The Savvy Home Buyer's Guide by Sommer Cronck, REALTOR

The Savvy Home Buyer’s Guide

Office (360) 647-8049 | Cell (360) 389-1671 sommerc@remax.net ▪ BestBellinghamHomes.com

Welcome

realize that you have a choice when choosing an agent to help you buy a home and truly appreciate the opportunity to present my approach to real estate. As your agent, I am here to support you in finding the right home with the best possible terms, and to assist you through the entire process.

Iâ&#x20AC;&#x2122;ve put together this guide to help you understand more about me and what itâ&#x20AC;&#x2122;s like to buy a house. The information in this booklet will familiarize you with the various activities, documents and procedures that you will be experiencing while purchasing your home. I look forward to working with you. Sincerely,

Sommer Cronck, REALTORÂŽ

Table of Contents Sommer Cronck, REALTOR®

My Clients Say it Best... Testimonials

RE/MAX vs. the Industry 2016

Shared Expectations

The Agent/Client Relationship

The Home Buying Process

Mortgage Pre-Approval

Breaking Down Your Credit Score

Loan Application Checklist

Credit Dos and DON’Ts

Buyer’s Purchasing Power

Home Buying Cost Considerations

Shopping for Your Home

Special Considerations

What are Your Concerns? Worksheet

The House Hunting Checklist Worksheet

Making Offers & Negotiating

Home Inspections

Moving Timeline

Real Estate Terminology

REALTOR® Code of Ethics

The Law of Real Estate Agency

SAMPLE Purchase & Sale Agreement

SAMPLE Financing Addendum

SAMPLE Inspection Addendum

Thank You

Sommer Cronck, REALTOR ® I am an independent broker with RE/MAX Whatcom County, Inc in Bellingham, WA. I am a graduate of the University of Pittsburgh, where I received a BA in French with a minor in Architectural Studies. I have a very natural affinity for technology and design so after graduation, I actually started my career working in the tech industry as a Systems Administrator with the University of Pittsburgh. Soon after, however, love brought me to the Pacific Northwest and I settled in Bellingham in 2000. I continued to pursue my tech and marketing career, having first worked for a local internet service provider and then launching my own web and graphic design business in early 2004. After many years of self-employment, I opted to return to the traditional workforce where I became the Marketing Coordinator for Bellingham Whatcom County Tourism. This opportunity fueled my passion for marketing as well as my deep love of Bellingham, Whatcom County and the Pacific Northwest. From there I moved on to become the Executive Director of the Technology Alliance Group for Northwest Washington (TAG) where I led the effort in growing our local tech industry. I grew the organization substantially in my tenure as Executive Director. Eventually, I decided to change gears to focus on a long-standing dream of mine - real estate. I became a broker in 2015 and have never felt more “at home” in my career as I do now. My 20-year experience in marketing, technology and leadership has allowed me to fall naturally into place as a real estate professional and my now extensive local network serves me and my clients well. My unique blend of passion and skills are put to work every day - for you - as I market, network, negotiate, and navigate to bring you the best offer for your home. From there, my organizational abilities and attention to detail ensure that we move through to closing as smoothly as possible. Outside of my real estate career, I am a mom to four beautiful children; I have two daughters and twin sons. My Canadian-born husband and I live in the Sudden Valley community where we enjoy the outdoors and family time. I am a member of the American Association of University Women and Mensa, as well as a boater, a seamstress, and a really terrible singer.

Reasons to Choose Me as your REALTOR ® Here are just a few of the many reasons I stand out as a REALTOR® and why you can trust me in assisting you with the purchase of your home: Dedication: I am a dedicated, hard-working professional with a balance of strong work and family ethics. Quality: The quality of my work is important to my clients – and me. I will ensure that you receive the best care possible when trusting me with the purchase of your home. Diligence: You and finding and closing on your new home are my priority and I will work diligently to get you the best possible price and terms. Communication: I will provide you with information and resources every step of the way so you’re never left wondering the status of a deal or where things are at in a process. Network: My extensive network of associate agents and industry professionals as well as my own personal network enable to me to provide you with a vast array of resources. Technology: I have over 20 years of professional tech experience and leverage these skills in assisting you with your home search – you can even sign contracts electronically from the comfort of your home. Loyal: My clients are my business. I know that by treating you with care and respect and providing you with my loyalty, we will both be set up for success. Fun: I am a fun, energetic person and promise to help offset those major moments with levity and optimism. I aim to close every deal with a smile! You can learn more about me at: ● Zillow – www.zillow.com/profile/SommerCronck ● FaceBook – www.facebook.com/BestBellinghamHomes ● LinkedIn – www.linkedin.com/in/SommerCronck Sommer Cronck, REALTOR® | 360-647-8049 | BESTBELLINGHAMHOMES.COM

My Clients Say it Best... I loved working with Sommer, both face-to-face and long-distance once I returned to Wyoming. Throughout the negotiations, at times when I felt it was getting tough, Sommer kept her calm and just helped me navigate all the paperwork smoothly and without stress. I would highly recommend Sommer if you are buying or selling real estate in or near Bellingham. Working with her made it a breeze.

We can't even imagine buying our first home without Sommer's help. She was willing to explain everything, was easy to get a hold of and talk to, and knew a lot about the area and about what was a good fit for us. We highly recommend Sommer.

- Adam & Diana L.

- Clara V.

Sommer was awesome through the whole process. She took the time to make sure that we knew exactly what we were looking at and getting into. Sommer is kind, thoughtful, honest and trustworthy. We live out of state so someone who communicates well was key to us. Sommer went over and above many, many times for us and we can honestly say that we could not have taken this big step with without her helping and guiding us along the way. I canâ&#x20AC;&#x2122;t say enough good things about her and could go on and on. We will ALWAYS us Sommer when buying or selling a house.

- Jenna & Eric W.

Sommer was great! She is a doer and gets tasks done. I had lots of questions through the process and she took her time making me feel comfortable and confident with her knowledge. She always provided additional information for all my concerns.

- Coby J.

From the moment we met Sommer we knew we had found a highly competent and welcoming professional. She has an impressive array of skills in marketing and a vigorous work ethic. Coming from Texas and having to return before completion of sale created a challenge that she basically eliminated because of her responsiveness, great communication and organizational skills. She also made us feel part of the community right away. A really great realtor !

- Elaine & Mark C.

Sommer was a fantastic agent. She met our needs in everyway. She communicates via phone, text, even messenger! Her sense of humor got us through the nerve wracking parts of selling and buying.

- Cassi & Caleb E. 6

Sommer Cronck, REALTORÂŽ | 360-647-8049 | BESTBELLINGHAMHOMES.COM

2017

RE/MAX VS. THE INDUSTRY

Productive, high-quality agents. Over 1 million U.S. transactions. A brand people know. And an unmatched global presence. You have all sorts of reasons to choose RE/MAX.

TRANSACTION SIDES PER AGENT

U.S. RESIDENTIAL TRANSACTION SIDES2

BRAND AWARENESS (UNAIDED)3

COUNTRIES & TERRITORIES

OFFICES WORLDWIDE

AGENTS WORLDWIDE

17.2

1 million+

27.6%

100+

7,343

111,915

11.0

Not released

0.5%

500

8,000

9.2

Not released

4.3%

1,240

42,747

8.4

727,415

14.2%

3,000

88,400

8.2

420,184

19.7%

7,300

110,800

8.2

128,812

1.1%

2,300

37,900

6.9

70,980

0.6%

300

10,900

6.8

977,603

7.3%

800

154,979

6.5

111,950

2.1%

850

20,300

LARGE BROKERAGES ONLY1

©2017 RE/MAX, LLC. Each office independently owned and operated. Data is full-year or as of year-end 2016, as applicable. Except as noted, Coldwell Banker, Century 21, ERA, Sotheby’s and Better Homes and Gardens data is as reported by Realogy Corporation on SEC 10-K, Annual Report for 2016; Keller Williams, Realty Executives and Berkshire Hathaway HomeServices data is from company websites and industry reports. ¹Transaction sides per agent calculated by RE/MAX based on 2017 REAL Trends 500 data, citing 2016 transaction sides for the 1,705 largest participating U.S. brokerages. Coldwell Banker includes NRT. Berkshire does not include HomeServices of America. ²Keller Williams reports all transaction sides and does not itemize U.S. residential transactions. ³MMR Strategy Group study of unaided awareness among buyers, sellers, and those planning to buy or sell; asked, when they think of real estate brands, which ones come to mind? 17_166094

Sommer Cronck, REALTOR® | 360-647-8049 | BESTBELLINGHAMHOMES.COM

Shared Expectations

AVAILABILITY

Monday through Friday: 9 AM – 6 PM We will both work on researching properties that may fit your criteria and in many cases, it will be you who learns of the property Weekends by Appointment Only first through automated MLS search results or other means. I will be primarily responsible for researching, negotiating, and closing. You will be primarily responsible for reviewing and responding to information to keep the process moving forward. Below is an outline of each of our responsibilities along the way:

Agent

Client

Provide a preliminary Market Report

Drive neighborhoods

Provide automated MLS search results via email

Review listings; drive by ASAP

Utilize my extensive Agent network Answer questions and provide resources Arrange property showings Check on FSBOs you inquire about Draft and negotiate Purchase & Sale Agreement Review inspection report(s) Negotiate work orders Provide appraiser access

Attend open houses Search listings online and in print Research FSBOs Review counteroffers and promptly respond Attend inspection(s) Promptly sign lender’s documents Provide info requested in a timely manner Inspect work orders Be accessible to sign

Review closing documents

Sommer Cronck, REALTOR® | 360-647-8049 | BESTBELLINGHAMHOMES.COM

The Agent/Client Relationship

I earn my living selling real estate. I receive no wage or salary. I am paid a commission by the seller at the time your home closes. All expenses are paid solely by me in advance. The commission reimburses me for my time and expenses. My business philosophy is: To provide the best possible service to you, my client(s). While you are looking for a home, my time and expertise are yours. I believe that by providing you with timely, honest and reliable service, my income and needs will take care of themselves. I strive to provide a level of service that will make you proud to recommend me to your family, friends and associates. In return, I ask the following of you: To work with me as your Real Estate Agent To contact me about information on any property of interest that you see or that is brought to your attention, including “for sale by owner” properties If you visit any open houses, let the host know that you are working with me If any other Agent offers you information on homes that may be of interest to you, please ask them to pass the information on to me Do not negotiate without my presence Speak with me the moment a concern arises; let me answer your questions The highest compliment you can give to me is to recommend me to your family, friends and associates

Thank you for choosing me to help with the purchase of your new home! Sommer Cronck, REALTOR® | 360-647-8049 | BESTBELLINGHAMHOMES.COM

Sommer Cronck, REALTOR® | 360-647-8049 | BESTBELLINGHAMHOMES.COM

Office 360.647.8049 Cell 360.389.1671 sommerc@remax.net BestBellinghamHomes.com License # 121632

REALTOR® RE/MAX WHATCOM COUNTY, INC.

Sommer Cronck

Mortgage Pre-Approval In order to start your home search, you’re going to need to be prequalified with a lender. This allows you to figure out which loan programs you qualify for that suit your needs, and your home buying budget. It’s no fun to find your “ideal home” and then find out you can’t afford it! Your lender will provide you with a pre-approval letter that will be included with any offers to purchase that you make. This shows a seller

that you are able to purchase the home you’re offering to buy and gives you an advantage over buyers who have yet to verify their purchasing power. Typically, we won’t show homes until pre-approval is established, so no buyers, sellers, or agents waste their time. If you are a first-time buyer, you may be able to qualify for a special firsttime buyer program which may allow

you to afford more home for your money. If you feel you would like and can afford a higher mortgage payment but are not able to meet qualifications, co-mortgagor financing may be made available to you. I am happy to work with you and guide you through this pre-approval proccess. All I ask for in return is your loyalty.

Recommended Lenders Bank of the Pacific

Christy Sorenson

AVP Real Estate Loan Officer

CSorenson@BankofthePacific.com (360) 756-2772 Direct (360) 319-8659 Cell 4124 Hannegan Road Bellingham, WA 98226

UMPQUA Bank

Lena Shammel

Mortgage Loan Officer

lenashammel@umpquabank.com (360) 937-0961 Office (360) 920-4339 Cell 3102 Newmarket Street Bellingham, WA 98226

Sommer Cronck, REALTOR® | 360-647-8049 | BESTBELLINGHAMHOMES.COM

Breaking down your

credit Score [According to FICO’s model. Learn more at myfico.com]

Your Credit Score is determined by 5 factors of differing importance:

35% 10% 10%

30% 15%

35% PAYMENT HISTORY How often do you pay your accounts on time?

15% LENGTH OF HISTORY How long have you had credit history?

10% TYPES OF

Late payments may lead to a lower score.

A longer history of responsible credit use will likely lead to a higher score.

Do you have more than one credit line?

30% AMOUNTS OWED How much of your total credit have you used?

10% NEW CREDIT Have you opened new credit lines lately?

Less is more! Lowering debt can be the key to a better credit score.

Opening several accounts in a short time can lower your credit score.

Having experience with different types of credit [e.g., a car loan and a credit card] can help your score.

CREDIT USED

MORE CREDIT SCORE FACTS REVEALED: D

1 23 IT C A R 4 56 7 89 D 10

CRE

691

18 YEARS is the average consumer’s oldest open credit line.

300

[FICO Score Trends Service]

850

300- 850 is the range of credit scores. 691 is the average National Credit Score

57%

[FINRA Investor Education Foundation] [FICO Score Trends Service]

T D I 567 RE 4

89 R 10 D

56 7

[Student Monitor LLC Survey]

What’s your credit limit?

CR E

20% OR LESS

CRED IT CAR D 1 234 567 CA RD 8910 CR ED ITRD 0 CA567IT891 234 CA RD CR ED1ITCR ED 0 DD 567 891 A R R8910 1 234 1 234C567 A10 10 IT E D 7 C89 89 C R 234 5D6I T 567 E 4 1 C R 23 23 4

AMERICANS (33%) haven’t viewed their credit score in THE PAST YEAR.

OPEN CREDIT CARDS is the average per consumer.

of College Students don’t know their credit score.

144 MILLION

RD C A 8910

74%

Using more than 20% of your credit limit may lower your credit score. EXAMPLE

USE $10,000 OR LESS.

$50,000 credit limit

[creditcards.com]

47% of men

of women

said it was important to know a partner’s credit score before getting seriously involved. [Creditcards.com 2013 Survey]

The percent your age, race, income or job title impact your credit score. [myfico.com]

Your friends at

MGIC

www.mgic.com 15-51263 1/16

BROUGHT TO YOU BY:

This infographic has been brought to you by your friends at

MGIC!

Loan Application Checklist General Picture ID with social security number of borrower and coborrowers Payment to cover the application fee (confirm with Lender) Name and complete address of all landlords for the past two years

Income Employment history for the past two years including names, addresses, phone numbers, and length of time with company Copies of your most recent pay stubs and W-2 forms (past two years) Verification of other income (social security, child support, retirement) If self-employed, you need copies of the past two years signed tax returns including all schedules, and a signed profit and loss statement of the current year Retirees need tax returns for the past two years

If you have rental property income, bring a copy of all lease agreements

Assets Copies of all bank and credit union statements for the past three months Copies of all stock/bond certificates and/or the past three statements from all investment and retirement accounts Prepare a list of household items and their values Copies of title documents for all automobiles, boats, motorcycles, etc. Face amount, monthly premiums and cash values of all life insurance policies (Cash value may be used for closing costs or down payments. You need documentation from the carrier indicating cash value.)

Creditors Credit card account numbers, current balances, and monthly payment amounts

Installment loan (car, student, etc.) account numbers, current balances, and monthly payment amounts Mortgage loan property address, lender with address, account numbers, monthly payment and balance owed on all properties presently owned or sold within the last two years. Bring proof of sale of properties sold. Child care expense/support name, address, and phone number

Other Bankruptcy: bring discharge and schedule of creditors Adverse Credit: bring letters of explanation Divorce: bring Divorce Decrees, property settlements, quit claim deeds, modifications, etc. for all divorces by yourself or your spouse VA: bring Form DD214 and Certificate of Eligibility Retirees: bring retirement and/or Social Security Award Letter

Sommer Cronck, REALTORÂŽ | 360-647-8049 | BESTBELLINGHAMHOMES.COM

Credit DOs and DON’Ts These tips don’t encompass everything a borrower can do prior to and after the Pre-Approval process, however they’re a good representation of the things most likely to help or hurt an approval.

DO... 1

more leverage than a competing Buyer who is only pre-qualified.

Know your credit score. Whether

seeking mortgage pre-approval or not, it’s always a good idea to know where you stand creditwise. Better credit results in better loan terms. If your score is low, you might want to work on raising it before meeting with a Lender.

3 Have financial records handy.

4 Stay current on financial obligations.

2 Get pre-approved for a loan. .

Preapproval is a written guarantee by a Lender to grant you a loan up to a specified amount. Being pre-approved ensures you are offering on homes that are within your price range and will give you

DON’T...

This includes all of your pay-stubs, bank statements and other important financial documents that you’ll need to provide to the Lender. Continue to make timely payment on all current debts, including any mortgage, car, student loan or credit cards.

5 Practice good spending habits.

It’s extremely important to have enough money saved up when buying a home. There will be the

1 Quit or change your job.

. Job stability is key to your loan approval. Stay in your present position until your purchase is closed, if possible. If you do get offered a job that pays more, you can probably still get your loan approved, but you will have to jump through more hoops.

2 Make any large purchases.

These should be postponed until after you move into your new home. Large purchases such as a new car, furniture or appliances can set off red flags and your lender may worry you won’t have money when you need it.

3 Open new credit accounts.

Opening a new credit card or taking out a new loan adds an additional inquiry to your score, and it may change the mix of credit types within your report (i.e. credit cards, student loans, etc). Both of these can have a negative impact on your score, and could result in a denial.

4 Close, pay off, or consolidate any credit accounts.

The reverse of the previous item is also true. Closing accounts can have a negative impact on your score by decreasing your credit capacity which accounts for 30% of your score. Consult your loan professional prior to paying off any accounts.

5 Open a new cell phone account.

Cell phone companies pull your credit when you open a new account. If you’re on the border credit-wise, that inquiry could drop your score enough to have a negative impact. Sommer Cronck, REALTOR® | 360-647-8049 | BESTBELLINGHAMHOMES.COM

down payment, closing costs, third party fees and general costs that come with moving into a new home that are not mortgage related. Accounting for these costs ensures that you do not buy a house that is beyond your financial means. Did you know that a pre-approved loan can later get denied for funding? If the time from the original credit report to funding is greater than 60 days, borrowers should anticipate a new credit report being pulled. New findings can have a negative impact and cause a subsequently approved loan to be denied.

Buyer’s Purchasing Power DID YOU KNOW? As mortgage rates increase, your buying power decreases. Look at how much a monthly mortgage payment is affected by rate changes.

Sommer Cronck, REALTOR® | 360-647-8049 | BESTBELLINGHAMHOMES.COM

Home Buying Cost Considerations You’ve worked with your Lender and have your mortgage pre-approval and have figured out your down payment and loan fees. But that’s not all you will need to close on your new home. Other services you’ll need to budget for include:

REALTOR® Retainer Fee

$500

Earnest Money

Approximately 1% of offer price

Home Inspection

$300 - 500

Closing Costs

Approximately 2-5% of purchase price

“Problem” Fee

$200

What are Closing Costs?

Closing costs are fees associated at the closing of a real estate transaction. The closing point is when the title of the property is transferred from the seller to the buyer. Closing costs are incurred by either the buyer or seller.

What charges go into your total closing costs? They often include things such as:

mortgages or tax liens on the property. Escrow deposit, which may pay for a couple months’ property taxes and private mortgage insurance. Fees for any inspections that may be required by the lender. Recording fee, which is paid to a city or county in exchange for recording the new land records. Underwriting fee, which covers the cost of evaluating a mortgage loan application.

A fee for running your credit report. A loan origination fee, which lenders charge for processing the loan paperwork for you. Discount points, which are fees you pay in exchange for a lower interest rate. Appraisal fee. Title insurance, which protects the lender in case the title isn’t clean.

Title search fees, which pay for a background check on the title to make sure there aren’t things such as unpaid

Sommer Cronck, REALTOR® | 360-647-8049 | BESTBELLINGHAMHOMES.COM

How much are closing costs?

Typically, home buyers will pay between about 2 to 5 percent of the purchase price of their home in closing fees. So, if your home cost $150,000, you might pay between $3,000 and $7,500 in closing costs. On average, buyers pay roughly $3,700 in closing fees, according to a recent survey.

Moving Costs

Moving into a home can involve major expenses for packing, storing and transporting your possessions and yourself. If you are moving across the country, the costs could be significant. Even moving across town can cost more than you planned for truck rental, movers and equipment.

New Stuff

You may need to purchase appliances or furniture for your new home. Some items, like your old particle board bookshelves, may not be worth the cost of moving. Again, if you are sizing up, you face the potentially fun, but possibly financially draining, challenge of filling the new place.

Shopping for Your Home The Multiple Listing Service (MLS)

Listing Alerts

The MLS is a dynamic database of properties on the market in any given area, and the full data access is only available to licensed real estate professionals. The MLS is the first place a buyer’s agent will go to search for a home for their client. The MLS has the most updated information about a property for sale, before any other website or database.

We will talk about all of the needs/ wants in your new home, then we will set you up on MLS listing alerts. These alerts will give you instant notification the second a new home is listed. This way you and I can work TOGETHER to find your new home.

DID YOU KNOW? The average buyer looks at eight (8) properties before finding the right one. The most important key to finding the right home is your FEEDBACK.

A Note About Those Other Websites... There are literally hundreds of sources on the Internet buyers can use to look for homes. The most important thing to know about these sites is that they aggregate the data from the MLS. This means that the MLS has the data first, and those other sites get updates based on their schedule, which could be within hours... or sometimes days. Don’t hesitate to tell me if you see something on some other website that we haven’t found, and I will research it on the MLS to get the most accurate and current data on the property.

The “Big Three” Fireplace Fenced Yard Walk-In Closet Vaulted Ceilings Formal Dining Room Daylight Basement Hardwood Floors Jetted Bath Tub Pantry

When conducting your home search, keep in mind that a home that matches your dream features, location and price will be a rare find. Be ready and willing to make some concessions in one of these three areas. For instance, you might need to pay more for the home in the perfect location with the perfect features or you might need to buy in a second or third choice location to ensure you get the price and the features you want.

FEATURES

LOCATION

City Limits Near Parks Close to Work Walk to Shopping Specific School District Preferred Community Near Recreation Water Views On Bus Line

PRICE $$$

Sommer Cronck, REALTOR® | 360-647-8049 | BESTBELLINGHAMHOMES.COM

Special Considerations There are going to be listings we find that seem too good to be true. Chances are, there’s a reason for that tempting price tag. Here’s the truth about some of those homes...

For Sale By Owner If you find a For Sale By Owner home you’re interested in, let me know! Many FSBO sellers are willing to work with and pay a buyers’ agent commission, which allows you to proceed with your home purchase under the care and guidance of a licensed professional. The down side to FSBO sales is that sellers are working without the same professional representation; they often overprice their home (whcih could lead to appraisal problems), may be unwilling to pay a selling agent’s commission, forcing you to pay for your agent or hire an attorney, and they may not fully understand real estate practices and law which can lead to a complicated sale.

Fixer Upper

With some DIY savvy or the time and money to invest in hired professionals, a “fixer upper” can be a great investment! On the flip side, there are definitely fixers to look out for, including those with plumbing, structural, or electrical problems. Many fixers have issues that a lender is not willing to loan on, meaning they can only be purchased with cash.

Foreclosures

The most tempting of all of the “too good to be true” homes for sale, foreclosures are not for the inexperienced or faint of heart. Many foreclosed homeowners cause destruction to their property prior to leaving. Appliances and fixtures may be removed, walls damaged, carpet destroyed, and systems left non-functioning. Really bad cases have been vacated after concrete

Short Sales

Let’s just say that they don’t call them short sales becuase the time to close is short. In fact, most short sales take 6-12 months to finally close. Here are just some of the reasons you may not want to buy a short sale:

Stringent qualifications Home will be sold “As Is” Length of time to close Lenders can change conditions Higher buyer closing costs Little seller motivation Lots of surprises (and not the good kind) Sommer Cronck, REALTOR® | 360-647-8049 | BESTBELLINGHAMHOMES.COM

was poured in toilets and flooding of bathrooms were left to destroy the floors and ceiliings. Of course not all foreclosures are reality TV nightmares, but they are sold completely “As Is” and sellers often never even get the chance to look inside before heading to the auction. Because these homes are sold at auction, you’ll need to know the value of the home up front so as not to overbid, and you’ll need to have cash in hand the day of the sale.

What are Your Concerns? Please review and rank your concerns on the scale from No Concern to Very Concerned.

No Concern

Mildly Concerned

Somewhat Concerned

Concerned

Very Concerned

Obtaining Financing

Down Payment

Closing Costs

Inspection(s)

Utility Costs

Upkeep Costs

Schools

Security / Crime

Neighbors / Neighborhood

Construction

Architecture

Floor Plan

Cleanliness

Storage

Bedrooms / Bathrooms

Kitchen

Family Room

Flooring

Office / Bonus Room

Guest / MIL Suite

Yard Size

Landscaping

Patio

Privacy

Garage

Shop

RV Parking

Homeownerâ&#x20AC;&#x2122;s Association

Other __________________________________________________

Areas of Concern

THE HOUSE HUNTING CHECKLIST Property Address: Price:

Number of Bedrooms:

Number of Bathrooms :

Total Sq. Ft:

NMLS#:

First Impression: Dislike • Like • Love

THE HOME

THE FEATURES

Exterior Condition

Kitchen Appliances

Floorplan

Laundry Appliances

Kitchen

Fireplace

Family Area

Patio/Balcony

Dining Area

Pool

Laundry Room

A/C & Heating System

Master Bedroom

Security

Master Bathroom

Does this house make the short list: No • Maybe • Yes

Extra Bedrooms

Additional notes:

Extra Bathrooms Garage Size Lot

NOTES ABOUT THE NEIGHBORHOOD Appearance: Traffic: Safety/Security : Nearby Schools: Close to:

WORK

SCHOOLS

TRANSPORTATION

SUPERMARKETS

RECREATIONS/PARK

RESTAURANTS

This house won’t work because:

Overall Rating: 1

1937 Lake Whatcom Boulevard, Bellingham, WA 98229 Sommer Cronck, REALTOR® | 360-647-8049 | BESTBELLINGHAMHOMES.COM (360) 647-8049 Office • (360) 389-1671 Mobile sommerc@remax.net • BestBellinghamHomes.com

THE HOUSE HUNTING CHECKLIST Property Address: Price:

Number of Bedrooms:

Number of Bathrooms :

Total Sq. Ft:

NMLS#:

First Impression: Dislike • Like • Love

THE HOME

THE FEATURES

Exterior Condition

Kitchen Appliances

Floorplan

Laundry Appliances

Kitchen

Fireplace

Family Area

Patio/Balcony

Dining Area

Pool

Laundry Room

A/C & Heating System

Master Bedroom

Security

Master Bathroom

Does this house make the short list: No • Maybe • Yes

Extra Bedrooms

Additional notes:

Extra Bathrooms Garage Size Lot

NOTES ABOUT THE NEIGHBORHOOD Appearance: Traffic: Safety/Security : Nearby Schools: Close to:

WORK

SCHOOLS

TRANSPORTATION

SUPERMARKETS

RECREATIONS/PARK

RESTAURANTS

This house won’t work because:

Overall Rating: 1

1937 Lake Whatcom Boulevard, Bellingham, WA 98229 Sommer Cronck, REALTOR® | 360-647-8049 BESTBELLINGHAMHOMES.COM (360) |647-8049 Office • (360) 389-1671 Mobile sommerc@remax.net • BestBellinghamHomes.com

THE HOUSE HUNTING CHECKLIST Property Address: Price:

Number of Bedrooms:

Number of Bathrooms :

Total Sq. Ft:

NMLS#:

First Impression: Dislike • Like • Love

THE HOME

THE FEATURES

Exterior Condition

Kitchen Appliances

Floorplan

Laundry Appliances

Kitchen

Fireplace

Family Area

Patio/Balcony

Dining Area

Pool

Laundry Room

A/C & Heating System

Master Bedroom

Security

Master Bathroom

Does this house make the short list: No • Maybe • Yes

Extra Bedrooms

Additional notes:

Extra Bathrooms Garage Size Lot

NOTES ABOUT THE NEIGHBORHOOD Appearance: Traffic: Safety/Security : Nearby Schools: Close to:

WORK

SCHOOLS

TRANSPORTATION

SUPERMARKETS

RECREATIONS/PARK

RESTAURANTS

This house won’t work because:

Overall Rating: 1

THE HOUSE HUNTING CHECKLIST Property Address: Price:

Number of Bedrooms:

Number of Bathrooms :

Total Sq. Ft:

NMLS#:

First Impression: Dislike • Like • Love

THE HOME

THE FEATURES

Exterior Condition

Kitchen Appliances

Floorplan

Laundry Appliances

Kitchen

Fireplace

Family Area

Patio/Balcony

Dining Area

Pool

Laundry Room

A/C & Heating System

Master Bedroom

Security

Master Bathroom

Does this house make the short list: No • Maybe • Yes

Extra Bedrooms

Additional notes:

Extra Bathrooms Garage Size Lot

NOTES ABOUT THE NEIGHBORHOOD Appearance: Traffic: Safety/Security : Nearby Schools: Close to:

WORK

SCHOOLS

TRANSPORTATION

SUPERMARKETS

RECREATIONS/PARK

RESTAURANTS

This house won’t work because:

Overall Rating: 1

Making Offers & Negotiating r to Preparing the Offe Purchase t, I home you wan d the

When you fin will:

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Sellers’ Obligatieronissaccepted, the seller is free

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Sommer Cronck, REALTOR® | 360-647-8049 | BESTBELLINGHAMHOMES.COM

Home Inspections Congratulatons! Your offer has been accepted and you now have Mutual Agreement. The next step will be your home inspection. A home inspection is a limited, non-invasive examination of the condition of a home. Home inspections are usually conducted by a home inspector who has the training and certifications to perform such inspections. While there are no absolute guarantees when buying a home, the inspection is a crucial step in the process that provides you with detailed information on the homeâ&#x20AC;&#x2122;s conditions and will highlight any potential issues or concerns that may need to be addressed before completing the purchase of the property.

Recommended Inspectors

Sommer Cronck, REALTORÂŽ | 360-647-8049 | BESTBELLINGHAMHOMES.COM

Moving Timeline The inspection and subsequent negotiations are complete. What’s next? As you move towards closing and possession of your new home, you’ll need to be preparing for your big move. Here’s a planning guide to help.

Weeks Before

Begin packing. If you begin packing slowly several weeks, you can avoid trying to pack everything at the last minute, which can be extremely time-consuming and can create undue stress. Do one room at a time over the weeks leading up to your move. Pack the bedroom and a box of kitchen and first-night supplies last.

Make reservations. Call and reserve your moving equipment and schedule your moving helpers, if needed. Transfer services. Call your utility, Internet and cable companies to transfer services to your new home. Notify the appropriate companies of your change of address. Make sure your mail will be going to the right place. Submit a change of address form online or stop by your local post office. Don’t forget to change the address that’s on file with credit card companies, vehicle loans, and insurance agents.

Inspect your house and make any final repairs. The last thing you want to worry about post-move is problems with your old home. Do a final inspection and walk through the entire place to make sure everything is in good working condition.

Days Before

Do laundry. No one wants to move dirty clothes from one place to another. Laundry just becomes an extra task for you after moving into your new home.

Small tasks are easily forgotten when moving. Set important dates and reminders as alerts on your phone or in your calendar.

Put items in storage. If you have large pieces of furniture that will not be going into your new home, and that you don’t plan to sell or give away, rent a storage unit. Now is the time to pack them away.

Weeks Before

Confirm everything. Call and confirm your truck rental and moving help. Make sure they will be where you need them at the right time.

Pack a box with essential items. Most likely, unpacking every box won’t be done by the first night of move-in. Pack a box of essentials such as shampoo, a change of clothes, a toothbrush, clean sheets and a towel, and label this as your “First Night” box. This will eliminate the frustration of digging through boxes when you’re getting ready to go to bed your first night.

Eliminate clutter and get rid of unnecessary items. Consider having a yard sale, donating to charity, or offloading the items online.

MOVING TIP

Cancel local newspapers and other regular deliveries. Switch magazine subscriptions, newspapers, and catalogs to your new address.

MOVING TIP: Purge before packing

Clean your old home. Now that nearly everything is packed and ready to go, you can get your home ready for the new residents. Wipe down the windows, sweep the floors and vacuum the carpets.

oving Day

Energize! Eat a balanced breakfast and have plenty of water and snacks on hand to keep you going. It’s the big day. You’ll be on the go for the better part of it.

Pick up your equipment. Go to the location where you have made your moving truck reservation. Arrive 15 minutes early or check in online to account for potential lines or delays. If you’ve hired a moving crew, make sure everything is ready to go before they arrive. Take care of any children and pets. Whether you’re dropping them off at a babysitter or keeping them busy in another room, make sure you have the proper arrangements ready to go for your children or pets. Make copies. Make copies of moving receipts and statements for future reference and taxes. Or just tuck them away in the pocket of your moving binder. Keep calm and breathe. Remember to take your day one step at a time and allow yourself time to take a break if needed. Keep yourself hydrated and have a positive attitude. This will make sure your move runs smoothly.

Sommer Cronck, REALTOR® | 360-647-8049 | BESTBELLINGHAMHOMES.COM

Real Estate Terminology

Adjustable Rate Mortgage (ARM) — The interest rate is tied to a financial index making the monthly mortgage payment go up or down over time. Annual Percentage Rate (APR) — The percent of interest that will be charged on a home loan. Appraisal — A report highlighting the estimated value of the property completed by a qualified 3rd party. This is typically done for the benefit of the buyer to ensure the property is worth what they are paying. Association Fee/HOA Fee — In addition to a mortgage, certain housing communities such as townhomes have a monthly fee associated with maintaining the common areas and ameni-ties. Balloon Mortgage — A long-term mortgage loan that starts small but has a large payment due at maturity. Closing — This is the final meeting where the buyer and seller sign the necessary paper-work, complete the transaction, and release/take possession

of the property. Usually the representing agents and attorneys attend. Closing Costs — The buyer and seller have expenses associated with the transaction other than that of the actual cost of the home. For example, the buyer has a variety of fees due for obtaining a new loan and the seller must pay commission to both agents. Closing Disclosure — A form that provides the final details about the mortgage loan. It in-cludes loan terms, projected monthly payments, and how much the extra fees will be. Collateral — Something of value (in this case your home) that is held to ensure repayment of a mortgage or loan.

Contingencies — Conditions which must be met in order to close. Contingencies are typically tied to a date, referred to as a deadline. If the contingency is not satisfied the contract may be canceled. Counteroffer — The response from the seller in regard to an offer. Debt to Income Ratio — A lender will look at a borrowers debt versus income to determine the amount of loan they are eligible for and if they can repay their debt plus the home loan. Down payment — A percent of the cost of the property that is paid up front as a part of the mortgage.

Commission — A percent of the sale price of the home that is paid to agents. The seller pays commission to both the buyer and listing agent.

Earnest Money — The deposit made from the buyer to the seller when submitting an offer. This deposit is typically held in trust by a third party. Upon closing the money will generally be applied to the down payment or closing cost.

Comparables — Homes in the area of interest that have recently sold that have similar fea-tures.

Escrow — This term has multiple meanings; earnest money is typical held by a third party

until closing in “escrow”. It can also be referred to as the time period from when the con-tract is written and accepted by the seller to when the home sale actually closes. Equity — The difference in the market value of a home versus what is owed on the home. FHA — A mortgage that is financed through a private lender and insured by the Federal Housing Administration, often requiring a lower down payment and income to qualify. Fixed Rate — The interest rate will remain the same for the entire life of the mortgage. Home Equity Line of Credit — A loan or line of credit that is determined based on the equity or homes value after subtracting the loans owed. Home Inspection — The process in which a professional inspects the seller’s home for issues that are not openly apparent, then creates a report for the buyer to review. Home Protection Plan — An annual service that covers the cost of repairs or replacements to items covered in the plan; items like stoves, washer/dryers, etc. Hybrid — A loan that starts with a fixed rate period, then converts to an adjustable rate. Mortgage Insurance — Insurance

written in connection with a mortgage loan that protects the lender in the event the borrower cannot repay their loan. This is usually not required if the borrower has 20% or more for the down payment. Mortgage Note — A promise to pay a sum of money at a standard interest rate during a specific term that is secured by a mortgage. Multiple Listing Service (MLS) — The national list of real estate properties that are available for sale. These are the most reliable sources to receive up-to-date listing information. Pre-Approval — The process in which a buyer must provide a mortgage professional the ap-propriate information on income, debts, and assets that will be used to make the initial credit only loan decision. Pre-Qualification — Once approved for a loan, this is the process in which the maximum sale price, loan amount, and month payments are calculated for the borrow. This not a loan ap-proval however, it useful to know prior to searching for a home. Principal — The underlying amount of the loan which is actually borrowed. Property Taxes — These are the taxes that are enforced by the city, town, county, and state

Sommer Cronck, REALTOR® | 360-647-8049 | BESTBELLINGHAMHOMES.COM

government entities. These taxes are included in the total monthly mortgage payment and are held in escrow by the lender. REO — Real estate owned properties or foreclosed properties currently owned by a financial institution such as the bank that made the loan to the previous owner Reverse Mortgage — This is specifically for seniors and it allows them to convert the equity in their home to cash. Short Sale — A situation when the seller’s lender is willing to accept an offer and allows the sale to be completed for an amount less than the mortgage amount owed by the seller. Title — A legal document proving current and proper ownership of the property. Also re-ferred to as a Title Deed, this document highlights the history of property ownership and transfers. Underwriting — The process in which the potential home buyer is evaluated for their finan-cial ability to obtain and repay a loan. This normally consist of a credit check and appraisal of the property. VA Loan — Loans that are given to Americans who have served in the armed forces. They are administered by the Department of Veteran Affairs.

Realtor ® Code of Ethics Article 1 – When representing a buyer, seller, landlord, tenant, or other client as an agent, Realtors® pledge themselves to protect and promote the interests of their client. This obligation to the client is primary, but it does not relieve Realtors® of their obligation to treat all parties honestly. When serving a buyer, seller, landlord, tenant or other party in a non-agency capacity, Realtors® remain obligated to treat all parties honestly. Article 2 – Realtors® shall avoid exaggeration, misrepresentation, or concealment of pertinent facts relating to the property or the transaction. Realtors® shall not, however, be obligated to discover latent defects in the property, to advise on matters outside the scope of their real estate license, or to disclose facts which are confidential under the scope of agency or non-agency relationships as defined by state law. Article 3 – Realtors® shall cooperate with other brokers except when cooperation is not in the client’s best interest. The obligation to cooperate does not include the obligation to share commissions, fees, or to otherwise compensate another broker. Article 4 – Realtors® shall not acquire an interest in or buy or present offers from themselves, any member of their immediate families, their firms or any member thereof, or any entities in which they have any ownership interest, any real property without making their true position known to the owner or the owner’s agent or broker. In selling property they own, or in which they have any interest, Realtors® shall reveal their ownership or interest in writing to the purchaser or the purchaser’s representative. Article 5 – Realtors® shall not undertake to provide professional services concerning a property or its value where they have a present or contemplated interest unless such interest is specifically disclosed to all affected parties. Article 6 – Realtors® shall not accept any commission, rebate, or profiton expenditures made for their client, without the client’s knowledge and consent.

consent of the Realtor®’s client or clients. Article 8 – Realtors® shall keep in a special account in an appropriate financial institution, separated from their own funds, monies coming into their possession in trust for other persons, such as escrows, trust funds, clients’ monies, and other like items. Article 9 – Realtors®, for the protection of all parties, shall assure whenever possible that all agreements related to real estate transactions including, but not limited to, listing and representation agreements, purchase contracts, and leases are in writing in clear and understandable language expressing the specific terms, conditions, obligations and commitments of the parties. A copy of each agreement shall be furnished to each party to such agreements upon their signing or initialing. Article 10 – Realtors® shall not deny equal professional services to any person for reasons of race, color, religion, sex, handicap, familial status, national origin, sexual orientation, or gender identity. Realtors® shall not be parties to any plan or agreement to discriminate against a person or persons on the basis of race, color, religion, sex, handicap, familial status, national origin, sexual orientation, or gender identity. Realtors®, in their real estate employment practices, shall not discriminate against any person or persons on the basis of race, color, religion, sex, handicap, familial status, national origin, sexual orientation, or gender identity. Article 11 – The services which Realtors® provide to their clients and customers shall conform to the standards of practice and competence which are reasonably expected in the specific real estate disciplines in which they engage; specifically, residential real estate brokerage, real property management, commercial and industrial real estate brokerage, land brokerage, real estate appraisal, real estate counseling, real estate syndication, real estate auction, and international real estate.

When recommending real estate products or services (e.g., homeowner’s insurance, warranty programs, mortgage financing, title insurance, etc.), Realtors® shall disclose to the client or customer to whom the recommendation is made any financial benefits or fees, other than real estate referral fees, the Realtor® or Realtor®’s firm may receive as a direct result of such recommendation.

Realtors® shall not undertake to provide specialized professional services concerning a type of property or service that is outside their field of competence unless they engage the assistance of one who is competent on such types of property or service, or unless the facts are fully disclosed to the client. Any persons engaged to provide such assistance shall be so identified to the client and their contribution to the assignment should be set forth.

Article 7 – In a transaction, Realtors® shall not accept compensation from more than one party, even if permitted by law, without disclosure to all parties and the informed

Article 12 – Realtors® shall be honest and truthful in their real estate communications and shall present a true picture in their advertising, marketing, and other

representations. Realtors® shall ensure that their status as real estate professionals is readily apparent in their advertising, marketing, and other representations, and that the recipients of all real estate communications are, or have been, notified that those communications are from a real estate professional. Article 13 – Realtors® shall not engage in activities that constitute the unauthorized practice of law and shall recommend that legal counsel be obtained when the interest of any party to the transaction requires it. Article 14 – If charged with unethical practice or asked to present evidence or to cooperate in any other way, in any professional standards proceeding or investigation, Realtors® shall place all pertinent facts before the proper tribunals of the Member Board or affiliated institute, society, or council in which membership is held and shall take no action to disrupt or obstruct such processes. Article 15 – Realtors® shall not knowingly or recklessly make false or misleading statements about other real estate professionals, their businesses, or their business practices. Article 16 – Realtors® shall not engage in any practice or take any action inconsistent with exclusive representation or exclusive brokerage relationship agreements that other Realtors® have with clients. Article 17 – In the event of contractual disputes or specific non-contractual disputes as defined in Standard of Practice 17-4 between Realtors® (principals) associated with different firms, arising out of their relationship as Realtors® the Realtors® shall mediate the dispute if the Board requires its members to mediate. If the dispute is not resolved through mediation, or if mediation is not required, Realtors® shall submit the dispute to arbitration in accordance with the policies of the Board rather than litigate the matter. In the event clients of Realtors® wish to mediate or arbitrate contractual disputes arising out of real estate transactions, Realtors® shall mediate or arbitrate those disputes in accordance with the policies of the Board, provided the clients agree to be bound by any resulting agreement or award. The obligation to participate in mediation and arbitration contemplated by this Article includes the obligation of Realtors® (principals) to cause their firms to mediate and arbitrate and be bound by any resulting agreement or award.

THE LAW OF REAL ESTATE AGENCY This pamphlet describes your legal rights in dealing with a real estate firm or broker. Please read it carefully before signing any documents.

The following is only a brief summary of the attached law. SEC. 1.

Definitions. Defines the specific terms used in the law.

SEC. 2.

Relationships between Brokers and the Public. Prescribes that a broker who works with a buyer or tenant represents that buyer or tenant — unless the broker is the listing agent, a seller’s subagent, a dual agent, the seller personally or the parties agree otherwise. Also prescribes that in a transaction involving two different brokers licensed to the same real estate firm, the firm’s designated broker and any managing broker responsible for the supervision of both brokers, are dual agents and each broker solely represents his or her client — unless the parties agree in writing that both brokers are dual agents.

SEC. 3.

Duties of a Broker Generally. Prescribes the duties that are owed by all brokers, regardless of who the broker represents. Requires disclosure of the broker’s agency relationship in a specific transaction.

SEC. 4.

Duties of a Seller’s Agent. Prescribes the additional duties of a broker representing the seller or landlord only.

SEC. 5.

Duties of a Buyer’s Agent. Prescribes the additional duties of a broker representing the buyer or tenant only.

SEC. 6.

Duties of a Dual Agent. Prescribes the additional duties of a broker representing both parties in the same transaction, and requires the written consent of both parties to the broker acting as a dual agent.

SEC. 7.

Duration of Agency Relationship. Describes when an agency relationship begins and ends. Provides that the duties of accounting and confidentiality continue after the termination of an agency relationship.

SEC. 8.

Compensation. Allows real estate firms to share compensation with cooperating real estate firms. States that payment of compensation does not necessarily establish an agency relationship. Allows brokers to receive compensation from more than one party in a transaction with the parties’ consent.

SEC. 9.

Vicarious Liability. Eliminates the liability of a party for the conduct of the party’s agent or subagent, unless the principal participated in or benefited from the conduct or the agent or subagent is insolvent. Also limits the liability of a broker for the conduct of a subagent.

SEC. 10. Imputed Knowledge and Notice. Eliminates the common law rule that notice to or knowledge of an agent constitutes notice to or knowledge of the principal. SEC. 11. Interpretation. This law establishes statutory duties which replace common law fiduciary duties owed by an agent to a principal. SEC. 12. Short Sale. Prescribes an additional duty of a firm representing the seller of owner-occupied real property in a short sale.

(d) Would, if disclosed, operate to the detriment of the principal; and

(b) The principal reasonably expects to be kept confidential;

(a) Was acquired by the broker during the course of an agency relationship with the principal;

(7) “Confidential information” means information from or concerning a principal of a broker that:

(6) “Buyer’s agent” means a broker who has entered into an agency relationship with only the buyer in a real estate transaction, and includes sub-agents engaged by a buyer’s agent.

(5) “Buyer” means an actual or prospective purchaser in a real estate transaction, or an actual or prospective tenant in a real estate rental or lease transaction, as applicable.

(4) “Business opportunity” means and includes a business, business opportunity, and goodwill of an existing business, or any one or combination thereof when the transaction or business includes an interest in real property.

(3) “Broker” means broker, managing broker, and designated broker, collectively, as defined in chapter 18.85 RCW, unless the context requires the terms to be considered separately.

(2) “Agent” means a broker who has entered into an agency relationship with a buyer or seller.

(1) “Agency relationship” means the agency relationship created under this chapter or by written agreement between a real estate firm and a buyer and/or seller relating to the performance of real estate brokerage services.

Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

DEFINITIONS.

SECTION 1:

PAGE 2

(16) “Seller’s agent” means a broker who has entered

(15) “Seller” means an actual or prospective seller in a real estate transaction, or an actual or prospective landlord in a real estate rental or lease transaction, as applicable.

(14) “Real estate transaction” or “transaction” means an actual or prospective transaction involving a purchase, sale, option, or exchange of any interest in real property or a business opportunity, or a lease or rental of real property. For purposes of this chapter, a prospective transaction does not exist until a written offer has been signed by at least one of the parties.

(13) “Real estate firm” or “firm” have the same meaning as defined in chapter 18.85 RCW.

(12) “Real estate brokerage services” means the rendering of services for which a real estate license is required under chapter 18.85 RCW.

(11) “Principal” means a buyer or a seller who has entered into an agency relationship with a broker.

(10) “Owner-occupied real property” means real property consisting solely of a single-family residence, a residential condominium unit, or a residential cooperative unit that is the principal residence of the borrower.

(9) “Material fact” means information that substantially adversely affects the value of the property or a party’s ability to perform its obligations in a real estate transaction, or operates to materially impair or defeat the purpose of the transaction. The fact or suspicion that the property, or any neighboring property, is or was the site of a murder, suicide or other death, rape or other sex crime, assault or other violent crime, robbery or burglary, illegal drug activity, gang-related activity, political or religious activity, or other act, occurrence, or use not adversely affecting the physical condition of or title to the property is not a material fact.

(8) “Dual agent” means a broker who has entered into an agency relationship with both the buyer and seller in the same transaction.

(e) The principal personally would not be obligated to disclose to the other party.

(2) In a transaction in which different brokers affiliated with the same firm represent different parties, the firm’s designated broker and any managing broker responsible for the supervision of both brokers, is a dual agent, and must obtain the written consent of both parties as required under RCW 18.86.060. In such case, each of the brokers

(e) Parties agree otherwise in writing after the broker has complied with RCW 18.86.030(1)(f).

(d) Broker is the seller or one of the sellers; or

(c) Broker’s firm has appointed the broker to represent the seller pursuant to a written agency agreement between the firm and the seller, and the broker’s firm has appointed the broker to represent the buyer pursuant to a written agency agreement between the firm and the buyer, in which case the broker is a dual agent;

(b) Broker has entered into a subagency agreement with the seller’s agent’s firm, in which case the broker is a seller’s agent;

(a) Broker’s firm has appointed the broker to represent the seller pursuant to a written agency agreement between the firm and the seller, in which case the broker is a seller’s agent;

(1) A broker who performs real estate brokerage services for a buyer is a buyer’s agent unless the:

RELATIONSHIPS BETWEEN BROKERS AND THE PUBLIC.

SECTION 2:

(17) “Subagent” means a broker who is engaged to act on behalf of a principal by the principal’s agent where the principal has authorized the broker in writing to appoint subagents.

into an agency relationship with only the seller in a real estate transaction, and includes subagents engaged by a seller’s agent.

PAGE 3

(f) To provide a pamphlet on the law of real estate agency in the form prescribed in

(e) To account in a timely manner for all money and property received from or on behalf of either party;

(d) To disclose all existing material facts known by the broker and not apparent or readily ascertainable to a party; provided that this subsection shall not be construed to imply any duty to investigate matters that the broker has not agreed to investigate;

(c) To present all written offers, written notices and other written communications to and from either party in a timely manner, regardless of whether the property is subject to an existing contract for sale or the buyer is already a party to an existing contract to purchase;

(b) To deal honestly and in good faith;

(a) To exercise reasonable skill and care;

(1) Regardless of whether a broker is an agent, the broker owes to all parties to whom the broker renders real estate brokerage services the following duties, which may not be waived:

DUTIES OF A BROKER GENERALLY.

SECTION 3:

(3) A broker may work with a party in separate transactions pursuant to different relationships, including, but not limited to, representing a party in one transaction and at the same time not representing that party in a different transaction involving that party, if the broker complies with this chapter in establishing the relationships for each transaction.

shall solely represent the party with whom the broker has an agency relationship, unless all parties agree in writing that the broker is a dual agent.

RCW 18.86.120 to all parties to whom the broker renders real estate brokerage services, before the party signs an agency agreement with the broker, signs an offer in a real estate transaction handled by the broker, consents to dual agency, or waives any rights, under RCW 18.86.020(1)(e), 18.86.040(1)(e), 18.86.050(1)(e), or 18.86.060(2)(e) or (f), whichever occurs earliest; and (g) To disclose in writing to all parties to whom the broker renders real estate brokerage services, before the party signs an offer in a real estate transaction handled by the broker, whether the broker represents the buyer, the seller, both parties, or neither party. The disclosure shall be set forth in a separate paragraph entitled “Agency Disclosure” in the agreement between the buyer and seller or in a separate writing entitled “Agency Disclosure.” (2) Unless otherwise agreed, a broker owes no duty to conduct an independent inspection of the property or to conduct an independent investigation of either party’s financial condition, and owes no duty to independently verify the accuracy or completeness of any statement made by either party or by any source reasonably believed by the broker to be reliable.

SECTION 4: DUTIES OF A SELLER’S AGENT. (1) Unless additional duties are agreed to in writing signed by a seller’s agent, the duties of a seller’s agent are limited to those set forth in RCW 18.86.030 and the following, which may not be waived except as expressly set forth in (e) of this subsection: (a) To be loyal to the seller by taking no action that is adverse or detrimental to the seller’s interest in a transaction; (b) To timely disclose to the seller any conflicts of interest;

PAGE 4

(c) To advise the seller to seek expert advice on matters relating to the transaction that are beyond the agent’s expertise; (d) Not to disclose any confidential information from or about the seller, except under subpoena or court order, even after termination of the agency relationship; and (e) Unless otherwise agreed to in writing after the seller’s agent has complied with RCW 18.86.030(1)(f), to make a good faith and continuous effort to find a buyer for the property; except that a seller’s agent is not obligated to seek additional offers to purchase the property while the property is subject to an existing contract for sale. (2) (a) The showing of properties not owned by the seller to prospective buyers or the listing of competing properties for sale by a seller’s agent does not in and of itself breach the duty of loyalty to the seller or create a conflict of interest. (b) The representation of more than one seller by different brokers affiliated with the same firm in competing transactions involving the same buyer does not in and of itself breach the duty of loyalty to the sellers or create a conflict of interest.

SECTION 5: DUTIES OF A BUYER’S AGENT. (1) Unless additional duties are agreed to in writing signed by a buyer’s agent, the duties of a buyer’s agent are limited to those set forth in RCW 18.86.030 and the following, which may not be waived except as expressly set forth in (e) of this subsection: (a) To be loyal to the buyer by taking no action that is adverse or detrimental to the buyer’s interest in a transaction;

(c) To advise the buyer to seek expert advice on matters relating to the transaction that are beyond the agent’s expertise;

(b) To timely disclose to the buyer any conflicts of interest;

RCW 18.86.030(1)(f), which consent must include a statement of the terms of compensation.

(3) (a) The showing of proper ties not owned by the seller to prospective buyers or the listing of competing properties for sale by a dual agent does not in and of itself constitute action that is

(ii) show properties as to which there is no written agreement to pay compensation to the dual agent.

(i) seek additional properties to purchase while the buyer is a party to an existing contract to purchase; or

(f) Unless otherwise agreed to in writing after the dual agent has complied with RCW 18.86.030(1)(f), to make a good faith and continuous effort to find a property for the buyer; except that a dual agent is not obligated to:

(e) Unless otherwise agreed to in writing after the dual agent has complied with RCW 18.86.030(1)(f), to make a good faith and continuous effort to find a buyer for the property; except that a dual agent is not obligated to seek additional offers to purchase the property while the property is subject to an existing contract for sale; and

(d) Not to disclose any confidential information from or about either party, except under subpoena or court order, even after termination of the agency relationship;

(c) To advise both parties to seek expert advice on matters relating to the transaction that are beyond the dual agent’s expertise;

(b) To timely disclose to both parties any conflicts of interest;

(a) To take no action that is adverse or detrimental to either party’s interest in a transaction;

(2) Unless additional duties are agreed to in writing signed by a dual agent, the duties of a dual agent are limited to those set forth in RCW 18.86.030 and the following, which may not be waived except as expressly set forth in (e) and (f) of this subsection: (d) Not to disclose any confidential information from or about the buyer, except under subpoena or court order, even after termination of the agency relationship; and (e) Unless otherwise agreed to in writing after the buyer’s agent has complied with RCW 18.86.030(1)(f), to make a good faith and continuous effort to find a property for the buyer; except that a buyer’s agent is not obligated to: (i) seek additional properties to purchase while the buyer is a party to an existing contract to purchase; or (ii) show properties as to which there is no written agreement to pay compensation to the buyer’s agent.

(2) ( a ) The showing of property in which a buyer is interested to other prospective buyers by a buyer’s agent does not in and of itself breach the duty of loyalty to the buyer or create a conflict of interest. (b) The representation of more than one buyer by different brokers affiliated with the same firm in competing transactions involving the same property does not in and of itself breach the duty of loyalty to the buyer or create a conflict of interest.

SECTION 6: DUTIES OF A DUAL AGENT. (1) Notwithstanding any other provision of this chapter, a broker may act as a dual agent only with the written consent of both parties to the transaction after the dual agent has complied with

PAGE 5

(d) Termination of the relationship by notice from either party to the other. However, such

(b) Expiration of the term agreed upon by the parties;

(a) Completion of performance by the broker;

(1) The agency relationships set forth in this chapter commence at the time that the broker undertakes to provide real estate brokerage services to a principal and continue until the earliest of the following:

DURATION OF AGENCY RELATIONSHIP.

SECTION 7:

(b) The representation of more than one buyer by different brokers licensed to the same firm in competing transactions involving the same property does not in and of itself constitute action that is adverse or detrimental to the buyer or create a conflict of interest.

(4) (a) The showing of property in which a buyer is interested to other prospective buyers or the presentation of additional offers to purchase property while the property is subject to a transaction by a dual agent does not in and of itself constitute action that is adverse or detrimental to the buyer or create a conflict of interest.

(b) The representation of more than one seller by different brokers licensed to the same firm in competing transactions involving the same buyer does not in and of itself constitute action that is adverse or detrimental to the sellers or create a conflict of interest.

adverse or detrimental to the seller or create a conflict of interest.

PAGE 6

(7) Nothing contained in this chapter negates the requirement that an agreement authorizing or employing a broker to sell or purchase real estate for compensation or a commission be in writing and signed by the seller or buyer.

(6) A firm may receive compensation based on the purchase price without breaching any duty to the buyer or seller.

(5) A firm may be compensated by more than one party for real estate brokerage services in a real estate transaction, if those parties consent in writing at or before the time of signing an offer in the transaction.

(4) A buyer may agree that a buyer’s agent’s firm may share with another firm the compensation paid by the buyer.

(3) A seller may agree that a seller’s agent’s firm may share with another firm the compensation paid by the seller.

(2) An agreement to pay or payment of compensation does not establish an agency relationship between the party who paid the compensation and the broker.

(1) In any real estate transaction, a firm’s compensation may be paid by the seller, the buyer, a third party, or by sharing the compensation between firms.

COMPENSATION.

SECTION 8:

(b) Not disclosing confidential information.

(a) Accounting for all moneys and property received during the relationship; and

(2) Except as otherwise agreed to in writing, a broker owes no further duty after termination of the agency relationship, other than the duties of:

a termination does not affect the contractual rights of either party.

(2) Unless otherwise agreed to in writing, a broker does not have knowledge or notice of any facts known by a subagent that are not actually known by the broker. This subsection does not limit the knowledge imputed to the designated broker or any managing broker responsible for the supervision of the broker of any facts known by the broker.

(1) Unless otherwise agreed to in writing, a principal does not have knowledge or notice of any facts known by an agent or subagent of the principal that are not actually known by the principal.

IMPUTED KNOWLEDGE AND NOTICE.

SECTION 10:

(2) A broker is not liable for an act, error, or omission of a subagent under this chapter, unless that broker participated in or authorized the act, error or omission. This subsection does not limit the liability of a firm for an act, error, or omission by a broker licensed to the firm.

(ii) the court determines that it is highly probable that the claimant would be unable to enforce a judgment against the agent or subagent.

(i) the principal benefited from the act, error, or omission; and

(b) Except to the extent that:

(a) Unless the principal participated in or authorized the act, error, or omission; or

PAGE 7

Revised July 2013 RCW 18.86.120

When the seller of owner-occupied residential real property enters into a listing agreement with a real estate firm where the proceeds from the sale may be insufficient to cover the costs at closing, it is the responsibility of the real estate firm to disclose to the seller in writing that the decision by any beneficiary or mortgagee, or its assignees, to release its interest in the real property, for less than the amount the borrower owes, does not automatically relieve the seller of the obligation to pay any debt or costs remaining at closing, including fees such as the real estate firm’s commission.

SHORT SALE.

SECTION 12:

The duties under this chapter are statutory duties and not fiduciary duties. This chapter supersedes the fiduciary duties of an agent to a principal under the common law. The common law continues to apply to the parties in all other respects. This chapter does not affect the duties of a broker while engaging in the authorized or unauthorized practice of law as determined by the courts of this state. This chapter shall be construed broadly.

INTERPRETATION.

VICARIOUS LIABILITY. (1) A principal is not liable for an act, error, or omission by an agent or subagent of the principal arising out of an agency relationship:

SECTION 11:

SECTION 9:

Form 21 Residential Purchase & Sale Agreement Rev. 7/15 Page 1 of 5

RESIDENTIAL REAL ESTATE PURCHASE AND SALE AGREEMENT SPECIFIC TERMS

Date: _______________________

MLS No.: ____________________

Buyer: ________________________________________________________________________________________________

Seller: ________________________________________________________________________________________________

Property: Tax Parcel No(s).: __________________________________________ ( ___________________________ County)

Buyer

Offer Expiration Date: ______________________

Buyer

Seller

Status

Seller

______________________________________________________________________________________________________

Address

City

State

Zip

Legal Description: Attached as Exhibit A. stove/range; refrigerator; washer; dryer; dishwasher; hot tub; fireplace insert; Included Items: wood stove; satellite dish; security system; attached television(s); attached speaker(s); microwave; other _______________________________________________________________________________________________

Purchase Price: $ _________________________________________________________________________________ Dollars

Earnest Money: $ _____________

Default: (check only one)

Title Insurance Company: _______________________________________________________________________________

Note;

Other _______________ (held by

Forfeiture of Earnest Money;

_________________________________________________

11. Closing Date: _________________________; Possession Date: 12. Services of Closing Agent for Payment of Utilities:

on Closing;

Other ____________________________

Requested (attach NWMLS Form 22K);

13. Charges/Assessments Levied Before but Due After Closing: is;

Closing Agent)

Seller’s Election of Remedies

a qualified closing agent of Buyer’s choice;

14. Seller Citizenship (FIRPTA): Seller

Selling Firm;

10. Closing Agent:

Check;

assumed by Buyer;

Waived

prepaid in full by Seller at Closing

is not a foreign person for purposes of U.S. income taxation

15. Agency Disclosure: Selling Broker represents: Listing Broker represents:

Buyer; Seller;

Seller; both parties; both parties

neither party

16. Addenda: _____________________________________________________________________________________________

______________________________________________________________________________________________________ ______________________________________________________________________________________________________ ______________________________________________________________________________________________________

______________________________________________

____________________________________________

______________________________________________

____________________________________________

______________________________________________

____________________________________________

______________________________________________

____________________________________________

______________________________________________

____________________________________________

______________________________________________

____________________________________________

______________________________________________

____________________________________________

______________________________________________

____________________________________________

______________________________________________

____________________________________________

______________________________________________

____________________________________________

______________________________________________

____________________________________________

______________________________________________

____________________________________________

Date

Buyer’s Signature Buyer’s Signature

Date

Buyer’s Address City, State, Zip Phone No.

Fax No.

Buyer’s E-mail Address Selling Firm

Selling Broker (Print) Phone No.

MLS Office No. MLS LAG No.

Firm Fax No.

Selling Firm Document E-mail Address Selling Broker’s E-mail Address

Selling Broker DOL License No.

Selling Firm DOL License No.

Seller’s Signature Seller’s Signature

Date Date

Seller’s Address City, State, Zip

Phone No.

Fax No.

Seller’s E-mail Address

Listing Firm

Listing Broker (Print)

Phone No.

MLS Office No. MLS LAG No.

Firm Fax No.

Listing Firm Document E-mail Address Listing Broker’s E-mail Address

Listing Broker DOL License No.

Sommer Cronck, REALTOR® | 360-647-8049 | BESTBELLINGHAMHOMES.COM

Listing Firm DOL License No.

Form 21 Residential Purchase & Sale Agreement Rev. 7/15 RESIDENTIAL Page 2 of 5

REAL ESTATE PURCHASE AND SALE AGREEMENT GENERAL TERMS Continued

Purchase Price. Buyer shall pay to Seller the Purchase Price, including the Earnest Money, in cash at Closing, unless

otherwise specified in this Agreement. Buyer represents that Buyer has sufficient funds to close this sale in accordance with this Agreement and is not relying on any contingent source of funds, including funds from loans, the sale of other property, gifts, retirement, or future earnings, except to the extent otherwise specified in this Agreement.

1 2 3 4

Earnest Money. Buyer shall deliver the Earnest Money within 2 days after mutual acceptance to Selling Broker or to Closing Agent. If Buyer delivers the Earnest Money to Selling Broker, Selling Broker will deposit any check to be held by Selling Firm, or deliver any Earnest Money to be held by Closing Agent, within 3 days of receipt or mutual acceptance, whichever occurs later. If the Earnest Money is held by Selling Firm and is over $10,000.00 it shall be deposited into an interest bearing trust account in Selling Firm’s name provided that Buyer completes an IRS Form W-9. Interest, if any, after deduction of bank charges and fees, will be paid to Buyer. Buyer shall reimburse Selling Firm for bank charges and fees in excess of the interest earned, if any. If the Earnest Money held by Selling Firm is over $10,000.00 Buyer has the option to require Selling Firm to deposit the Earnest Money into the Housing Trust Fund Account, with the interest paid to the State Treasurer, if both Seller and Buyer so agree in writing. If the Buyer does not complete an IRS Form W-9 before Selling Firm must deposit the Earnest Money or the Earnest Money is $10,000.00 or less, the Earnest Money shall be deposited into the Housing Trust Fund Account. Selling Firm may transfer the Earnest Money to Closing Agent at Closing. If all or part of the Earnest Money is to be refunded to Buyer and any such costs remain unpaid, the Selling Firm or Closing Agent may deduct and pay them therefrom. The parties instruct Closing Agent to provide written verification of receipt of the Earnest Money and notice of dishonor of any check to the parties and Brokers at the addresses and/or fax numbers provided herein.

5 6 7 8 9 10 11 12 13 14 15 16 17 18 19

Upon termination of this Agreement, a party or the Closing Agent may deliver a form authorizing the release of Earnest Money to the other party or the parties. The party(s) shall execute such form and deliver the same to the Closing Agent. If either party fails to execute the release form, a party may make a written demand to the Closing Agent for the Earnest Money. Pursuant to RCW 64.04, Closing Agent shall deliver notice of the demand to the other party within 15 days. If the other party does not object to the demand within 20 days of Closing Agent’s notice, Closing Agent shall disburse the Earnest Money to the party making the demand within 10 days of the expiration of the 20 day period. If Closing Agent timely receives an objection or an inconsistent demand from the other party, Closing Agent shall commence an interpleader action within 60 days of such objection or inconsistent demand, unless the parties provide subsequent consistent instructions to Closing Agent to disburse the earnest money or refrain from commencing an interpleader action for a specified period of time. Pursuant to RCW 4.28.080, the parties consent to service of the summons and complaint for an interpleader action by first class mail, postage prepaid at the party’s usual mailing address or the address identified in this Agreement. If the Closing Agent complies with the preceding process, each party shall be deemed to have released Closing Agent from any and all claims or liability related to the disbursal of the Earnest Money. If either party fails to authorize the release of the Earnest Money to the other party when required to do so under this Agreement, that party shall be in breach of this Agreement. For the purposes of this section, the term Closing Agent includes a Selling Firm holding the Earnest Money. The parties authorize the party commencing an interpleader action to deduct up to $500.00 for the costs thereof.

20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36

Included Items. Any of the following items, including items identified in Specific Term No. 5 if the corresponding box is checked, located in or on the Property are included in the sale: built-in appliances; wall-to-wall carpeting; curtains, drapes and all other window treatments; window and door screens; awnings; storm doors and windows; installed television antennas; ventilating, air conditioning and heating fixtures; trash compactor; fireplace doors, gas logs and gas log lighters; irrigation fixtures; electric garage door openers; water heaters; installed electrical fixtures; lighting fixtures; shrubs, plants and trees planted in the ground; and other fixtures; and all associated operating remote controls. Unless otherwise agreed, if any of the above items are leased or encumbered, Seller shall acquire clear title before Closing.

37 38 39 40 41 42 43

Condition of Title. Unless otherwise specified in this Agreement, title to the Property shall be marketable at Closing. The following shall not cause the title to be unmarketable: rights, reservations, covenants, conditions and restrictions, presently of record and general to the area; easements and encroachments, not materially affecting the value of or unduly interfering with Buyer’s reasonable use of the Property; and reserved oil and/or mining rights. Monetary encumbrances or liens not assumed by Buyer, shall be paid or discharged by Seller on or before Closing. Title shall be conveyed by a Statutory Warranty Deed. If this Agreement is for conveyance of a buyer’s interest in a Real Estate Contract, the Statutory Warranty Deed shall include a buyer’s assignment of the contract sufficient to convey after acquired title.

44 45 46 47 48 49 50 51

Title Insurance. Seller authorizes Buyer’s lender or Closing Agent, at Seller’s expense, to apply for the then-current ALTA form of Homeowner’s Policy of Title Insurance for One-to-Four Family Residence, from the Title Insurance Company. If Seller previously received a preliminary commitment from a Title Insurance Company that Buyer declines to use, Buyer shall pay any cancellation fees owing to the original Title Insurance Company. Otherwise, the party applying for title insurance shall pay any title cancellation fee, in the event such a fee is assessed. If the Title Insurance Company selected by the parties will not issue a Homeowner’s Policy for the Property, the parties agree that the Title Insurance Company shall instead issue the then-current ALTA standard form Owner’s Policy, together with homeowner’s additional protection and inflation protection endorsements, if available. The Title Insurance Company

52 53 54 55 56 57 58 59

________________________

__________________________

Buyer’s Initials

Seller’s Initials

Date

Sommer Cronck, REALTOR® | 360-647-8049 | BESTBELLINGHAMHOMES.COM

Form 21 Residential Purchase & Sale Agreement Rev. 7/15 RESIDENTIAL Page 3 of 5

REAL ESTATE PURCHASE AND SALE AGREEMENT GENERAL TERMS Continued

60 61 62 63 64 65 66

Closing and Possession. This sale shall be closed by the Closing Agent on the Closing Date. If the Closing Date falls on a Saturday, Sunday, legal holiday as defined in RCW 1.16.050, or day when the county recording office is closed, the Closing Agent shall close the transaction on the next day that is not a Saturday, Sunday, legal holiday, or day when the county recording office is closed. “Closing” means the date on which all documents are recorded and the sale proceeds are available to Seller. Seller shall deliver keys and garage door remotes to Buyer on the Closing Date or on the Possession Date, whichever occurs first. Buyer shall be entitled to possession at 9:00 p.m. on the Possession Date. Seller shall maintain the Property in its present condition, normal wear and tear excepted, until the Buyer is entitled to possession. Seller shall not enter into or modify existing leases or rental agreements, service contracts, or other agreements affecting the Property which have terms extending beyond Closing without first obtaining Buyer’s consent, which shall not be unreasonably withheld. If possession transfers at a time other than Closing, the parties shall execute NWMLS Form 65A (Rental Agreement/Occupancy Prior to Closing) or NWMLS Form 65B (Rental Agreement/Seller Occupancy After Closing) (or alternative rental agreements) and are advised of the need to contact their respective insurance companies to assure appropriate hazard and liability insurance policies are in place, as applicable.

67 68 69 70 71 72 73 74 75 76 77 78 79

shall send a copy of the preliminary commitment to Seller, Listing Broker, Buyer and Selling Broker. The preliminary commitment, and the title policy to be issued, shall contain no exceptions other than the General Exclusions and Exceptions in the Policy and Special Exceptions consistent with the Condition of Title herein provided. If title cannot be made so insurable prior to the Closing Date, then as Buyer’s sole and exclusive remedy, the Earnest Money shall, unless Buyer elects to waive such defects or encumbrances, be refunded to the Buyer, less any unpaid costs described in this Agreement, and this Agreement shall thereupon be terminated. Buyer shall have no right to specific performance or damages as a consequence of Seller’s inability to provide insurable title.

80 81 82 83 84

Section 1031 Like-Kind Exchange. If either Buyer or Seller intends for this transaction to be a part of a Section 1031 like-kind exchange, then the other party shall cooperate in the completion of the like-kind exchange so long as the cooperating party incurs no additional liability in doing so, and so long as any expenses (including attorneys’ fees and costs) incurred by the cooperating party that are related only to the exchange are paid or reimbursed to the cooperating party at or prior to Closing. Notwithstanding the Assignment paragraph of this Agreement, any party completing a Section 1031 like-kind exchange may assign this Agreement to its qualified intermediary or any entity set up for the purposes of completing a reverse exchange.

85 86 87 88 89 90 91

Closing Costs and Prorations and Charges and Assessments. Seller and Buyer shall each pay one-half of the escrow fee unless otherwise required by applicable FHA or VA regulations. Taxes for the current year, rent, interest, and lienable homeowner’s association dues shall be prorated as of Closing. Buyer shall pay Buyer’s loan costs, including credit report, appraisal charge and lender’s title insurance, unless provided otherwise in this Agreement. If any payments are delinquent on encumbrances which will remain after Closing, Closing Agent is instructed to pay such delinquencies at Closing from money due, or to be paid by, Seller. Buyer shall pay for remaining fuel in the fuel tank if, prior to Closing, Seller obtains a written statement from the supplier as to the quantity and current price and provides such statement to the Closing Agent. Seller shall pay all utility charges, including unbilled charges. Unless waived in Specific Term No. 12, Seller and Buyer request the services of Closing Agent in disbursing funds necessary to satisfy unpaid utility charges in accordance with RCW 60.80 and Seller shall provide the names and addresses of all utilities providing service to the Property and having lien rights (attach NWMLS Form 22K Identification of Utilities or equivalent).

92 93 94 95 96 97 98 99 100 101 102 103

Buyer is advised to verify the existence and amount of any local improvement district, capacity or impact charges or other assessments that may be charged against the Property before or after Closing. Seller will pay such charges that are or become due on or before Closing. Charges levied before Closing, but becoming due after Closing shall be paid as agreed in Specific Term No. 13.

104 105 106 107

Sale Information. Listing Broker and Selling Broker are authorized to report this Agreement (including price and all terms) to the Multiple Listing Service that published it and to its members, financing institutions, appraisers, and anyone else related to this sale. Buyer and Seller expressly authorize all Closing Agents, appraisers, title insurance companies, and others related to this Sale, to furnish the Listing Broker and/or Selling Broker, on request, any and all information and copies of documents concerning this sale.

108 109 110 111 112

Seller Citizenship and FIRPTA. Seller warrants that the identification of Seller’s citizenship status for purposes of U.S. income taxation in Specific Term No. 14 is correct. Seller shall execute a certification (NWMLS Form 22E or equivalent) under the Foreign Investment in Real Property Tax Act (“FIRPTA”) at Closing and provide the certification to the Closing Agent. If Seller is a foreign person for purposes of U.S. income taxation, and this transaction is not otherwise exempt from FIRPTA, Closing Agent is instructed to withhold and pay the required amount to the Internal Revenue Service.

113 114 115 116 117

RCW 19.27.530 requires the seller of any owner-occupied single-family residence to equip the residence with a carbon monoxide alarm(s) in accordance with the state building code before a buyer or any other person may legally occupy the residence following the sale. The parties acknowledge that the Brokers are not responsible for ensuring that Seller complies with RCW 19.27.530. Buyer and Seller shall hold the Brokers and their Firms harmless from any claim resulting from Seller’s failure to install a carbon monoxide alarm(s) in the Property.

________________________

__________________________

Buyer’s Initials

Seller’s Initials

Date

Sommer Cronck, REALTOR® | 360-647-8049 | BESTBELLINGHAMHOMES.COM

Date

Form 21 Residential Purchase & Sale Agreement Rev. 7/15 RESIDENTIAL Page 4 of 5

REAL ESTATE PURCHASE AND SALE AGREEMENT GENERAL TERMS Continued

Notices. In consideration of the license to use this and NWMLS's companion forms and for the benefit of the Listing Broker and the Selling Broker as well as the orderly administration of the offer, counteroffer or this Agreement, the parties irrevocably agree that unless otherwise specified in this Agreement, any notice required or permitted in, or related to, this Agreement (including revocations of offers or counteroffers) must be in writing. Notices to Seller must be signed by at least one Buyer and shall be deemed given only when the notice is received by Seller, by Listing Broker or at the licensed office of Listing Broker. Notices to Buyer must be signed by at least one Seller and shall be deemed given only when the notice is received by Buyer, by Selling Broker or at the licensed office of Selling Broker. Receipt by Selling Broker of a Form 17, Disclosure of Information on Lead-Based Paint and Lead-Based Paint Hazards, Public Offering Statement or Resale Certificate, homeowners’ association documents provided pursuant to NWMLS Form 22D, or a preliminary commitment for title insurance provided pursuant to NWMLS Form 22T shall be deemed receipt by Buyer. Selling Broker and Listing Broker have no responsibility to advise of receipt of a notice beyond either phoning the party or causing a copy of the notice to be delivered to the party's address shown on this Agreement. Buyer and Seller must keep Selling Broker and Listing Broker advised of their whereabouts in order to receive prompt notification of receipt of a notice.

118 119 120 121 122 123 124 125 126 127 128 129 130 131

Computation of Time. Unless otherwise specified in this Agreement, any period of time measured in days and stated in this Agreement shall start on the day following the event commencing the period and shall expire at 9:00 p.m. of the last calendar day of the specified period of time. Except for the Possession Date, if the last day is a Saturday, Sunday or legal holiday as defined in RCW 1.16.050, the specified period of time shall expire on the next day that is not a Saturday, Sunday or legal holiday. Any specified period of 5 days or less, except for any time period relating to the Possession Date, shall not include Saturdays, Sundays or legal holidays. If the parties agree that an event will occur on a specific calendar date, the event shall occur on that date, except for the Closing Date, which, if it falls on a Saturday, Sunday, legal holiday as defined in RCW 1.16.050, or day when the county recording office is closed, shall occur on the next day that is not a Saturday, Sunday, legal holiday, or day when the county recording office is closed. If the parties agree upon and attach a legal description after this Agreement is signed by the offeree and delivered to the offeror, then for the purposes of computing time, mutual acceptance shall be deemed to be on the date of delivery of an accepted offer or counteroffer to the offeror, rather than on the date the legal description is attached. Time is of the essence of this Agreement.

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m. Facsimile and E-mail Transmission. Facsimile transmission of any signed original document, and retransmission of any signed facsimile transmission, shall be the same as delivery of an original. At the request of either party, or the Closing Agent, the parties will confirm facsimile transmitted signatures by signing an original document. E-mail transmission of any signed original document or a direct link to such document, and retransmission of any such e-mail, shall be the same as delivery of an original, provided that the e-mail is sent to both Selling Broker and Selling Firm or both Listing Broker and Listing Firm at the e-mail addresses on page one of this Agreement. At the request of either party, or the Closing Agent, the parties will confirm e-mail transmitted signatures by signing an original document.

145 146 147 148 149 150 151

Integration and Electronic Signatures. This Agreement constitutes the entire understanding between the parties and supersedes all prior or contemporaneous understandings and representations. No modification of this Agreement shall be effective unless agreed in writing and signed by Buyer and Seller. The parties acknowledge that a signature in electronic form has the same legal effect and validity as a handwritten signature.

152 153 154 155

Assignment. Buyer may not assign this Agreement, or Buyer’s rights hereunder, without Seller’s prior written consent, 156 unless the parties indicate that assignment is permitted by the addition of “and/or assigns” on the line identifying the 157 158 Buyer on the first page of this Agreement.

Default. In the event Buyer fails, without legal excuse, to complete the purchase of the Property, then the following 159 160 provision, as identified in Specific Term No. 8, shall apply:

Forfeiture of Earnest Money. That portion of the Earnest Money that does not exceed five percent (5%) of the 161 Purchase Price shall be forfeited to the Seller as the sole and exclusive remedy available to Seller for such failure. 162

ii.

Seller’s Election of Remedies. Seller may, at Seller’s option, (a) keep the Earnest Money as liquidated damages as the sole and exclusive remedy available to Seller for such failure, (b) bring suit against Buyer for Seller’s actual damages, (c) bring suit to specifically enforce this Agreement and recover any incidental damages, or (d) pursue any other rights or remedies available at law or equity.

163 164 165 166

Professional Advice and Attorneys’ Fees. Buyer and Seller are advised to seek the counsel of an attorney and a certified public accountant to review the terms of this Agreement. Buyer and Seller shall pay their own fees incurred for such review. However, if Buyer or Seller institutes suit against the other concerning this Agreement the prevailing party is entitled to reasonable attorneys’ fees and expenses.

167 168 169 170

Offer. Buyer shall purchase the Property under the terms and conditions of this Agreement. Seller shall have until 9:00 p.m. on the Offer Expiration Date to accept this offer, unless sooner withdrawn. Acceptance shall not be effective until a signed copy is received by Buyer, by Selling Broker or at the licensed office of Selling Broker. If this offer is not so accepted, it shall lapse and any Earnest Money shall be refunded to Buyer.

171 172 173 174

________________________

__________________________

Buyer’s Initials

Seller’s Initials

Date

Sommer Cronck, REALTOR® | 360-647-8049 | BESTBELLINGHAMHOMES.COM

Form 21 Residential Purchase & Sale Agreement Rev. 7/15 RESIDENTIAL Page 5 of 5

REAL ESTATE PURCHASE AND SALE AGREEMENT GENERAL TERMS Continued

Counteroffer. Any change in the terms presented in an offer or counteroffer, other than the insertion of the Seller’s name and the Seller’s warranty of citizenship status, shall be considered a counteroffer. If a party makes a counteroffer, then the other party shall have until 9:00 p.m. on the counteroffer expiration date to accept that counteroffer, unless sooner withdrawn. Acceptance shall not be effective until a signed copy is received by the other party, the other party’s broker, or at the licensed office of the other party’s broker. If the counteroffer is not so accepted, it shall lapse and any Earnest Money shall be refunded to Buyer.

Offer and Counteroffer Expiration Date. If no expiration date is specified for an offer/counteroffer, the 179 offer/counteroffer shall expire 2 days after the offer/counteroffer is delivered by the party making the offer/counteroffer, 180 181 unless sooner withdrawn.

Agency Disclosure. Selling Firm, Selling Firm’s Designated Broker, Selling Broker’s Branch Manager (if any) and Selling Broker’s Managing Broker (if any) represent the same party that Selling Broker represents. Listing Firm, Listing Firm’s Designated Broker, Listing Broker’s Branch Manager (if any), and Listing Broker’s Managing Broker (if any) represent the same party that the Listing Broker represents. If Selling Broker and Listing Broker are different persons affiliated with the same Firm, then both Buyer and Seller confirm their consent to Designated Broker, Branch Manager (if any), and Managing Broker (if any) representing both parties as dual agents. If Selling Broker and Listing Broker are the same person representing both parties then both Buyer and Seller confirm their consent to that person and his/her Designated Broker, Branch Manager (if any), and Managing Broker (if any) representing both parties as dual agents. All parties acknowledge receipt of the pamphlet entitled “The Law of Real Estate Agency.”

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Commission. Seller and Buyer shall pay a commission in accordance with any listing or commission agreement to which they are a party. The Listing Firm’s commission shall be apportioned between Listing Firm and Selling Firm as specified in the listing. Seller and Buyer hereby consent to Listing Firm or Selling Firm receiving compensation from more than one party. Seller and Buyer hereby assign to Listing Firm and Selling Firm, as applicable, a portion of their funds in escrow equal to such commission(s) and irrevocably instruct the Closing Agent to disburse the commission(s) directly to the Firm(s). In any action by Listing or Selling Firm to enforce this paragraph, the prevailing party is entitled to court costs and reasonable attorneys’ fees. Seller and Buyer agree that the Firms are intended third party beneficiaries under this Agreement.

191 192 193 194 195 196 197 198

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w. Cancellation Rights/Lead-Based Paint. If a residential dwelling was built on the Property prior to 1978, and Buyer 199 receives a Disclosure of Information on Lead-Based Paint and Lead-Based Paint Hazards (NWMLS Form 22J) after 200 201 mutual acceptance, Buyer may rescind this Agreement at any time up to 3 days thereafter. 202 203 204 205 206

Buyer and Seller agree, that except as provided in this Agreement, all representations and information regarding the Property and the transaction are solely from the Seller or Buyer, and not from any Broker. The parties acknowledge that the Brokers are not responsible for assuring that the parties perform their obligations under this Agreement and that none of the Brokers has agreed to independently investigate or confirm any matter related to this transaction except as stated in this Agreement, or in a separate writing signed by such Broker. In addition, Brokers do not guarantee the value, quality or condition of the Property and some properties may contain building materials, including siding, roofing, ceiling, insulation, electrical, and plumbing, that have been the subject of lawsuits and/or governmental inquiry because of possible defects or health hazards. Some properties may have other defects arising after construction, such as drainage, leakage, pest, rot and mold problems. Brokers do not have the expertise to identify or assess defective products, materials, or conditions. Buyer is urged to use due diligence to inspect the Property to Buyer’s satisfaction and to retain inspectors qualified to identify the presence of defective materials and evaluate the condition of the Property as there may be defects that may only be revealed by careful inspection. Buyer is advised to investigate whether there is a sufficient water supply to meet Buyer’s needs. Buyer is advised to investigate the cost of insurance for the Property, including, but not limited to homeowner’s, flood, earthquake, landslide, and other available coverage. Buyer and Seller acknowledge that home protection plans may be available which may provide additional protection and benefit to Buyer and Seller. Brokers may assist the parties with locating and selecting third party service providers, such as inspectors or contractors, but Brokers cannot guarantee or be responsible for the services provided by those third parties. The parties shall exercise their own judgment and due diligence regarding third-party service providers.

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Information Verification Period and Property Condition Disclaimer. Buyer shall have 10 days after mutual acceptance to verify all information provided from Seller or Listing Firm related to the Property. This contingency shall be deemed satisfied unless Buyer gives notice identifying the materially inaccurate information within 10 days of mutual acceptance. If Buyer gives timely notice under this section, then this Agreement shall terminate and the Earnest Money shall be refunded to Buyer.

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Buyer’s Initials

Seller’s Initials

Date

Sommer Cronck, REALTOR® | 360-647-8049 | BESTBELLINGHAMHOMES.COM

Date

Form 22A Financing Addendum Rev. 7/15 Page 1 of 2

FINANCING ADDENDUM TO PURCHASE & SALE AGREEMENT

The following is part of the Purchase and Sale Agreement dated __________________________________________

between ______________________________________________________________________________ (“Buyer”)

and ___________________________________________________________________________________(“Seller”)

concerning _______________________________________________________________________ (the "Property”).

1. LOAN APPLICATION/WAIVER OF CONTINGENCY. a. Loan Application. This Agreement is contingent on Buyer obtaining the following type of loan or loans to purchase Conventional Second; Bridge; VA; FHA; USDA; the Property (the “Loan(s)”): Conventional First; Home Equity Line of Credit; Other ____________________________________________ (the “Financing Contingency”). Buyer shall pay $ _________________; or ______ % of the Purchase Price down, in addition to the Loans and make application for the Loans to pay the balance of the Purchase Price and pay the application fee, if required, for the subject Property within ___________ days (5 days if not filled in) after mutual acceptance of this Agreement. For the purposes of this Addendum, “application” means the submission of Buyer’s financial information for the purposes of obtaining an extension of credit including Buyer’s name, income, social security number (if required), the Property address, purchase price, and the loan amount. b. Waiver of Financing Contingency. If Buyer (i) fails to make application for financing for the Property within the agreed time; (ii) changes the type of loan at any time without Seller’s prior written consent; or (iii) changes the lender without Seller’s prior written consent after the agreed upon time to apply for financing expires, then the Financing Contingency shall be deemed waived. Buyer’s waiver of the Financing Contingency under this Paragraph 1(b) also constitutes waiver of Paragraph 7 (Appraisal Less Than Sales Price). For purposes of this Addendum, “lender” means either the party to whom the application was submitted or the party funding the loan.

Buyer

Seller

City

State

Zip

Address

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3. SELLER S RIGHT TO TERMINATE. a. Right to Terminate Notice. At any time ________ days (30 days if not filled in) after mutual acceptance, Seller may give notice that Seller may terminate the Agreement at any time 3 days after delivery of that notice (the “Right to Terminate Notice”). NWMLS Form 22AR may be used for this notice. b. Termination Notice. If Buyer has not previously waived the Financing Contingency, Seller may give notice of termination of this Agreement (the “Termination Notice”) any time following 3 days after delivery of the Right to Terminate Notice. If Seller gives the Termination Notice before Buyer has waived the Financing Contingency, this Agreement is terminated and the Earnest Money shall be refunded to Buyer. NWMLS Form 22AR shall be used for this notice. If not waived, the Financing Contingency shall survive the Closing Date. c. Appraisal Less Than Sales Price. Buyer’s waiver of the Financing Contingency under this Paragraph 3 will; or will not (will, if not filled in) constitute waiver of Paragraph 7 (Appraisal Less Than Sales Price).

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4. LOAN COST PROVISIONS. Seller shall pay up to $ _________________; or ______% of the Purchase Price ($0.00 if not filled in), which shall be applied to Buyer’s Loan(s) and settlement costs, including prepaids, loan discount, loan fee, interest buy down, financing, closing or other costs allowed by lender. That amount shall include the following costs that lender is prohibited from collecting from Buyer: (a) up to $300.00 for Buyer's Loan(s)

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2. LOAN INFORMATION. a. Seller s Request for Loan Information. At any time _______ days (10 days if not filled in) after mutual acceptance, Seller may give, once, a notice requesting information related to the status of Buyer’s loan application (“Request for Loan Information”). NWMLS Form 22AL may be used for this notice. b. Buyer s Loan Information Notice. Within _______ days (3 days if not filled in) of receiving Seller’s Request for Loan Information, Buyer shall give notice of the status of Buyer’s loan application (“Loan Information Notice”). Buyer’s notice shall be on NWMLS Form 22AP and shall include the date of application, the name of lender, a list of the information that Buyer has provided to lender, and a warranty that Buyer has provided all information requested by lender. c. Failure to Provide Loan Information Notice. If Buyer fails to timely give to Seller a completed Loan Information Notice, Seller may give the Right to Terminate Notice described in Paragraph 3 (Seller’s Right to Terminate) at any time after the date that the Loan Information Notice is due.

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Buyer’s Initials

Seller’s Initials

Date

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Date

Sommer Cronck, REALTOR® | 360-647-8049 | BESTBELLINGHAMHOMES.COM

Form 22A Financing Addendum Rev. 7/15 Page 2 of 2

FINANCING ADDENDUM TO PURCHASE & SALE AGREEMENT Continued

and settlement costs for FHA/USDA/VA loans; and (b) Buyer’s share of the escrow fee for a VA loan. Seller shall pay 48 49 the costs for (a) and (b), even if the amount agreed upon in this Paragraph 4 is insufficient to pay for those costs. 5. EARNEST MONEY. If Buyer has not waived the Financing Contingency, and is unable to obtain financing by Closing after a good faith effort then, on Buyer’s notice, this Agreement shall terminate. The Earnest Money shall be refunded to Buyer after lender confirms in writing (a) the date Buyer’s loan application for the Property was made, including a copy of the loan estimate that was provided to Buyer; (b) that Buyer possessed sufficient funds to close; and (c) the reasons Buyer was unable to obtain financing by Closing. If Seller terminates this Agreement, the Earnest Money shall be refunded without need for such confirmation.

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6. INSPECTION. Seller agrees to permit inspections required by lender, including but not limited to structural, pest, 56 heating, plumbing, roof, electrical, septic, and well inspections. Seller is not obligated to pay for such inspections 57 58 unless otherwise agreed. 59 60 61 62

8. FHA/VA/USDA - Appraisal Certificate. If this Agreement is contingent on Buyer obtaining FHA, VA, or USDA financing, notwithstanding any other provisions of this Agreement, Buyer is not obligated to complete the purchase of the Property unless Buyer has been given in accordance with HUD/FHA, VA, or USDA requirements a written statement by FHA, VA, USDA or a Direct Endorsement lender, setting forth the appraised value of the Property (excluding closing costs). Buyer shall pay the costs of any appraisal. If the appraised value of the Property is less than the Purchase Price, Paragraph 7 above shall apply. Purpose of Appraisal. The appraised valuation is arrived at only to determine the maximum mortgage FHA, VA, or USDA will insure. FHA, VA, or USDA do not warrant the value or the condition of the Property. Buyer agrees to satisfy himself/herself that the price and condition of the Property are acceptable.

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9. EXTENSION OF CLOSING. If, through no fault of Buyer, lender is required by 12 CFR 1026 to give corrected disclosures to Buyer due to (a) a change in the Annual Percentage Rate (“APR”) of Buyer’s Loan(s) by .125% or more for a fixed rate loan or .250% or more for an adjustable rate loan; (b) a change in the loan product; or (c) the addition of a prepayment penalty, then upon notice from Buyer, the Closing Date shall be extended for up to 4 days to accommodate the requirements of Regulation Z of the Truth in Lending Act. This paragraph shall survive Buyer’s waiver of this Financing Contingency.

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7. APPRAISAL LESS THAN SALE PRICE. a. Notice of Low Appraisal. If lender’s appraised value of the Property is less than the Purchase Price, Buyer may, within 3 days after receipt of a copy of lender’s appraisal, give notice of low appraisal, which shall include a copy of lender’s appraisal. NWMLS Form 22AN may be used for the notices in this Paragraph 7. b. Seller s Response to Notice of Low Appraisal. Seller shall, within 10 days after Buyer’s notice of low appraisal, give notice of: (i) A reappraisal or reconsideration of value, at Seller’s expense, by the same appraiser or another appraiser acceptable to lender, in an amount not less than the Purchase Price. Buyer shall promptly seek lender’s approval of such reappraisal or reconsideration of value. The parties are advised that lender may elect not to accept a reappraisal or reconsideration of value; (ii) Seller’s consent to reduce the Purchase Price to an amount not more than the amount specified in the appraisal or reappraisal by the same appraiser, or an appraisal by another appraiser acceptable to lender, whichever is higher. (This provision is not applicable if this Agreement is conditioned on FHA, VA, or USDA financing. FHA, VA, and USDA financing does not permit the Buyer to be obligated to buy if the Seller reduces the Purchase Price to the appraised value. Buyer, however, has the option to buy at the reduced price.); or (iii) Seller’s rejection of Buyer’s notice of low appraisal. If Seller timely delivers notice of reappraisal, reconsideration of value, or consent to reduce the Purchase Price, and lender accepts Seller’s response, then Buyer shall be bound by Seller’s response. c. Buyer s Reply. Buyer shall have 3 days from either Seller’s notice of rejection of low appraisal or, if Seller fails to respond, the day Seller’s response period ends, whichever is earlier, to (a) waive the Financing Contingency or (b) terminate the Agreement, in which event the Earnest Money shall be refunded to Buyer. Buyer’s inaction during this reply period shall result in termination of the Agreement and return of the Earnest Money to Buyer. The Closing date shall be extended as necessary to accommodate the foregoing times for notices.

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Buyer’s Initials

Seller’s Initials

Date

Sommer Cronck, REALTOR® | 360-647-8049 | BESTBELLINGHAMHOMES.COM

Date

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Form 35 Inspection Addendum Rev. 7/15 Page 1 of 2

INSPECTION ADDENDUM TO PURCHASE AND SALE AGREEMENT

The following is part of the Purchase and Sale Agreement dated __________________________________________

between ______________________________________________________________________________ (“Buyer”)

and __________________________________________________________________________________ (“Seller”)

concerning ______________________________________________________________________ (the "Property”).

Buyer

Seller

Address

State

Zip

a. INSPECTION CONTINGENCY. This Agreement is conditioned on Buyer’s subjective satisfaction with 5 inspections of the Property and the improvements on the Property. Buyer’s inspections may include, at 6 Buyer’s option and without limitation, the structural, mechanical and general condition of the 7 improvements to the Property, compliance with building and zoning codes, an inspection of the Property 8 for hazardous materials, a pest inspection, and a soils/stability inspection. The inspection must be 9 10 performed by Buyer or a person licensed (or exempt from licensing) under Chapter 18.280 RCW. may; may not (may, if not checked) include 11 Sewer Inspection. Buyer’s inspection of the Property an inspection of the sewer system, which may include a sewer line video inspection and assessment and 12 13 may require the inspector to remove toilets or other fixtures to access the sewer line. 14 15 16 17 18 19

BUYER’S NOTICE. This inspection contingency SHALL CONCLUSIVELY BE DEEMED WAIVED unless within _________ days (10 days if not filled in) after mutual acceptance of this Agreement (the “Initial Inspection Period”), Buyer gives notice (1) approving the inspection and waiving this contingency; (2) disapproving the inspection and terminating the Agreement; (3) that Buyer will conduct additional inspections; or (4) proposing repairs to the property or modifications to the Agreement. If Buyer disapproves the inspection and terminates the Agreement, the Earnest Money shall be refunded to Buyer. If Buyer proposes repairs to the property or modifications to the Agreement, including adjustments to the purchase price or credits for repairs to be performed after Closing, the parties shall negotiate as set forth in paragraph 1.c, below. The parties may use NWMLS Form 35R to give notices required by this Addendum.

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Buyer’s Obligations. All inspections are to be (a) ordered by Buyer, (b) performed by inspectors of Buyer’s choice, and (c) completed at Buyer’s expense. Buyer shall not alter the Property or any improvements on the Property without first obtaining Seller’s permission. Buyer is solely responsible for interviewing and selecting all inspectors. Buyer shall restore the Property and all improvements on the Property to the same condition they were in prior to the inspection. Buyer shall be responsible for all damages resulting from any inspection of the Property performed on Buyer’s behalf.

ATTENTION BUYER: If Buyer fails to give timely notice, then this inspection contingency shall be 29 30 deemed waived and Seller shall not be obligated to make any repairs or modifications.

City

b. Additional Inspections. If an inspector so recommends, Buyer may obtain further evaluation of any item by a specialist at Buyer’s option and expense if, on or before the end of the Initial Inspection Period, Buyer provides Seller a copy of the inspector’s recommendation and notice that Buyer will seek additional inspections. If Buyer gives timely notice of additional inspections, Buyer shall have __________ (5 days if not filled in) after giving the notice to obtain the additional inspection(s) by a specialist.

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c. Buyer’s Requests for Repairs or Modifications. If Buyer requests repairs or modifications under paragraph 1.a or 1.b. above, the parties shall negotiate as set forth in this paragraph. All requests, responses, and replies made in accordance with the following procedures are irrevocable for the time period provided.

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(i) Seller’s Response to Request for Repairs or Modifications. Seller shall have ___________ days (3 days if not filled in) after receipt of Buyer’s request for repairs or modifications to give notice that Seller (a) agrees to the repairs or modifications proposed by Buyer; (b) agrees to some of the repairs or modifications proposed by Buyer; (c) rejects all repairs or modifications proposed by Buyer; or (d) offers different or additional repairs or modifications. If Seller agrees to the terms of Buyer’s request for repairs or modifications, this contingency shall be satisfied and Buyer’s Reply shall not be necessary. If Seller does not agree to all of Buyer’s repairs or modifications, Buyer shall have an opportunity to reply, as follows:

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_________________________

________________________

_________________________

Buyer’s Initials

Seller’s Initials

Date

Sommer Cronck, REALTOR® | 360-647-8049 | BESTBELLINGHAMHOMES.COM

Form 35 Inspection Addendum Rev. 7/15 Page 2 of 2

INSPECTION ADDENDUM TO PURCHASE AND SALE AGREEMENT Continued

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ATTENTION BUYER: These time periods for negotiating repairs or modifications shall not repeat. The parties must either reach a written agreement or Buyer must terminate this Agreement by the Buyer’s Reply deadline set forth in paragraph 1.c.ii. Buyer’s inaction during Buyer’s reply period shall result in waiver of this inspection condition, in which case Seller shall not be obligated to make any repairs or modifications whatsoever AND THIS CONTINGENCY SHALL BE DEEMED WAIVED.

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d. Repairs. If Seller agrees to make the repairs proposed by Buyer, then repairs shall be accomplished at Seller’s expense in a commercially reasonable manner and in accordance with all applicable laws no fewer than _______ days (3 days if not filled in) prior to the Closing Date. In the case of hazardous materials, “repair” means removal or treatment (including but not limited to removal or, at Seller’s option, decommissioning of any oil storage tanks) of the hazardous material at Seller’s expense as recommended by and under the direction of a professional selected by Seller. Seller’s repairs are subject to re-inspection and approval, prior to Closing, by the inspector who recommended the repair, if Buyer elects to order and pay for such re-inspection. If Buyer agrees to pay for any repairs prior to Closing, the parties are advised to seek the counsel of an attorney to review the terms of that agreement.

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(ii) Buyer’s Reply. If Seller does not agree to all of the repairs or modifications proposed by Buyer, Buyer shall have _______ days (3 days if not filled in) from either the day Buyer receives Seller’s response or, if Seller fails to respond, the day Seller’s response period ends, whichever is earlier, to (a) accept the Seller’s response at which time this contingency shall be satisfied; (b) agree with the Seller on other remedies; or (c) disapprove the inspection and terminate the Agreement, in which event, the Earnest Money shall be refunded to Buyer.

e. Oil Storage Tanks. Any inspection regarding oil storage tanks or contamination from such tanks shall be 68 limited solely to determining the presence or non-presence of oil storage tanks on the Property, unless 69 70 otherwise agreed in writing by Buyer and Seller. 71 72 73 74 75

NEIGHBORHOOD REVIEW CONTINGENCY: Buyer’s inspection includes Buyer’s subjective satisfaction that the conditions of the neighborhood in which the Property is located are consistent with the Buyer’s intended use of the Property (the “Neighborhood Review”). The Neighborhood Review may include Buyer’s investigation of the schools, proximity to bus lines, availability of shopping, traffic patterns, noise, parking and investigation of other neighborhood, environmental and safety conditions the Buyer may determine to be relevant in deciding to purchase the Property. If Buyer does not give notice of disapproval of the Neighborhood Review within _______ (3 days if not filled in) of mutual acceptance of the Agreement, then this Neighborhood Review condition shall conclusively be deemed satisfied (waived). If Buyer gives a timely notice of disapproval, then this Agreement shall terminate and the Earnest Money shall be refunded to Buyer.

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PREINSPECTION CONDUCTED. Buyer, prior to mutual acceptance of this Agreement, conducted a building, hazardous substances, building and zoning code, pest or soils/stability inspection of the Property, and closing of this Agreement is not conditioned on the results of such inspections. Buyer elects to buy the Property in its present condition and acknowledges that the decision to purchase the property was based on Buyer’s prior inspection and that Buyer has not relied on representations by Seller, Listing Broker or Selling Broker.

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WAIVER OF INSPECTION. Buyer has been advised to obtain a building, hazardous substances, building and zoning code, pest or soils/stability inspection, and to condition the closing of this Agreement on the results of such inspections, but Buyer elects to waive the right and buy the Property in its present condition. Buyer acknowledges that the decision to waive Buyer’s inspection options was based on Buyer’s personal inspection and Buyer has not relied on representations by Seller, Listing Broker or Selling Broker.

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f. On-site Sewage Disposal Systems Advisory: Buyer is advised that on-site sewage disposal systems, including “septic systems,” are subject to strict governmental regulation and occasional malfunction and even failure. Buyer is advised to consider conducting an inspection of any on-site sewage system in addition to the inspection of the Property provided by this Form 35 by including an appropriate on-site sewage disposal inspection contingency such as NWMLS Form 22S (Septic Addendum).

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________________________

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Buyer’s Initials

Seller’s Initials

Date

Sommer Cronck, REALTOR® | 360-647-8049 | BESTBELLINGHAMHOMES.COM

Date

Thank You Thank you for the opportunity to work with you in the purchase of your home! Feel free to call, text, or email me if you have any questions.

Sommer Cronck, REALTOR®

sommerc@remax.net Office (360) 647-8049 Cell (360) 389-1671 BestBellinghamHomes.com

Sommer Cronck, REALTOR® | 360-647-8049 | BESTBELLINGHAMHOMES.COM