA MUNICIPAL CODE 14.16.030 - Certificate of Occupancy Required No person shall occupy, change the use of or sell, exchange, rent, lease or otherwise permit any unit which is hereafter vacated by the occupant thereof to be reoccupied until a certificate of occupancy, or temporary certificate of occupancy is issued by the administrator. With respect to single-family, condo/townhouse and duplexes, such inspection shall occur each time the unit is sold, rented, leased or exchanged. An application for an occupancy inspection shall be void if the owner fails to correct all items marked as "major/safety" and call for reinspection within six months of the close of escrow. similarly, an application for occupancy inspection shall be void it the owner fails to correct all "minor/non-safety" items within 30 days of the close of escrow. Printed name of property owner or representative

Date

Signature of property owner or representative

Address of property to be inspected _____________________________________________________________________ Property owner's name _______________________________________ Phone No. ____________ Fax No. ___________ Property owner's address _____________________________________________________________________________ City/State: _____________________________________________________________ ZIP Code: _________________

Representative's name ________________________________________ Phone No. ____________ Fax No. ___________ Representative's address ______________________________________________________________________________ City/State: _____________________________________________________________ ZIP Code: _________________ Representative's email: _____________________________________________________________________________ Received by ________________________________ Case no. _______________________ Date ______________ o SINGLE FAMILY o SALE

o DUPLEX

o CONDO/TOWNHOME

o RENTAL/LEASE

METHOD OF PAYMENT: o Credit card

o Check

o Cash

INSPECTION FEE ____________________________________ SIDEWALK FEE ______________________________ INSPECTION DATE __________________________________ INSPECTION TIME ___________________ A.M. / P.M. If requesting mailed certificate of occupancy & housing inspection report, please provide addressee information here o

PROPERTY OWNER

o AUTHORIZED REPRESENTATIVE

PPC0088 Rev 10/11

Name ___________________________________________________________________________________________ City/State: _____________________________________________________________ ZIP Code: _________________ n PLANNING AND DEVELOPMENT DEPARTMENT//

CODE COMPLIANCE SECTION

175 NORTH GARFIELD AVENUE PASADENA CA 91109

T 626 744 4633 F 626 744 4249


ΠΡΕΣΑΛΕ ΣΕΛΦ−ΧΕΡΤΙΦΙΧΑΤΙΟΝ ΠΡΟΓΡΑΜ ΧΕΡΤΙΦΙΧΑΤΕ ΟΦ ΧΟΜΠΛΕΤΙΟΝ Purpose: Πυρσυαντ το Πασαδενα Μυνιχιπαλ Χοδε Σεχτιον 14.17.040 Τηε Οωνερ σηαλλ φιλε ωιτη τηε Αδµινιστρατορ, πριορ το τηε σαλ ε οφ τηε προπερτψ, αν αππλιχατιον φορ α Πρεσαλε Χερτιφιχατε οφ Χοµπλετιον φορ ελιγιβλε προπερτιεσ. Συχη αππλιχατιον σηα λλ βε αχχοµπανιεδ βψ παψµεντ οφ α φεε ανδ σηαλλ βε σιγνεδ βψ τηε Οωνερ ανδ Βυψερ. ELIGIBLITY: Πυρσυαντ το Πασαδενα Μυνιχιπαλ Χοδε Σεχτιον 14.17.050, τηε φολλοωινγ ουτλινεσ ελιγιβιλιτψ χριτερια φορ σελφ−χερτιφιχατι ον: Α. Προπερτιεσ ωηερεβψ ανψ οφ τηε φολλοωινγ χονδιτιονσ εξιστ αρε νοτ ελιγιβλε φορ α Πρεσαλε Χερτιφιχατε οφ Χοµπλετι ον ανδ ρεθυιρε α Πρεσαλε Χερτιφιχατε οφ Ινσπεχτιον: α Υνπερµιττεδ αδδιτιον(σ); β. Υνπερµιττεδ χονϖερσιον(σ); χ. Υνπερµιττεδ αχχεσσορψ στρυχτυρε(σ) οϖερ 120 σθυαρε φεετ; ορ δ. Νον−χοµπλιανχε ωιτη φιρε προτεχτιον, δετεχτιον ανδ εξιτινγ ρεθυιρεµεντσ. Β. Προπερτιεσ ωιτη ανψ οπεν χοδε χοµπλιανχε χασε(σ), αρε νοτ ελιγιβλε φορ α Πρεσαλε Χερτιφιχατε οφ Χοµπλετιον ανδ σηαλλ ρεθυιρε α Πρεσαλε Χερτιφιχατε οφ Ινσπεχτιον. CAVEAT: Τηε Χιτψ ηασ νοτ χονδυχτεδ αν ινσπεχτιον οφ τηε προπερτψ ανδ ισ νοτ προϖιδινγ ανψ ρεπρεσεντατιον τηατ χοδε ϖιολατιονσ φ

∆ΑΤΕ ΟΦ ΑΠΠΛΙΧΑΤΙΟΝ:

ΧΑΣΕ ΝΥΜΒΕΡ:

ΧΕΡΤΙΦΙΧΑΤΕ ΕΞΠΙΡΕΣ:

Α∆∆ΡΕΣΣ ΟΦ ΠΡΟΠΕΡΤΨ: ΤΨΠΕ ΟΦ ΠΡΟΠΕΡΤΨ

X☐ Σινγλε Φαµιλψ Ρεσιδενχε ☐ ∆υπλεξ ΒΥΨΕΡ Σ ΝΑΜΕ: ΧΟΜΜΕΝΤΣ:

Πυρσυαντ το Πασαδενα Μυνιχιπαλ Χοδε Σεχτιον 14.17.080, Τηε Αδµινιστρατορ σηαλλ ισσυε α Πρεσαλε Χερ τιφιχατε οφ Χοµπλετιον αφτερ ρεχειπτ οφ αν αππλιχατιον τηατ µεετσ αλλ ρεθυιρεµεντσ. Χερτιφιχατε Ισσυεδ Ον:

_____ Αδµινιστρατορ σ Σιγνατυρε:

Χιτψ οφ Πασαδενα Χοδε Χοµπλιανχε 175 Ν. Γαρφιελδ Αϖε, Πασαδενα ΧΑ 91101 Φορ θυεστιονσ ρεγαρδινγ τηισ Χερτιφιχατε, πλεασε χονταχτ Χοδε Χοµπλιανχε ατ (626) 744−7144.


www.cityofpasadena.net/permitcenter

APPLICATION FOR CODE COMPLIANCE CERTIFICATE NEW APPLICATION

Certificate No.: ____________________ Application Date _____________________

RENEWAL APPLICATION

REQUIRED INFORMATION Business Name ______________________________________________ Phone Number

Business Address _____________________________________________________________________________ City/State:

ZIP Code:

Business Owner ___________________________________________ Phone Number _______________________ Mailing Address ______________________________________________________________________________ City/State: ________________________________________________________ ZIP Code: _________________ Property Owner __________________________________________ Phone Number _______________________ Mailing Address ______________________________________________________________________________ City/State: ________________________________________________________ ZIP Code: _________________ Provide a detailed description of business use: _______________________________________________________

Hours of Operation: ________________________ Number of Parking Spaces Provided ______________________ Square Footage of Office/Business Space ___________________________________________________________

Applicant’s Signature Date MISSING INFORMATION MAY CAUSE A DELAY IN THE PROCESSING OF YOUR APPLICATION OFFICE USE ONLY

Zoning Use Classification (for use described above)

Permitted Use

YES

NO

Zoning District

Conditionally Permitted

YES

NO

If YES - C.U.P#

Variance

YES

NO

If YES - Variance#

(Attach decision letter) (Attach decision letter)

Nonconforming Use

YES

NO

(If YES, please describe nonconformity)

Code Required Number of Parking Spaces PPC0085 Rev 9/07

Approved

Denied

Sign

Shared Parking Agreement: Date

Comments/Restrictions with Approval or reasons for Denial n PLANNING AND DEVELOPMENT DEPARTMENT// CODE COMPLIANCE SECTION

175 NORTH GARFIELD AVENUE PASADENA CA 91109

T 626 744 4633 F 626 744 4249


PASADENA PERMIT CENTER www.cityofpasadena.net/permitcenter

HOUSING INSPECTION REPORT Case Number: Inspection Date: July 31, 2017 Type of Inspection: Occupancy Inspection.

Responsible Party: Property Address: Mailing Address (if applicable)

Sidewalk Fees: Yes. Amount: $16.00. For questions concerning sidewalk damage fees, please contact Public Works at (626) 744-4273 Inspector Name: Code Compliance Officer Phone: Fax: Email: Here is a list of the MAJOR/SAFETY violations which need correction. Major violations require re-inspection. HOUSING INSPECTION REPORT INSPECTION INFORMATION Major Violations: No major violations observed at time of inspection. Here is a list of the MINOR/NON SAFETY violations which need correction. Minor violations do not require reinspection (at the discretion of the inspector); however, the property owner must correct the violations, sign the report certifying that the corrections have been made and return it to the address listed at top of this report, before issuance of a Certificate of Occupancy. HOUSING INSPECTION REPORT INSPECTION INFORMATION Minor Violations: No minor violations observed at time of inspection. If the unit is in compliance with the applicable codes, the city shall issue a Certificate of Inspection. A Temporary Certificate of Inspection may be issued if the unit(s) are in substantial compliance with the applicable codes. To request a re-inspection or consultation regarding this report and/or assistance in securing a permit, please call the inspector whose name and telephone number appears at the top of this report. All violations marked by the inspector must be repaired within thirty (30) days from the date of this inspection, unless otherwise indicated by the inspector. Major violations require reinspection. Minor violations do not require reinspection (at the discretion of the inspector); however the property owner must correct the violations, sign the report, and return it to the address listed at the top of this report, before issuance of a Certificate of Inspection. I hereby certify that all of the violations listed above have been corrected. Š City of Pasadena Code Compliance

Case No.: CCI2017-02274 Code Compliance Division 175 North Garfield Avenue, Pasadena CA 91101-1704 www.cityofpasadena.net * (626) 744-7144 Fax (626) 744-3979


Page 2

Date: ________________ Property Owner/Owner's Representative Signature: Inspector's Signature (upon approval): __________

Š City of Pasadena Code Compliance

Case No.: CCI2017-02274 Code Compliance Division 175 North Garfield Avenue, Pasadena CA 91101-1704 www.cityofpasadena.net * (626) 744-7144 Fax (626) 744-3979


CITY OF PASADENA Housing Code Compliance

175 N. Garfield Avenue Pasadena, CA 911091 Phone: (6261 744-7144 Fax: (6261 744-4249

CERTIFECATE OF INSPECTION AND CODE COMPLIANCE PURPOSE: The intent of the Occupancy Inspection Program is to permit the City to inspect dwellings for compliance with the City's housing code, the zoning code (e.g. illegal use of structures as second or additional units), and other ordinances of the City relating to health and safety of residents. (PMC Sec. 14.16.050) SCOPE: Only property which is open and visible has been inspected. No concealed or inaccessible conditions (i.e. conditions that cannot be determined without the use of tools, or without destructive invasion of existing structures) are included in this inspection unless otherwise stated. CAVEATS:

1. As with any inspection by code enforcement staff, illegal conditions may have been missed during the inspection. The City of Pasadena has the right of reentry and reinspection of other code discrepancies as set forth in the Pasadena Municipal Code. 2. This inspection does not satisfy any private party disclosure requirements mandated by local, state, or federal law applying to transfer of the property. 3. No person should rely on this inspection as being conclusive as to habitability, suitablility for purposes purchased, legality, nor defect free occupancy due to the fact that this inspection has been performed. Code enforcement by the City is to ensure that the property meets minimal stardards set by the community for the benefit of the community as a whole rather than for the benefit of the involved parties. ADDRESS OF PROPERTY 10 BE INSPEC reD

ASE NO:

ROPERTY OWNER'S NAME NO. OF UNITS

ROPFRTY OWNER'S ADDRESS DWELLING ITY

ASADENA,

Kill STATE ZIP CODE

CA

PHONE MULTIPLE FAMILY DWELLING

PPLICANT'S NAME PPLICAN I'S ADDRESS

8 [Alt LIP CODE

SINGLE FAMILY

SALE

PHONE

El

IE

RENTAL

ONDITIONS / COMMENTS

CERTIFICATION: This is a valid Certificate of Inspection and Code Compliance only when signed below. NOTICE:

(1) Pre-1935 residential structures may not be bolted to the foundation. (2) The City of Pasadena is committed to protecting its mature native trees. As a result, the City Council has adopted an ordinance protecting trees on Private Property. The "Tree Protection Ordinance" No. 8.52 requires a permit to remove protected trees in protected locations. Fore more information, please call 626-744-7144.

I HEREBY CERTIFY THAT ON THE DATE OF INSPECTION/REINSPECTION THE UNIT(S) MEET(S) MINIMUM PASADENA MUNICIPAL REQUIREMENTS AS SET FORTH IN THE ATTACHED INSPECTION REPORT.

INSPECTOR SIGNATURE

DATE


City of Pasadena Permit Center

175 N. Garfield Ave. Pasadena, CA 91101

Receipt #: Date: 08/21/2017 Project Address: Line Items: Case No

Tran Code

Description

Revenue Account No

Sidewalk Damage-Public Works

Amount Paid 16.00

Line Item Total:

$16.00

Payments: Method

Payer

Bank No

Account No

Cash

Confirm No

How Received In Person Payment Total:

Page 1 of 1

Amount Paid 16.00 $16.00

cReceipt.rpt


WATER COMPANY INFORMATION La Canada Flintridge

Altadena

Valley Water Company 4524 Hampton Road La Canada Ca 91012 (818) 790-5516 Transfer Fee: $50.00

Las Flores Water Company PO Box 426 Altadena Ca 91001 (626) 797-1138 Transfer Fee: $75.00 Lost Stock Certificate Fee: $100.00/share

Mesa Crest Water Company 4532 Rinetti Lane La Canada Ca 91011 (818) 790-2071

La Canada Irrigation District PO Box 39 La Canada Ca 91012 (818) 790-6749 San Gabriel/Pasadena Sunny Slope Water Company 1040 El Campo Drive Pasadena Ca 91107 (626) 287-5238 Transfer Fee: $80.65 Lost Stock Certificate Fee: Varies

Lincoln Avenue Water Company 564 W. Harriet Street Altadena Ca 91001 (626) 798-9101 Transfer Fee: $75.00 Lost Stock Certificate Fee: $75.00 Rubio Cañon Water Company PO Box 398 Altadena Ca 91001 (626) 797-0509 Transfer Fee: $75.00 Lost Stock Certificate Fee: None

PLEASE NOTE: Water Stock Transfer Fees, Lost Water Stock Certificate Fees, and Final Water Bills are required to be paid through escrow by the Water Companies. These fees are set by the water companies and can change.


CERTIFICATION OF TRUSTEE (California Probate Code Section 18100.5) The undersigned being of legal age, declares under penalty of perjury: 1.

Declarant(s) certifies the existence of the following described Trust and states that he/she/they are all of the current Trustees. Name of Trust: Date of Trust: Trustor/Settlor(s): Original Trustee(s): Trust Identification # (Employer ID No. or S.S.N.):

2.

Declarant(s) state(s) that the Trust is in full force and effect and has not been revoked, terminated, or otherwise amended in any manner which would cause the representations in this Certification to be incorrect. The name(s) of all persons who have any power to revoke the Trust are:

3. Declarant(s) state(s) that the following named Trustee(s) is/are fully empowered to act for said Trust and is/are properly exercising his/her/their authority under said Trust in negotiating for, contracting for, and executing the document(s) attached hereto, or set forth below, and that no Trustee(s) other than the following named Trustees are necessary under the Trust to sign said document(s): Name of Trustee(s) Authorized to Sign:

Name of Document(s):

4. Declarant(s) state(s) that to the best of his/her/their knowledge, there are no claims, challenges of any kind or causes of action alleged, contesting or questioning the validity of the Trust or the Trustee's authority to act for the Trust. 5.

This declaration is prepared and executed pursuant to California Probate Code Section 18100.5.

Signed under penalty of perjury, this Dated July 7, 2020

day of

(signature) (name-typed or printed) (signature)

(name-typed or printed) A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA COUNTY OF _________________________________________ On _____________________________ before me, __________________________________________________ A Notary Public personally appeared __________________________________________________________________________ who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (Seal)


447 Burchett St., Glendale, CA 91203 (818) 547-9999 • Fax (818) 240-5840 www.IVEscrow.com

Date: July 7, 2020 Escrow No. 01-00227-014 Title Order No.: Property: 1234 Main Street (SAMPLE FILE), Los Angeles, CA 90039 Enclosed herewith you will find the Preliminary Report issued by Orange Coast Title Company of Southern California, Order No. . Pursuant to item 14B3 of the Purchase Agreement you have 5 calendar days to approve/disapprove the Preliminary Report. Please promptly complete and sign the form below, and return it to us. Sincerely,

Erik Okland Escrow Officer APPROVAL OF PRELIMINARY TITLE REPORT The undersigned approves/disapproves as checked below the applicable report for the closing of this escrow. PLEASE CHECK/MARK ONE: (

)

Please check here if APPROVAL is hereby given OR

(

)

Please check here if DISAPPROVAL is hereby given, and complete below:

The undersigned authorize and instruct Escrow Holder, without liability, to utilize the legal description provided by Title Company as Exhibit “A” of the Preliminary Report for the preparation of any deed or other documents necessary to close this transaction. Date:

Samuel Seller Susan Seller

"Providing Escrow Excellence Since 1989!"


447 Burchett St., Glendale, CA 91203 (818) 547-9999 • Fax (818) 240-5840 www.IVEscrow.com

Mr. and Mrs. Brett Buyer

Date: July 7, 2020 Escrow No. 01-00227-014 Title Order No.: Property: 1234 Main Street (SAMPLE FILE), Los Angeles, CA 90039

Enclosed herewith you will find the Preliminary Report issued by Orange Coast Title Company of Southern California, Order No. . Pursuant to item 14B3 of the Purchase Agreement you have 5 calendar days to approve/disapprove the Preliminary Report. Please promptly complete and sign the form below, and return it to us. Sincerely,

Erik Okland Escrow Officer APPROVAL OF PRELIMINARY TITLE REPORT The undersigned approves/disapproves as checked below the applicable report for the closing of this escrow. PLEASE CHECK/MARK ONE: (

)

Please check here if APPROVAL is hereby given OR

(

)

Please check here if DISAPPROVAL is hereby given, and complete below:

The undersigned authorize and instruct Escrow Holder, without liability, to utilize the legal description provided by Title Company as Exhibit “A” of the Preliminary Report for the preparation of any deed or other documents necessary to close this transaction. Date:

Brett Buyer Bonnie Buyer

"Providing Escrow Excellence Since 1989!"


447 Burchett St., Glendale, CA 91203 (818) 547-9999 • Fax (818) 240-5840 www.IVEscrow.com

Mr. and Mrs. Brett Buyer

Date: July 7, 2020 Escrow No. 01-00227-014 Title Order No.: Property: 1234 Main Street (SAMPLE FILE), Los Angeles, CA 90039

Enclosed herewith you will find the Natural Hazard Disclosure Report. Pursuant to item 14B3 of the Purchase Agreement you have 5 calendar days to approve/disapprove the Natural Hazard Disclosure Report. Please promptly complete and sign the form below, and return it to us. Sincerely,

Erik Okland Escrow Officer APPROVAL OF NATURAL HAZARD DISCLOSURE REPORT The undersigned approves/disapproves as checked below the applicable report for the closing of this escrow. PLEASE CHECK/MARK ONE: (

)

Please check here if APPROVAL is hereby given OR

(

)

Please check here if DISAPPROVAL is hereby given, and complete below:

Date:

Brett Buyer Bonnie Buyer

"Providing Escrow Excellence Since 1989!"


447 Burchett St., Glendale, CA 91203 (818) 547-9999 • Fax (818) 2405840 www.IVEscrow.com PROPERTY ADDRESS: 1234 Main Street (SAMPLE FILE) Los Angeles, CA 90039

Date: July 7, 2020 Escrow No.: 01-00227-014 RENT STATEMENT

You and the buyer may rely on the following as a true statement of rental collections on the following properties. In order that rents for the property I am conveying may be correctly prorated, I hereby state that the rentals as to amounts and dates to which they are paid are as follows: Address/ Unit #

Tenant's Name

Rent Per Month

Due Date

Security/Other Deposits

Unless prior to date of recording I have notified you in writing of some change in tenancy, you are to consider that I will collect, or have collected all rents which fall due according to the foregoing statement prior to date of recording, and you will make the proration of rent accordingly. You are to debit my account for the above security/other deposits, if any, and credit Buyer for same. SELLER:

DATED:

SELLER:

DATED:

The above statement is hereby approved and accepted as a basis for rent adjustment and receipt of a copy is hereby acknowledged. BUYER:


447 Burchett St., Glendale, CA 91203 (818) 547-9999 • Fax (818) 240-5840 www.IVEscrow.com

HOA

Date: July 7,2020 Escrow No. 01-00227-014 SELLER: Samuel Seller and Susan Seller

Property Address: 1234 Main Street (SAMPLE FILE), Los Angeles CA 90039 An escrow has been opened in our office for the transfer of the above referenced property. Please furnish the following information in connection with the Homeowner's Association affecting the property: Amount of Dues $ ____________________ Payable: ( ) Monthly ( ) Quarterly ( ) Yearly Dues are currently paid to ________________________ Next Due Date Make checks for Dues payable to: ____________________________ Transfer Fee of $ _______________________________ Payable to: _ Other Fees, if any: Special Assessments: ___________________________ Emergency Assessments: Other unpaid obligations of Seller: _______________________________________ Pending or anticipated claims or litigation by or against HOA: Yes/No ___________ Please furnish copies of the following documents: Articles of Incorporation Bylaws Age restrictions, if any Annual budget report or summary, including reserve study Assessment and reserve funding disclosure statement Insurance summary Special assessment Other unpaid obligations of seller Settlement notice regarding common area defects Notice(s) of violation 12 months regular board minutes CC&R's Operating rules Rental restrictions, if any Financial statement review Assessment enforcement policy Regular assessment Emergency assessment Approved changes to assessments Preliminary list of defects Required statement of fees and copies of any other documents required by law.

Attached

Not Available

Explanation

**PLEASE CALL OUR OFFICE WHEN PACKAGE IS READY FOR PICK UP**

If there is a blanket insurance Policy covering the individual units, please furnish the following information, together with a copy of the declarations page, if available: INSURANCE AGENT: ADDRESS:

PHONE

Please complete, sign on the next line and return to the undersigned. FORM COMPLETED BY:

PHONE

We sincerely appreciate your early reply to this request. Sincerely, Erik Okland Escrow Officer

"Providing Escrow Excellence Since 1989!"


E X PR ESS TO S UCCESS

24| Overview of Escrow process from beginning to end including Contingencies, etc.


7/10/2020

E X P R E S S TO   S U C C E S S

Week 2 : Day 9 2:45pm – 4:45pm

Overview of Escrow process from  beginning to end including Contingencies EXPRESS  TO SUCCESS

Welcome! Carol Ann Walls‐Sandell Realtor® | Sales Manager Glendora Office 626/340‐0614 (c) carolann@homesbycarolann.com EXPRESS  TO SUCCESS

1


7/10/2020

Winning Team Buyers  Agent

Lender

Clients

Listing Agent

Escrow Officer EXPRESS  TO SUCCESS

The Escrow Process •Office Communication •Supervision & Coordination •Responsibilities of Listing Agent (Represent Seller) •Responsibilities of Selling Agent (Represent Buyer) •How to Work Effectively with an Escrow Officer •How to Work Effectively with a Transaction  Coordinator

EXPRESS TO SUCCESS

Seller

Accepted/Signed Residential Purchase  Agreement (RPA)

Provide Property Disclosures

Open Escrow

(Including NHD & HOA Docs)

(Listing Agent)

Buyer Review/Sign Disclosures Loan Process

Facilitate Inspections/ Appraisal

Disclosures Inspections

Review Escrow Instructions Inspections & Contingency Removals

Title Search Preliminary Title Reports

Obtain Property  Inspections

Inspection &  Contingency  Removal

Loan Condition  Removals

Additional Negotiations if Necessary Request for Repairs

Closing

EXPRESS TO SUCCESS

2


7/10/2020

Communication  Complete Dilbeck Sales Report and turn in to Office Administrator    Open Escrow Send all pertinent info to Escrow along with contract and all addendums and riders.   Verify who pays for the Dilbeck $250 Flat Fee Commission and if there is a RERM (Real Estate  Management) fee, who is paying. Supervision and coordination  Set up Appointments Specific authority given in writing with Buyer Representative Agreement ‐ otherwise may use  "Authorization to Receive & Convey Info." (CAR ARC) for best protection on authority   Appraisal – Listing agent meets Appraiser  Property inspection ‐ Selling agent   Structural Pest Control Report‐ Usually Listing Agent    Other elected inspections‐ Usually Selling Agent 

EXPRESS TO SUCCESS

It is critical that Buyer understand why they shouldn't waive inspections  If Buyer still wants to waive any/all inspections, it is very important to use "Buyer's Inspection  Waiver” form (CAR BIW)  Review Documentation  Review of escrow instructions – to determine consistency (Terms, Contingencies, Dates, etc)  Review of Preliminary Title Report‐ to determine if any land use interferes with Buyer's plans  (set‐back lines, easements, etc.)   Contact Lender to make sure they have what they need  Receipt for Reports (C.A.R RFR) is useful for many of the reports received during the escrow  period.

EXPRESS TO SUCCESS

 Disclosures (including NHD & HOA)  Listing agent must provide buyer all disclosures within deadlines specified in contract.  Discuss with Escrow the ordering of HOA docs & NHD  Dates / Time limits on contingencies   After a home inspection, other inspections may be recommended by the Inspector. If  additional inspections are called for, the buyer may need more time.  If a time limit is not sufficient either party may request an extension. Use "Extension of Time  Addendum (CAR ETA)   After all inspections buyer elects have been finished, an optional and very effective form is the  "Buyer's Inspection Elections" form. It clearly sets out, item by item, which have been  investigated or inspected, and which have been waived. (CAR BIE) 

EXPRESS TO SUCCESS

3


7/10/2020

 Request for Repairs and Seller Options   Use CAR RR form.   Seller Options: Repair, Refuse, Offer Credit   Removal of contingencies (dictated by Purchase Agreement)   Use CAR CR form ‐ May remove all at same time, or one by one.  May have several of these forms. Use different number for each one.  What is Seller hasn't provided reports within time limits?   After Agent’s oral requests, may use "Notice to Seller to Perform" CAR NSP. There are specific time frames  to be observed.  If served too early, "Notice" is ineffective. 

EXPRESS TO SUCCESS

What if Buyer hasn't met time frames or been granted extensions?  After agent’s oral requests, may use "Notice to Buyer to Perform" CAR NBP form. There are  specific time frames to be observed. If served too early, "Notice" is ineffective.  What it there is an impediment in the close of escrow caused by non‐performance of one of the  parties?  Agents try to resolve issues.  If this is not effective, may use "Demand to Close Escrow" ‐CAR form DCE.   Review enclosed instructions on the Notice.  Verification of Receipt & Delivery of Notices to  Perform or Demand to Close Escrow.  Notify Escrow

EXPRESS TO SUCCESS

What if Close of Escrow isn’t going to happen?!  If there is going to be a cancellation of escrow, it can happen under a variety of reasons, and  by either party.  Please refer to "Right to Cancel the Purchase Agreement”  Use CAR CC form Close of Escrow  Home Warranty/Protection Plan‐ Coordinate to see if escrow will order.    Schedule Buyer Final Inspection  (Walk‐Through) ideally a few days before close of escrow, so  that there is time to resolve any issues.  Later becomes more difficult.  For this Inspection, use  CAR form VP.  Move‐out/move‐in plans must be in accordance with contract.  Keys should not given to buyer  until sale records.

EXPRESS TO SUCCESS

4


7/10/2020

Communication and record keeping are critical! Make sure you are cc’d on all correspondence related  to the transaction.   Keep track of all escrow emails, text messages,  notices, etc.  

EXPRESS TO SUCCESS

Responsibilities of Listing Agent  Coordinate who will open escrow & provide all fully executed RPA & supporting documents  Review escrow instructions draft to verify no discrepancies with Purchase Agreement  Instruct escrow on preferred delivery of client paperwork, or set appointment with escrow  officer to meet with client to review escrow instructions, SI and sign Grant Deed  Verify who will order Natural Hazards Disclosure, HOA documents (if applicable, & Home  Protection Plan  If assisting Client, return all documentation in escrow instruction package to escrow within the  specified time limits  Verify any governmental clearances needed, e.g., City of Thousand Oaks Search of Records

EXPRESS TO SUCCESS

Responsibilities of Listing Agent (continued)  Assist in negotiation of buyer request for repairs including meeting with inspectors to better  understand issues whenever possible.  Provide to buyer and verify that all disclosures have been signed and returned by buyer  Meet appraiser and prepare supporting sales to supply if requested/welcomed  Verify Pest Control clearance if applicable  Verify loan approval for Buyer  Review Preliminary Title Report  Monitor progress via Communication with TEAM  Monitor location of Sellers to assure completion of documents EXPRESS  TO SUCCESS

5


7/10/2020

Responsibilities of Selling Agent  Make certain Buyer knows that deposit is due as indicated on Purchase Contract (and funds  will be deposited into Escrow account). Coordinate delivery of buyer’s deposit.   Supply escrow officer with all pertinent buyer contact info  Review escrow instructions draft to verify no discrepancies with Purchase Agreement  Instruct escrow on preferred delivery of client paperwork or set appointment with escrow  officer to meet with client to review escrow instructions and SI.  If assisting client, return all documentation in escrow instruction package to escrow within the  specific time limits.  Verify that the loan application and approval comply with time frames

EXPRESS TO SUCCESS

Responsibilities of Selling Agent (Continued)  Make sure all Disclosures are received from seller and signed by buyer  Coordinate all inspections and follow up inspections  Assist in coordination of appraisal  Assist in negotiation of buyer request for repairs including meeting with inspectors and  tradespeople to better understand issues  Monitor to see that all requirements are met for a timely close.  Verify recording and congratulate Buyer! Make arrangement to deliver keys

EXPRESS TO SUCCESS

Working effectively with an escrow officer  If you are the agent opening escrow, provide all RPA, Addendums, etc. in addition to the Dilbeck  Escrow Transmittal Form  If you are the selling agent, contact escrow officer and supply info regarding the Dilbeck $250 fee  and RERM  Supply escrow officer with all pertinent contacts  Correct names, current addresses & phone numbers for parties  Correct names, current  addresses, & phone numbers for all affiliated services  Do routine follow‐up    Monitor client schedule to make certain last‐minute paperwork can be signed, either in person or  through "Power of Attorney" provisions

EXPRESS TO SUCCESS

6


7/10/2020

How to Work Effectively with a Transaction Coordinator    Have a clear understanding of the division of responsibilities  Agree upon clear channels of communication  Agree upon time periods for "drop dead" dates  Understand that as the agent, you are responsible for your file.  A transaction coordinator is  there to assist.

EXPRESS TO SUCCESS

Right to Cancel the Purchase Agreement The RPA‐CA is designed to be used for single‐family residences with 1‐ 4 units. Under this form, Seller  and Buyer have certain rights to cancel.  Buyer Right to Cancel Buyer may have the right to cancel if any of the contingencies of the contract are not removed.  Page 5, paragraph 14. A.: Buyer may have the right to cancel if the Seller has not performed, or may  be entitled to delay removing a contingency because of the Seller's failure to meet the time frames.   Buyer, after first delivering to Seller a "Notice to Seller to Perform” (CAR NSP), may cancel.  All of  these are outlined on the form entitled "Notice to Seller to Perform" (CAR NSP).  Seller Right to Cancel  Page 5, paragraph 14. C.(1): Seller may have the right to cancel if Buyer has not removed  contingencies within the time frames, or any extensions thereof. Seller, after first delivering to Seller  a "Notice to Buyer to Perform" (CAR NBP), may cancel. These contingencies are outlined on ”Notice  to Buyer to Perform” (CAR NBP). EXPRESS  TO SUCCESS

Page 5, paragraph 14.C. {2): Seller Right to Cancel re Buyer Contractual Action  Seller, after first delivering to Buyer a "Notice to Perform" (CAR NBP), may cancel this agreement for  any of the following reasons:  (1) If Buyer fails to deposit funds as required by page 1, 3A (initial deposit) or page 1, 3B (increased  deposit) of RPA‐CA (2)  If the funds deposited pursuant to 3A or 3B are not good when deposited  (3) If Buyer fails to deliver a notice of FHA or VA costs or terms as required by page 1, 3C (3) (CAR  FVA) Notice & Requests for Seller to pay delineated items  (4) If Buyer fails to deliver a letter as required by page 2, 3 (H) (pre‐approval letter, if attached)  (5) If Buyer fails to deliver verifications as required  by page 2, 3G (verification  of down payment &  closing costs) or page 2, 3J (verification of fund for an all‐cash offer)  (6)  If Seller reasonably disapproves of the verification provided by 3G or 3J (7) If Buyer fails to return Statutory and Lead Disclosures as required by paragraph 6A(2)  (8) If Buyer fails to sign or initial a separate Liquidated Damages form required for an increased  deposit as required by paragraphs 3B and 25.

EXPRESS TO SUCCESS

7


7/10/2020

In such event, Seller shall authorize return of buyer’s deposit.  If all contingencies have been removed, the appropriate form to use to cancel is "Demand to Close  Escrow" (CAR DCE). This does not address the disposition of the deposit. 

EXPRESS TO SUCCESS

When Does A Buyer Retain Their Earnest Money? If a buyer doesn’t waive the contingencies in writing within the time period stated in the purchase  agreement, then the listing agent must send the buyer’s agent a cancellation of the escrow, signed and  dated by the seller.  Once the signed cancellation of escrow is returned to the listing agent, the earnest  money deposit should be returned to the buyer and the contract will be deemed rescinded. When Does A Buyer Forfeit Their Earnest Money? If a buyer cannot close escrow and has waived all contingencies for the purchase of property, an  escrow cancellation and forfeiture of the earnest money deposit must be sent to the buyer’s agent.   This, in turn, must be signed and dated by the buyer and returned to the escrow office and listing  agent. Once escrow is cancelled, then the earnest money deposit will be released to the seller and  listing agent. Reasons for the buyer being unable to close escrow can range from a buyer’s inability to get a loan for  the purchase of property, to deciding that closing on a deal may not be in their best interest.

EXPRESS TO SUCCESS

OFFICE: ____________________________

S A L E S R E P O R T F O R M PLEASE SUBMIT TOADMINISTRATORWITHIN ONE BUSINESS DAY OF ACCEPTANCE OF OFFER

* Survey From * Survey From

Date of Sale: ________________ Sales Partner (1): ________________________________ EST Closing Date: ________________ Sales Partner (2): ________________________________

|

Represent:

Buyer

Seller

MLS #: ________________________

Mentor Name: __________________________________________ Mentor Fee: $________________ (or) Mentor _______________% Property Address: __________________________________________________________________________________________________________________ Street #

Street Name

Unit #

Sales Price: $ ________________ Total Commission: _________ % Who will pay additional commission?

Buyer

City

Zip

Dilbeck Commission: _________%

Seller

Additional Commission: $__________________

Agent

Cooperating Agent: _____________________________ ____________________________________ ___________________ _______________________________ Broker

Name

Phone

Email

_______________________________________________________________________________________________________________________ Address

PROPERTY TYPE: SALETYPE:

City

(RCS)

Zip

Residential

Commercial

Lease

Land

Standard

Probate

Short Sale

Real Estate Owned (REO)

C O M P L E T E B O X IF S A L E H A S A R E F E R R A L Agent Referral

RI # of Units _____________

Escrow Company:________________________________________________

Operation Keys for Heroes

Officer:________________________________________________

Amount of Referral: _______________% = $ __________________

Email:________________________________________________

Broker:__________________________________________________ Broker Lic #:__________________ Tax ID #:____________________ ________________________________________________________

Phone:_____________________ Escrow#:___________________ Mortgage Company:________________________________________________

Address

________________________________________________________ City

Mobile Home

A N C IL L A R Y IN F O R M A T IO N

Zip

Agent Name: _____________________________________________

Title Company:________________________________________________ Warranty Company:________________________________________________ If 9A Report required, who ordered it? ____________________________________

Transaction Coordinator Name:___________________________________________________________________ Cost: $________________________ If agent signed up for the $49 Real Estate Risk Management program, who will pay this fee?

N/A

Buyer

Seller

C o s tw illb e d e d u c te d fr o m y o u rc h e c k ) Would you like to send a client follow up from the Personal Marketing Company? ( If yes, please select one of the following:

3 Year (8 mailings) $12.00

Any other deductions from your check? Amount: $_______________

5 Year (12 mailings) $15.00

Agent through Escrow Yes

No

5 Year (23 mailings) $25.00

For: _____________________________________________________________ (e.g. Dilbeck Charitable Foundation)

S E

L L

E R

B U Y E R

_______________________________________________________

_____________________________________________

Name

Email

* Survey

_________________________________________________________________________________________________________________ New Address

City

_______________________________________________________

_____________________________________________

Name

Zip

Email

* Survey

_________________________________________________________________________________________________________________ New Address

City

_______________________________________________________

_____________________________________________

Name

Zip

Email

* Survey

_________________________________________________________________________________________________________________ New Address

City

_______________________________________________________

_____________________________________________

Name

Zip

Email

* Survey

_________________________________________________________________________________________________________________ New Address

City

Zip

S O U R C E O F C L IE N T Farm Mailer Realtor.com

Advertising Referral RCS

Cold Call Own Property Walk-in

Past Client Sign Call Expired

Open House Relative, neighbor, friend Other:_________________

Please note that any incomplete or inaccurate information supplied on this formmay delay the processing of commissions. Real Satisfied surveys are sent automatically. The boxes above are to clarify which Sales Partner the survey should be sent from.

*

8


7/10/2020

EXPRESS TO SUCCESS

EXPRESS TO SUCCESS

EXPRESS TO SUCCESS

9


7/10/2020

EXPRESS TO SUCCESS

EXPRESS TO SUCCESS

EXPRESS TO SUCCESS

10


7/10/2020

EXPRESS TO SUCCESS

EXPRESS TO SUCCESS

EXPRESS TO SUCCESS

11


7/10/2020

EXPRESS TO SUCCESS

EXPRESS TO SUCCESS

EXPRESS TO SUCCESS

12


E X PR ESS TO S UCCESS

25| Business Planning, Calendar & Development, Budget Development


HARVARD STUDY   x According  to  a  Harvard  Business  School  study,  written  goals  can  translate  into  earnings   of  10  times  more  than  those  who  fail  to  establish  goals  or  put  their  goals  in  writing.     x In  the  study,  Harvard  graduates  were  asked  if  they  had  goals  and,  if  so,  were  they   written  down?     o 3%  -­‐  had  written  their  goals  down   o 11%  -­‐  had  goals  but  had  not  written  them  down     o 86%  -­‐  had  not  yet  established  goals.   x Twenty  years  later,  they  polled  the  same  group.     o The  11%  -­‐  who  had  goals  (but  not  written  down)  were  making  twice  as  much  as   the  86%  who  had  no  goals.     o However,  the  3%  who  had  written  down  their  goals  were  making  10  times  more   ƚŚĂŶƚŚĞĂǀĞƌĂŐĞŽĨĂůůƚŚĞŽƚŚĞƌŐƌĂĚƵĂƚĞƐ͙ĂŶĚϵϴйŽĨĂůůƚŚĞǁĞĂůƚh  resided   with  that  same  3%!  


WƌĞƐĞŶƚƐ͙  

  Name:   ______________________________________________    

Business Success  Plan  For      

/ƚĚŽĞƐŶ͛ƚŵĂƚƚĞƌǁŚĂƚLJŽƵŬŶŽǁ /ƚ͛ƐǁŚĂƚLJŽƵĚŽƚŚĂƚŵĂƚƚĞƌƐ͘   Source  Unknown  but  Greatly  Appreciated    

Personal  Mission  Statement   _____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________     Your  3  most  important  business  goals  for  the  year:   1. ________________________________________________________________________   2. ________________________________________________________________________   3. ________________________________________________________________________     '/EE/E't/d,d,E/ED/E͙      


WHERE DOES  YOUR  BUSINESS  COME  FROM?   Income  goal  for  the  year?     _______________   Average  sale  price?       _______________   Average  commission  per  transaction?  _______________   How  many  transactions  do  you  have  to  close  to  make  your  yearly  income  goal?    __________    

Sales   ________  

Listings

Buyers

________

________

Sourace 1  

Source 2  

Source 3  

Source 1   ________  

Source 2  

Source 3  

________

________

        How  can  I  make  $______________this  year  &  enjoy  the  process?   What  can  I  do  today  that  will  make  a  breakthrough  in  my  business?   How  can  I  wake  up  at  _____  am  every  morning  &  be  totally  excited  about  my  life?   How  can  I  be  in  the  top  _____%  of  my  office  this  year?   What  can  I  do  right  now  that  will  bring  me  closer  to  my  goals?      


GOAL ʹ  __________  CLOSED  TRANSACTIONS             Income  goal  for  the  year:       $  _____________   Income  goal  per  month:       $  _____________   Average  sale  price:         $  _____________     Average  commission  per  transaction:   $  _____________  

TOTAL NUMBER  OF  TRANSACTIONS  FOR  THE  YEAR:  

________

1. LISTING: 1a.  _____%  of  transactions  from  listings  sold:       1b.  With  _____%  sale  ratio,  listings  needed  for  the  year:     1c.  LISTINGS  NEEDED  PER  MONTH:            

________ ________   ________    

2. BUYER SALES:   2a.  _____%  of  transactions  from  buyer  sales:       2b.  With  _____%  close  ratio,    sales  needed  for  the  year:     2c.  BUYER  SALES  NEEDED  PER  MONTH:        

________   ________   ________    

TRANSACTIONS NEEDED  PER  MONTH:  (1c  +  2c)    

________  

________  

CLOSED TRANSACTIONS  NEEDED  PER  MONTH:  

SOURCE OF  BUSIESS   Source                      Percentage   1. DB/SOI/Referrals     _____%   2. Farming         _____%   3. Expired       _____%   4. FSBO         _____%   5. Open  Houses     _____%   6. Floor  Time       _____%   7. Mailing  (not  farm)     _____%   8. Cold  Call                     _____%   9. Internet       _____%   10.Other         _____%      

           Numbers     _____       _____       _____       _____       _____       _____     _____       _____       _____     _____  


Group 1  -­‐  Database/SOI/Referrals   Goal  -­‐  Number  of  Transactions:  ______________________________________     Things  I  must  do  to  make  this  happen  -­‐  ACTION  STEPS!   1.  ________________________________________________________________   2.  ________________________________________________________________   3.  ________________________________________________________________   4.  ________________________________________________________________   5.  ________________________________________________________________   6.  ________________________________________________________________   7.  ________________________________________________________________   8.  ________________________________________________________________   9.  ________________________________________________________________   10.  _______________________________________________________________                                              


Group 2  -­‐  Geographical  Farm   Goal  -­‐  Number  of  Transactions:  ______________________________________     Things  I  must  do  to  make  this  happen  -­‐  ACTION  STEPS!   1.  ________________________________________________________________   2.  ________________________________________________________________   3.  ________________________________________________________________   4.  ________________________________________________________________   5.  ________________________________________________________________   6.  ________________________________________________________________   7.  ________________________________________________________________   8.  ________________________________________________________________   9.  ________________________________________________________________   10.  _______________________________________________________________                                              


Group 3  -­‐  ______________________________   Goal  -­‐  Number  of  Transactions:  ______________________________________     Things  I  must  do  to  make  this  happen  -­‐  ACTION  STEPS!   1.  ________________________________________________________________   2.  ________________________________________________________________   3.  ________________________________________________________________   4.  ________________________________________________________________   5.  ________________________________________________________________   6.  ________________________________________________________________   7.  ________________________________________________________________   8.  ________________________________________________________________   9.  ________________________________________________________________   10.  _______________________________________________________________                                              


Group 4  -­‐  _______________________________   Goal  -­‐  Number  of  Transactions:  ______________________________________     Things  I  must  do  to  make  this  happen  -­‐  ACTION  STEPS!   1.  ________________________________________________________________   2.  ________________________________________________________________   3.  ________________________________________________________________   4.  ________________________________________________________________   5.  ________________________________________________________________   6.  ________________________________________________________________   7.  ________________________________________________________________   8.  ________________________________________________________________   9.  ________________________________________________________________   10.  _______________________________________________________________                                              


Group 5  -­‐  _______________________________   Goal  -­‐  Number  of  Transactions:  ______________________________________     Things  I  must  do  to  make  this  happen  -­‐  ACTION  STEPS!   1.  ________________________________________________________________   2.  ________________________________________________________________   3.  ________________________________________________________________   4.  ________________________________________________________________   5.  ________________________________________________________________   6.  ________________________________________________________________   7.  ________________________________________________________________   8.  ________________________________________________________________   9.  ________________________________________________________________   10.  _______________________________________________________________                                              


Group 6  -­‐  _______________________________   Goal  -­‐  Number  of  Transactions:  ______________________________________     Things  I  must  do  to  make  this  happen  -­‐  ACTION  STEPS!   1.  ________________________________________________________________   2.  ________________________________________________________________   3.  ________________________________________________________________   4.  ________________________________________________________________   5.  ________________________________________________________________   6.  ________________________________________________________________   7.  ________________________________________________________________   8.  ________________________________________________________________   9.  ________________________________________________________________   10.  _______________________________________________________________                                              


R E A L EST A T E Y E A R L Y B USI N ESS B U D G E T Y E A R L Y E X PE NSES

Business E xpenses: Membership/NAR Membership/CAR Membership/Local Assoc. of Realtors E & O Insurance Auto/ Gas Auto/ Insurance Auto/Maintenance Coaching Education Lead Generation/Advertising Lead Generation/Printing Lead Generation/Mailing Lead Generation/Internet Technology/Phone, Cell Phone Technology/Web Hosting, Social Media Technology/Equipment Office Supplies Assistants/Salaries Client Gifts & Entertainment Misc./Other PR O J E C T E D T O T A L : A CTUA L T O T A L:

Projected: $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $_______________ $_______________

A ctual: $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $_______________ $_______________

O P E R A T I N G E X P E NSES E xpense Auto Expenses Coaching/Education Lead Generation Technology Office Supplies Assistants/Salaries Clients Gifts/Entertainment Other/Misc(Membership & E&O Included) Total E xpenses

% of Total G C I

30%

2016 Budget

2015 Spent


DAILY/WEEKLY ACTION  PLANNER   Name:  _______________________________          Week  of:  _____________________________   Top  3  priorities  of  the  week:   1. ____________________________________________________________________________________   2. ____________________________________________________________________________________   3. ____________________________________________________________________________________   Daily  affirmations:   _______________________________________________________________________________________   _______________________________________________________________________________________    

REAL  ESTATE  ʹ  daily  lead  generation  goal:  ______________   Activity   1.  Collect  5  Bus  Cards       2.  Give  out  5  Bus  Cards   3.  Call  5  People  -­‐  SOI   4.    Mail  5  Notes   5.  Preview  5  Properties   Facebook  Page  Posts   Video   Blog   Strategic  Lunch/Coffee   Open  House     Expired/FSBO     Farming/Door  or  Call   Mailers,  e-­‐mail  Blasts     Sign/Ad  Calls  (coming  in)   Internet  Calls  (coming  in)   Follow-­‐Up  w/Prospects   Work  On  Business     LIST  Appt.   SHOW  Appt.   LISTINGS  TAKEN   SALES  MADE    

Monday                                            

Tuesday                                          

Some Numbers  to  Keep  In  Mind:   Contacts  to  leads:     12  to  1   Leads  to  appointments:    3  to  1   Appointments  to  contracts:    4  to  1   Contracts  to  closings:    2  to  1   Example:  5  days  a  week  x  48  weeks  =  240  work  days  a  year   Closing  goal:       25     Contracts:       50     Appointments:       200     Leads:         600     Contacts:                                          7200     Contacts  per  day:                                        30  

Wednesday                                          

Thursday                                          

Friday                                          

Saturday                                          

Your closing  goal:     __________   Your  #  of  contracts:                                  __________   Your  #  of  appointments:         __________   Your  #  of  leads:     __________   Your  #  of  contacts:                                      __________   Your  #  of  contacts  per  day:   __________  

Sunday                                          


E X PR ESS TO S UCCESS

Congratulations!

Profile for Dilbeck Real Estate

Dilbeck ETS Handbook  

Dilbeck ETS Handbook  

Recommendations could not be loaded

Recommendations could not be loaded

Recommendations could not be loaded

Recommendations could not be loaded