In Order to Make This Dream a Reality, We've Got Some Work to Do

Dear Mr. and Mrs. Buyer,

Congratulations on your purchase of 1234 Main Street in Tempe, Arizona! It looks like you got a great deal, and all signs point to your fulfillment and satisfaction with your new home.

In order to make this dream a reality, we've got some work to do.

It is very important that you take this TO-DO list seriously. I am here to help you in any way that I can in order to get these items accomplished, and as your agent, will be very happy to do so.

I will assist you in the planning and scheduling of these items but I cannot (by law) schedule them for you. You must do that.

All items listed here must be done before the inspection period expires on _____________.

TO DO:

1. Meet with your lender. As the contract states, you must meet with your lender and apply for a loan within five days of contract acceptance. That means you must accomplish this by XXXXXXXXX. Your lender will give you a GOOD FAITH ESTIMATE of the loan costs. We will review this document together so that you are informed about the costs associated with your loan.

2. Schedule a time to do another visual inspection of the property. As I have advised you, this property is in GREAT shape, and it is competitively priced. However, I advise that you do another visual inspection BEFORE the expiration of the inspection period. Just call me, and I'll make arrangements to meet you at the property and let you in.

3. Homeowner's Insurance. Decide on a Homeowner's Insurance Company. You might be able to get a multi-policy discount if you go with the insurance company that insures your cars. For your convenience, I have listed three insurance companies in the area. However, the choice of an insurance company is yours. Call the insurance company of your choice and make arrangements to purchase a policy. I advise you to instruct the insurance company that the initial premium is to be paid through escrow. You'll want to obtain coverage that begins on ________________, which is the date you take title.

Some insurance companies in the area are:

XXXXXXXXXXXXXXXX – telephone: (xxx) 123-4567

4. I advised you to choose _____________________ as the closing date for a few reasons: First, because the seller has paid in full the monthly HOA assessment for May. When you close escrow, you will not assume any of the Assessment fee for May. You will begin paying HOA dues on June 1. Secondly, If you close on Thursday, May 28 you can pick up the keys on Friday, May 29 and have the weekend of May 30 and 31 to move in, and be ready to go by June 1.

5. Electricity: Sometime before escrow closes, you'll need to open an electricity account. The utility company will not put the electricity in your name, however, until [date buyers take title]. The seller will instruct the utility company to transfer the electricity OUT of [her] name on [date buyers take title]. The company you need to call is: [APS Energy Service Co Inc. (602) 744-5000].

6. Water. Sometime before escrow closes, you'll need to open an account with the city of XXXXX for the water. The city of XXXXX will not put the electricity in your name, however, until [date buyers take title]. The seller will instruct the city of XXXXXXX company to transfer the water bill OUT of [her] name on [date buyers take title]. The phone number to get your water account set up is: [(xxx) 123-4567].

7. The Seller will be delivering to me, a "Seller Property Disclosure Statement". This is a document that provides written disclosures of all pertinent facts about the property and the improvements thereon. When I get this document, I will deliver it to you promptly. Please take some time to review it carefully, as well as the Seller Advisory.

8. Regarding the Home Warranty. I'll telephone you to discuss your options.

9. Termite Inspection. Your lender will require that you have the property inspected for termites. You'll need to call a pest control company in the area to conduct the inspection. For your convenience, I have listed three pest control companies in the area. However, the choice of a pest control company is yours. Call the pest control company of your choice and make arrangements for the inspection. I am available to go over to the property and let the termite inspector into the home, and see to it that the home is locked when the inspector has finished.

It is likely that the termite inspector will require immediate payment, rather than payment through escrow, so when you schedule the inspection, please verify when and how the pest control company wants payment.

Some pest control companies in the area are:

XXXXXXXXXXXXXXXX – telephone: (xxx) 123-4567

10. Home Inspection. You have chosen to have a home inspection. You'll need to call a home inspector in the area. For your convenience, I have listed home inspection companies in the area. However, the choice of a home inspection company is yours. Call the pest control company of your choice and make arrangements for the inspection. I am available to go over to the property and let the inspector into the home, and see to it that the home is locked when the inspector has finished.

It is likely that the home inspector will require immediate payment, rather than payment through escrow, so when you schedule the inspection, please verify when and how the home inspection company wants payment.

Some home inspection companies in the area are:

XXXXXXXXXXXXXXXX – telephone: (xxx) 123-4567

11. I will obtain a copy of the CC&Rs for the subdivision as well as the Arizona Department of Real Estate subdivision disclosure report. These are documents that contain pertinent information about the property. I will read these documents thoroughly and point out any items to which you will need to pay special attention when you read these documents yourselves.

WHAT HAPPENS NEXT AT THE ESCROW COMPANY:

1. The escrow officer will:

· Open a file for your property.

· Insert all of the applicable documents from the public record in the file.

· Do a title search on the property to make certain there are no existing liens, etc.

· Order title insurance from the title insurer, which will be XXXXXXXX Title Insurance Company.

2. The title insurer will issue a "Commitment for Title Insurance." This is simply a written commitment from the title insurer that the title to the property is insurable, and that the seller of the property has "clear" and "marketable" title.

3. The escrow officer will then compile all applicable documents (including the commitment for title insurance) and call me to come and inspect them. I will then inspect them to make certain they are all in the package and that they are all correct.

4. Once I approve all of the documents, I will:

· notify you know that I've checked the documents, and they are ready for your signature; and

· notify you regarding the total amount of closing costs. (Based upon the GOOD FAITH ESTIMATE we received from the lender, your loan closing costs should be approximately XXXXXXX. Bear in mind, however, that there may be other closing costs including homeowner's insurance premiums, HOA dues, and other prorations.)

5. The escrow company will notify you and make arrangements for you to sign all documents.

IMPORTANT NOTE: When you visit the escrow company to sign your documents, you will need to bring a CASHIER'S CHECK for the amount of the closing costs.

6. The escrow officer has been instructed to make you a copy of all of the documents that you will sign. This will be the document package you keep for your records.

7. Concurrent with your signing the documents, the seller will be signing the conveyance documents, such as the warranty deed, etc.

8. When the escrow officer receives:

· the signed documents from you,

· the funds from the lender, and

· the conveyance documents from the seller,

the escrow officer will coordinate the recordation of the documents. All documents will be recorded at the [name of county] County recorder's office.

9. Once the conveyance has been recorded, you will no longer be a BUYER – you will be an OWNER.

CONTACTS:

· My e-mail address is xxxxxxxxx@xxxxxxxx

· My cell phone number is (xxx) 123-4567

· If at any time, I am unavailable, and you need immediate assistance, you can call my broker:

· My Broker's name is xxxxxxxxx and his/her e-mail address is xxxxxxxxx@xxxxxxxx

· My Broker's cell phone number is (xxx) 123-4567.

ESCROW INFORMATION:

· Escrow Company is xxxxxxxxxxx, which is located at xxxxxxxxx in xxxxxxxxxxxx.

· The escrow company telephone number is (xxx) 123-4567

· The escrow officer's name is xxxxxx.

· When or if you call the escrow company, always refer to your ESCROW NUMBER (which we do not know yet) – but as soon as I open escrow for you, the escrow company will assign a number to your account. I will make sure to forward that number to you.

Regards,

Jane Doe, salesperson

ABC Realty

P.S. I've included a nice easy-to-understand diagram that will help you understand the escrow process.