This Master Listing Agreement is made the 13th day of October 2008 by and between First American REO Servicing (hereinafter referred to as “FAREO”), having offices at 700 17th Street, Suite LL100, Denver, Colorado 80202 and you, the broker owner or an authorized agent of the broker owner, (both hereinafter referred to as “Broker”).
FAREO has entered into various agreements with owners of various properties or the servicing agent of the owner of various properties, (hereinafter referred to as “Owner”), whereby FAREO to manages, markets, prepares for sale and sells foreclosed properties on behalf of the Owner.
FAREO is responsible for listing foreclosed properties (and pre-foreclosed properties), with a real estate broker in the area where property is located.
The Broker represents to FAREO that it has the knowledge and expertise to market and sell real estate in their locale on behalf of the owner.
Therefore, FAREO and Broker desire to enter into this Master Listing Agreement to set forth the terms and conditions under which FAREO shall list certain properties for sale with Broker.FAREO and Broker hereby agree as follows:
I.Listing Properties for Sale:
From time to time FAREO shall list with Broker certain parcels of real estate for sale.To initiate a listing, FAREO shall deliver to Broker a “Property Referral Form.”Each property referred to Broker shall be subject to the terms and conditions of this Master Listing Agreement.
The parties intend that Broker be the exclusive agent of the Owner.However,
A.FAREO reserves the right to sell any listed property to purchasers obtained directly by FAREO, and thereby not pay a selling commission to the listing agent.
B.FAREO
reserves the right to sell any listed property, (a) at public auction, or (b)
to a private mortgage insurance company, in which event there may not be any
commissions paid by FAREO to Broker.In
such event, and time permitting, written notice will be given to the Broker
prior to said event.
II.
Broker Responsibilities:
Broker shall use its best efforts to sell the property for maximum recovery in the shortest period of time by using recognized methods including, but not limited to, placing a For Sale Sign on the property (where permitted), advertise in local publications, and hold open houses.The property shall be placed in a Multiple Listing Service and, if none is available, through similar services whereby Brokers list properties on a cooperative basis.Any deviations from this must be approved by FAREO in writing.Broker also agrees to fully cooperate with any other agents who have potential purchasers.Broker agrees to protect and promote the interest of FAREO and their clients, while maintaining honesty with all parties involved.
The Seller shall be the Owner and shall be listed as “Owner of Record” or “Corporate Owned.”
Broker further agrees to:
A.Inspect the property within 24 hours of receipt of a “REO Occupancy Instructions” and each week thereafter, to report as appropriate, any changes in the property’s physical status.
1.Initial inspections shall at a minimum determine the following:
- Occupancy (with names and phone number of all occupants)
- Adequate exterior lighting
- Removal/replacement of broken glass
- Any trip or fall hazards
- Presence of smoke detectors in occupied units, unless otherwise dictated by local law
- Potential health, code and building violations
2.Accessible areas will also be inspected for other problems which could affect safe housing which include, but are not limited to, leaking or unsafe roof, gutters, plumbing, electrical, heating systems, etc.
3.Complete an inspection report (on FAREO Form) within 5 days of referral, if required by Owner.Broker shall inform FAREO of any potential deficiencies, including but not limited to those items enumerated in paragraphs 1 and 2 above.
4.The property will not be shown to prospective purchasers until health and safety violations are cured, unless otherwise instructed.
B.Take interior/exterior photographs upon gaining access to the property.The photographs shall include debris and any personal property left behind.Broker will also take a written inventory of any personal items with a witness.This inventory along with photographs will be submitted to FAREO.Broker agrees to adhere to any state and local laws governing the storage and removal of any personal items.
C.Obtain bids, if it is deemed necessary, to board and secure the premises.Boarding will only be done with FAREO approval.
D.Notify Utility and any other service companies to initiate service in Broker’s name, (addressing invoice to FAREO), within 24 hours of request.Broker shall be physically present on the premises during the time any utility service is being initiated on the premises.
E.Submit Monthly Status Reports on FAREO forms to be received every 30 days, or as otherwise requested by FAREO, for the prior month or as otherwise requested by FAREO.Failure to submit status reports in a timely manner may constitute grounds for termination of a listing, and/or jeopardize future referrals.
F.Do not permit occupancy without FAREO’s prior written consent.
G.Negotiate with occupants to surrender the premises pursuant to any relocation assistance program which FAREO may offer during the listing, if the property is occupied upon assignment, and only after prior written approval by FAREO.
H.Re-key vacant properties within 48 hours, unless otherwise required by law.
I.Keep listed properties in clean and presentable condition during the listing period, (debris removed, lawns mowed, snow removed, etc.), the cost of which is to be approved by FAREO.Reimbursement and/or payment of services will be coordinated through the Broker.
J.All thermostats need to be set at 55 degrees in the winter and 78 degrees in the summer.The Broker shall have a licensed and bonded plumber winterize the property upon FAREO bid approval, at least 30 days prior to freezing temperatures.Broker will be responsible for any damage resulting from failure to ensure property winterization is completed.
K.Provide invoices to FAREO (on FAREO Payment Request Form), received by Broker for approved work immediately upon receipt.The Payment Request Form should be signed by Broker signifying work has been completed as billed and the quality of said work is acceptable.Attach invoice to substantiate the expenses and any payments made by Broker.Invoices must include the contractor’s W-9 with their Tax ID# and proof of any payment made by the Broker.Any bill not submitted within 30 days will become the expense of Broker, (this includes final utility bills, which must be received within 30 days of closing).
L.Submit a Brokers Price Opinion, (BPO), within 3 days of access.Broker shall not provide a misleading value in an attempt to obtain a listing from FAREO.The BPO must include:
1.Typed original and one copy, with and As-Is, Repaired and Quick Sale values.
2.One set of interior and exterior photographs, including a concentration of any necessary repairs, mounted on legal sized paper with descriptive labeling (Digital photos are acceptable as a jpg. images.Please label each photo.)
3.Repair bids when requested on FAREO Repair Bid Form, unless otherwise stipulated by Owner.One bid is required for repairs under $1,000, 2 bids are required for repairs up to $10,000 and 3 bids for repairs in excess of $10,000.FAREO must agree in advance for any fees charged by contractors for bids.
Broker will proceed with repairs only when given written approval by FAREO.The Broker agrees to monitor the work so the same is performed in a workmanlike manner within a reasonable period of time.
4.Broker further agrees to obtain bids only from licensed, insured and bonded contractors.
5.Send photographs before and after repairs are completed.Expenditures for repairs not authorized by FAREO will not be reimbursed.
6.Locator map showing subject and comps used on one page (8 1/2 x 11 or 8 1/2 x 14)
7.MLS Printout
M.In the event of an emergency and after diligent effort by Broker to reach FAREO, the Broker is authorized to take any prudent actions to maintain essential services, to prevent personal injury, loss of life or significant damage to property.Broker agrees to notify FAREO within one business day of such actions.
N.Present all written offers upon receipt via www.ReoSource.com .(Entire contracts are not to be faxed).No offer shall be deemed accepted in the absence of writing by FAREO and/or the Owner.
O.Attach the FAREO “As Is” Addendum to all accepted Sales Contracts.The Broker will reference the attachment in the body of the purchase and sale agreement by adding the following: “See attached addendum, which is incorporated herein by this reference.”
P.Maintain a separate escrow account for the client’s funds.
III.Offer Acceptance:
Broker agrees to inform any prospective Purchaser that the Seller reserves the right to accept or reject any and all offers, to waive any technical or formal defects or any informality in the offers, to recommend the acceptance of an offer other than the highest offer, or to negotiate further with one or more prospective purchasers in its sole and absolute discretion.
Sales are not deemed accepted until the Contract of Sale has been duly executed.
IV.Commissions:
Except as set forth in paragraph I. A., FAREO agrees to pay Broker and the co-operating brokerage firm, if applicable, a sales commission for any consummated sale resulting from a written offer.The amount of the commission will be set forth in the Property Referral Form, (less and except the agreed upon referral fee if any), and is payable at the time of closing.The Commission is not deemed payable until the passage of title and purchase price has been paid in full regardless of a default by either party to the contract, unmarketable title or any other reason preventing the closing of the transaction.
FAREO shall receive at closing a referral fee as set forth on the Property Referral Form.This referral fee is computed as a percentage of the Listing Broker’s commission unless arrangements have been made to the contrary.The obligation for payment of this fee shall survive any transfer of servicing or ownership of the asset and shall be payable to FAREO only.
Sales contracts submitted pursuant to an accepted offer shall state that commissions are to be paid only to the Brokers named therein.No payments of commissions will be made which are contrary to local laws.Commissions will only be paid to licensed real estate brokers/agents or licensed attorneys qualified to do business in the state in which the property is located.Commission shall be inclusive of all Broker related expenses pertaining to the listing of property such as; Company transaction fees, MLS fees, Transaction and/or transfer fees or taxes.
V.Independent Contractor:
FAREO HAS ENGAGED THE BROKER, AND/OR ITS AGENTS AS AN INDEPENDENT CONTRACTOR, NOT AS AN EMPLOYEE OF FAREO.
VI.Representations and Warranties:
FAREO makes no representations or warranties as to the condition or habitability of the properties.
VII.Correspondence and Communication:
All communication and correspondence shall be to FAREO only and not to the Owner of record.Any exception, unless approved by FAREO, will constitute grounds for termination of this Agreement.All paperwork submitted to FAREO shall be completed in an accurate and honest manner.
VIII.Non-Discrimination:
Broker hereby understands and agrees that it is unlawful to discriminate on the basis of race, creed, color, sex, national origin or marital status.
IX.Relationship Identification:
Employees, subcontractors, agents, relatives or any affiliated persons of Broker are prohibited from purchasing a property governed under this agreement, unless FAREO has been informed of said relationship and has agreed in writing to said relationship prior to negotiating an offer.
X.Indemnification:
The Broker agrees that it will indemnify, defend and hold FAREO, its offers, directors, employees, agents, affiliates and assigns, harmless from all suits, claims, expenses, losses, costs, liabilities and damages (including reasonable attorneys’ fees and expenses) alleged, incurred or suffered by FAREO arising from, in connection with or as a result of (a) any false or inaccurate representation or warranty made by the Broker in or pursuant to this Agreement, or (b) any default or breach in the performance of any of the covenants responsibilities or agreements made by the Broker in this Agreement.The indemnification provided by the Broker herein shall survive the termination or cancellation of the Agreement
XI.Due Diligence
Broker agrees to exercise due diligence.
XII.Entire Agreement:
This Master Listing Agreement constitutes the entire contract between the parties, and any prior agreements pertaining hereto, whether oral or written, have been merged and integrated into this Agreement, provided, however, that nothing contained herein shall prohibit Broker or FAREO, on behalf of Owner, from entering into additional agreements for the performance of services not covered by this Agreement.
XIII.Terms and Cancellation:
This Master Listing Agreement shall commence on the date hereof and shall terminate as to any listed property or all properties, with or without cause, five (5) days after written notice of cancellation is given by either party to the other party.
XIV.Notices:
Any notice required or permitted to be given pursuant to this Agreement shall be deemed given upon the earlier to occur of the following: (a) actual delivery of such notice to the intended recipient thereof, or (b) three (3) days after deposit of such notice in a postal receptacle under the custody and control of the U.S. Postal Service, first class postage pre-paid, specifying delivery by certified mail, return receipt requested, properly addressed to the intended recipient thereof at the address set forth at the end of this Agreement.
XV.Governing Law:
This Agreement is made under the laws of the State of Colorado and any disputes arising hereunder this Agreement shall be governed by the laws of the State of Colorado.
First American REO Servicing
700 17th Street, Suite #LL100
Denver, Colorado 80202
(303) 629-8766