Form 2114 – Appraisal Contingency Waiver Addendum PDF (Updated April 2022)

Introduction – 0:24

Appraisal Contingency Waiver Addendum – 1:38

Option A – 4:15 – Buyer fully waives the appraisal contingency

Top of Second Page (Options B – E) – 7:30

Option B – 9:45 – Buyer shall pay a certain amount over the appraisal up to a “Buyer’s Cap.”

Option C – 13:00 – Buyer shall pay the GREATER of two amounts

Option D – 14:14 – If the property appraises at or ABOVE a certain amount, the buyer shall pay the LESSER of two numbers. – If the property appraises BELOW a certain amount, the buyer shall pay the GREATER of two numbers.

Option D – Example – 18:24

Option E – 22:30 – If the property appraises at or ABOVE a certain amount, buyer pays “LESSER of two numbers.” – if the property appraises BELOW a certain amount, buyer has the option of buying at a certain amount, but if buyer opts not to buy for that certain amount, then the parties may renegotiate a purchase price.

Option E – Example – 28:08

Sellers Floor – 31:16

Cash Funds at Closing – 34:29

• Form 2111 – Escalation Clause Addendum PDF (2022 APR)

• Form 2101 – Price Modification and Seller Credits Amendment PDF (2022 MAR)

Topics – 2:50

New MLS Rules – 3:34

Policy Statement 8.6: One Data Source – 3:40

– Requires MLSs to offer their participants a single data feed in accordance with the participants’ licensed authorized uses. Policy Statement 8.7: – 4:14

Brokerage Back Office Feed

– Entitles MLS participants to use, and requires MLSs to provide participants, a brokerage back-office data feed. Internet Data Exchange (IDX) Attribution – 4:40

– Require that participants’ IDX displays must identify the listing firm and an email or phone number provided by the listing participant in a reasonably prominent location and in a readily visible color and typeface not smaller than the median used in the display listing. Display of listing broker offer of compensation – 5:08

– Requires MLSs to include the listing broker’s offer of compensation for each active listing displayed on its consumer-facing websites and in MLS data feeds provided to participants and subscribers.

MLS Policy Statement 8.4: – 6:24

Services advertised as “free” – Prohibits MLS participants and subscribers from representing that their brokerage services to a buyer client or customer are FREE or available at NO COST to their clients, unless the participant or subscriber will receive no financial compensation from any source for those services.

MLS Policy Statement 8.5: – 7:00

Non-filtering listings based on offers of compensation or name of the brokerage or agent. Prohibits: – Participants/subscribers from filtering out or restricting listings, in listing information that’s searchable and displayed to consumers, based on the level of compensation offered to the coop broker or the name of the brokerage or agent.

Voluntary Best Practices for MLSs – 7:43

E & O Policy & Claims – 0:13

What is a claims-made-and-reported policy? – 1:43

What kinds of claims are not covered? – 2:18

Who is covered?– 3:51

Domicile – 5:33

Do I Coverage for Prior Acts – 5:54

Example: Ramifications of Failure to Timely Renew Coverage – 7:03, 8:54, 10:14 & 10:28

Summary of Sally’s Coverage Dates – 8:19 & 9:54

10 Most Common Claims – 11:04

1. Fraud – 11:23

– Example of Fraud – 12:49

– Damages from Fraud – 13:32

2. Breach of Duty – 14:42

– Example of Breach of Duty – 16:26

3. Breach of Contract – 18:47

4. Negligence – 20:14

– Example of Negligence – 22:33

5. Bodily Injury / Property Damage – 24:23

6. Consumer Protection Act – 26:22

7. Earnest / Escrow Money Dispute – 27:42

8. Misrepresentation – 29:30

– Example of Misrepresentation – 29:58

Avoiding a Claim – 31:23

How do I avoid a claim? – 31:34

Don’t admit liability – 34:56

I’ve just received a claim – what do I do now? – 36:43

“Claims Made & Reported Policies” – 38:17

Claim Study – 38:55 Takeaways – 42:52

Claim Study – Drainage Issue – 43:55

Claim Study – Failure to Submit Offer – 46:06

11 Steps to Stay Out of Court – 47:54

1. Document Your File – 48:01

2. Know Your Limitations – 49:55

3. Do Not Misrepresent – 50:19

4. Use Care in Recommending Inspectors – 50:35

5. Watch Your Broker Duties and if applicable, your Fiduciary Duties – 57:10

6. Observe & Document – 57:29

7. Employ Risk Management Techniques – 58:11

8. Avoid Multiple Contracts – 59:30

9. Do NOT Act as a Lawyer – 1:04:37

10. Stick to What You Know – 1:05:34 1

11. Use Standard Forms & Procedures – 1:06:44

NMREC Rule Changes – 0:16

Definition of Property Management in Rules – 0:24

Definition in Real Estate Brokers Act – 2:39

Expedited licensure for military service members, spouses, children, & veterans – 3:08

Expedited Licensure – 3:34

License Renewal Requirements – 3:54

Felony Criminal Convicts – 4:10

Felony Criminal Convictions – 5:22

Fannie Mae Adopts ANSI Measurement Standards – 0:25

Ways to measure square footage – 1:11

– currently no standard is required Appraisers will be required to use the Square Footage

Method for Calculating: ANSI – 2:01

– Effective as of April 1st, 2022 Why the change? – 2:40

How well do you know ANSI? – 3:11

ANSI Basics:

Finished Rooms – 3:53

Basements – 4:42 & 8:58

Treated Concrete – 4:58

Ceilings – 5:17

Garages and other areas – 7:53

Access – 8:22

What if comparable sales are measured differently? – 6:10

Is there an exception process? – 7:14

What’s Next? – 9:32

Home Measurement Specialists – 10:20

Condo Financing – 0:08

Feb. 28th, 2022 Freddie Mac and Fannie announced new, temporary project/community requirements forloans on condos it buys/finances from lenders Surfside Building Collapse – June, 2021 – 0:30

– Cause of Collapse – 0:35

Condo Financing Requirement – 1:11

– The requirements are intended to guarantee the SAFETY of projects/buildings and avoid unforeseen assessments. Freddie Mac will require lenders to provide documentation to demonstrate that projects are not in critical need of repairs and do not require special assessments.

Special Assessments – 1:51

Reserve Requirements – 2:40

Inspections – 4:53

Seller Financing – 0:05

Title & Foreclosure – 0:35

What’s the difference between them?

Restrictions – 3:23

Under the Truth in Lending Act Do not apply to…

1 in 12 Exclusion – 4:30

3 in 12 Exclusion – 6:29

Ability to repay Analysis – 7:47

MLO Licensing – 8:04

1 in 12 Exclusion – 8:21

3 in 12 Exclusion – 9:00

Real Estate Addendum –

1. Seller’s Right to Approval – 10:00

2. Buyer is purchasing as – 10:30

3. Price & Payment – 11:23

4. Prior Obligations – 14:51

Important Notice – 16:08

5. Buyer to Maintain Property – 17:50

6. Buyer to Maintain Insurance – 17:55

7. Taxes – 20:24

8. Payment of Insurances & Taxes – 20:34

9. Home Owners/ Condo Association Fees – 21:54

10. Buyers right to sell, assign, convey, or encumber – 22:05

11. Title Insurance or Abstract – 23:00

12. Default – 24:03

13: Country Clerk Filing – 24:57

14. Escrow Agent & Fees – 25:18