Carver Communications - Index

Carver Communications - 11.1.08 - Index

September 16th through
September 25th marked the dates of the
third quarter Town Hall Meeting series.
The series began with the
Broker/Manager meeting at the Norris
conference center where there was
standing room only. Many important
topics were discussed including the
topic for the rest of the Town Hall meetings,
“Writing an Offer on a Corporate
Property can be Tricky.” Barbara
Johnston from Phyllis Browning
Company gave the presentation in light
of the AT&T move and its impact on the
real estate business in San Antonio.
Barbara began each presentation
by referencing six important points to
keep in mind when writing a contract
on a third party relocation company
property. First, the seller is the third
party relocation company. The transferee’s
name cannot appear anywhere
on the contract since the relocation
company is the party who will close the
sale.
Second, the third party relocation
company cannot verify the accuracy of
By Bob Leonard
Chairman, San Antonio Board of REALTORS®
Selling Relocation Properties
a previous survey because the relocation
company has not lived in, or in
many cases, even seen the property
which they are selling. For them to verify
accuracy could be a serious liability
if any information was missing or procedures
were not done properly.
Additionally, the relocation company
will not accept an option for
repairs. This section of the addendum
must be crossed out. The Corporate
Addendum specifies inspection options
and how repairs must be handled.
Fourth, the third party relocation
company requires a pre-qualification
letter on the buyer. This letter must be
printed on the bank letterhead and must
state that the buyer has enough money.
The relocation company must address
credit-worthiness and will not negotiate
without this letter. In addition to the
letter, a credit report on the buyer must
be obtained.
Barbara explained that some relocation
companies allow for mediation
and others do not, so be prepared for a
counter offer. She went on to say that
November 1, 2008 REAL ESTATE NEWSLINE 3
the relocation company will not accept
a contract contingent on the sale of
another property but that it would; however,
accept a contract contingent on the
close of a property. As the third party
representative, you must provide a copy
of the contract and pre-qualification letter
on the buyer’s buyer to do this.
In further explaining relocation
properties, Barbara stated that most
relocation properties are priced well
and that most of the extensive paperwork
involved is for protection. Most
corporate relocation companies have
standard forms they use for all properties
nation-wide, so the forms and
addendum may have to be modified to
accommodate the laws and regulations
mandated by each state. She went on to
say that if you mention this bit of information
to your client before you begin
the process, they are more likely to
remain patient and understand that the
process may take longer than a normal
sale or purchase of a home.
Throughout Barbara’s presentation,
she referenced several contracts
that are used in the process of handling
a corporate relocation property. One
form is the “Addendum to Contract of
Sale” that all relocation contracts will
contain. There may be slight wording
differences between relocation companies,
but overall it specifies conditions
of the relocation company. This
includes how repairs are to be handled,
which are typically done by the buyer at
the buyer’s expense, and it also details
the number of pages to sign in the con-
tract. The buyer’s initials must appear
on every page of the Corporate
Addendum. This way, if there is a dispute,
the argument from the buyer that
he or she did not see every page cannot
be used.
Barbara explained there are benefits
the transferee has when deciding to
make a corporate relocation move. The
transferee can receive a buyout from the
company if he or she is not able to sell
the house in a certain amount of days.
Most corporations do not want to buy
properties, but if they must, they have
two appraisals done and average them
together. The transferee can then
vacate the house and move on and the
property becomes inventory. Typically,
the transferee is given 30 to 90 days to
market the house and make a sale, but
after that time, he or she can then
accept the buyout conditions. Most
Fortune 1000 companies do not do buyouts
themselves, but instead outsource
the properties to relocation companies
such as EDS, Altar, Prudential, etc.
Overall, there was an 80% acceptance
rate for the AT&T relocation, but
not all of the people who accepted the
offer will sell their homes. Barbara
speculates that it will take around a
year to sell all of the inventory from
this relocation.
For more information about handling
relocation properties, please visit
www.sabor.com and click on the article
titled “Town Hall Materials.”