ACKNOWLEDGEMENTS AND AGREEMENTS
The undersigned, being a potential Buyer/ Seller of real estate and using the real estate agency services of the Allen Williams Realty Group and their members/ agents, hereby acknowledges and agrees as follows:
Agency Relationships: Indiana law (IC 25-34. 1-10-9.5) provides that a licensee (an individual or entity issued a salesperson’s or broker’s real estate license by the Indiana real estate commission) has an agency relationship with, and is representing, the individual with whom the licensee is working unless (1) there is a written agreement to the contrary or (2) the licensee is merely assisting the individual as a customer. The Buyer’s licensee with Allen Williams represents the interest of the Buyer as the Buyer’s agent when showing another company’s listing or when functioning in an “in house agency relationship” as defined in IC 25-34. 1-10-6.5. An “in house agency relationship” means an agency relationship involving two or more clients who are represented by different licensees within the same firm. When representing a buyer, a licensee owes duties of trust, loyalty, confidentiality, accounting, and disclosure to the buyer, while still obligated to deal honestly with the seller.
An agent representing a buyer may show property in which the buyer is interested to other prospective buyers and may show competing buyers the same property or assist other buyers in purchasing a particular property without breaching any duty or obligation to the buyer and may provide to the seller services in the ordinary course of a real estate transaction or any similar services that do not violate the terms of the agency relationship made with the buyer. The agent further will comply with the duties set forth in IC 25-34. 1-10-11.
Limited Agency Authorization: The licensee that the Buyer is working with or the principal managing broker may personally represent a seller as a seller’s agent in the case of a property listed with Allen Williams Realty Group. If that occurs, then the licensee has agency duties to both the Buyer and the seller, which may be different or even adverse. If limited agency arises, the licensee will not disclose the following without informed consent, in writing, of both the Buyer and the seller:
Any material or confidential information, except adverse material facts or risks actually known by the licensee concerning the physical condition of the property and facts required by statue, rule or regulation to be disclosed and that could not be discovered by a reasonable and timely inspection of the property by the parties.
That the Buyer will pay more than the offered purchase price of the property.
That the seller will accept less than the listed price for the property.
Other terms that would create a contractual advantage for one party over another party.
What motivates a party to buy or sell the property.
In a limited agency situation, the parties agree that there will be no imputation of knowledge or information between any party and the limited agent or among licensees. As a buyer’s agent or limited agent, the licensee will obtain compensation pursuant to a listing contract unless a written Buyer’s Agency Contract provides for an alternative payment method.
The Buyer acknowledges that this Limited Agency Authorization has been read and understood. The Buyer understands that the Buyer does not have to consent to a licensee acting as a limited agent, but gives informed consent voluntarily to limited agency and waives any claims damages, losses, expenses, including attorney’s fees and costs, against a licensee arising from a licensee’s role of a limited agent.
The foregoing shall also serve as written disclosure of office policy regarding agency relationships pursuant to IC 25-34. 1-10-13.
Allen Williams Realty Group Referrals: In order to assist the client with all of the aspects associated with the home buying/ selling process, Allen Williams Realty Group may, from time to time, refer and suggest certain home inspection companies, mortgage financing companies, warranty companies, mold inspection service companies, title companies and other businesses, contractors and professionals. Allen Williams Realty Group makes no representation, recommendation, or endorsement as to the quality, reputation, or integrity of any referral. The client is encouraged to also seek referrals or recommendations from other sources, such as Angie’s List and the Yellow Pages, etc., and to investigate any referral or recommendation through appropriate agencies, such as the Better Business Bureau and the Attorney General’s office. The seller/ buyer agrees to release, discharge, and waive any and all claim actions, liabilities, and demands against Allen Williams Realty Group arising from, or in connection with, or in any way relating to any referral.
Compensation from Companies: Because of the large volume of home sales and advertising of homes generated by the Allen Williams Realty Group may, from time to time, receive marketing coop payments, bonuses, or other compensation from certain companies.
Not a Title Company: The Allen Williams Realty Group is a real estate team and not a title company. Buyer/ Seller understands that many factors will affect the amount a seller will have to pay in closing costs and what will be left after all fees involving the sale have been paid. Unpaid property taxes, liens, mortgage payoffs, title policy costs, closing fees, REALTOR commissions, etc. all should be accounted for when determining the total costs associated with selling a home. Seller/ Buyer acknowledges that these numbers should come from a title company and loan payoffs from the lender of record. Property taxes should also be reviewed by contacting the County Assessor’s, Auditor’s office, or County Treasurers office for up to date information and figures. Allen Williams Realty Group. accepts no responsibility regarding any information furnished in connection with, or any issues arising from, the closing costs or closing issues of the seller’s home. Please review with your agent a Seller Estimated Net Sheet PRIOR to accepting an offer for your home.
Estimated Property Taxes, Rates and Exemptions: Before purchasing a home, the Buyer should obtain an accurate estimate of the property taxes from the County Assessor and/or County Auditor. Newly constructed homes are not fully assessed at the time of purchase since property taxes in Indiana are paid one year in arrears and therefore, mortgage lenders will often only escrow a small amount for taxes at the beginning of the loan term. Once a full assessment is made, taxes can increase dramatically and the Buyer should plan ahead for such increase. Again, the County Assessor’s Office and/or County Auditor’s Office may be of help to the Buyer in this regard. Allen Williams Realty Group accepts no responsibility for, and makes no representation or warranty as to property tax rates or estimates. At the closing of the home purchase, the Buyer should make sure that the Buyer receives instructions and documentation for the filing of the “Homestead Credit” and the “Mortgage Exemption”, which usually result in significant savings of property taxes. Seller acknowledges that the information that it is provided to broker associated with property taxes and current exemptions is true and correct. Buyer/ Seller agrees to indemnify, defend and hold the broker, the company and its agents harmless from damages, loss, liability and expenses including attorney fees, arising from incorrect information related to this. Further, Buyer/ Seller acknowledges that any responsibility associated with taxes, and the status of exemptions are not the responsibility of the broker.
Affiliated Business Relationship: Buyer has been informed that Title Links, LLC has an affiliated business relationship with Berkshire Hathaway HomeServices.
Not a Financial Institution: Allen Williams Realty Group is a real estate team and not a mortgage of finance company. When the Buyer meets with a mortgage lender, the Buyer should take the appropriate time to review the financing options. Based on the information furnished to Allen Williams Realty Group and upon financing programs available at a given time, Allen Williams Realty Group may offer to the Buyer certain information and suggestions concerning potential financing options. Such information is not guaranteed and the Buyer should rely solely on the information obtained directly from a mortgage lender. Interest rates, financing programs, availability, underwriting guidelines, and terms can vary regularly. It is the responsibility of the Buyer’s mortgage lender to explain, in detail, what particular financing programs are available. Allen Williams Realty Group accepts no responsibility regarding any information furnished in connection with, or any issue arising from the financing of the Buyer’s home. The Buyer should obtain an estimate for all costs associated with obtaining a mortgage with the mortgage lender before applying for a mortgage loan. Lenders have requirements for sharing such costs with a Buyer. The Buyer acknowledges that Allen Williams Realty Group is not responsible for any aspect of the loan process and is not responsible for locking in interest rates, registering Buyer’s loan program, first time buyer programs, etc.
Home Inspections, Mold, Radon and Releases: Allen Williams Realty Group has specifically advised the Buyer of the need to obtain inspections relating to mold and radon in addition, or as part of, a home inspection. The Buyer realizes that Allen Williams is not an expert in identifying or mitigating mold, nor are they experts in assessing the damage or risk associated with mold. Mold may exist in property in which Allen Williams Realty Group acts as an agent and Allen Williams Realty Group may be unaware of any such mold contamination. The Buyer has been informed by Allen Williams Realty Group of the importance of mold detection and generally that mold may form in any one of a number of places in real estate and may be particularly associated with moisture. In that these issues may present themselves and may not be identified in a standard home inspection, Allen Williams Realty Group specifically recommends that an inspection by a company or individual qualified to assess mold infestation be obtained. Buyer has received the booklets A Brief Guide to Mold, Moisture and Your Home. This can be found at https://www.epa.gov/sites/production/files/2016-10/documents/moldguide12.pd. Also, the Allen Williams Realty Group has provided A Citizen’s Guide to Radon – this guide can be found at https://www.epa.gov/sites/production/files/2015-05/documents/hmbuygud.pdf. In signing this agreement, the Buyer acknowledges having received this information and specifically have been recommended to obtain a mold and radon inspection/ test, over and above a general home inspection and termite inspection, which are also recommended by Allen Williams Realty Group. The Buyer/ Seller further agrees to release, discharge, and waive any & all claims actions, liabilities, and demands against Allen Williams Realty Group for any issues that arise from any home repairs, issues with the home, mold, radon, lead or other defects, claims, repairs, or disputes relating to any real estate purchased by the Buyer or sold by the Seller. Inspections mentioned above are an investment worth making when purchasing a home. For additional questions or resources on mold in the home, visit www.epa.gov/mold or call 1 (800) 438-4318. For additional questions and resources on radon in the home, visit www.epa.gov/radon or call 1 (800) SOS-RADON.
Lead Based Paint and Releases: Allen Williams Realty Group has specifically advised the Buyer of the need to obtain inspections related to lead based paint, or as a part of, a home inspection if the home has been built prior to 1978. The Buyer realizes that Allen Williams Realty Group is not an expert in identifying or mitigating lead based paint, nor is he an expert in assessing the damage or risk associated with lead based paint in a home. Lead based paint may exist in property in which Allen Williams Realty Group acts as an agent and Allen Williams Realty Group may be unaware of any such lead contamination. If the home you are purchasing was built prior to 1978, there is a good chance that the home may contain some lead based paint. Buyer and Seller acknowledge receipt of the booklet Protect Your Family From Lead in Your Home, which can be found at https://www.epa.gov/sites/production/files/2020-01/documents/lead_in_your_home_brochure_color_2019.pdf. Congress passed the Residential Lead Based Paint Hazard Reduction Ace (also known as Title X), requiring landlords and Sellers of homes built prior to 1978 disclose known lead paint hazards and provide available reports to buyers or renters before ratification of a contract for housing sale or lease. Buyers and renters are given 10 days to have lead hazard testing conducted (at their expense). In that these issues may present themselves and may not be identified in a standard home inspection, Allen Williams Realty Group specifically recommends that an inspection by a company or individual qualified to assess lead based paint contamination be obtained. In signing this agreement, the Buyer acknowledges having received this information and specifically having been recommended to obtain a lead based paint inspection, over and above a home inspection, which is also recommended by Allen Williams Realty Group. The Buyer/ Seller further agrees to release, discharge, and waive any and all claims actions, liabilities, and demand against Allen Williams Realty Group arising from, or in connection with, or in any way relating to inspections, lead or other defects, claims, repairs or disputes relating to any real estate purchased by the Buyer or sold by the Seller. Inspections mentioned above are in investment worth making when purchasing a home. For additional questions and resources on lead based paint, lead poisoning and prevention, visit www.epa.gov/lead or call 1 (800) 424-LEAD.
A Seller may consider a home inspection prior to listing to determine an inspection items which may require repairs later.
Home Inspection Repairs & Final Walk-Through: The Buyer/ Seller acknowledges that the Buyer has a right to have all inspection repairs re-inspected prior to closing. They also acknowledge that the Buyer has a right to do a final walk through of the home prior to closing to assure proper condition of the home.
Berkshire Hathaway HomeServices Transaction Fee: Buyer/ Seller is aware that there will be a $195.00 transaction fee charged to them and listed on the Closing Disclosure, prepared by the title company.
Earnest Money: Buyer understands that Allen Williams Realty Group does not control the escrow account that will hold the earnest money from Buyer. The Listing agent’s real estate company controls the escrow account in which Buyer’s earnest money will be deposited and on occasion, be deposited with the title company. Once a purchase agreement has been accepted, Buyer should expect the earnest money check to immediately be cashed and deposited into the Listing Agency’s escrow account. If a dispute arises during the transaction, Allen Williams has no authority regarding the earnest money and when it would, if at all, be returned to the Buyer. In some cases, litigation may be necessary to try to re-coup the earnest money. If the purchase is with a Builder, the earnest money check will most likely be cashed immediately upon the sales person turning the contract into the corporate office and before the builder signs off on the transaction. Allen Williams Realty Group has not authority to try to re-coup earnest money if a dispute arises during the process of the transaction with the Builder. Regardless of whether a new home or existing one is purchased by the Buyer, Allen Williams Realty Group assumes and accepts no responsibility regarding Buyer’s earnest money.
In addition to the foregoing, the broker holding the earnest money may invoke the provisions set forth at 876 I.A.C. 1-1-23. Under those circumstances, upon notification that buyer or seller intends not to perform, the broker holding the earnest money may release the earnest money as provided in the agreement. If no provision is made, then the broker holding the earnest money may send notice of an intended disbursement to the buyer and seller, by certified mail. If neither buyer nor seller enters into a mutual release or initiates litigation within sixty (60) days of the mailing of the certified letters, the broker may release the earnest money to the party identified in the certified letters. The broker invoking such procedure will be held harmless of any liability, including attorney fees and costs, for good faith disbursement of earnest money in accordance with the agreement and with the above-reference regulation.
Fair Housing: Buyer acknowledges that Allen Williams Realty Group helps buyers and sellers without regard to race, color, religion, sex, familiar status, national origin or handicap status. The policy of Allen Williams Realty Group complies fully with all state, federal and local Fair Housing laws. In compliance with this, we do not place any restrictions on showings or information associated with the availability of housing accommodations for sale or rent as would relate to the foregoing. Buyer also acknowledges that there was never a time when Allen Williams Realty Group or any of its representatives took any action inconsistent with the foregoing.
Photo Release: Allen Williams Realty Group may, from time to time, take photos of the home that you are purchasing to use in printed and web based advertising. This advertising could include, but is not limited to magazines, brochures, collateral, website, newspapers, flyers, etc. Buyer and Seller hereby agrees to release these photos to Allen Williams Realty Group for use as long and as often as the Allen Williams Realty Group prefers. Buyers nor Sellers do not expect any compensation for the use of these photos and does not expect notice on when and how they will be used. Photos may include both exterior and interior shots and all photos will be taken prior to the home closing date.
Property Utilities: The Allen Williams Realty Group recommends that Allen Williams Realty Group Seller leave utilities in their name until THE NEXT BUSINESS DAY (NON HOLIDAY) AFTER POSSESSION is given to Buyer. For Allen Williams Realty Group Buyers, it is recommended that the utilities are put in their name on the DAY OF POSSESSION. The Allen Williams Realty Group is trying to avoid utilities being turned off, heat being shut off, pipes being frozen, electric being turned off and sump pumps not running, causing basements to flood.
Psychologically Affected Property: Under Indiana law, and specifically Indiana Code §32-21-6, certain types of real property are considered “Psychologically Affected Property”. Psychologically affected property includes real estate, or a dwelling that is for sale, rent or lease and to which one or more of the following facts or a reasonable suspicions of facts apply:
(1) That an occupant of the property was afflicted with or died from a disease related to the human immunodeficiency virus (HIV).
(2) That an individual died on the property.
(3) That the property was the site of:
(A) a felony under IC 35;
(B) criminal gang (as defined in IC 35-45-9-1) activity;
(C) the discharge of a firearm involving a law enforcement officer while engaged in the officer's official duties; or
(D) the illegal manufacture or distribution of a controlled substance. As added by P.L.2-2002, SEC.6.
Disclosure not required § Sec. 5. An owner (seller) or agent (broker) is not required to disclose to a transferee (buyer) any knowledge of a psychologically affected property in a real estate transaction. As added by P.L.2-2002, SEC.6.
Refusal to disclose; misrepresentation § Sec. 6. An owner (seller) or agent (broker) is not liable for the refusal to disclose to a transferee (buyer):
(1) that a dwelling or real estate is a psychologically affected property; or
(2) details concerning the psychologically affected nature of the dwelling or real estate.
However, an owner (seller) or agent (broker) may not intentionally misrepresent a fact concerning a psychologically affected property in response to a direct inquiry from a transferee (buyer). As added by P.L.2-2002, SEC.6.
According to Indiana law, an owner or real estate agent is not required to disclose to a transferee any knowledge of a psychologically affected property in a real estate transaction. In signing this agreement, the undersigned, as a potential buyer, acknowledges the foregoing and also acknowledges that even if inquiry is made of a seller’s agent as to any of the foregoing circumstances, the seller’s agent may still legally refuse to provide such information.
Home Warranty: Buyer acknowledges that Allen Williams Realty Group has informed the Buyer and Seller of the ability to obtain a home warranty for the home. Allen Williams Realty Group has also informed Buyer and Seller that they should call warranty company first, whenever reasonably possible, to avoid warranty company not covering potential repairs.