Seller's Guide:

Texas law requires all real estate license holders to give the following information about brokerage services to prospective sellers and landlords.

Broker’s firm represents the owner under a listing agreement and also represents the prospect under a buyer/tenant representation agreement.

A wider range of home options are now available. Today's current mortgage interest rates are deterring homebuyers from house shopping. In response to higher rates, many sellers are currently offering amazing incentives to buyers. Buyer incentives are not mandatory by the seller, but they are customary in this market area. The incentives are meant to assist buyers, making homeownership even more accessible, and it's a great way for sellers to sell their home faster.

Would you consider paying for 1) an amount of the buyer's expenses allowed by the Lender, 2) Title Policy, 3) Home Warranty, 4) Survey if an existing survey is not acceptable and 5) lawncare and/or cleaning services?

1. Lawn Services & Professional Cleaning: Buyer's Agents like to ask for the home to be professionally cleaned 3 days prior to closing and the yard maintained until closing and funding. A professional cleaning can estimate $300-$600. Do you maintain your own yard or would you need to hire a lawn service for the yard to be mowed/trimmed?

2. Seller Credits: At the time the contract is negotiated and accepted, seller(s) may agree to provide a seller credit to the buyer(s) towards settlement closings costs and other buyer expenses such as interest rate buy downs. The seller credit is typically a percentage of the purchase price.  For VA loans, the seller credit is usually 4% of the purchase price. Seller credit would be debited at the closing table from the proceeds of the sale.
   
   (Example) The seller(s) shall pay $10,000 towards buyer expenses for a property purchased at $250,000.
   $250,000 x 4% = $10,000
   
   

3. Title Policy: Who pays for the title policy? It is negotiable, but it’s customary for the buyer to ask the seller to pay for the Title Policy. Generally, the seller pays because it is their responsibility to provide clear title to the property.
   
   The premiums are set by the Texas Department of Insurance (TDI) and are the same at all title companies in the state of Texas. The amount paid for the insurance policy is based on the sales price of the house.
   
   Basic premium for policies in excess of $100,000 shall be calculated according to the steps below:
   Step 1) Determine the policy's face value.
   Step 2) Subtract $100,000 from the policy's face value.
   Step 3) Multiply the result in Step 2 by 0.00527 and round to the nearest dollar.
   Step 4) Add $832 to the result of the value from Step 3.
   
   (Example) A Basic Premium Title Policy for a property purchased at $250,000 is $1,623.
   Policy Face Value is $250,000
   Subtract $100,000 ==> $250,000 - $100,000 ==> Result = $150,000
   Multiply by 0.00527 ==> $150,000 x 0.00527 ==> $790.50 ==> Result = $791
   Add $832 ==> $791 + $832 ==> Final Result = $1,623
   
   

4. Home Warranty:  This is not Homeowner's Insurance (HOI). Think of this as a plan for the buyer(s) to keep the systems and appliances working like they should. The warranty covers the repair and replacement of many system and appliance breakdowns.
   A home warranty could estimate $575-$660 and would be debited at the closing table from the proceeds of the sale.
   
   

5. Survey: A Buyer's Agent wants to provide the buyer(s) with a survey. When we go under contract, any existing survey will be submitted to the Title Company accompanied by a seller notarized T-47 Residential Real Property Affidavit.

Do you have a copy of the survey from when you purchased the property? Check your email. If you cannot find your survey, could you remember the Title Company you used? The Title Company should have the copy of your survey on file. Please email me a copy of the survey.

Have you made changes to the boundaries? For example, have you added a fence or shed? If so, a new survey may be required. If an existing survey is not accepted by the Title Company, a new survey could be required and would estimate $400-$1,000.

A survey could be debited at the closing table from the proceeds of the sale.

When using an older survey, the T-47 is required and it certifies the survey's accuracy and ensures that information about the property boundaries is accurate for title policy issuance.  The survey will be required to verify, clarify, and correct the legal description. A survey is a professional on-site measurement of a property’s lot lines and the dimensions that make up its boundaries. The survey includes the location of any improvements (such as buildings or other structures) on the lot, any encroachments that may exist, and any easements of public record.

“Property” means the land, improvements, and accessories described below, except for any described exclusions.

Property Improvements

The house, garage and all other fixtures and improvements attached to the above-described real property, including without limitation, the following permanently installed and built-in items, if any:

all equipment and appliances, valances, screens, shutters, awnings, wall-to-wall carpeting, mirrors, ceiling fans, attic fans, mail boxes, television antennas, mounts and brackets for televisions and speakers, heating and air-conditioning units, security and fire detection equipment, wiring, plumbing and lighting fixtures, chandeliers, water softener system, kitchen equipment, garage door openers, cleaning equipment, shrubbery, landscaping, outdoor cooking equipment, and all other property attached to the above-described real property.

Appliances: Are the refrigerator, microwave, clothes washer and clothes dryer being included in the sale?

Property Accessories

The following described related accessories, if any: window air conditioning units, stove, fireplace screens, curtains and rods, blinds, window shades, draperies and rods, door keys, mailbox keys, above-ground pool, swimming pool equipment and maintenance accessories, artificial fireplace logs, security systems that are not fixtures, and controls for: (i) garage doors, (in) entry gates, and (ill) other improvements and accessories. "Controls" includes Seller's transferable rights to the (i) software and applications used to access and control improvements or accessories, and (ii) hardware used solely to control improvements or accessories.

Property Exclusions

Would any improvements and accessories be retained by you? If you are planning on removing and keeping any of the above improvements and accessories, email a list of the items. These items must be removed prior to delivery of possession.

Owner's Association

Is the Property subject to a mandatory membership in an owner's association?

Seller's Representation

Who do you have your First Mortgage with?

Let's say you bought a home in 2018 with a first mortgage in the amount of $175,000. You wanted to remodel your bathrooms in 2021, so you took out a home equity loan to pay for the improvements. The mortgage with which you purchased the home is your first mortgage, and the home equity loan is second mortgage.

Are you current and not delinquent on all loans and all other financial obligations related to the Property?

TREC’s Seller’s Disclosure Notice is the minimum required by law and mirrors the provision in the Texas Property Code.

Do you have any leases in place? Email me any any all copies of the leases.

Leased fixtures include solar panels, propane tanks, water softeners, and security systems. This form allows the parties to negotiate which leased fixtures will be assumed by the buyer.

The notice toward the bottom of the addendum advises the buyer and seller to consult with the lessor and their attorneys regarding assignment, assumption, or termination of any fixture leases associated with the property.

This addendum contains required notice language related to properties located in public improvement districts (PID). It notifies the buyer of the obligation to pay assessments (and to what municipality or county), and informs the buyer where the buyer can go to obtain the assessment amount.