The listing agent has various duties and obligation to the seller in the course of a purchase transaction. These responsibilities span the course of the transaction from listing and marketing the property to negotiating an agreement with the buyer to handling the final aspects of the sale. Prior to the closing of the transaction, the listing agent has ongoing obligation to the seller to ensure that the sale reaches completion.
After the seller accepts a purchase offer, the listing agent must ensure that the seller stays informed about the conditions required for completion of the sale. One of the agent’s duties is checking that contingencies are met so that the contract can proceed. The main contingency in a sales contract is the financing contingency, which states that the buyer is authorized to withdraw from the contract without penalty if he is unable to secure financing for the purchase. The listing agent is required to keep the seller informed about the status of the buyer’s loan application and approval. After all, the success of the mortgage process is often a determinative factor in completing the purchase. Thus, the listing agent must offer information about the following:
Compliance with contract terms. Has the buyer’s loan application adhered to the terms of the contract? The contract may have specific conditions for the type of loan or originator and the buyer must follow these requirements.
Demonstrating good faith. The buyer must make a good faith attempt to secure financing in accordance with the terms of the contract. If the buyer does not comply with the requests of the lender, this might indicate a lack of good faith to qualify for the loan necessary for purchase.
Status of appraisal. The listing agent must keep the seller up-to-date on the status of the appraisal for the property. In the event that the property appraises for less than the contract price, the parties might need to renegotiate the asking price of the home.
Loan approval. Most importantly, the listing agent should inform the seller when the loan is approved, and if the loan is rejected, explain the reasons for the bank’s decision. This may also present another opportunity for renegotiation of the purchase depending on the bank’s reason for denying the application.
In addition to supplying information about the financing of the purchase, the listing agent is required to assist the seller with other issues prior to the closing such as conducting agreed-upon repairs, obtaining a termite inspection (if applicable), and obtaining home warranty insurance if stipulated in the contract.
The experienced team of attorneys at the Law Offices of Mark Weinstein, P.C. can help you litigate your real estate claims. Contact Mark Weinstein and his colleagues at (770) 888-7707 or visit them at http://www.markweinsteinlaw.com to find out how they can advise you.