4 Critical Things You Should Know To Keep Your Clients From Going To Jail

I will simplify when you need to worry about using this contract.

 These are the four components that trigger the need to use the Home Equity Sales Agreement (HESC)/NODPA.

1.  NOD filed on the property for sale.

2. The seller lives there (personal residence)

3.  Single Family home (residential 1-4 units)

4. Purchaser is a NON owner occupant

 If you are on the listing side of the transaction, you do NOT have immediate liability as you are representing the seller, you should however tell the other agent they should write on the proper contract when you know it is the case (unless you don’t like them J).

 If you are NOT writing offers representing investors (NON owner occupied purchasers) you DO NOT need to worry about the HESCA, write the deal as normal. 

However, if you are representing an investor or someone who is NOT going to occupy/move into the property you need to be cautious and look for the following.  

1. NOD filed on the property for sale.
2. The seller lives there (personal residence)
3. Single Family home (residential 1-4 units)
4. Purchaser is a NON owner occupant

 Remember if you are in this situation and you do NOT use the proper form (HESC) the seller can rescind the sale for 2 years, the buyer can go to jail and the agent will most likely have thousands of dollars in fines/penalties.

Unfortunately, we are starting to see these cases now, just like in down economies people prey on our mistakes, there are attorneys out there now preying on Realtors who do not pay attention or choose to not learn how to properly do business.

 Remember attorneys love deep pockets, all Realtors are rich right?

Make it a great day!

Thanks

Michael Simpson