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Contract Procedures

Real Estate Brokerage Disclosure
SIR Idaho Listing Contract
SIR Idaho Contract to Buy and Sell Real Estate

Sotheby’s International Realty

Jackson Hole Brokerage

Idaho Offices

November 2008
Table of Contents

General Procedures

SIR Guidelines

Real Estate Brokerage Relationship

Agency Law in Idaho a.k.a. Blue Brochure

Instructions For Completing an Idaho Listing Contract

First Timers

TAB

Invalid Contract

Exhibit

Listing Contract Sections

Exclusive Right to Sell Listing Contract

Seller Authorization and Agency Disclosure

Price And Terms

Broker Compensation

Existing Financing

Closing Costs

Items Included in Purchase Price

Title

Closing and Possession

Condition of Property

Inspections/Defaults, Remedies and Attorney’s Fees/Agreements and Covenants

Additional Provisions

Acknowledgements and Additional Disclosures

Sotheby’s Agency Disclosure (for listing)

Listing Contract Review

Submit New Listing & Ad Copy

Photos

Instructions For Completing an Idaho Contract To Buy & Sell

Offer to Purchase

Earnest Money

Purchase Terms

Financing

Loan Application

Closing and Possession

Closing Costs

Items Included in Purchase Price

Condition of Property

Inspections

Repairs to be Performed

Risk of Loss

Title

Default and Remedies

Additional Provisions

Disclosures, Consents and Acknowledgements

Final Walk Through

Seller Response

Receipt and/or Acceptance of Seller

Rejection By Seller

Buyer’s Receipt of Acceptance Contract

Receipt of Earnest Money

Bottom of Each Page of Contract

Sotheby’s Agency Disclosure (for buyer)

Checklist For Pending Contract

Forms

General Procedures

This Contract Manual has been designed to provide a standardized method for all Sotheby’s International Realty (SIR) Jackson Hole Brokerage licensees to complete Idaho Contracts. The following are Idaho Real Estate License Law requirements and Idaho Real Estate Commission Rules and regulations pertaining to completing contracts:

  1. All contracts must be in writing.

Chapter 5, Title 9, Section 9-508. Real Estate Commission Contractsto be in Writing. No contract for the payment of any sum of money or thing of value, as and for a Commission or reward for the finding or procuring by one person of a purchaser of real estate of another shall be valid unless the same shall be in writing, signed by the owner of such real estate, or his legal, appointed and duly qualified representative.

  1. Changes to a contract must be initialed and dated by all parties.

54-2051. Offers to Purchase. (5) All changes made to any offer to purchase or other real estate purchase agreement shall be initialed and dated by the parties to the transaction.

Alterations in the Contract. If the changes required by the seller are minor, the seller may choose to make changes on the original document, then initial and date these changes. To complete the contract, the buyer also initials the changes, noting the date of the initialing.

  1. A contract is no longer valid if there are more than three changes. A counter offer or addendum should be utilized to clarify the changes.

Alterations in the Contract. If the seller wishes to make any changes in the contract, the best practice is to prepare a counter offer form according to the seller’s proposed terms and have both parties sign this agreement.

  1. Always make enough copies so that all parties involved receive a copy. Whenever a customer signs a document, you mustimmediately give them a copy of what they have signed.

54-2051. Offers to Purchase. (2) Immediately upon receiving any offer to purchase signed and dated by the buyer and any consideration, a broker or salesperson shall provide a copy of the offer to purchase to the buyer as a receipt. (3) Upon obtaining a properly signed and dated acceptance of an offer to purchase, the broker or sales associate shall promptly deliver true and legible copies of such accepted offer to both the buyer and the seller.

  1. You do not have a binding contract until an offer is accepted. This acceptance must be conveyed in writing.

54-2051.Offers to Purchase. (1) A broker or sales associate shall, as promptly as practicable, tender to the seller every written offer to purchase obtained on the real estate involved, up until time of closing, and shall obtain the signature of the seller or seller’s agent verifying time and date such offer was received. A purchase and sale agreement signed by the prospective buyer shall be deemed in all respects an offer to purchase.

SIR Guidelines

  1. Idaho Contracts, Counter Offer Forms, Indemnity Agreements and other forms on are templates with SIR standard language. Changes and/or additions are made on occasion, so update your Master Forms when instructed.
  1. Contracts MUST be typed and legible. It is common with multiple faxes to receive signed contracts that are no longer legible; an illegible contract should be followed-up with original forms. Please provide “Clarity Copies” for the file. If you cannot read it, neither can the judge!
  1. Proof your contracts. If you need any help, please do not hesitate to ask the Driggs office staff for assistance.
  1. Exhibits are attachments to Listings. Once a reference is made to a particular Exhibit in the Listing Offer (i.e. “See Exhibit ‘A’, attached hereto and made a part hereof”), it is not necessary to add “attached hereto and made a part hereof” when referencing Exhibit ‘A’ again in the same Listing Contract.
  1. Attachments are attachments to Offers. Once a reference is made to a particular Attachment in the Offer Contract (for example: “See Attachment ‘A’, attached hereto and made a part hereof”) it is not necessary to add “attached hereto and made a part hereof” when referencing Attachment ‘A’ again in the same Offer Contract
  1. Do not use “sticky notes” where the customer has a choice or if it covers language in the contract.
  1. If a Seller is married and owns the property as their sole and separate property, it is required to have both of the Sellers (husband and wife) sign the Listing and/or Offer. In order for a married Seller to close on a property his/her spouse will have to sign off on their Homestead Rights. If they refuse and have not signed the Contract, the transaction will NOT close.
  1. It is the agent’s responsibility to keep copies of all contracts. Original copies are to be kept with the Idaho SIR office. Files are maintained for 10 years.

Real Estate Brokerage Relationship

Idaho Rules and Regulations require discussion of the real estate brokerage relationships take place as soon as practicable and that a relationship be established in writing prior to entering any written agreement. When establishing a relationship with a buyer or seller, the state of Idaho requires that the Idaho Agency Disclosure brochure be signed and dated. The original must go to the buyer or seller and a copy of the signed page must go to the office file. The Idaho Agency Disclosure brochure is also known as “The Blue Brochure” or “Agency Law in Idaho” and can be found at

Agency Law in Idaho a.k.a. Blue Brochure

54-2084. Brokerage Agency Relationships – Creation. A buyer or seller is not represented by a brokerage in a regulated real estate transaction unless the buyer or seller and the brokerage agree, in a separate written document, to such representation. No type of agency representation may be assumed by a brokerage, buyer or seller or created orally or by implication.

54-2085. Disclosure and Writing Requirements – Agency Disclosure Brochure and Representation Confirmation.

(1) A licensee shall give to a prospective buyer or seller at the first substantial business contact the agency disclosure brochure adopted or approved by the Idaho Real Estate Commission. The Commission by motion shall establish the form and contents of the brochure in accordance with the provisions of this chapter. Each brokerage shall keep a signed and dated record of a buyer or seller’s receipt of the agency disclosure brochure.

(2) The agency disclosure brochure shall list the types of representation available to a buyer or seller in a regulated real estate transaction, the legal duties and obligations owed to the buyer or seller in each type of representation and a conspicuous notice that no representation will exist absent a written agreement between the buyer or seller and the brokerage.

(3) A brokerage’s relationship with a buyer orseller as an agent, nonagent, limited dual agent, or limited dual agent with assigned agents must be determined and all necessary agreements executed no later than the preparation or presentation of a purchase and sale agreement.

(4)In addition, a purchase and sale agreement, an attachment thereto, or other document drafted in connection with a regulated real estate transaction shall contain the following confirmation of the relationship, whether it involved representation or not, between the buyer, seller and licensees involved:

REPRESENTATION CONFIRMATION AND ACKNOWLEDGMENT OF DISCLOSURE

Check one (1) box in Section 1 below and one (1) box in Section 2 below to confirm that in this transaction, the brokerage(s) involved had the following relationship(s) with the BUYER(S) and SELLER(S).

Section 1:

A.The brokerage working with the BUYER(S) is acting as an AGENT for the BUYER(S).

B.The brokerage working with the BUYER(S) is acting as a LIMITED DUAL AGENT for the BUYER(S), without an ASSIGNED AGENT.

C.The brokerage working with the BUYER(S) is acting as a LIMITED DUAL AGENT for the BUYER(S), and has an ASSIGNED AGENT acting solely on behalf of the BUYER(S).

D.The brokerage working with the BUYER(S) is acting as a NONAGENT for the BUYER(S).

Section 2:

A.The brokerage working with the SELLER(S) is acting as an AGENT for the SELLER(S).

B.The brokerage working with the SELLER(S) is acting as a LIMITED DUAL AGENT for the SELLER(S), without an ASSIGNED AGENT.

C.The brokerage working with the SELLER(S) is acting as a LIMITED DUAL AGENT for the SELLER(S), and has an ASSIGNED AGENT acting solely on behalf of the SELLER(S).

D.The brokerage working with the SELLER(S) is acting as a NONAGENT for the SELLER(S).

(5)The failure of a licensee to timely give a buyer or seller the agency disclosure brochure or the failure of a licensee to properly and timely obtain any written agreement or confirmation required by this chapter shall be a violation of the Idaho real estate license law and may subject the licensee to disciplinary action according to the provisions of sections 54-2058 through 54-2078, Idaho Code.

(6)Neither the Commission brochure nor the representation confirmation shall create a brokerage relationship. A separate, signed, written agreement is required for that purpose.

When a buyer or seller chooses to work with a real estate professional, it is important for the buyer or seller to understand the real estate brokerage relationship. The first step in any dealings with a potential buyer or seller is to disclose to them the various types of working relationships that exist with a real estate professional. Such terms as customer, client, non-agent, agent, agency, limited dual agency, and limited dual agency with assigned agents need to be understood. These terms are defined in the Agency Law in Idaho brochure and the SIR Agency Disclosure (last page of the listing and offer contracts) as found on Be sure to read both thoroughly so that you fully understand the relationship options and can explain it with ease. In the state of Idaho, the Blue Brochure must be signed and dated by the buyer and seller for eachtransaction due to the potential of having different working relationships with an individual on different transactions.

For ease of understanding, a client is a buyer or seller of real estate who has a written agreement for representation from an agent in the transaction. A customer is a buyer or seller of real estate who is NOT represented (NO written agreement), but who receives services from a non-agent. The limited dual agent is a real estate brokerage that offers specific and limited representation to both a buyer and a seller with their written consent. And a limited dual agency with assigned agents is when a brokerage has obtained written consent to represent both parties and may assign individual agents to act solely on behalf of each party.

It is required that both the Blue Brochure and SIR Agency Brochure are signed for each transaction due to the licensee potentially having a different working relationship with an individual on different transactions.

Geek

All contracts and most forms are available on GEEK. If you are looking for a form that is not on GEEK, contact the Driggs office staff to inquire about that form.

TheSIR Listing contract for Idaho is not the standard Idaho contract, so if you have not completed anSIR Listing Contract for an Idaho property please follow this guide:

  1. Go directly to your web browser and go to the intranet:
  1. Navigate to the “Contracts”page, specifically:
Idaho Contracts and Supplemental Documents

For best results with these documents, right click on the link below and select "Save Target As..." to save a copy of the document to your computer. Once there, open the file (usually in Word), save it as something specific (Smith Intermediary.doc) and then make your changes.

Listing, Idaho (.doc format)

  1. Follow the instructions above as shown on GEEK for saving documents. Remember that contracts are periodically updated and downloaded to Geek, so be sure that you have the latest version saved to your computer prior to completing the contract.
  1. If you have not yet carefully read through the contract to understand the language, print out a blank copy and read it thoroughly prior to completing it for your customer. You should be able to competently explain the contract to your customer. It is imperative that you understand what the contract means in order to answer any specific questions your customer may have.
    Instructions For Completing an Idaho Listing Contract

SIR has created an Exclusive Right to Sell Listing Contract specific to SIR utilizing the State of Idaho Requirements. The SIR listing contract that is used by SIR Agents when listing an Idaho property is not a standard Idaho Listing contract, so it may be a little difficult at first when completing. Please follow the steps below to help in the process of completing the contract correctly. If you have any questions, please call the SIR Driggs, Idaho office and talk with the Office Administrator for guidance at (208) 354-8880 or toll free (888) 354-8880.

First Timers

Remember that if you have not yet completed an Idaho Listing Contract, it is imperative to read it thoroughly so that you understand the language and are ready and able to answer any questions your customer may have when signing the listing contract.

TAB

When completing an Idaho Listing Contract, it is necessary to fill in every portion in the contract. No line should be left blank. Please note that it is essential to TAB (not enter) through each part of the contract. You may also point the mouse and click.

Invalid Contract

It is important that you fill in the contract correctly the first time because an Idaho Listing Contract is NOT VALID if it has more than 3 (three) changes. A change must be initialed and dated by the Seller and Broker.

Exhibit

When making a reference to a listing contract, it is called an Exhibit. For example, you may wish to attach a lengthy Metes and Bounds description to the Listing as an Exhibit. If so, you would state in the contract, “See Exhibit ‘__’, attached hereto and made a part hereof.” Note that Exhibits should go in order starting with A, B, C, etc. Once a reference is made to a particular Exhibit, for example Exhibit ‘A’, it is not necessary to add “attached hereto and made a part hereof” if referencing Exhibit‘A’ again in the same Listing Contract.

Listing Contract Sections

How to complete each section of the SIR Listing Contract will be explained in detail. A number will be shown in each blank with a corresponding number and instructions below each section. Remember to TAB between each field. (Do NOT use your “enter” key between fields.) To select the boxes, you can use your space bar or your mouse to click in the box. Do not leave any space blank; insert “N/A” in any spaces where appropriate.

Exclusive Right to Sell Listing Contract

...... Prepared on 

In, Idaho

I. EXCLUSIVE RIGHT TO SELL LISTING CONTRACT from  through  inclusive, for and in consideration of the real estate brokerage services described below to be performed by Sotheby’s International Realty, a duly licensed Idaho real estate broker (hereinafter “Broker”), and (hereinafter “Seller”), whether one or more, hereby lists with said Broker, upon the terms and conditions set forth herein, the following described real estate situate in the Town of County of, Idaho, commonly known as: and more particularly described as:

  1. Enter date prepared as Month/Day/Year. For example 12/1/08. Press TAB to go to the next field.
  2. Enter“Driggs” as the city that the contract is prepared in. Even if you are physically in the Jackson office while writing the contract, you will still need to enter“Driggs” since you are preparing an Idaho Listing. Press TAB to go to the next field.
  3. Enter the date that the listing contract will begin. You may enter as Month/Day/Year or Month Day, Year. This field will automatically default to Month Day, Year when you TAB to the next field.
  4. Enter the date that the listing contract will end. If the listing is planned for less than six months, you must have the broker’s approval.
  5. Enter the complete name(s) with middle initials and marital status. Example:
  6. If single: “John P. Doe, a single man”
  7. If 2 single people: “John P. Doe, a single man and Jane I. Smith, a single woman.”
  8. If married: “John P. Doe and Jane I. Doe, Husband and Wife” (or H&W)
  9. If married and owns property as Sole Ownership: “Jane Doe, a married woman as her sole and separate property.”
  10. If divorce: make sure you get a copy of the divorce decree and attach it to the listing. The divorce decree will be public record.
  11. If Trust: “The Doe Family Trust, John Doe and Jane Doe Trustee, UTD dated <date>.”
  12. If Corporation, LLC or Partnership, indicate the state where it was formed: “Sneaker, Inc., an Idaho Corporation” attach LLC/Corporate paperwork – title page, evidence of authority to sell, signature page.
  13. Type the town where the property is located only if located within city limits. If the property is not located in a town, you must type slashes “///////” in that field to signify that the property is not located in a town.
  14. Type the county that the property is located in. This section must always have the county listed.
  15. Type in the common street address for the property that is being listed.
  16. Insert the correct and proper legal description:
  1. City: “Lot(s) <Lot No.> of Block <Block No.> of the <Addition> Addition to the Town of <Town>,<County> County, Idaho according to that plat recorded on <Date> as Instrument # <Instrument No.> in the Office of the County Clerk of <County> County, Idaho.
  2. County: “Lot(s)s <Lot No.> of the <Subdivision>, <County> County, Idaho according to that plat recorded on <Date> as instrument # <Instrument#> recorded on in the Office of the County Clerk in <County> County, Idaho.”
  3. Metes and Bounds: If it is a Metes and Bounds description and it is too lengthy to put in the space available, attach it as an Exhibit “__” and state “See Exhibit “___”, attached hereto and made a part hereof”. Title companies are a good source for getting Metes and Bounds legal descriptions. Note: Exhibits should go in order starting with A, B, C, etc.

Seller Authorization and Agency Disclosure

II. SELLER AUTHORIZATION AND AGENCY DISCLOSURE.