The purchaser, or in some cases the purchaser’s lender determines where the closing takes place.

Every listing and selling principal broker is required to deliver to their client in every real estate transaction a complete detailed closing statement. Listing and selling brokers are required to maintain true copies of such statements in his or her files for five (5) years. The listing and selling principal broker or his or her licensed associate acting on his or her behalf, shall attend all closings.

The selling office shall be responsible for preparing a "Satisfaction of Contingencies" to be signed by all parties at the closing. This document should contain the following statement, "Purchaser and Seller agree that all contingencies contained in the real estate contract dated _______________ have been met to their satisfaction and hereby hold Listing Realtor, Selling Realtor and their agents harmless from liability regarding said contingencies."

The listing office shall provide the seller with a blank closing certification form to complete whereby the seller certifies that, either the condition of premises is unchanged, or, an amended seller's disclosure reporting changes regarding condition of premises. Note an amended seller's disclosure that discloses a defect gives the prospective purchaser a right of rescission. Such right may be waived by the purchaser.

It is preferable that closing take place with all parties present at the same time. Sometimes this is not possible and the closing can take place in two separate stages. At the closing, the closing agent will have the purchaser sign their documents first, then will get with the seller. At this time all parties (purchaser, seller and their respective agents) can meet. The agent representing their respective client should present any documents prepared by either Realtor that are required to be signed.

The National Association of Realtors requires that the information to be published shall clearly inform the participants as to what kind of compensation is being offered and the compensation that the Listing Broker is offering in each cooperative arrangement. The Listing Broker may specify the compensation he is willing to offer for services as either a percentage of the gross selling price or as a definite dollar amount.

The following is the code to be used by the Service Corporation participating offices for showing compensation to the selling office as a percentage of the gross selling price.

One-half percent will be shown with the number 5

Examples: C means the cooperating office would receive 3%, D5 means the cooperating office would receive 4.5%

Where the minimum commission offered to cooperating offices is expressed as a dollar amount the letter "M" should be used followed by the appropriate alpha numeric code from the following chart

Examples: MJ means the cooperating office would receive $1,000, ML5 means the cooperating office would receive $1,250, MO means the cooperating office would receive $1,500

In a case where the compensation being offered cannot be clearly communicated by using the code an alternative procedure will be allowed. The listing office will use an * in the space provided and in the agent notes section of the profile/data sheet "* contact listing office". Upon request the listing office should provide written confirmation of the compensation offered to the selling office.

Under no circumstances MAY the purchase agreement be used to attempt to alter the compensation offered between Service Corporation participants.

The following are some basic guidelines for completing EAAR contracts:

Be careful what you write, you are completing a legally binding contract.

Never abbreviate.

When writing "further conditions" be very specific.

When completing a purchase agreement check the MLS data sheet for language and clauses required to be part of the contract.

Always include an on or before date for satisfaction of any conditions or contingencies.

Follow instructions carefully (e.g. circle appropriate paragraph number).

Always reference attachments (i.e. "see addendum").

If any changes, corrections, or alterations are made they MUST be initialed by all parties.

The top copy (original) is retained by or returned to the originating office.

As a common practice the earnest money is held by the listing office.  By Indiana license law the listing Broker is ultimately responsible for the earnest money. When preparing an offer to purchase the selling agent should collect an earnest money check made payable to the listing office. The check should be delivered to the listing agent along with the offer. It is good practice to retain a photocopy of the earnest money check.

If the offer is rejected by the seller, the earnest money check is to be returned to the selling agent as soon as possible.

Refer to the purchase agreement for additional information regarding each parties’ duties and responsibilities, breach of contract, forfeiture and the return of earnest money.

Limited home warranties are offered by the seller from time to time.

The listing agent should indicate on the MLS data sheet if the seller is offering a limited warranty as part of the listing.

If the seller is offering a home warranty, or the purchaser wishes to request that the seller provide such a warranty, it should be clearly indicated on the purchase agreement. Check boxes are provided on the purchase agreement.

If language is written in the listing agreement and data sheet indicating that a home warranty is included, then it will be included, unless it is written out of the purchase agreement.

The following are guidelines for dealing with multiple offers:

Always present ALL offers as soon as possible after receipt.

Listing agent must present and review all offers with seller.

Seller may accept or counter one of the offers.

Seller must not counter more than one offer.

Seller may reject all offers and ask for new offers to be submitted.

Buyer’s agent may request to be present for the presentation of his/her offer. In such a case the time and place for the presentation of the offers is scheduled around the listing agent and seller’s convenience. Buyer’s agent may attend only the presentation of his/her offer and is not to communicate with the seller. He/she must then leave so that the listing agent and seller can discuss the various offers and the response thereto.

The seller should definitively reject any offer that is neither accepted nor countered.

Licensed assistants can perform any task or function of a real estate sales person or broker as permitted under Indiana’s licensing laws and principal broker's policies.

The following helpful guidelines for unlicensed assistants were promulgated by the Indiana Real Estate Commission and are awaiting approval by the State.

An unlicensed assistant can perform the following tasks:

Answer the phone, forward calls to a licensee, give out addresses, directions and list price.

Submit listings and changes to a multiple listing service.

Follow up on loan commitments after a contract has been negotiated.

Assemble documents for closings.

Obtain documents and information from the courthouse, utility offices, title companies and others.

Have keys made for company listings.

Write ads for the approval of the licensee and supervising broker and place advertising (promotional information, newspaper ads, etc.).

Record and deposit earnest money, security deposits and advance rents.

Type (not create) contract forms for approval by the licensee and supervising broker.

Monitor licenses and personnel files.

Compute commission checks.

Place signs on property.

Order items if routine repair as directed by the licensee.

Prepare flyers and promotional information for approval by the licensee.

Act as courier service to deliver documents, pick up keys, etc.

Schedule appointments for licensee to show listed property.

An unlicensed assistant cannot do the following:

Prepare promotional material or ads without the review and approval of licensees and supervising broker.

Show property.

Answer specific questions on listings, title, financing, closings, or otherwise negotiate.

Discuss or explain a contract, listing, lease, agreement, or other real estate document with anyone outside the firm.

Negotiate or agree to pay any commission, commission split, management fee or referral fee on behalf of a licensee.

Answer general questions from a listing sheet including explaining, promoting, or negotiating with regard to the listed property.

Conduct an open house.

Conduct telemarketing or telephone canvassing to seek listings.

Property taxes are arrived at by taking the property’s "assessment" and factoring it by its "tax rate". Many people qualify for property tax "exemptions". These exemptions reduce the amount of property taxes payable.

Whereas in many areas around the country property taxes are typically prorated through the day of closing. Southwestern Indiana property owners pay real estate taxes one year in arrears (e.g. property taxes paid during 2003 are actually those assessed for 2002). The treasurer usually issues property tax bills in March. Taxes are paid in two semi-annual installments, payable by May 10, and November10.

While it is important to note that it is up to the buyer and seller to negotiate who pays what with regard to property taxes, it is traditional in our area for the seller to pay the next installment of real property taxes following the closing.

Property taxes can be verified on each listing. Assessment information including parcel ID (tax code) is available from the county or township assessor. Property tax information is available from the Treasurer’s Office.

In Vanderburgh County the property tax data base is now available online at www.vanderburghgov.org. You may also call the Vanderburgh County Treasurer and request the information by telephone. You will need the property’s parcel ID code number.

Posey County Assessor 838-1309. Posey County Treasurer 838-1316

Gibson County Assessor 385-5286. Gibson County Treasurer 385-2540

Spencer County Assessor 649 2381 . Spencer County Treasurer 649-4556

If a purchase agreement requires the seller to pay the May installment of the property taxes (before the tax rate for that year has been established), the purchaser may be asked to sign a receipt for the allowance that will be given at closing. Further, the receipt should state that the purchaser accepts the allowance as payment in full and should acknowledge that the actual tax bill may be different.

The following methods are recommended by the Indiana Real Estate Commission for pro-ration and are to be used by the sales persons of the Service Corporation.

Interest: Based on a 360 day year.

Taxes: Based on a calendar year of 365 days.

Rent: Based on 360 days.

Insurance: Based on 360 days.

The seller receives all rents through the day of closing.

When a loan is being assumed, the seller pays taxes and insurance calculated through the day of closing. Interest to be pro-rated to the day of closing.

Always check the remarks section of the data sheet as well as the property features section for showing instruction. The remarks section allows Realtors to explain specific information and instructions such as, "alarm system, day sleeper, dog in house, etc.". If in doubt call the listing office/agent.

Do not contact an owner directly unless the data sheet indicates otherwise.

Always knock, ring the door bell and, or announce as you enter a property.

Do not tamper with equipment (thermostats etc.).

Do not leave clients unattended, especially in an occupied property.

Use common sense when showing properties during wet weather. Remove shoes when appropriate.

Please be courteous to homeowners and leave the property as you find it. If lights are on in the house when you arrive, you should leave them on when you leave. The owner may have left them on for security purposes or there may be another showing after yours.

If there is a pet in the house, be careful not to let it out.

Showing reports are a courtesy to your fellow Realtors and should be readily forthcoming upon request. Always report any damage or other adverse condition discovered during a showing to the listing agent as soon as possible.

Listing agents should suggest that their client not be present during showings. Buyer agents should limit their contact with a seller and never attempt to negotiate with the seller (of a listed property) directly.

When completing the purchase agreement it is recommended that the Buyer mark the appropriate boxes in the Title Approval clause indicating the type of title insurance policy to be provided, how the cost shall be allocated, and when the commitment shall be ordered. Modifying the clause is not recommended.

TITLE INSURANCE CHARGES

The total charges for title insurance are affected by several factors: Whether there is an existing policy (in such event normally there are no attorney’s fees incurred and the seller often gets a reduced rate if the policy is less than ten years old), whether there is an existing abstract, the complexity of the title, and whether an attorney had to review the title. As a consequence it is impossible to specify the total title charges without consulting the title company.

The title company will need the following information:

1. Name of lending institution where loan is being made

2. Full names of purchasers as desired on deed

3. How title is to be held (i.e. joint tenants, tenants in common, etc.)

4. Other information regarding divorce, death, bankruptcy, power of attorney, etc.

5. Is sales disclosure to be prepared by title company?

The term "closing costs" refers collectively to the various fees and expenses paid by the Buyer or the Seller. Some costs pertain to the cost of obtaining financing, some to inspections, others relate to title expenses. Where possible the boiler plate of the Purchase Agreement identifies each party’s responsibility regarding expenses. Check boxes and blank spaces are provided to assist in the process of completing an enforceable contract. Make sure to check all appropriate check boxes. In the event that no boxes are checked in a given clause, the expense shall be assumed to be a Buyer’s expense. Use approved language for "costs of obtaining financing" clauses or additional terms and conditions (see guideline for Costs of Obtaining Financing).

Unless otherwise specified in the offer to purchase the Buyer is responsible for, "all costs of obtaining financing". Note: this does not include the cost of a survey, the closing fee, or title approval. Those items are addressed separately in the Purchase Agreement.

The Purchase Agreement further states that any other provisions of the Agreement, any inspections and charges which are required to be made and charged to Buyer or Seller by the lender, FHA, VA, mortgage insurer, or closing agent, shall be made and charged in accordance with their prevailing rules or regulations and shall supersede any provisions of the Agreement.

Not to be confused with closing costs, the closing fee is the fee charged by the closing entity, often a title company. The fee covers the cost of "closing" the transaction at their facility, some document preparation, preparation and disbursement of checks and the time, attention and expertise of the closing agent.

The Purchase Agreement provides three check boxes to determine who is responsible for payment of the closing fee. The fee may be paid by either the Buyer or the Seller, or may be shared equally between them according to which box is checked.

If the Buyer elects to have either a SURVEYOR LOCATION REPORT, or, a BOUNDRY SURVEY, two check boxes are provided whereby the expense of the survey is made either a Buyer’s or Seller’s expense.

Unless otherwise specified in the Purchase Agreement, or required by lender, all inspections are at the Buyer’s expense.

If a home warranty is offered by the Seller as part of the listing it is a Seller’s expense. If the Buyer requests that a home warranty will be provided then one of two check boxes should be marked making it either a Buyer or Seller expense.

Check boxes indicate that an ALTA 98, or 92 Title Insurance Policy shall be furnished and whether the cost shall be borne by the Buyer, Seller, or shared equally. Note that the cost of the title insurance policy includes the cost of the initial title search. The seller is responsible for the cost of obtaining all documents necessary to perfect title (including the cost of the deed and vendors affidavit).

Area 1 – Vanderburgh County west of Highway 41

Area 2 – Vanderburgh County east of Highway 41

Area 3 – Warrick County

Area 4 – Posey County

Area 5 – All Other

Area 6 – Gibson County

Area 7 – Pike County

Area 8 – Dubois County

Area 9 – Kentucky

The listing agreement has a clause whereby, Seller warrants to Broker and prospective Purchaser whether or not the property is connected to city water and city sewer systems. Seller further warrants whether or not fees are paid.

Information may be obtained by contacting:

Evansville Sewer Department 436-7861
Newburgh Sewer Department 853-7496
Chandler Sewer Department 925-6882
Boonville Sewer Department 897-1040
Posey County Health Department 838-1328

The remarks section of the MLS data sheet should disclose if a listing is "contingent".

The following is the proper clause to be written in the listing agreement for a contingent listing:

"This listing is conditioned upon the owner’s right to purchase the property at "STREET NAME, CITY," Indiana. In the event such property is sold prior to a sale or binding contract of the property herein listed, this listing agreement shall automatically cease and terminate".

The following clause must be included in the preparation of all listing agreements, the remarks section of the computer and data sheet, and purchase agreements for properties situated in the Preservation Area:

"Purchaser understands that this property is subject to the Evansville Preservation Area Ordinance."

Pay close attention to the following information.

1. Purpose: to preserve and protect architectural and historic character of the area and to protect property owners in the area from inharmonious uses and appearance.

2. Permission must be obtained from the Evansville Preservation Commission to:
   Construct, relocate, reconstruct, alter or demolish any structure in the area – with regard to historic and architectural style, design, size, arrangement, texture and materials.

3. No permission is needed to: do normal repair and maintenance, which does not change the color, architectural detail, or landscape features of the property, or interior decoration, remodeling and renovating that does not change the use of the property.

4. No variances shall be granted by the Planning Commission or by the Board of Zoning Appeals unless previously approved by the Preservation Commission.

If an owner indicates that he or she does not want a newly-listed property shown until a future date, the listing office should have a note or letter from the owner stating that the property cannot be shown until a certain date and why showings cannot take place. This note or letter should be made available to the Association Office upon request. The listing agreement should state that showings are not permitted until a specific date. The hold showings should also be indicated in the Agent Notes section of the MLS data sheet.

House trailers and mobile homes may be entered in the MLS computer. The remarks section of the data sheet must specify if the lot is rented. Terms and conditions of the lease or rental agreement should be made available by the seller for prospective purchaser(s) to review.

In closing the sale, a deed will serve to convey the land and a bill of sale to convey the house trailer / mobile home.

The seller of any interest in residential real property built prior to 1978 is required to complete and execute a LEAD-BASED PAINT CERTIFICATION AND ACKNOWLEDGMENT. The seller is further required to provide the prospective purchaser with any information on lead-based paint hazards from risk assessments or inspections in the seller’s possession and notify the buyer of any known lead-based paint hazards. Copies of this certificate and acknowledgment should be kept in the listed property and made readily available to prospective purchasers.

Federal law requires the prospective purchaser is to be given the pamphlet, "Protect Your Family From Lead in Your Home". A risk assessment or inspection for possible lead-based paint hazards is recommended prior to purchase.

If any licensee is to be excluded from receiving compensation by a seller, it should be clearly disclosed in the agent notes section of the MLS data sheet. For example, "Seller excludes the payment of commission to a real estate licensee if the selling Realtor is also the purchaser."

The listing Broker may owe the selling Broker the advertised compensation if no exclusion is disclosed prior to the acceptance of the offer to purchase.

Listing agreements must be filled out completely and signed by all parties.

The listing must be entered into the MLS computer within 72 hours after the listing as been signed.

Listings should be entered into the MLS computer system even if sold before the listing has been processed. This provides comparable data for Participants.

Listings withdrawn are taken off the market. If they are to be put back on the market, the information must be re-entered into the MLS computer system.

Any change in listed price or other change in original listing agreement shall be made only when authorized in writing by the owner. Any such changes must be entered into the computer system immediately.

Senate Enrolled Act No. 572, which became effective July 1, 1994, added a new chapter to the Indiana Code regarding residential real estate sales disclosure. The new chapter applies to the sale of, an exchange of, an installment sales contract for, or lease with option to buy residential real estate that contains not more than four (4) residential dwelling units. It does not apply to the following:

1. Transfer ordered by a court.

2. Transfers by a mortgagee who has acquired the real estate at a sale conducted pursuant to a foreclosure decree or who has acquired the real estate by a deed in lieu of foreclosure.

3. Transfers by a fiduciary in the course of the administration of the descendant’s estate, guardianship, conservatorship, or trust.

4. Transfers from at least one co-owner to solely at least one other co-owner.

5. Transfers made solely to any combination of a spouse or an individual in the lineal line of consanguinity of at least one of the transferors.

6. Transfers made because of the record owner’s failure to pay any federal, state, or local taxes.

7. Transfers to or from any governmental entity.

8. Transfers involving the first sale of a dwelling that has not been inhabited.

9. Transfers to a living trust.

An owner must complete and sign a disclosure form and submit the form to a prospective buyer before an offer is accepted for the sale of the residential real estate. Note that a disclosure form is not a warranty by the owner or the owner’s agent and it may not be used as a substitute for any inspections or warranties that the prospective buyer or owner may later obtain.

If a prospective buyer receives a disclosure form or an amended disclosure form after an offer has been accepted that discloses a defect, the prospective buyer may after receipt of the disclosure form and within two (2) business days nullify the contract by delivering a written rescission to the owner or the owner’s agent, if any. The prospective buyer is not liable for nullifying the contract in this situation and is entitled to a return of any deposits made in the transaction.

At or before settlement, the owner is required to disclose any material change in the physical condition of the property or certify to the purchaser at settlement that the condition of the property is substantially the same as it was when the disclosure form was provided.

The disclosure form must be completed BY THE SELLER and should be available in the listed property at all times.

When a purchase agreement has been accepted, the Service Corporation encourages a "SALE PENDING’ or "SOLD" sign be posted immediately.

Please remove yard signs and directional signs from expired and withdrawn listings and closed sales promptly.

Ask permission of any property owner before placing directional sign(s) on his or her property.

To support municipal efforts to minimize "sign pollution" DO NOT post directional signs to direct people to a street which can be readily identified on a city map.

Brokers and Sales Associates should assure that when square footage figures are obtained from appraisals or plans, a copy of same should be in the Listing Office.

Square footage totals may be reported from appraisal, blue prints or public record.

Office Exclusive Listings, listings with excluded parties, listings with a first right of refusal may not be submitted to the MLS*. Those listings may not be put in the computer or the Homes magazine.

Upon removal of the first right of refusal the listing may then be accepted by the MLS.

Please make sure to write the property address on the top of the form.

Sellers must check either (i) or (ii) in each section ((a.) and (b.)). If (i) is checked in section (a.) an explanation is required. If (i) is checked in section (b.) list and attach all pertinent documents.

All sellers to sign and date and print name below signature. Listing agent (or Broker) to initial (f.) Also to sign and date at bottom of form.

Buyer must initial (c.), (d.) and (e.) and must check either (i) or (ii) in section (e.)

All buyers to sign date and print name.

Selling agent (or Broker) to sign and date form.

Remember to give the buyer the pamphlet, "Protect your Family From Lead in your Home".

Important this form is to be completed by the seller not the agent. Make sure that the date is written in the box in the top right hand corner and that the complete property address is written in the space provided.

The front of the form consists of section one, which is broken into four sub sections; A, B, C and D. The seller must mark one of the four options (None/Not Included, Defective, Not Defective, Do Not Know) for each item listed on page one. Note sub section C the seller discloses whether the property is connected to public or private water and sewer systems.

The back side of the form consists of sections 2, 3 and 4 and section E. Section E provides space for additional comments and / or explanations. Sections 2, 3 and 4 require a yes, no or do not know response.

All sellers are required to sign and date the disclosure form in the space provided. It is also good practice to have the sellers initial the front of the form.

Purchase agreements should never have "As per listing agreement" in regard to personal property or any other items. Inclusions and exclusions should be specifically spelled out and abbreviations should not be used.

After the offer has been accepted by the Seller, the ORIGINAL and a copy of the purchase agreement are to be given to the SELLING OFFICE.

The listing agent must present all offers to the seller. This presentation should take place as soon as practically possible. If there are multiple offers on a listing they are to be presented at the same time.

Review the purchase agreement carefully with the seller(s). Mistakes or omissions (e.g. missing buyers initials) can be addressed when the seller responds to the offer. Check to see that all required attachments are present and are duly signed and initialed. Note, before closing, an accepted offer to purchase is not enforceable against the buyer until the owner and the prospective buyer have signed the disclosure form. See also Listings, Seller’s Residential Real Estate Disclosure.

The seller may accept, reject or counter the offer. In all cases the seller’s response is to be in writing and signed.

The original (top copy) and at least one other copy should be promptly returned to the buyer’s agent. If buyer agency, the delivery to the buyer’s agent constitutes acceptance. If limited agency, the contract must be delivered to the buyer for completion of acceptance.

If the offer is to be rejected, check box B, fill in the date and as above deliver the response back to the buyer’s agent.

The seller may make a counter offer by checking box C. The Seller should sign both the Purchase Agreement and the Counter Offer. The counter offer form is recommended for making a counter offer.

Information regarding new listings, changes, sales, etc., processed through the Service Corporation should be regarded as "privileged" for use by members and their sales associates in dealing with prospective purchasers. Such information should not be disclosed to service companies such as movers, insurance agents, etc.

No new listings will be processed for a suspended office.

A notification will be sent to each participant notifying him/her of any suspended office.

Please refer to the MLS data sheet for specific showing instructions. Electronic keyboxes provide us with convenient access to listings. They do not eliminate the need to make appointments.

Each morning, the Association Office will print out the list of new listings from the update program. Within 3 days of the input of the new listing in the system, an electronic keybox will be placed on the front door of the listing. Electronic keyboxes will not be placed on listings priced below $20,000. If the keybox is to be placed anywhere other than the front door, this should be indicated at the appropriate place when entering the listing into the computer.

Any special trips to the listing to move a keybox because the information was not entered into the computer correctly will result in a $5.00 charge to the office or agent.

Any office not extending a listing within 3 days of expiration (causing an extra trip to the listing) will be charged an additional $5.00.

Keyboxes on closed, expired and withdrawn listings will be picked up several days after the expiration date, or after closed or withdrawn information is entered into the computer system. If keys are left in keyboxes that are returned to the Association Office the listing office or agent will be charged an additional $5.00

If keyboxes are to be picked up on pending listings the Association Office is to be notified.

List-It is the name of the web based application for our MLS data. Unlike previous applications EAAR has used, this one is entirely web based and therefore is accessible from virtually any PC with Internet access. No proprietary software required!

The system has two "sides" a public site www.BuyHomesNow.com and a MLS participant side www.southwestindianamls.net. The MLS participant side is user name / password protected. It is important to use all caps when typing in user name and password. The public side has similar functionality to Realtor.com. The general public has direct access to much of the MLS data. However, some information is protected and cannot be accessed from the public site.

Solid Earth, the vendor for List-It recommends the following minimum configuration.

Realtor.com is the official web site of the National Association of Realtors. It is hosted by Homestore. Our MLS data is automatically provided to Realtor.com making it available worldwide.

Individual companies and agents can purchase their own web sites from Homestore. There are several options and levels available to both agents and companies.