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Marc Evans, Home Seller in Boston, MA

Are Sellers typically notified by their Agent when their Buyer receives their financing commitment letter per?

Asked by Marc Evans, Boston, MA Tue Jun 2, 2009

the dates on the P&S Agreement or do they normally just receive communication if there is some type of problem?

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18
The sellers agent should be in communication wth the buyers agent (or buyers) regarding this very important stage in the process. Once commitment is given by the bank, all parties should be made aware that all is well, or not well. What is NOT guarenteed is a copy of the financing commitment being given to the seller from the buyers side. This would only be required if it were negotiated upfront in the original offer, or later in a purchase and sales agreement. The commitment usually has some basic "conditions" on them that a buyer would have to furthrer satisfy for the bank to actually close on the loan. Its in the best interest of the seller to know what they are, but you are not entitled to a copy of the commitment letter unless agreed upon upfront. As a seller what you really can take from this is, if a buyer is willing to continue with the deal after the financing commitment date then they are confident any remaining conditions on that letter will be met by the closing. Once the date passes, the buyers are no longer provided an "out" of the deal and deposits returned for lack of financing.
1 vote Thank Flag Link Tue May 18, 2010
I see so many tricks, traps and shenanigans by agents that I have developed a new way of deaiong with it. As a BUYER always conduct YOUR OWN RESEARCH. Visit the County Recorder, County real estate and building permit departments. Check for old or recent insurance claims on the property--was there a fire, wind damage or theft they forgot to tell you about? If I find everything is satisfactory---I contact each neighbor and ask lots of questions. You will find at least ONE nosy neighbor. Most important question to me is What is REAL reason for selling? Is it a FIVE D's reason? In my last purchase the seller had three of the D's as a reason ( Divorce, Death, Debt). As a result I offered 35% BELOW listed price directly to the seller...it was accepted and I closed in three weeks. I cut out both agents yet they got their commissions.
uity
As a seller....try to never sell a property. Rule #1. You can lose a lot even if you have equity from the sale. Rule #2---Advertise on your own---to let prospective buyers know how to contact you DIRECTLY. A telephone number is good enoug h. This way Buyers agents can reach you with questions or offers in the event your listing agent refuses to answer the telephone or inquiries. Know how much you want for the sale and don't accept one dollar less. Also NEVER tell your listing agent THE REASON for the sale---they might blab it to another agent in the same office---and you will get lots of lowball offers. You put in a lot of effort to buy your house----why sell it? If you do sell----look for a REAL salesman---they will find that ONE person who will pay your price.
0 votes Thank Flag Link Sun Jul 12, 2015
Yes all parties should be notified
0 votes Thank Flag Link Wed Mar 18, 2015
Yes. The dates of the contract are critical, and the listing agent is managing them every step of the way. As the date approaches, it is reasonable for a seller to know if the financing date is going to be met or if there are some issues and are they correctable and in what time frame.
It is the listing agents job to keep the seller informed. A listing agent working as a sellers agent has a fiduciary responsibility to the seller.
0 votes Thank Flag Link Tue Mar 17, 2015
Yes. The dates of the contract are critical, and the listing agent is managing them every step of the way. As the date approaches, it is reasonable for a seller to know if the financing date is going to be met or if there are some issues and are they correctable and in what time frame.
It is the listing agents job to keep the seller informed. A listing agent working as a sellers agent has a fiduciary responsibility to the seller.
0 votes Thank Flag Link Tue Mar 17, 2015
Yes. The dates of the contract are critical, and the listing agent is managing them every step of the way. As the date approaches, it is reasonable for a seller to know if the financing date is going to be met or if there are some issues and are they correctable and in what time frame.
It is the listing agents job to keep the seller informed. A listing agent working as a sellers agent has a fiduciary responsibility to the seller.
0 votes Thank Flag Link Tue Mar 17, 2015
Both your Realtor and Attorney should be tracking the status of the commitment and communicating with you. Open lines of communication benefit everyone involved in the transaction.

Mike Suffoletto
617-383-7283
0 votes Thank Flag Link Fri Sep 19, 2014
It would be common courtesy to notify the seller of mortgage commitment.

There is not always communication between buyers and sellers agent about the commitment. If the date passes and nothing is said the assumption is commitment was received but a follow up call should be made to the buyers agent. I typically do not go looking for mortgage commitment until after the date has passed.

If there is a problem you would most likely be asked for an extension or a withdrawal would be sent over. Typically a buyer has a sizable deposit on the home that they do not want to lose over a missed date.

While it is common for a buyers agent to share a commitment letter, the standard state contract does not say it has to be shared and the buyer's are under no obligation to share it.
0 votes Thank Flag Link Thu Nov 28, 2013
Yes. The dates of the contract are critical, and a strong listing agent is managing them every step of the way. As the date approaches, it is reasonable for a seller to know if the financing date is going to be met or if there are some issues and are they correctable and in what time frame.

Often times, the financing commitment date is very close to the actual closing date. Moving trucks and a subsequent closing are often hinging on the actual closing of one particular property. Any adjustment of dates may disrupt a line of "dominoes" that are in order.

I ask for an actual copy of the commitment letter, so that it can be reviewed for any last minute conditions that the bank has attached to it.
0 votes Thank Flag Link Wed Nov 27, 2013
Your listing agent should be in constant contact with you about any communications that have been had. Typically as a contingency date is about to come around, I will first be on the phone with my seller discussing that the date is coming due and how I think we should handle it.

The I will contact the buyers agent and find out where we are at, constantly keeping my seller in the loop.

The seller is always the one to make the final determination based upon information provide by the list agent.
0 votes Thank Flag Link Sun Jun 30, 2013
Hello Marc,

This depends on your contract wording.
It could be either way, really.
However, you can have your agent being in touch with the selling agent on ongoing basis - to see that you are on track.

It's not fun being in the dark, and if you are buying something else at the same time - this can be pretty stressful...

Hope this helps,

Irina Karan
Beachfront Realty, Inc.
IrinaKaran@gmail.com
0 votes Thank Flag Link Fri May 4, 2012
Ron is write, unless specifically stated in the contract the buyer is not obligated to give the seller the actual commitment letter. Though it is common practice for the seller agent to be notified by the buyers agent that commitment has been received.

Your agent should be in communication with you. If mortgage commitment goes buy with no notification the buyers deposit money could be at risk.
0 votes Thank Flag Link Tue Feb 28, 2012
It is standard practice for the Agents to be in communication on this. Yes the seller should get this information from his agent.
0 votes Thank Flag Link Tue Jun 15, 2010
It is the listing agents job to keep the seller informed. A listing agent working as a sellers agent has a fiduciary responsibility to the seller.
Web Reference: http://www.thehousewiz.com
0 votes Thank Flag Link Thu Dec 10, 2009
IMHO it is the listing agent's job to be tracking the buyer's progress. They should have their radar working and if there is a problem they should know ahead of time. The official notice that the buyer's did or did not get loan approval should not be a surprise.
0 votes Thank Flag Link Wed Jun 3, 2009
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
Contact
Thanks all for your responses. The financing commitment date is tomorrow, 6/3 and we had not heard anything yet.
0 votes Thank Flag Link Tue Jun 2, 2009
I always notify my seller. As a homeowner you should be aware of every step of the transaction whether there are problems or not.
Web Reference: http://www.sellyourden.com
0 votes Thank Flag Link Tue Jun 2, 2009
It really depends on the seller/agent/attorney relationship. I prefer to notify my client of developments whether good or bad, it's their $$ and their property. Often times their attorney may be the first to find out a development. Especially the last few years, keeping on top of the financing is very important. When in doubt, find out, ask the question, better to be prepared than surprised.

Hope that helps,
Web Reference: http://www.MedfordHouse.com
0 votes Thank Flag Link Tue Jun 2, 2009
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