I got a lot of compliments on my previous “dagnabbit” so I decided to try to continue this series. This time it is surrounding working with For Sale By Owner (FSBO) or For Lease By Owner (FLBO).
I guess it might be the lack of inventory, but I’m seeing more and more questions arise when our agents are working with clients that eventually find a FSBO/FLBO. The question that comes up is what paperwork do we need?
Here’s a good staring list:
1. REGISTRATION BETWEEN BROKER AND OWNER. This TAR form 2401 is available on ZipForms and MyTransactions and is more commonly known as a One-time Showing Agreement. What this form provides is important:
- Approval to present an offer and compensation agreement
- Determination of representation. Does the owner want to be represented or do they just want you to represent the prospect?
- Approval of Intermediary in the event that they do want representation
2. IABS – This form is presented to anyone where we are going to be involved.
3. SELLERS DISCLOSURE & ADDENDUMS – Seller must complete all the required disclosures for presentation to the prospect.
In the even that the owner does not want representation, then you need to state in Special Provisions of the Contract or Lease that “Owner has declined representation and Keller Williams represents the buyer/tenant only.” In the event that he does want representation then you will need to include a Notice of Intermediary and make sure you have a Buyer/Tenant Representation Agreement signed with your prospect to insure that they have approved Intermediary in writing.
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