It seems every property I have made an offer on recently for investors, there are different addendums required. If you are a buyers agent, is it your duty to explain the forms to your buyer, or point out important items, such as a non refundable earnest money deposit? Or is it the clients duty to read the forms themselves before signing? I myself always point out key items like that even to investors who sign and dont take the time to read what they are signing.

Many buyers and sellers hear but they don't listen. I have walked through all the forms with agents, buyers and sellers. Even after that there is something that they did not understand, realize or read and they would like to lay it on my doorstep but it never because you did not tell me. Just my opinion to CYA all the time. I do like a reader though!

Its great to point out the key issues in the addendum's but also let them know you are not a lawyer and it should be reviewed by their attorney if they don't understand something in it.

I preface all my interactions with new home buyers and REO/foreclosure buyers with the same "you're buying on their terms" talk. Basically, I let them know that new builder contracts are heavily slanted in favor of the builder. If you don't like/can't live with that, then don't buy a new home. Buyers often ask me if we can change the contracts and I've not seen a time when you can. The builders are dealing with hundreds of buyers and have paid to have the contracts written like they are. The builder wants to be protected and if the buyer doesn't like it, most builders will tell them to look elsewhere. It's just part of the way things work.

A similar thing applies to reos/foreclosures. The bank/owner has no actual knowledge of the condition of the home and they are going to put that, along with escape/hold harmless clauses everywhere that ink will stick to. It's just the way things are. Again, if you can't hang, don't look at REOs.

Joe

I have a similar "forget everything you think you know about buying a house" speech when I work with people buying REOs. I read the bank's addendum when I receive it before I go over it with the client, then I go over it in as much detail as they want. I also point out notable differences between their words and our standard CA RPA.

As a side note, as an REO listing agent I get annoyed when buyers agents on my listings ask me for a blanket explaination of the addendums. I really want to ask them two questions: A) how did you get your license without knowing how to read? and B) don't you have a broker or sales manager to help you?