Be a Better Buyer packet

Be a Better Buyer packet

Edward Knox

Associate Development Manager, Broker, REALTOR Coldwell Banker Howard Perry and Walston 9051 Strickland Road, Suite 200 Raleigh NC 27615 www.edwardknoxrealtor.com [email protected] 919-389-5086

My Mission Statement: To help my clients transition from where they are to where they want to be.

Vision Statement: To run a business that allows me to help people while providing the lifestyle I desire for my family.  18+ Years Real Estate Experience helping Sellers and Buyers move forward in their lives.  Provide Training and Education to new agents joining the company as they start their careers.  Head Mentor over the mentor program to ensure processes are being performed correctly for clients.  Coldwell Banker International Award Level Winner for 15+ years.  Assisted hundreds of Clients in their Real Estate transactions.  Full Service Agent  Full Team of Lenders, Title, Inspectors, Contractors, Lawyers, Trust Accounts  Handle the transaction from start to finish  Raleigh Native  North Carolina State Graduate  18 years in Manufacturing and Distribution Operations prior to Real Estate.  Proven Process for Marketing and Selling homes  Access to Agents throughout the United States to assist people moving to or from any City in the Nation.  Part of the Relocation and Ecommerce Teams giving access to buyers moving here from other areas.

When Opportunity Knox, Call Edward! I show up to get the job done.

How does Coldwell Banker HPW stack up to the competition??

I am glad you asked. You only have to remember Number One .

Number One National Company Number One Local Company Number One in Volume Number One in Transactions

Number One in Listings Number One in Buyers Number One in Training Number One in Relocation

You deserve Number One treatment, do not sell yourself short.

Do not trust your biggest investment to anyone but Number One !

MLS, FSBO, New Build, REO, Foreclosure, Internet Sites, Automatic Search

Process of Elimination

Getting Out to View Homes

Rolling Top Three Homes

BUYER HOME FINDING FUNNEL

Winning You Your Perfect Home

This form is required for use in all sales transactions, including residential and commercial.

Working With Real Estate Agents Disclosure (For Buyers)

IMPORTANT This form is not a contract. Signing this disclosure only means you have received it.

• In a real estate sales transaction, it is important that you understand whether an agent represents you. • Real estate agents are required to (1) review this form with you at first substantial contact - before asking for or receiving your confidential information and (2) give you a copy of it after you sign it. This is for your own protection. • Do not share any confidential information with a real estate agent or assume that the agent is acting on your behalf until you have entered into an agreement with the agent to represent you. Otherwise, the agent can share your confidential information with others.

Note to Agent: Check all relationship types below that may apply to this buyer.

Note to Buyer: For more information on an agent’s duties and services, refer to the NC Real Estate Commission’s “Questions and Answers on: Working With Real Estate Agents” brochure at ncrec.gov (Publications, Q&A Brochures) or ask an agent for a copy of it. ________ Unrepresented Buyer (Seller subagent): The agent who gave you this form may assist you in your purchase, but will not be representing you and has no loyalty to you. The agent will represent the seller. Do not share any confidential information with this agent. ________ Buyer Agency: If you agree, the agent who gave you this form (and the agent’s firm) would represent you as a buyer agent and be loyal to you. You may begin with an oral agreement, but your agent must enter into a written buyer agency agreement with you before preparing a written offer to purchase or communicating an oral offer for you. The seller would either be represented by an agent affiliated with a different real estate firm or be unrepresented. ________ Dual Agency: Dual agency will occur if you purchase a property listed by the firm that represents you. If you agree, the real estate firm and any agent with the same firm (company), would be permitted to represent you and the seller at the same time. A dual agent’s loyalty would be divided between you and the seller, but the firm and its agents must treat you and the seller fairly and equally and cannot help you gain an advantage over the other party.* ________ Designated Dual Agency: If you agree, the real estate firm would represent both you and the seller, but the firm would designate one agent to represent you and a different agent to represent the seller. Each designated agent would be loyal only to their client.* *Any agreement between you and an agent that permits dual agency must be put in writing no later than the time you make an offer to purchase.

Buyer’s Signature

Buyer’s Signature

Date

Agent’s Name

Agent’s License No.

Firm Name

REC. 4.27 • 4/6/2021

BUYER ADVICE FOR THE DUE DILIGENCE OFFER TO PURCHASE FORM

Be Prepared and Be a “Better Buyer” There have been dramatic changes in mortgage lending regulations and real estate market conditions! Because those changes affect the buying process when using the standard "Due Diligence” Offer to Purchase and Contract, Coldwell Banker Howard Perry and Walston has developed this advice to help buyers better understand what will be necessary to be more likely to have an offer accepted, have an on-time closing and understand the nature of the typical sale transaction using that form. The goal is to make you a “Better Buyer". Buyers are encouraged to read and review with their buyer’s agent the “Contract to Closing Timeline” and the "Sample" version of the Offer to Purchase and Contract, and any addenda that may be used. Being prepared, understanding the time that will be required and familiarity with the terms of the contract form that is being used will help make you a Better Buyer. This will work to your advantage as discussed below. 1. Mortgage loan pre-approval is highly recommended . All buyers who will need a mortgage loan should obtain a "Preferred Buyer" Pre-Approval letter from our mortgage partner, Towne Mortgage of the Carolinas, or your selected lender. Do this prior to beginning your property search, but certainly before making any offer. In a highly competitive “sellers’ market”, this will give you a better negotiating position and avoid wasting time looking at properties that exceed your financial limits. Equally important, without this head start on the mortgage process, you are likely to need substantially more time after contract to determine if you can obtain the loan you need. This process will require verification of income, assets and expenses. Of course, formal application and underwriting and an appraisal will still be necessary and mortgage loan approval and funding is always subject to change until Settlement. But being a Preferred Buyer using Towne Mortgage of the Carolinas and receiving good advice on how to avoid loan problems significantly reduces this risk. 2. A Highly Competitive Seller’s Market. The Research Triangle and nearby markets are experiencing an unprecedented, highly competitive “Seller’s Market”, and that has resulted in seller expectations that must be carefully understood. In order to obtain buyer’s who would be very strongly motivated to complete closing, regardless of what is found or determined during the Due Diligence Period established under the contract, many sellers have come to expect extraordinarily high Due Diligence Fees to be offered and paid to them. It must be clearly understood that the Due Diligence Fee is paid directly to the seller, becoming their property upon payment, and is non-refundable. It is NOT held in escrow like an Earnest Money Deposit. And because of that, Earnest Money Deposits are less frequently expected by Sellers. Because the Property is sold in its current condition (essentially “as is”) and the seller has no obligation to repair or improve any defective condition discovered after due diligence inspections and investigations, paying a very high Due Diligence Fee can be quite risky, and Buyers must clearly appreciate the risk they are taking. Even in a “Buyer’s Market”, a Due Diligence Fee is usually requested by sellers to compensate for the Due Diligence Period that their property is effectively "off the market".

Buyer Initials Acknowledging Receipt _______ _______

Coldwell Banker Howard Perry and Walston © 2022

3. The Due Diligence Fee and the Earnest Money Deposit provided by a buyer is very important to sellers because it is the only compensation ("liquidated damages") to sellers when buyers cannot complete their obligation to purchase. Before the end of the Due Diligence Period discussed below, buyers are entitled to the full refund of their Earnest Money (but NOT the Due Diligence Fee) if they terminate the contract as permitted. Once the Due Diligence Period has ended, then the Due Diligence Fee and Earnest Money Deposit are the seller’s only protection against default by buyer. Buyer has no other or further liability for damages on account of buyer’s breach of the contract. Therefore, buyer should understand that sellers may want a substantial earnest money payment into escrow (particularly if there is not a substantial Due Diligence Fee) when the contract becomes effective and/or no later than the end of the Due Diligence Period (discussed later). The Due Diligence Fee and the Earnest Money Deposit are a credit against the purchase price at Settlement. The realistic financial capacity of the buyer, as well as the occurrence of a "buyer’s market" or a “seller's market", will also have a significant impact on the amount of Earnest Money Deposit and/or Due Diligence Fee sellers can demand or expect. 4. Buyer’s Due Diligence Period provides the opportunity to reasonably inspect and investigate the Property and any other issues or concerns the buyer may have, such as obtaining final mortgage loan approval. A period of three to five weeks might be typical, but is entirely dependent upon how well-prepared the buyer is to purchase property (see "Being a Better Buyer") and what special concerns are presented by the seller or the particular property chosen. Care should be taken in selecting an appropriate Due Diligence Period for the circumstances of the buyer and of the property. Until the Due Diligence Period has elapsed, the buyer may terminate the contract without any reason or for any reason and have the Earnest Money Deposit (not the Due Diligence Fee) refunded to them. Time is of the essence with regard to the Due Diligence Period and the right of termination must be exercised in writing before 5:00 o’clock P.M. on the date of expiration or that right is waived. A number of Due Diligence investigations or inquiries are suggested in the contract, and any reasonable inspections or investigations are permitted. But, because there is no loan condition or appraisal condition in the contract, firming up the ability to obtain a needed mortgage and that the buyer will have all the needed cash on hand, particularly in the event of a low appraisal, is of upmost importance. And in the event of payment of a very high Due Diligence Fee, Buyers should be highly confident about that before going under contract. Buyer’s right of termination until the end of the Due Diligence Period is unlimited, but is balanced with there usually being no conditions upon the buyer’s performance once the Due Diligence Period has elapsed, even for something beyond the buyer’s control. It is deemed fair and reasonable that at some negotiated point in time prior to Settlement that the seller should be able to begin packing up and arranging for alternative housing with the assurance that, if the buyer fails to complete the purchase, seller will be compensated by the forfeiture to them of the Due Diligence Fee and Earnest Money Deposit. When the FHA/VA Financing Addendum to the contract is used for buyers obtaining that type of financing, that establishes an appraisal condition for buyer that extends until the Closing. With that addendum, the Earnest Money Deposit (but NOT the Due Diligence Fee) is protected from an appraisal lower than the purchase price in the contract. 5. Being a "Better Buyer". a) Better Buyers can demonstrate to a seller that they can obtain the mortgage loan they will need to purchase the Property. This is why a mortgage loan pre-approval letter is so important. Then Better Buyers can instead focus on how well the seller has prepared for sale,

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attended to and disclosed the condition of the property and properly priced the property for the current market so that it will adequately appraise. Once under contract with the “Due Diligence” contract form, there is no independent loan condition or contingency in the contract, as this is entirely managed under the Due Diligence provisions of the contract. Regardless of mortgage pre-approval, once under contract, Buyers should immediately do all that is necessary to fully apply and qualify for their loan and quickly obtain the property appraisal. With the prospect of paying a very high Due Diligence Fee and no loan condition, confidence about obtaining a needed mortgage should be high before going under contract. But in any event, you should be satisfied that you will be able to obtain the mortgage loan you need at closing before the end of the Due Diligence Period. In a “Balanced Market”, Better Buyers can more easily avoid the requirement of a substantial Due Diligence Fee and often can be satisfied with a shorter Due Diligence Period that will appeal to sellers. b) Better Buyers can demonstrate they have the necessary cash to complete the purchase. Whether a mortgage loan is required or not, demonstrating that the buyer has the necessary cash for the balance of the purchase price and closing costs can be a very important factor to a seller. Such proof as account records or letters from buyer’s bank, trust officer or attorney can be very effective in establishing the buyer’s ability to complete the transaction. c) Better Buyers are usually ready go to Settlement soon, even when they must sell in order to buy. If a buyer must sell property in order to purchase, it is far preferable that Buyer’s Property is under contract of sale when negotiating with a seller. There is no contingent sale addendum or condition typically available or used, as the Due Diligence Period can serve to allow a buyer time to determine whether they can get a property they must sell under a reliable contract of sale. An extension of the Due Diligence Period might be negotiated before it expires to provide additional time, but sellers are not obligated to agree to any extension. 6. Although the contract form allows for the inclusion of identified "personal property" to be transferred at no value, a requirement that the seller convey any personal property which does not typically convey with a home will probably create issues for any mortgage lender. Such items as refrigerators, clothes washers and dryers, window air conditioners and similar appliances are usually not a problem for the lender. If other personal property is desired, particularly lawn and garden equipment, furniture or flat screen televisions, those items should be the subject of an entirely separate contract and payment of reasonable consideration should be made in order to avoid issues with the mortgage lender. Real estate agents cannot write such contracts. Special attention should be paid to fuel tanks and their contents as the form suggests. 7. Buyers may request and negotiate any modification by seller of the terms of the contract or of the condition of the Property during the Due Diligence Period. However, in a “Seller’s Market”, it is much less likely you will be successful. a) If` buyer or any lender requires an appraisal of the Property, this should be completed and acted upon during the Due Diligence Period. As with the mortgage loan, there is no independent appraisal condition or contingency in the contract and this, too, is entirely managed under the Due Diligence provisions. Inadequate appraisal may be a reason to modify or terminate the contract of sale. However, if the buyer is obtaining an FHA or VA loan, the FHA/VA Financing Addendum must be included in the contract at the outset and provides an independent appraisal condition until Closing, protecting the Earnest Money Deposit, but NOT the Due Diligence Fee. b) Issues relating to the condition of the property may be addressed during the Due Diligence Period. Buyer should obtain an independent inspection by a licensed home inspector, as well as any further inspections that may be recommended. However, it is unrealistic to expect any house to be in "perfect" condition, particularly in a resale transaction. And buyers must be clear that the contract calls for the Property to be conveyed in its current condition (“as is”).

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Although sellers are encouraged to prepare their property for sale and to take the age and condition of their property into full account in the pricing of the property, there may be instances where defects are discovered that a buyer will want to require the seller to agree to correct in order to be satisfied to move forward with the transaction and not exercise the Due Diligence right of termination. Again, however, a high Due Diligence Fee makes that negotiation more difficult for a buyer. c) Review and consider the “Buyer’s Due Diligence Inspections and Services Disclosure”. HPW provides a rather comprehensive disclosure of matters that may be of concern to Buyers and deserve further investigation during the Due Diligence Period. This disclosure also provides contact information for obtaining further information about a wide variety of important topics and you should request and review this form if it has not been already provided to you. d) The Due Diligence Request and Agreement form and the Agreement to Amend Contract form can be used during the Due Diligence Period to negotiate and agree upon additional terms or changes in the terms of the contract. Any requests for actions to be taken by a seller, such as correction of defects in the Property, and any further negotiation of the terms of the contract should be completed, and any further agreements should be documented in writing, before the expiration of the Due Diligence Period. Sellers are more reticent to agree to such requests in a “Seller’s Market”. 8. For any Property that is subject to any restrictive covenants or private road maintenance agreements or is controlled by an Owners’ Association, buyers should carefully review the terms of all restrictive covenants or similar recorded declarations and should review and confirm the information contained in the Residential Property and Owners’ Association Disclosure Statement provided by the seller. This Disclosure Statement should be provided in all non-exempted transactions and contains information about the condition of the Property and about any Owner's Association that controls any aspect of the Property. Some owners choose to make “No Representation” about such matters. Certain transactions are exempt from this disclosure requirement. Before or during the Due Diligence Period, Buyers should conduct inspections as mentioned above and should independently verify all information contained in such Disclosure and investigate all restrictive covenants, including any amendments thereto obtained from their Closing Attorney, as well as all aspects of the operation of any Owner’s Association that are of concern to them. The information on this form is not warranted by seller and is provided only to the best of seller’s knowledge. Many sellers are not familiar with the operations, budget or duties of their Owners’ Association and with any restrictive covenants or amendments. 9. Obtain and Review a New Survey During the Due Diligence Period. Except for condominiums, a new survey should be obtained for every real estate purchase and Owners’ Title Insurance obtained at Closing. Reviewing the survey with the Closing Attorney for title issues involving easements, rights-of-way, set-backs, encroachments or other title issues, as well as for any impervious surface restrictions is important. The seller must be able to convey clear, marketable and insurable title as described in the contract. However, this review should absolutely be during the Due Diligence Period if any additions or adjacent improvements are contemplated, in case they would be prohibited, and a termination of the contract is necessary. 10. Reasonable access to the Property by appointment must be provided for buyers through the time of Closing. This access includes the obligation to have all existing utilities turned on to enable various inspections.

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11. In the event seller breaches the contract or cannot complete the sale as agreed, then buyer is entitled to receive a refund of the Due Diligence Fee and the Earnest Money Deposit. Additionally, buyer is entitled to be reimbursed for their reasonable costs actually incurred for Buyer’s Due Diligence. However, these terms are modified by the use of some addenda, such as the Short Sale Addendum. Also, be aware that refund of any Due Diligence Fee and reimbursement of costs incurred for Buyers Due Diligence must be collected directly from the seller and these sums are not held in escrow. 12. Reasonable delay in Settlement of up to 7 days without any compensation is allowed to buyers or sellers who are acting in good faith to complete the Closing. Buyers and sellers should be aware of this and make their moving and other plans with knowledge that delays do sometimes occur and are often out of the control of the other party. Either party needing a delay should notify the other party and the settlement agent (closing attorney) as soon as possible. 13. The Property must be in the same or better condition at Closing as at the time of contract. Additionally, the seller must remove all of their personal property from the Property as well as any garbage or debris prior to Closing. As a practical matter, this should be accomplished before Settlement for the usual “walk-though” inspection by buyers. 14. Closing constitutes acceptance of the Property in its then existing condition, unless other terms are agreed in writing. Buyer should be satisfied that all issues related to the terms of the contract and the condition of the property have been resolved prior to Closing. Any agreements about later actions by either party must be clear and in writing prior to Closing. Generally, mortgage lenders require that all such matters be completed prior to Closing. 15. Possession of the property is not delivered to buyer prior to a completed Closing unless otherwise agreed in writing. That means that the time of Settlement and Closing should be set so that the Closing Attorney has sufficient time to complete the Settlement, the recording of all necessary documents and the disbursement of money immediately following the Settlement. Settlements scheduled late in the day may mean that Closing is not completed until sometime the following business day, which could also involve further delay because of intervening weekends and holidays. Agreements for early possession by buyer or later possession by seller are available, but are rarely preferable, as a variety of risks can arise during such times. At Coldwell Banker Howard Perry and Walston we believe that you being well-informed about the sales contract and being a Better Buyer will make your buying experience smoother and less uncertain. We hope this information will be useful to you.

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WARNING: Your Road to Home Ownership Should Start Here

For most people, mortgage financing plays a major role when purchasing a home. In recent years, we’ve seen a wave of industry regulation and heightened requirements for borrowers (e.g., the Dodd-Frank Wall Street Reform and Consumer Protection Act and the Consumer Financial Protection Bureau). For most buyers, obtaining a mortgage now will require better credit and a greater documented review before determining if a loan will be available. In addition to a reduction in mortgage products and elevated standards for qualifying, other major changes in the mortgage application process were made because of the “Ability to Repay” rules that were enacted involving mortgage approval that included: 1. Review documented current and historical income for 2 years 2. Determine stability/sustainability of income, especially for self-employed 3. Verify cash needed to close, including its source

4. Evaluate credit history from credit score, derogatory items and public records 5. Verify borrower documents from 3 rd party sources, such as the IRS, when possible

Part of the Coldwell Banker Howard Perry and Walston (“HPW” ) commitment to our buyer clients is to ensure that buyers have the most “ successful p urchase” possible. That means a purchase that is on time, with the fewest hassles and the best financial terms. To do so, special attention must be paid to the mortgage process and should begin with a mortgage pre-approval from an honest and reliable lender who has a proven track record. No one wants to waste money or time pursuing a property that simply cannot be purchased because a needed mortgage is not available. Further, buyers should have the strategic advantages they obtain in negotiating a purchase contract that result from their ability to confidently and reliably demonstrate to a seller that they can really get the loan they need. To help accomplish our commitment to our clients, HPW has partnered with a prominent, financially stable mortgage bank and together we operate HPW Towne Mortgage. With local underwriting and management that is conveniently available to you, HPW Towne Mortgage will assure honest, well-founded evaluation of your qualifications early in the process, great service, competitive rates and an excellent on-time closing record for qualified borrowers. HPW Towne Mortgage has its headquarters in Raleigh, NC, and is an affiliated business to HPW; an Affiliated Business Arrangement Disclosure is being provided to you detailing the affiliation. Trying to regularly evaluate the practices of the many other mortgage lenders would be an impossible task for us. Because we simply are unable to help protect you from the potentially misleading or incomplete practices that sometimes occur in the national mortgage industry, we feel obliged to strongly suggest that you first obtain, before making any offers to purchase a property, a mortgage pre-approval, or, if you are already working with a lender, a “second opinion” , from HPW Towne Mortgage. HPW Towne Mortgage Lending Managers are available in each of our sales offices for your convenience. _____________________________________________________________________________________________ By signing below, I/we acknowledge that we have received this advice and that HPW shall not be responsible for difficulties, delays, costs or losses caused to us as a result of our failure to obtain advice and loan pre-approval from HPW Towne Mortgage or from my/our selection of a mortgage lender who causes such results.

____________________________ _______

___________________________ ________

Buyer

Date

Buyer

Date

PROFESSIONAL SERVICES DISCLOSURE AND ELECTION FOR BUYERS [See Guidelines (Form 760G) for instructions on completing this form]

Property Address:___________________________________________________________________________________(“Property”) Buyer:______________________________________________________________________________________________ Real Estate Firm: Coldwell Banker Howard Perry and Walston (“Firm”) 1. There are professional services that typically are performed in connection with the purchase and sale of real estate. Buyer understands that Firm cannot give advice in certain matters that may relate to the purchase or sale of the Property, including but not limited to matters of law, taxation, financing, surveying, wood-destroying insect infestation, structural soundness of engineering. REGARDING EACH PROFESSIONAL SERVICE LISTED BELOW, BUYER SHOULD EITHER SELECT THE SERVICE AND AGREE ON A SERVICE PROVIDER OR ELECT NOT TO HAVE THE SERVICE PERFORMED:

Selected (initial)

Waived (initial)

Who Orders

Name(s) of Service Providers(s)

Service

Accountant/CPA /Tax Advisor

Appraisal

Attorney (e.g. Title Exam/Title Insurance/Seller Document-Deed prep/Closing)

NFIP Elevation Certificate

Home Inspections

Home Re-Inspections

Home Warranty

HVAC Inspection

Mortgage Loan

Property Insurance

Radon Tests, including Well Water

Septic Inspection

Survey* (see note below)

Well/Water Quality Inspection

Wood Infestation

Coldwell Banker Howard Perry and Walston Revised 7/2019 ©7/2019

Page 1 of 2 Individual Agent initials _______ Buyer initials _______ _______

2. Buyer or Seller acknowledges Firm has recommended that Buyer consult with a professional for an opinion regarding each service listed above to be performed pursuant to Buyer’s purchase of the property. Buyer hereby agrees to indemnify and hold Firm harmless from and against any and all liability, claim, loss, damage, suit, or expense that Firm may incur either as a result of Buyer’s selection and use of any of the listed service providers or Buyer’s election not to have one or more of the listed services performed. *NOTE REGARDING SURVEYS : Situations arise all too often that could have been avoided if the buyer had obtained a new survey from a NC registered surveyor. A survey will normally reveal such things as encroachments on the Property from adjacent properties (fences, driveways, etc.); encroachments from the Property onto adjacent properties; road or utility easements crossing the Property; violations of set-back lines; lack of legal access to a public right-of-way; and indefinite or erroneous legal descriptions in previous deeds to the Property. Although title insurance companies may provide lender coverage without a new survey, the owner’s policy contains an exception for easements, set-backs and other matters which would have been shown on a survey. Many such matters are not public record and would not be included in an attorney’s title examination. In addition, if the buyer does not obtain their own survey, they would have no claim against a surveyor for inaccuracies in a prior survey.

OTHER IMPORTANT NOTES: •

ALTHOUGH FIRM MAY PROVIDE BUYER THE NAMES OF PROVIDERS WHO CLAIM TO PERFORM SERVICES IN ONE OR MORE OF THE LISTED AREAS, BUYER UNDERSTANDS THAT FIRM CANNOT GUARANTEE THE QUALITY OF SERVICE OR LEVEL OF EXPERTISE OF ANY SUCH PROVIDER. • BUYER AGREES TO PAY THE FULL AMOUNT DUE FOR ALL SERVICES DIRECTLY TO THE SERVICE PROVIDER WHETHER OR NOT THE TRANSACTION CLOSES.

____________________________________________________ Signature of individual agent Coldwell Banker Howard Perry and Walston Real Estate Firm Date:________________________________________________

___________________________________________________ Buyer Date: ______________________________________________ ___________________________________________________ Buyer Date:_______________________________________________ Entity Buyer: ___________________________________________________ (Name of LLC/Corporation/Partnership/Trust/etc.) By: _______________________________________________ Name: _____________________________________________ Title: ______________________________________________ Date: ______________________________________________

Coldwell Banker Howard Perry and Walston Revised 7/2019 ©7/2019

Page 2 of 2

DISCLOSURE REGARDING USE OF ELECTRONIC FUNDS TRANSFERS

IMPORTANT NOTICE ABOUT PROTECTING YOUR MONEY For a variety of good reasons, closing attorneys and others are requiring the use of electronic funds transfers (usually “bank wires”) for receiving money into and disbursing money from their bank account in real estate sales transactions. However, special care in arranging such transfers is required. ACTUAL EXPERIENCE TELLS US THAT INTERNATIONAL CRIMINAL ORGANIZATIONS ATTEMPTING TO STEAL LARGE SUMS OF MONEY ARE TARGETING AND ACCESSING EMAIL ACCOUNTS OF PARTIES AND AGENTS INVOLVED IN REAL ESTATE TRANSACTIONS IN NORTH CAROLINA AND ELSEWHERE AND CONDUCTING SCAMS. BUYERS: Do not communicate confidential personal information with the attorney through your agent. OBTAIN WIRING INSTRUCTIONS DIRECTLY FROM THE CLOSING ATTORNEY. Before sending any wire, YOU SHOULD CALL THE CLOSING ATTORNEY'S OFFICE TO VERIFY THE BANK WIRING INSTRUCTIONS. If you later receive any change in wiring instructions, they should be presumed fraudulent. Do not send any funds in response to those instructions. Instead, contact the closing attorney's office immediately. SELLERS: If your sale proceeds are to be wired to you, IT IS RECOMMENDED THAT YOU HAND-DELIVER WRITTEN WIRING INSTRUCTIONS TO THE CLOSING ATTORNEY AT OR BEFORE CLOSING. If you are unable to attend closing, you may be required to send an original notarized directive to the closing attorney's office containing the wiring instructions. At a minimum, YOU SHOULD CALL THE CLOSING ATTORNEY'S OFFICE TO CONFIRM THE WIRE INSTRUCTIONS. Be aware that attempting to change wiring instructions through a phone call should NOT be permitted by you or the attorney. Do not communicate through your agent. MAKING THE CALL: YOU SHOULD PHONE THE CLOSING ATTORNEY'S OFFICE AT A NUMBER THAT IS INDEPENDENTLY OBTAINED TO CONFIRM WIRING INSTRUCTIONS. Reference to the firm’s website for contact information should be made to assure correct contact information. You should not rely on a phone number in an email from the closing attorney's office, your real estate agent or anyone else. For “back-to-back” closings, have closing attorneys communicate directly with one another. ________________________________________________________________________________________________ ACKNOWLEDGMENT AND RELEASE . The undersigned acknowledge(s) and understand(s) that there are risks associated with bank wire transfers that are not within the reasonable control of Coldwell Banker Howard Perry and Walston and I/we hereby release and discharge Coldwell Banker Howard Perry and Walston and its agents from any and all claims, demands, rights and causes of action of whatsoever kind and nature not caused by the gross negligence of Coldwell Banker Howard Perry and Walston or its agents or employees arising directly or indirectly out of any wire transfer I/we send or receive or intend to send or receive in connection with any real estate transaction in which Coldwell Banker Howard Perry and Walston represents or is working with me/us. ______________________________________ ____________ Buyer Date ______________________________________ Name of Entity Buyer

______________________________________ ____________ Buyer Date

By: ___________________________________ _____________ (signature of authorized signer) Date

July 2020 Revision ©2020 Coldwell Banker Howard Perry and Walston

COLDWELL BANKER HOWARD PERRY AND WALSTON EXCLUSIVE BUYER AGENCY AGREEMENT [Consult the Guidelines for guidance in completing this form]

This EXCLUSIVE BUYER AGENCY AGREEMENT (“Agreement”) is entered into this _______________________(date), between_________________________________________________________________________________as Buyer(s) (“Buyer”) and COLDWELL BANKER HOWARD PERRY AND WALSTON, who Buyer hereby employs as its Buyer’s Agent Firm (“Firm”) to serve as the Buyer's exclusive agent to assist the Buyer in the acquisition of real property which may include any purchase, option and/or exchange on terms and conditions acceptable to Buyer. The Individual Buyer Agent, ______________________________________________, who signs this Agreement on behalf of the Firm, shall on behalf of the Firm, be primarily responsible for ensuring that the Firm’s duties hereunder are fulfilled; however, it is understood and agreed that other agents of the Firm may be assigned to fulfill such duties if deemed appropriate by the Firm. For purposes of this Agreement, the term “Firm,” as the context may require, shall be deemed to include the Individual Buyer Agent who signs this Agreement and any other agents of the Firm. NOTE: If the Buyer is a corporation, limited liability company, trust or other legal entity, the entity should be named as Buyer and a duly authorized officer, manager, trustee or other legal representative of the entity should sign this Agreement on the entity's behalf. Buyer represents that, as of the commencement date of this Agreement, the Buyer is not a party to a buyer representation agreement with any other real estate firm. Buyer has received a copy of the “WORKING WITH REAL ESTATE AGENTS” disclosure and has reviewed it with Firm. Buyer further represents that Buyer has disclosed to Firm information about any properties of the type described below that Buyer has visited at any open houses or that Buyer has been shown by any other real estate firm. 1. TYPE OF PROPERTY:  Residential (improved and unimproved)  Commercial (improved and unimproved)  Other _________________________________________________________________________ (a) General Location:_________________________________________________________________________________________ (b) Other:__________________________________________________________________________________________________ 2. EFFECT OF AGREEMENT. Buyer intends to acquire real property of the type described in Paragraph 1. By employing Firm as Buyer's exclusive agent, Buyer agrees to conduct all negotiations for such property exclusively through Firm, and to refer to Firm all inquiries received in any form from other real estate firms, prospective sellers or any other source, during the time this Agreement is in effect. 3. TERM OF AGREEMENT. The term of this Agreement (“Term”) shall begin on _________________________ and shall terminate as follows (check appropriate box):  (For buyers who intend to purchase a single property): This Agreement shall terminate when Buyer acquires real property of the type described in paragraph 1, or 11:59 pm on ______________________________, whichever occurs sooner.  (For buyers who may purchase more than one property): This Agreement shall terminate at 11:59 pm on _____________________. NOTE: Buyer should consult with Individual Agent or Firm before visiting any resale property or new homes neighborhood or contacting any sellers or other real estate firm representing sellers, to avoid the possibility of confusion over the exclusive brokerage relationship created here and misunderstandings about liability for compensation to Firm for its services rendered to Buyer. 4. COMPENSATION TO FIRM: (a) Buyer acknowledges and understands that Firm expects to receive total compensation for Firm’s real estate brokerage services hereunder (“Fee”) made up of two parts as follows: Brokerage Commission: A fee calculated from the purchase price of the property and frequently paid by the Listing Firm or Seller determined as follows: [ Insert percentage of purchase price or other method of determining Firm’s compensation for each type of property the Buyer may purchase. Do not insert N/A or a zero (0)] . ______% of the purchase price for resale properties purchased by Buyer ______% of the purchase price for new construction properties purchased by Buyer ______% of the purchase price for lots or land purchased by Buyer Other, if any: ______________________________________________________________________________________ AND Brokerage Fee: A fee in the amount of Two Hundred Forty-Nine and 00/100 Dollars ($249.00) paid by Buyer at closing.

July 2021 Revision ©2021 Coldwell Banker Howard Perry and Walston

Page 1 of 6 Individual agent initials _______ Buyer initials _______ _______

Obtaining the Brokerage Commission: i. Firm shall seek the Brokerage Commission from a cooperating listing firm (through the listing firm’s offer of compensation in MLS or otherwise) or from the seller if there is no listing firm. Buyer further agrees that Firm shall be entitled to receive the total compensation set out above in consideration for Firm’s services hereunder. ii. If Buyer purchases property where the compensation offered by the listing firm and/or seller is less than the stated Brokerage Commission, or where no compensation is offered by either the listing firm or the seller, Buyer and Firm agree that Buyer will pay the difference between the Brokerage Commission and the compensation offered unless prohibited by law. Firm will timely inform Buyer if the Brokerage Commission offered is less than expected. iii. Additionally, in the event Buyer violates Paragraph 2 of this Agreement regarding exclusivity, Buyer shall pay the expected total Fee for brokerage services to Firm at closing if the cooperating listing firm or the Seller does not. iv. If additional compensation, incentive, bonus, rebate, and/or other valuable consideration (“Additional Compensation”) is offered through the MLS or otherwise, Buyer will permit the Firm to receive it. Firm shall timely disclose the promise or expectation of receiving any such Additional Compensation and confirm the disclosure in writing before Buyer makes or accepts an offer to buy. (See NCAR Form #770). (b) For the purpose of complete disclosure of compensation only, Buyer is advised that, in the event Dual Agency (as hereinafter described) is being practiced because Buyer is purchasing a property listed by the Firm, then the total compensation expected by the Firm for representing the Seller and Buyer in both sides of the transaction would be up to 7% of the purchase price for resale properties, up to 5% to 6% of the purchase price for new construction properties and up to 10% of the purchase price for lots or land, purchased by Buyer, together with a Brokerage Fee ranging from $249.00 to $499.00 from each of the Seller and the Buyer. THIS DISCLOSURE WILL IN NO WAY AFFECT OR MODIFY THE AMOUNT OF THE FEE SET FORTH IN PARAGRAPH 4 ABOVE THAT FIRM EXPECTS TO RECEIVE FOR ITS SERVICES IN REPRESENTING BUYER UNDER THIS AGREEMENT. (c) The Fee shall be deemed earned under any of the following circumstances: i. If, during the term of this Agreement, Buyer, any assignee of Buyer or any person/legal entity acting on behalf of Buyer directly or indirectly enters into an agreement to purchase, option, and/or exchange any property of the type described above regardless of the manner in which Buyer was introduced to the property; or ii. If, within _________ days after expiration of this Agreement (“Protection Period”), Buyer enters into a contract to acquire property introduced to Buyer during the term of this Agreement by Firm or any third party, unless Buyer has entered into a valid buyer agency agreement with another real estate firm; or iii. If, having entered into an enforceable contract to acquire property during the term of this Agreement, Buyer defaults under the terms of that contract. (d) The Fee will be due and payable upon closing and distribution of the proceeds of sale of the Property by the closing attorney or upon Buyer’s default of any purchase agreement. If Buyer defaults, the total Fee that would have been due the Firm will be due and payable immediately in cash from the Buyer. No assignment of rights in real property obtained for Buyer or any assignee of Buyer or any person/legal entity acting on behalf of Buyer pursuant to this Agreement shall operate to defeat any of Firm’s rights under this Agreement. NOTICE: Buyer understands and acknowledges that there is the potential for a conflict of interest generated by a price-based fee for representing Buyer. The amount, format or rate of real estate brokerage fees is not fixed by law, but is set by each broker individually. (e) Attorney Fees and Costs. If Firm is the prevailing party in any legal proceeding brought by Firm against Buyer to recover the Fee, Firm shall be entitled to recover from Buyer reasonable attorney fees and court costs incurred by Firm in connection with the proceeding. (f) If Buyer purchases unimproved property, Agent may assist Buyer in identifying a contractor to make improvements on the property, subject to the provisions of paragraph 10 and Buyer acknowledges and understands that in such a case, the contractor may offer to compensate Agent. Agent shall disclose to Buyer the existence of such an offer of compensation before Buyer enters into a contract with the contractor, and Buyer hereby consents to the receipt by Agent of any such compensation. 5. TITLE INSURANCE COST SAVINGS: Through its affiliate, HPW Market Title Insurance Company, Firm is in many instances able to obtain an average savings on required title insurance of approximately $300, at no additional cost to Buyer for this service. Buyer  is  is not interested in having HPW Market Title Insurance Company investigate the availability of this credit for Buyer and provide it at closing if available. 6. MORTGAGE LOAN SERVICES: Through its affiliate, HPW Towne Mortgage, Firm can help arrange for highly reliable and competitive mortgage lending services for Buyer. Buyer  is  is not interested in more information about these mortgage services.

Page 2 of 6 Individual agent initials _______ Buyer initials _______ _______

7. DISCLOSURE OF BUYER'S NAME/MAILING ADDRESS: (a) Unless otherwise stated in Paragraph 12 below, Firm has Buyer's permission to disclose Buyer's name. (b) In accordance with NC General Statutes Section 93A-12, if a dispute regarding the return or forfeiture of any earnest money deposit arises between Buyer and the seller of any real property Buyer may agree to purchase, the escrow agent holding the deposit may deposit the disputed monies with the appropriate Clerk of Court following written notice to the parties. In the event of any such dispute, Buyer directs Firm to disclose Buyer’s last known mailing address to the escrow agent upon request to enable the escrow agent to comply with the notice requirement of such law. 8. OTHER POTENTIAL BUYERS: Buyer understands that other prospective purchasers represented by Firm may seek property, submit offers, and contract to purchase property through Firm, including the same or similar property as Buyer seeks to purchase. Buyer acknowledges, understands and consents to such representation of other prospective purchasers by Firm through its agents. 9. FIRM’S DUTIES: During the term of this Agreement, Firm shall promote the interests of Buyer by: (a) performing the terms of this Agreement; (b) seeking property at a price and terms acceptable to Buyer; (c) presenting in a timely manner all written offers or counteroffers to and from Buyer; (d) disclosing to Buyer all material facts related to the property or concerning the transaction of which Firm has actual knowledge; and (e) accounting for in a timely manner all money and property received in which Buyer has or may have an interest. Unless otherwise provided by law or Buyer consents in writing to the release of the information, Firm shall maintain the confidentiality of all personal and financial information and other matters identified as confidential by Buyer, if that information is received from Buyer during the brokerage relationship. In satisfying these duties, Firm shall exercise ordinary care, comply with all applicable laws and regulations, and treat all prospective sellers honestly and not knowingly give them false information. In addition, Firm may show the same property to other buyers, represent other buyers, represent sellers relative to other properties, or provide assistance to a seller or prospective seller by performing ministerial acts that are not inconsistent with Firm’s duties under this Agreement. Upon closing of any sale of property not entered in a listing service of which Firm is a member, Buyer authorizes Firm to submit pertinent information concerning the property, including sales price, to such listing service. 10. BUYER’S DUTIES: Buyer agrees to cooperate with Firm in the acquisition of real property of the type described in paragraph 1, including but not limited to: (a) working exclusively with Firm during the term of this Agreement; (b) immediately referring to Firm information about any properties Buyer may have an interest in examining; (c) complying with the reasonable requests of Firm to supply any pertinent financial or personal >Page 1 Page 2 Page 3 Page 4-5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32-33

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