Read Get the Facts including the Legal Hotline Q & A
Get the Facts is a Membership update sent to Washington REALTOR® members and contacts each Tuesday.  
Click here if you are having trouble viewing this message.
 
Weekly Membership Newsletter
October 10, 2017 • Stay Connected!
Access Member Services:  warealtor.org | Legal Hotline | Tech Helpline
         

QUESTION:  Does the 'sale of home' contingency need to be listed on a pre-approval letter from lender? Also, If a buyer submits an offer and doesn’t mention that the buyer needs to sell a property first, what recourse does the seller have if they don’t find out until 30 days later in the transaction?



ANSWER:  There is no formula for a pre-approval letter that must be followed. What is important about a pre-approval letter is that it accurately reflects buyer's financial capacity. If lender says that lender has confirmed buyer's source of funds, that should be true. If lender has not verified buyer's source of funds, then the letter should not indicate that the funds have been verified. If the pre-approval letter is silent as to whether funds have been verified, then seller and listing broker should consider that the funds have not been verified.
 
If buyer is dependent on funds from the sale of real property to close the purchase of seller's house, and buyer fails to disclose that buyer is dependent on those "contingent" funds, then buyer either commits a misrepresentation of buyer's financial capacity or fraud. In Form 21, paragraph a, buyer represents to seller that buyer is NOT relying on a contingent source of funds to close the transaction unless that contingent source of funds is disclosed in the purchase agreement. If buyer is dependent on proceeds from the sale of real estate, buyer is relying on a "contingent source of funds" and must disclose that to seller. Buyer's misrepresentation or fraud will put buyer in breach, or worse, if buyer is unable to close the transaction.
 
However, seller should rarely be in this position if listing broker properly utilized the statewide forms. It should be a matter of course that when a seller counters a buyer's offer, listing broker provides seller with a Form 22EF, Evidence of Funds, to include in seller's counter. The Form 22EF should be completed so that it requires buyer to prove that buyer has sufficient funds within three days of mutual acceptance. If buyer is relying on a contingent source of funds, buyer will either refuse to sign the Form 22EF or seller will know, within three days, that buyer does not have the funds necessary to close the transaction.
 

 

The Legal Hotline Lawyer does not represent Washington REALTORS or its members. To browse through our database of past Q & A's, visit www.warealtor.org. Attorney Annie Fitzsimmons writes the Legal Hotline Question and Answer of the Week. Please submit questions to legalhotline@warealtor.org . Please tell us your NRDS number when you e-mail the Hotline with your question.


 

Thank you, Corporate Sponsors!

  


  

Enter to win 6 CE Course
The Washington State Housing Finance Commission is seeking YOUR input! Take this survey to let them know how the Commission can better serve real-estate professionals and your homebuyers with home loans and downpayment assistance.  At the end of the survey, you can enter to win a FREE training to teach Commission-sponsored homebuyer-education seminars. A $110 value, this training provides 6 clock hours and can help you sell more homes, find new customers, and serve your community

More →


Fannie Mae & Freddie Mac Not Impacted in Hack
(Source: HousingWire) Mortgage finance giants Fannie Mae and Freddie Mac faced becoming victims of the recent Deloitte hacking revealed at the end of September. The scope of the hacking and how much it impacts the government-sponsored enterprises, however, is still very unclear. Fannie Mae, for its part, said it is unaware of any impact this reported breach may have on its business operations. According to new information...
 
More →


  

VIDEO: The Rules of Using Comparables
(Source: Inman) Comps, also known as 'comparables', are a critical tool that real estate agents use to determine a home’s value. Watch this short video on some basic best practices and rules for creating really great comps for your clients.
More →


Metrics That Matter
(Source: Katie Lance) When you’re thinking of social media strategy it’s not enough to just think, oh well this sounds like a good idea. I’m a big believer in looking at numbers, looking at the data because the numbers don’t lie. What are some important metrics to look at when you’re looking at your social media data? 
More →


Missed the Friday Video?
In part 2 of our series on Financing Provisions, Annie Fitzsimmons discusses the potential pitfalls for Buyers and Sellers with offers without a financing contingency.
 
More →


 
Primary Mortgage Rates Survey
(updated every Thursday)  Source:  Freddie Mac
 
 October 5, 2017  30-yr FRM  15-Yr FRM  5/1-Yr ARM
 Average Rates  3.85%  3.15%  3.18%
 Fees & Points  0.5
 0.5
 0.4
 Margin  N/A  N/A  2.74



 September 28, 2017  30-yr FRM  15-Yr FRM  5/1-Yr ARM
 Average Rates  3.83%  3.13%  3.20%
 Fees & Points  0.6
 0.5
 0.5
 Margin  N/A  N/A  2.74



 September 21, 2017  30-yr FRM  15-Yr FRM  5/1-Yr ARM
 Average Rates  3.83%  3.13%  3.17%
 Fees & Points  0.5
 0.5
 0.4
 Margin  N/A  N/A  2.74



 September 14, 2017  30-yr FRM  15-Yr FRM  5/1-Yr ARM
 Average Rates  3.78%  3.08%  3.13%
 Fees & Points  0.5
 0.5
 0.4
 Margin  N/A  N/A  2.74



 September 7, 2017  30-yr FRM  15-Yr FRM  5/1-Yr ARM
 Average Rates  3.78%  3.08%  3.15%
 Fees & Points  0.5
 0.5
 0.4
 Margin  N/A  N/A  2.74





 
 
 UPCOMING CLASSES
Date Class Location CE  
13-OCT Smart Growth for the 21st CenturyLangley4.0More info...
18-OCT When Article 12 Meets Social Media The Dalles, OR 3.5 More info...
18-OCT Procuring Cause The Dalles, OR 4.0 More info...
19-OCT Don't Get Whacked by the WACs Kennewick 3.5 More info...
19-OCT NAR Code of EthicsOlympia3.0More info...
19-OCT Is it Friend or Faux? Kennewick 3.0 More info...
20-OCT Americas & International RE Vancouver 7.5 More info... 
26-OCT Real Estate Safety Matters Tacoma3.5More info...
26-OCT  NAR Code of EthicsBellingham3.0More info...
27-OCTPut a S.O.C. In ItMt. Vernon7.5More info...
30-OCTLand Use Permitting IssuesOlympia3.5More info...
30-OCT Water Rights & Water Supply IssuesOlympia3.5More info...

More Classes →