Buyers

8 Essential Steps to Buying Your Next Home
and Agency Disclosures

Step 1: Check Your Credit Report & Score
Hey there! Before diving into the exciting world of homebuying, it's essential to assess your credit. We recommend promptly checking your credit report for any errors and disputing them. You can get a free copy of your credit report each year at Annualcreditreport.com, and for a free credit score, head over to Credit Karma.

Step 2: Figure out How Much You Can Afford
Let's crunch some numbers together to determine what you can comfortably afford. We'll use online mortgage calculators to calculate an affordable monthly mortgage payment. Consider the down payment, closing costs, fees, and future remodeling or furniture expenses. It's worth noting that putting down 20% isn't the only option nowadays – loans are available to suit different needs. We'll guide you through the process and provide all the information you need on loan options, closing costs, and fees.

Step 3: Find the Right Lender and Real Estate Agent
Finding the right lender and real estate agent ensures a smooth homebuying experience. Our team has extensive experience and can provide great recommendations, but don't forget to ask your friends and family, too. We encourage you to talk to at least three or four mortgage lenders, ask lots of questions, and find someone you feel comfortable with and trust. Getting a pre-approval will give you a solid understanding of your loan qualifications and make your offer more attractive to sellers.

Step 4: Find the Right Home
Location, location, location! Once you've determined your dream location for your future home, let's make a comprehensive checklist of your "must-haves." How many bedrooms and bathrooms do you need? What is the ideal size for your kitchen? Closets and cabinet space – how much is enough? And, of course, don't forget about the yard for your kids or furry friends. We'll also help you consider other factors like nearby schools, commute times to work, and convenient local shopping. Your safety and the rate of home appreciation in the area are equally important to us.

Step 5: Making an Offer
You've found the one – it's time to make an offer! Our team here at Angell Realty will meticulously research neighboring property prices and prepare a detailed Comparative Market Analysis (CMA) to ensure we negotiate the best deal on your behalf. Remember, negotiations might involve counter-offers, but we'll work together to find a middle ground that satisfies you and the seller. Once a price is agreed upon, you'll make an earnest money deposit (EMD) to show your commitment. This deposit will eventually go towards your closing costs when you settle.

Step 6: Get the Right Mortgage for Your Situation
Understanding your mortgage options is crucial, and we're here to guide you through the process. We'll explore different mortgage programs like adjustable-rate, fixed-rate, and interest-only mortgages. Adjustable-rate mortgages are ideal for those planning short-term stays or seeking lower interest rates. Fixed-rate mortgages offer stability, perfect for those who prefer predictable payments over extended periods. Interest-only mortgages can increase cash flow by allowing you to pay only the interest portion for a specific time. Additionally, we'll help you navigate other loan programs like the 203k loan for property repairs or choosing between conventional and FHA programs. Our goal is to ensure you select the best fit for your situation.

Step 7: Close on Your Home
Closing day is approaching! Before the big day, we strongly suggest getting a home inspection to confirm the property's structure and condition. We'll help you set a closing date that works for both parties, considering any rental agreements or the seller's new home closing. To avoid surprises, we'll walk you through all the closing costs involved, such as down payment, title fees, appraisal fees, attorney fees, inspection fees, and any points you may have bought to lower your interest rate.

Step 8: Move In!
Congratulations, it's time to move into your new home! Whether you hire professional movers or recruit the help of friends, you've reached this exciting milestone. Caralee Angell and the Angell Realty Team are thrilled to have been a part of your homebuying journey. So unpack and start creating beautiful memories in your first home!

Buying a home should be an enjoyable experience, and with Caralee Angell and the Angell Realty Team, you'll have the support and expertise you need every step of the way. Let's make your homeownership dreams a reality!

Ready to take action? Check out these Oregon Disclosures!

RESIDENTIAL

OREGON REAL ESTATE AGENCY

INITIAL AGENCY DISCLOSURE PAMPHLET

OAR 863-015-215 (4)

This pamphlet describes the legal obligations of real estate agents in Oregon. Real estate agents and Principal Brokers are required to provide this information to you when they first meet you.

This pamphlet is informational only. Neither the pamphlet nor its delivery to you may be interpreted as evidence of intent to create an agency relationship between you and an agent or a Principal Broker.

Real Estate Agency Relationships

An "agency" relationship is a voluntary legal relationship in which a licensed real estate agent or Principal Broker, agrees to act on behalf of a buyer or a seller (the "client") in a real estate transaction.

Oregon law provides for three types of agency relationships between real estate agents and their clients:

Seller's Agent - Represents the seller only;

Buyer's Agent - Represents the buyer only;

Disclosed Limited Agent - Represents both the buyer and seller, or multiple buyers who want to purchase the same property. This can be done only with the written permission of all clients.

The actual agency relationships between the seller, buyer and their agents in a real estate transaction must be acknowledged at the time an offer to purchase is made. Please read this pamphlet carefully before entering into an agency relationship with a real estate agent.

Definition of “Confidential Information”

Generally, agents must maintain confidential information about their clients. “Confidential information” is information communicated to the agent or the agent's Principal Broker by the buyer or seller of one to four residential units regarding the real property transaction, including but not limited to price, terms, financial qualifications or motivation to buy or sell. “Confidential information” does not mean information that:

a. The buyer instructs the agent or the agent's Principal Broker to disclose about the buyer to the seller, or the seller instructs the agent or the agent's Principal Broker to disclose about the seller to the buyer; and

b. The agent or the agent's Principal Broker knows or should know failure to disclose would constitute fraudulent representation.

Duties and Responsibilities of Seller's Agent

Under a written listing agreement to sell property, an agent represents only the seller unless the seller agrees in writing to allow the agent to also represent the buyer. An agent who represents only the seller owes the following affirmative duties to the seller, the other parties and the other parties' agents involved in a real estate transaction:

1. To deal honestly and in good faith;

2. To present all written offers, notices and other communications to and from the parties in a timely manner without regard to whether the property is subject to a contract for sale or the buyer is already a party to a contract to purchase; and 3. To disclose material facts known by the agent and not apparent or readily ascertainable to a party;

This form has been licensed for use solely by the named user below pursuant to a Forms License Agreement with Oregon Real Estate Forms, LLC. LINES WITH THIS SYMBOL ← REQUIRE A SIGNATURE AND DATE

No portion may be reproduced without express permission of Oregon Real Estate Forms, LLC OREF 042 | Page 1 of 3

Phone: Fax:

Angell Realty, 502 7th St #201 Oregon City OR 97045 5032093282 OR Buyer Forms

Caralee Angell

Produced with Lone Wolf Transactions (zipForm Edition) 717 N Harwood St, Suite 2200, Dallas, TX 75201 www.lwolf.com

RESIDENTIAL A Seller's Agent owes the seller the following affirmative duties;

1. To exercise reasonable care and diligence;

2. To account in a timely manner for money and property received from or on behalf of the seller;

3. To be loyal to the seller by not taking action that is adverse or detrimental to the seller's interest in a transaction; 4. To disclose in a timely manner to the seller any conflict of interest, existing or contemplated;

5. To advise the seller to seek expert advice on matters related to the transactions that are beyond the agent's expertise; 6. To maintain confidential information from or about the seller except under subpoena or court order, even after termination of the agency relationship; and

7. Unless agreed otherwise in writing, to make a continuous, good faith effort to find a buyer for the property, except that a Seller's Agent is not required to seek additional offers to purchase the property while the property is subject to a contract for sale.

None of the above affirmative duties of an agent may be waived, except #7. The affirmative duty listed in #7 can only be waived by written agreement between seller and agent.

Under Oregon law, a Seller's Agent may show properties owned by another seller to a prospective buyer and may list competing properties for sale without breaching any affirmative duty to the seller.

Unless agreed to in writing, an agent has no duty to investigate matters that are outside the scope of the agent's expertise, including but not limited to investigation of the condition of property, the legal status of the title or the seller's past conformance with law.

Duties and Responsibilities of Buyer's Agent

An agent, other than the Seller's Agent, may agree to act as the Buyer's Agent only. The Buyer's Agent is not representing the seller, even if the Buyer's Agent is receiving compensation for services rendered, either in full or in part, from the seller or through the Seller's Agent.

An agent who represents only the buyer owes the following affirmative duties to the buyer, the other parties and the other parties' agents involved in a real estate transaction:

1. To deal honestly and in good faith;

A Buyer's Agent owes the buyer the following affirmative duties:

1. To exercise reasonable care and diligence;

2. To account in a timely manner for money and property received from or on behalf of the buyer;

3. To be loyal to the buyer by not taking action that is adverse or detrimental to the buyer's interest in a transaction; 4. To disclose in a timely manner to the buyer any conflict of interest, existing or contemplated;

5. To advise the buyer to seek expert advice on matters related to the transaction that are beyond the agent's expertise; 6. To maintain confidential information from or about the buyer except under subpoena or court order, even after termination of the agency relationship; and

7. Unless agreed otherwise in writing, to make a continuous, good faith effort to find property for the buyer, except that a buyer's agent is not required to seek additional properties for the buyer while the buyer is subject to a contract for purchase.

This form has been licensed for use solely by the named user below pursuant to a Forms License Agreement with Oregon Real Estate Forms, LLC. LINES WITH THIS SYMBOL ← REQUIRE A SIGNATURE AND DATE

No portion may be reproduced without express permission of Oregon Real Estate Forms, LLC OREF 042 | Page 2 of 3 Produced with Lone Wolf Transactions (zipForm Edition) 717 N Harwood St, Suite 2200, Dallas, TX 75201 www.lwolf.com OR Buyer Forms

RESIDENTIAL

None of these affirmative duties of an agent may be waived, except #7. The affirmative duty listed in #7 can only be waived by written agreement between buyer and agent.

Under Oregon law, a Buyer's Agent may show properties in which the buyer is interested to other prospective buyers without breaching an affirmative duty to the buyer.

Duties and Responsibilities of an Agent

Who Represents More than One Client in a Transaction

One agent may represent both the seller and the buyer in the same transaction, or multiple buyers who want to purchase the same property, only under a written "Disclosed Limited Agency Agreement” signed by the seller and buyer(s).

Disclosed Limited Agents have the following duties to their clients:

1. To the seller, the duties listed above for a seller's agent; and

2. To the buyer, the duties listed above for a buyer's agent;

3. To both buyer and seller, except with express written permission of the respective person, the duty not to disclose to the other person:

a. That the seller will accept a price lower or terms less favorable than the listing price or terms;

b. That the buyer will pay a price greater or terms more favorable than the offering price or terms; or c. Confidential information as defined above.

Unless agreed to in writing, an agent has no duty to investigate matters that are outside the scope of the agent's expertise.

When different agents associated with the same Principal Broker (a real estate agent who supervises other agents) establish agency relationships with different parties to the same transaction, only the Principal Broker will act as a Disclosed Limited Agent for both buyer and seller. The other agents continue to represent only the party with whom the agents have already established an agency relationship unless all parties agree otherwise in writing. The Principal Broker and the real estate agents representing either seller or buyer shall owe the following duties to the seller and buyer:

1. To disclose a conflict of interest in writing to all parties;

2. To take no action that is adverse or detrimental to either party's interest in the transaction; and

3. To obey the lawful instruction of both parties.

No matter whom they represent, an agent must disclose information the agent knows or should know that failure to disclose would constitute fraudulent misrepresentation.

You are encouraged to discuss the above information with the agent delivering this pamphlet to you. If you intend for that agent, or any other Oregon real estate agent, to represent you as a Seller's Agent, Buyer's Agent, or Disclosed Limited Agent, you should have a specific discussion with the agent about the nature and scope of the agency relationship. Whether you are a buyer or seller, you cannot make an agent your agent without the agent's knowledge and consent, and an agent cannot make you their client without your knowledge and consent.

This form has been licensed for use solely by the named user below pursuant to a Forms License Agreement with Oregon Real Estate Forms, LLC. LINES WITH THIS SYMBOL ← REQUIRE A SIGNATURE AND DATE

No portion may be reproduced without express permission of Oregon Real Estate Forms, LLC OREF 042 | Page 3 of 3 Produced with Lone Wolf Transactions (zipForm Edition) 717 N Harwood St, Suite 2200, Dallas, TX 75201 www.lwolf.com OR Buyer Forms

Looking in Washington?
Check out these Washington Disclosures!

Introduction

This pamphlet provides general information about real estate brokerage and summarizes the laws related to real estate brokerage relationships. It describes a real estate broker's duties to the seller/landlord and buyer/tenant. Detailed and complete information about real estate brokerage relationships is available in chapter 18.86 RCW.

If you have any questions about the information in this pamphlet, contact your broker or the designated broker of your broker's firm.

Licensing and Supervision of Brokers

To provide real estate brokerage services in Washington, a broker must be licensed under chapter 18.85 RCW and licensed with a real estate firm, which also must be licensed. Each real estate firm has a designated broker who is responsible for supervising the brokers licensed with the firm. Some firms may have branch offices that are supervised by a branch manager and some firms may delegate certain supervisory duties to one or more managing brokers.

The Washington State Department of Licensing is responsible for enforcing all laws and rules relating to the conduct of real estate firms and brokers.

Page 1 of 4

Phone: Fax:

Angell Realty, 502 7th St #201 Oregon City OR 97045 5032093282 WASHINGTON

Caralee Angell

Produced with Lone Wolf Transactions (zipForm Edition) 717 N Harwood St, Suite 2200, Dallas, TX 75201 www.lwolf.com

Agency Relationship

In an agency relationship, a broker is referred to as an “agent” and the seller/landlord and buyer/tenant is referred to as the “principal.” For simplicity, in this pamphlet, seller includes landlord, and buyer includes tenant.

For Sellers

A real estate firm and broker must enter into a written services agreement with a seller to establish an agency relationship. The firm will then appoint one or more brokers to be agents of the seller. The firm's designated broker and any managing broker responsible for the supervision of those brokers are also agents of the seller.

For Buyers

A real estate firm and broker(s) who perform real estate brokerage services for a buyer establish an agency relationship by performing those services. The firm's designated broker and any managing broker responsible for the supervision of that broker are also agents of the buyer. A written services agreement between the buyer and the firm must be entered into before, or as soon as reasonably practical after, a broker begins rendering real estate brokerage services to the buyer.

For both Buyer and Seller - as a Limited Dual Agent

A limited dual agent provides limited representation to both the buyer and the seller in a transaction. Limited dual agency requires the consent of each principal in a written services agreement and may occur in two situations: (1) When the buyer and the seller are represented by the same broker, in which case the broker's designated broker and any managing broker responsible for the supervision of that broker are also limited dual agents; and (2) when the buyer and the seller are represented by different brokers in the same firm, in which case each broker solely represents the principal the broker was appointed to represent, but the broker's designated broker and any managing broker responsible for the supervision of those brokers are limited dual agents.

Duration of Agency Relationship

Once established, an agency relationship continues until the earliest of the following:

1. Completion of performance by the broker;

2. Expiration of the term agreed upon by the parties;

3. Termination of the relationship by mutual agreement of the parties; or

4. Termination of the relationship by notice from either party to the other. However, such a termination does not affect the contractual rights of either party.

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Written Services Agreement

A written services agreement between the firm and principal must contain the following:

1. The term (duration) of the agreement;

2. Name of the broker(s) appointed to act as an agent for the principal;

3. Whether the agency relationship is exclusive (which does not allow the principal to enter into an agency relationship with another firm during the term) or nonexclusive (which allows the principal to enter into an agency relationship with multiple firms at the same time);

4. Whether the principal consents to limited dual agency;

5. The terms of compensation;

6. In an agreement with a buyer, whether the broker agrees to show a property when there is no agreement or offer by any party or firm to pay compensation to the broker's firm; and 7. Any other agreements between the parties.

A Broker's Duties to All Parties

A broker owes the following duties to all parties in a transaction:

1. To exercise reasonable skill and care;

2. To deal honestly and in good faith;

3. To timely present all written offers, written notices, and other written communications to and from either party;

4. To disclose all existing material facts known by the broker and not apparent or readily ascertainable to a party. A material fact includes information that substantially adversely affects the value of the property or a party's ability to perform its obligations in a transaction, or operates to materially impair or defeat the purpose of the transaction. However, a broker does not have any duty to investigate matters that the broker has not agreed to investigate;

5. To account in a timely manner for all money and property received from or on behalf of either party; 6. To provide this pamphlet to all parties to whom the broker renders real estate brokerage services and to any unrepresented party;

7. To disclose in writing who the broker represents; and

8. To disclose in writing any terms of compensation offered by a party or a real estate firm to a real estate firm representing another party.

A Broker's Duties to the Buyer or Seller

A broker owes the following duties to their principal (either the buyer or seller):

1. To be loyal to their principal by taking no action that is adverse or detrimental to their principal's interest in a transaction;

2. To timely disclose to their principal any conflicts of interest;

3. To advise their principal to seek expert advice on matters relating to the transaction that are beyond the broker's expertise;

4. To not disclose any confidential information from or about their principal; and 5. To make a good faith and continuous effort to find a property for the buyer or to find a buyer for the seller's property, until the principal has entered a contract for the purchase or sale of property or as agreed otherwise in writing.

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Limited Dual Agent Duties

A limited dual agent may not advocate terms favorable to one principal to the detriment of the other principal. A broker, acting as a limited dual agent, owes the following duties to both the buyer and seller:

1. To take no action that is adverse or detrimental to either principal's interest in a transaction; 2. To timely disclose to both principals any conflicts of interest;

3. To advise both principals to seek expert advice on matters relating to the transaction that are beyond the limited dual agent's expertise;

4. To not disclose any confidential information from or about either principal; and 5. To make a good faith and continuous effort to find a property for the buyer and to find a buyer for the seller's property, until the principals have entered a contract for the purchase or sale of property or as agreed otherwise in writing.

Compensation

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. To receive compensation from any party, a firm must have a written services agreement with the party the firm represents (or provide a “Compensation Disclosure” to the buyer in a transaction for commercial real estate).

A services agreement must contain the following regarding compensation:

1. The amount the principal agrees to compensate the firm for broker's services as an agent or limited dual agent; 2. The principal's consent, if any, and any terms of such consent, to compensation sharing between firms and parties; and

3. The principal's consent, if any, and any terms of such consent, to compensation of the firm by more than one party.

Short Sales

A “short sale” is a transaction where the seller's proceeds from the sale are insufficient to cover seller's obligations at closing (e.g., the seller's outstanding mortgage is greater than the sale price). If a sale is a short sale, the seller's real estate firm must disclose to the seller that the decision by any beneficiary or mortgagee, to release its interest in the property for less than the amount the seller owes to allow the sale to proceed, does not automatically relieve the seller of the obligation to pay any debt or costs remaining at closing, including real estate firms' compensation.

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Produced with Lone Wolf Transactions (zipForm Edition) 717 N Harwood St, Suite 2200, Dallas, TX 75201 www.lwolf.com WASHINGTON

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