COLDUJCU.

BANKER □

SELECT

EVERY DAY UNTIL IT'S SOLD

LISTING PACKET

"Thank You for Showing" Card

Dress Your House for Success

"Buyer's Eye Design" FREE Consultation Certificate

Protect Your Family/Lead in your home pamphlet

Oklahoma Residential Property Condition Disclosure Act (Yellow)

Equal Housing Opportunity (Green)

Oklahoma Broker Relationships Act (Blue)

State of Oklahoma Uniform Contract Information Pamphlet
Listing Agreement (3 pages) Orig. to Brokerage & Copy to Seller

10 Seller's Notice & Authorization Orig. to Brokerage & Copy to Seller

11 MLS Property Data Forms (4 pages) Orig. to Brokerage & Copy to Seller

12 Estimated Net to Seller Orig. to Brokerage & Copy to Seller

13 Residential Property Condition Disclosure Statement (3 pages) Orig. to Brokerage & Copy to Seller

14 Seller Affiliated Business Arrangement Disclosure Statement Orig. to Brokerage & Copy to Seller

15 Residential Property Condition Disclaimer Statement Form Orig. to Brokerage & Copy to Seller

16 Virtual Tour
17 Single-Party Broker Disclosure (2 copies) Orig. to Brokerage & Copy to Seller

18 Disclosure and Acknowledgement Lead Based Paint (2 copies) Orig. to Brokerage & Copy to Seller

19 Supplemental Agreement (2 copies) Orig. to Brokerage & Copy to Seller

20 Referral
21 Exempt Transfer Form
22 Listing Agreement Addendum (2 copies) Orig. to Brokerage & Copy to Seller

23 Property/Hazard Insurance
24 Loan Payoff/Assumption Request Completed form to Brokerage

25 Seller's Caution Letter

26 Mortgage Financing
27 Listing Associate: YOU must call in warranty application
28 Important Contacts
29 American Home Shield Home Warranty
30 Old Republic Home Warranty
31 Home Warranty of America
32 Creative Alliances - Rainy Day Foundation Revised 08/2009
 Dress Your House For Success Checklist
Uncluttcring makes every room look
larger and feel neater. If a house is
cluttered, buyers have trouble imagin
ing themselves in it By removing or
storing things you don't need, you
create a roomy comfortable feeling
that will be inviting to prospective
buyers. Remember, when in doubt,
throw it out, sell it or give it away!
Cleaning makes your house easy for
buyers to explore and gives the impres
sion that it has been well cared for. Be
sure every room smells as good as it
looks, paying special attention to pet
areas, nurseries and bathrooms. Some
fresh paint and a one-time professional
cleaning service can make your house
look like new!
Repairing eliminates buyers' objec
tions before they arise. If you think
something is too much trouble to fix,
chances are buyers will, too. Buyers
tend to think repairs will cost more
than they do.
Neutralizing helps buyers see their
own things in your house and picture
themselves living there. Neutral paint,
decor and carpeting creates a home for
any lifestyle. Eliminating distracting
colors and accessories lets buyers con
centrate on positive impressions.
Dynamizing makes the exterior and
every room of your house special.
Since it is competing with many other
houses on the market, you need to
make it stand out and be memorable.
Look in magazines and catalogs for
ideas. From the front door to the base
ment, from fresh flowers to fresh
smells, this is the finishing touch!
Showtime! Is the final step before each
time your house is shown. Identify
jobs and assign them to make this step
quick and easy. If you keep up daily.
Showtime! Will be easier for you and
your family. Plan a fun activity—away
from the house—during showings.
 Bedrooms Basement/Garage
Entryway/LIving &
Dining/Family Rooms

Unc In tiering L'ncluttering

Uiiclulterinn
□ Children's play area ■ straighten, store D Tool, shop & laundry areas - Straighten.
D Cof&O & end Ulilos - remove papers, HlC
extra loys box & store
D Pumituie-reanangefbrefliennasa.
D Closets - Straighleti, box and store D Rec room - straighten play areas, stota
remove and state ■•* needed
cslui toys
D Plants - remove extra or inrfieattlij plants D Furniture - remove OKtlB items &
D Garage - store lawn/garden tooLs &.
rearrange 10 enhance epace
D Buokshdvcs/utlice areas - Straighten, equipment
pact & store □ _____—_——
n
a ______________ Cleaning
Cleaning
D C;irpet - clean & deodorize in nursery
Cleaning CH rimirs - swec|i. aletUI (praM spots
D Carpel - spot clean, consider □ Drupes & curtains - mub i" diy clean
[H Wall) A ociliiiu - rciiiovt oobwebs
professional service Q l.iuhtiriHtWiurcs-wushieleanbulhs
d WnidoHs -tk'.in
D Furniture and woodwork - polish D
Pel .irtas - clenn thoroughly .ind deodorize
D Lighting fixtures - eloao & polish 10 a D _— .
spvfcje n _____________
Repairing
D Hardwood floors - waah & shine d
□ Wall ficeiliiiycmcks- repair as needed
a _____ . Repairing
□ _^ - -
Q Appliances - be sure furnace, v.Jter healer,
a Neutralizing
etc. me in working order
Repairing D Walls - use neutral paint & wallpaper
D Pipes, laundry connections - clicck & make
D Wafl&eelBjig cracks - repairand pain!
D Bedspreads - use basic colors & patterns repairs as needed
a , _ □ General decor - remove distracting □
Neutralizing puslers. ele. Neutralizing
□ Walls - me neutral palm and wallpaper D □ Walls & lloors - consider spray painting
D _____ . Dynamizing and throw rugs

Dynamizing □ ArTanyetoysKi look fun and inviting D

D Use lugs & fireplace accessories □ Open :\ hook on a night stand Dynamizing
D Put linens on lablc and server Q Add .i flowering plant D Arrange laundry supplies to suggest ease

D Use flower and potpourri of work

D Add curtains or vatonces to rooms
D Arrange games in play area
D Drape an af_.han<ivera chair or touch without them
L] Arrantt: dtcurative pillows or slmms on bed D Display a piojeel in work or hobby areas
D I_rrnn(;e pictures tn highlight special areas

D . _—^_ □
D __
D □ ________________
D -

SHOWTIME!
The final check of the details that can make your house memorable.

D Empty vw__b___ts Outside;

Inside:
D Open shades and drapes
D Open windows to freshen rooms
□ Arrange fresh (lowers tliroughoul
□ Turn on lights
□ Pick up lawn tools and loys
□ Pick up dirty clothes
□ Pick upallcrpL'ts
□ Deodorize pel areas
□ Kemovc obstructions frum curb view
□ flay soil music and turn otTlelevision
□ Clear driveways and walk areas
D Sel a co m Ib it able lemperature

□ Prepare a lire for upon houses □ Do a "once-over" cleaning - vacuum, □

□ Set OUt a game, si hook, a hobby project sweep, and dust □

D Final check every room
O Set tables wilti llowers and linens
D .
□ Set out show towels
O Make sure rugs are clean and Straight □

Notes:
 LISTING AGREEMENT - EXCLUSIVE RIGHT TO SELL
This is a legally binding contract; if not understood seek advice from an attorney.

In consideration of the services to be rendered by the undersigned REALTOR*, the undersigned ("Seller") hereby exclusively lists with
REALTOR* the Property described as:
Property Address

Legal Description ___^

<

together with all improvements described in the Property Data Form attached to and by this reference made a part of this Agreement (the
"Property"), and grants to REALTOR* the exclusive right to sell the Property and to accept a deposit thereon, within the term of this listing,
at a price of S and on the terms herein stated, or at such other price and terms as shall be
acceptable to Seller. This listing shall be subject to the following:

1. This Agreement begins on , and terminates (except for the provisions of Paragraph 2)

at midnight on .

2. Seller agrees to pay a commission equal to 7% of the total sale price of the Property herein described plus $325 as and for
the compensation of REALTOR*, in any of the following events:
a. The sale or exchange of the Property during the term of this Agreement, whether procured by REALTOR*, Seller, or a third person.
b. The sale or exchange of the Property within 180 days after the termination of this Agreement, if with any one to whom
REALTOR* has shown the Property, or with whom the REALTOR* has negotiated concerning the Property prior to the termination of
this Agreement; provided that this clause shall not apply if Seller re-lists the Property at the termination of this Agreement with another
licensed real estate broker.

c. If REALTOR* procures a Buyer who is ready, willing, and able to purchase the Property, at the price and on the terms set forth herein,
or at such other price and terms as shall be acceptable to Seller.
d. The sale or exchange of the Property during, or after, the term of this Agreement to any party to whom the Property is rented or leased
during the term of this Agreement, or within days thereafter.
3. In the event a Contract for Sale or Exchange (a "Contract") is entered into with a Buyer, Seller agrees that:
a. Unless the Contract provides otherwise, REALTOR® shall receive and hold any earnest money deposit, which may be in the form of the
Buyer's personal check endorsed for deposit without recourse, in REALTOR*'s trust or escrow account in accordance with the terms of
the Contract, applicable law, rules, and regulations governing such funds;

b. Prior to the "Closing Date," Seller, at Seller's expense, agrees to furnish Buyer or Buyer's lender a current Uniform Commercial Code
Search Certificate (and, if the Property is a condominium, to furnish a copy of the Declaration of Unit Ownership Estates of the Project,
Bylaws of the Project's Owner's Association). Seller, at Seller's expense shall also furnish an abstract of title certified to date showing
merchantable title in Seller, subject only to utility easements serving the Property and building restrictions of record, and other
exceptions specified in the Contract and, if Property is a condominium, subject to all terms, provisions, restrictions, and covenants
contained in the Declaration of Unit Ownership Estates and Bylaws of the Owner's Association of the "Project," and, if required by
lender, a "Mortgage Inspection Certificate" prepared by a licensed surveyor, certified to a date at least within 180 days of the "Closing
Date";

c. At the time prescribed in the Contract, to convey the Property by General Warranty Deed to Buyer, free and clear of all liens and
encumbrances, except those specifically reserved in the Contract;
d. Unless otherwise provided in the Contract, all ad valorem taxes, interest, rents, and other continuing items shall be prorated to the date of
transfer, except personal property taxes for the entire year, if any, shall be paid by Seller;
e. If Property is single family, condominium or multi-family, to pay such closing costs and miscellaneous fees in excess of what Buyer is
allowed by FHA or VA to pay;
f. If Property is single family, condominium or multi-family and if the Contract, lender or government agency requires: fixtures and
equipment relating to plumbing, heating and cooling, including ducts, electrical systems, built-in appliances, swimming pool/spa,
sprinkler and security systems will be in normal working order at the closing, ordinary wear and tear excepted. If the Property is a
condominium, this provision is applicable only to those items that are the Seller's responsibility and not the responsibility of the Owner's
Association. Seller shall pay the cost of repairs necessary to meet the foregoing standard; such cost shall not exceed the repair cap
agreed to by Seller in the contract of sale.
g. If the property is single family, condominium or multi-family, and if the purchase of the Property is a VA-financed transaction, Seller
shall pay cost of a HUD approved infestation report by a licensed exterminating company.
4. In accordance with the Oklahoma Residential Property Condition Disclosure Act:
a. Seller shall complete the Oklahoma Residential Property Disclosure Statement ("Disclosure Statement") or, if the Seller has never
lived in the Property AND has NO knowledge of any defect concerning the Property, the Oklahoma Residential Property Disclaimer
Statement ("Disclaimer Statement") if applicable, a copy of which is attached to and by this reference made a part of this Agreement.

b. REALTOR* shall provide a copy of the Seller's Disclosure Statement or Disclaimer Statement (whichever is applicable) to potential
Buyers or their Brokers.

c. REALTOR* shall disclose to a potential purchaser any defects in the Property actually known to the REALTOR* which are not included
in the Seller's Disclosure Statement or Seller's Disclaimer Statement.
5. In accordance with the HUD/EPA Lead-Based Paint Regulations, if the Property was built before 1978:
a. Seller shall complete a Disclosure and Acknowledgment of Lead-Based Paint.
MLS Listing Agreement 6/09 (A302) Copyright 1999 Greater Tulsa Association of REALTORS* - All Rights Reserved Page 1 of 3
 Oklahoma
Uniform Contract Information
Pamphlet

Oklahoma Real Estate Commission

2401 N.W. 23rd Street, Suite 18
Oklahoma City, Oklahoma 73107

January 2008
 FOREWORD

This pamphlet was developed by the Oklahoma Real Estate Contract Form Committee
which was created by the legislature in 2001. The Committee was to create a residential
real estate purchase contract and related addenda for use by real estate licensees. The
Committee consisted of a total of 11 members: three (3) from the Oklahoma Real Estate
Commission; three (3) from the Oklahoma Bar Association; and five (5) members from
the Oklahoma Association of REALTORS.

The information in this pamphlet is dedicated to the residential sales contract and related
addenda. This publication does not constitute legal advice. Legal advice should be
sought from competent legal counsel.

First Printing, March 2006

Revised January 2008

Copies of this pamphlet and the contract form and related addenda are
available at www.orec.ok.gov, click on publications (left margin),
and then click on contract forms (right margin).

This publication, printed by the University of Oklahoma Printing Services, is issued by the Oklahoma
Real Estate Commission as authorized by Anne M. Woody, Executive Director. 1,000 copies have
been prepared and distributed at no cost to the taxpayers of the State of Oklahoma. The entire cost
of preparing this publication has been borne by the Real Estate Licensees through their Education
and Recovery Fund fees. Copies have been deposited with the Publication Clearinghouse of the
Oklahoma Department of Libraries.
 Oklahoma Uniform Contract
Information Pamphlet

Bolded italic words are defined at the end of this pamphlet.

The Offer. Negotiations to purchase a home begin when the Buyer makes
a written Offer to purchase the Seller’s home. The Seller may accept, reject
or make a Counteroffer to the Buyer’s offer. The offer may go back and forth
until both parties have agreed to all terms in writing, and the document has been
delivered to both Buyer and Seller (or their Broker as authorized.) At this point,
the offer becomes a Contract.

During the Offer and Counteroffer process, the listing broker (if applicable) is re-
quired by law to continue presenting all offers to the Seller up until the time the Seller
accepts an offer in writing. Further, during the offer/counteroffer process, the Seller
may withdraw the Seller’s counteroffer and accept another contract if the Seller’s
counteroffer has not been accepted and signed by the Buyer and delivered back to
Seller, or if authorized, Listing Broker. Likewise, Buyer may withdraw Buyer’s offer
and purchase a different property if the Buyer’s offer has not been accepted and
signed by the Seller and delivered back to Buyer, or if authorized, Selling Broker.
All items of a Contract are negotiable between the Buyer and Seller.

Prior to the Buyer submitting an Offer, the Buyer should try to obtain a Condi-
tional Loan Approval from a valid lending institution. This will assist the Buyer
to determine the Buyer’s housing price range. It is not a guarantee that a loan
will be given; however, it does check the Buyer’s credit worthiness and known
history. A Buyer or Seller should not confuse this with a Final Loan Commit-
ment that is not obtained until prior to closing to ensure all of the Buyer’s finan-
cials are considered.

The Contract consists of the Contract form and any related addenda and/or at-
tachments. Once signed by both Buyer and Seller, the contract is valid and bind-
ing upon each party — if the contract is not understood by either party, the party
should seek advice from an attorney. Each party, both Buyer and Seller, should
read the entire contract and related addenda and attachments. The Contract shall
be executed by original signatures of the parties or by signatures as reflected on
separate identical Contract counterparts (carbon, photo or fax copies).

Legal Description [1] area should contain the legal and physical property ad-
dress. The contract, unless altered, states that the property sale includes all
sub-surface/mineral/water rights owned by the Seller unless specifically re-
served by the Seller and noted in the Contract and excluding mineral rights
previously reserved or conveyed of record.


Purchase Price, Earnest Money and Source of Funds. [2] The contract is
designed for a cash transaction unless a Financing Supplemental Agreement
is attached.

Many choices are available to the Buyer in regard to a mortgage that fits the
needs of the Buyer. A real estate licensee works with many lending companies
and may be able to provide the Buyer with a list from which to choose. However,
the Buyer is responsible for choosing a lending institution that accommodates
the Buyer’s needs. Further, if a licensee refers a Buyer to a particular lending
institution, for which the licensee will receive compensation due to the referral,
the licensee is required to make written disclosure to the Seller and Buyer
regarding such compensation.

It is the responsibility of the lending institution to disclose State and Federal

Regulations concerning the terms and conditions of the real estate loan for
which the Buyer applies.

The provisions of the Financing Supplemental Agreement require the

following:

Buyer must make loan application in accordance with provisions of the

Contract, usually within five (5) days following Time Reference Date as
stated in Provision [5].

Buyer must pay all fees required by lender, including appraisal and
credit report fees, at the time of application and instruct the lender to
process the loan immediately.

Buyer should instruct the lender to provide the Listing Broker (if
requested) written confirmation that the credit report and appraisal have
been ordered.

Buyer must proceed immediately to obtain a commitment for hazard

insurance to cover the Property in accordance with Provision [7] of the
Contract.

The Buyer should be aware of “predatory lenders.” These lenders charge

excessive fees or charge higher interest than is required based on Buyer’s
credit history. To learn more about predatory lending, the Buyer can check the
Department of Consumer Credit: website: www.okdocc.state.ok.us. The Buyer
may also check with Consumer Credit [800) 448-4904] to determine if a mortgage
broker is licensed. It is recommended that the Buyer investigate the reputation
and stability of the lender. Also the Commission has a publication on its website
at www.orec.ok.gov regarding Predatory Lending under Publications.


Closing, Funding and Possession. [3] The Buyer will be required to pay the
balance of the purchase price with cash, cashier’s or certified check, or other
funds acceptable to the Seller. The Closing Company may not accept payment
of the balance with the following: personal check, corporate check, employer’s
check, investment account check or asset management check. Most closing
companies will not accept cash because the companies have no way to secure
the cash.

It is recommended that the Buyer contact the Closing Company prior to the
Closing to determine the acceptable form of payment for the balance of the
purchase price. The Buyer will need a photo identification (i.e. driver’s license,
etc.) at Closing.

Proceeds to the Seller from the Closing are generally paid by the Closing Com-
pany’s check. A Closing Company’s check may not be cashed by the bank as
readily as a cashier’s check. The bank may not release the funds to the Seller
until the Closing Company’s check clears. If Seller prefers a cashier’s check,
the Seller should contact the Closing Company at least 48 hours prior to the
closing and request that Seller’s proceeds be paid by cashier’s check.

Accessories, Equipment and Systems [4] lists items that will remain with the
Property. If there are additional item(s) the Buyer wants included, the item
should be specifically listed under “Additional Inclusions.” The Seller is bound
only by what is stated in the Contract, and Buyer should not rely on anything
other than what is written in the Contract. If the Seller is not including an item
in the purchase price, the item(s) should be specifically listed under “Exclu-
sions.”

Time Periods [5] as Specified in the Contract shall commence on the Time
Reference Date. The day after the Time Reference Date shall be counted as
day one (1) of the Contract regardless of date the Contract is signed by the
Buyer and Seller.

Residential Property Condition Disclosure Act [6] requires the Seller, prior
to the Seller accepting an offer to purchase, to complete and make available to
the Buyer a Residential Property Condition Disclosure Statement Form or
Disclaimer Form. The Disclosure Form requires the Seller to disclose a vast
amount of information regarding the Property.

The Disclaimer Form indicates that the Seller has no knowledge regarding the
condition of the property; has no actual knowledge of any defects; and has
never occupied the Property.

The Real Estate Licensee has the duty to obtain the Disclosure or Disclaimer
form, and any amendments from the Seller and provide them to the Buyer prior


to a Seller accepting an offer to purchase. The real estate licensee has the duty
to disclose to the Buyer any defects in the Property actually known to the licens-
ee which are not included in the disclosure statement or any amendment. The
real estate licensee does not have a duty to conduct an independent inspection
of the Property and has no duty to verify the accuracy or completeness of the
statements made by the Seller. Both parties should read the “Residential Prop-
erty Condition Disclosure Act” for other information. Publication can be found at
http://ok.gov/OREC/Publications/

Investigations, Inspections and Reviews. [7] The Buyer is encouraged to

have a qualified professional [with appropriate qualifications] conduct inspec-
tions of the entire property during the time period as stated in the Contract. The
Buyer should accompany the inspector during the inspection. The Buyer should
not rely on a friend or themselves to make these inspections.

The contract language makes reference to a person the Buyer deems qualified
— the Buy­er should be aware that no one can receive a fee for performing an
inspection unless they have obtained the appropriate license from the Home
Inspector’s Board which is under the jurisdiction of the Health Department or
exception as noted in paragraph below. To insure you are hiring a licensed per-
son, please contact (405) 271-5243 or www.health.state.ok.us.

The Health Department’s rules indicate that an inspection can be per-

formed by a licensed home inspector, individuals holding an occupa-
tional license, licensed termite inspector, individuals inspecting new res-
idential construction, architects, engineers or any single-item inspection
by a professional craftsman with expertise in a specific area or a person
qualified by education or training to conduct a specific inspection.

A real estate licensee may provide the Buyer with a list of professionals from
which to choose; however, the Buyer is responsible for choosing a qualified
professional that accommodates the Buyer’s needs. Further, if a licensee refers
a Buyer to a particular service for which the licensee will receive compensation
due to such referral, the licensee is required to make written disclosure to the
Seller and Buyer regarding such compensation.

In addition to the items listed, the Buyer can write in additional item(s) that are
of concern to the buyer at the time of making the Offer and have these items
investigated, inspected or reviewed. Further, if the Buyer plans to obtain a
federally-insured loan (FHA), the Department of Housing and Urban Develop-
ment requires the Buyer to be given a form that encourages obtaining a home
inspection. The form can be obtained from the Commission’s website under
Contract forms.

If the Property is not connected to a public sewer system (property that is on

a septic tank or lagoon system), Buyer should have the system inspected by a


qualified expert. The Buyer can also contact the Department of Environmental
Quality (DEQ) for septic tank information.

Flood Notice. The City of Tulsa has an Ordinance that requires a Seller to no-
tify a Buyer if the Seller’s property is located in an area designated by the City
as a flood hazard area. Other cities may have similar ordinances. Seller needs
to contact city officials where the property is located to determine whether there
is a similar flood notification ordinance.

It is Buyer’s responsibility to investigate the Property’s flood, storm run off

water, storm sewer backup or water history. To obtain a written Flood Hazard
Evaluation, contact the Corps of Engineers. The customary cost of the Evalu-
ation is $25 or $55. The Buyer can also call and make an appointment to visit
the Tulsa Corps of Engineers office and examine the maps and information.
Phone: (918) 669-7197.

The Corps of Engineers handles all of the State of Oklahoma, and there are
Floodplain Administrators in every community. The Corps of Engineers can
supply the Buyer with the name and phone number of the Floodplain Adminis-
trator in the community where the property is located.

For more information on the nature of the water condition as it relates to the
Property being purchased, the Buyer may contact neighbors to determine if they
have noticed any water problems.

Flood Insurance. If there is a flood risk, the Lender may require the Buyer
to obtain federal flood insurance. Flood insurance may also be purchased on
personal property (carpets, drapes, furniture, etc), and the Buyer should seek
advice from an insurance agent.

Treatments, Repairs, Replacements and Reviews. The Treatments for

Termites and/or other Wood Destroying Insects provision [C1] specifically
addresses the treatment of Termites and/or other Wood Destroying Insects.
The Buyer, during the time period stated in the Contract, is required to have
the Property inspected for Termites and/or other wood destroying insects. Any
repairs caused by termites or other wood destroying insects are addressed in the
Treatments, Repairs, Replacements, and Reviews provision of the Contract.

The Treatments, Repairs, Replacements and Reviews provision [C2] addresses

what the Buyer should do if the Buyer [based on inspections] determines that
items need to be treated, repaired and/or replaced due to their not being in
normal working order. If costs [Repair Cap] to the Seller exceed those as
agreed to in the Contract, and if a written agreement to pay any excess costs
is not reached between the parties within the time as stated in the Contract,
the Contract is null and void and the Earnest Deposit is to be returned to the
Buyer.


Expiration of Buyer’s Right to Cancel Contract [D] provision contains several
important notices to the Buyer:

• If the Buyer fails to perform Investigations, Inspections and Reviews,

or fails to deliver a written list of items to be treated, repaired and
replaced or cancel the Contract within the time period as specified in
the Contract, the Buyer forfeits the right to cancel the Contract and
accepts the Property in its condition regardless of its condition.

• Failure of the Buyer to obtain hazard insurance coverage on the

Property within the time period as specified in the Contract shall not
relieve the Buyer of the obligation to close the transaction. The Buyer
is required to check into the availability and costs of coverage during
the time period specified in the Contract (7A). In the event hazard
insurance coverage is unavailable, or too costly to the Buyer, the Buyer
may cancel the Contract under Provision (7C2) within the appropriate
time period.

• The Buyer cannot cancel the Contract after the time periods have
expired as stated in the Contract if Buyer determines that the square
footage calculation is different than previously stated. The Buyer is
required to check into the square footage of the Property during the
time period as specified in the Contract (7A). If the Buyer has issues
with square footage, the Buyer may cancel the Contract under Provision
(7C2) within the appropriate time period.

Inspection of Treatments, Repairs and Replacements and Final Walk-

Through. The Contract allows the Buyer to inspect the Treatments, Repairs,
and Replacements [E] made to the Property, and the Buyer may perform
a final walk-through regarding the overall condition of the Property prior to
Closing. The Buyer shall pay for any cost incurred for any re-inspection, unless
prohibited by the mortgage lender.

Upon Closing Abstract Shall Become Property of Buyer. [F]

Risk of Loss [8] provision states that prior to transfer of Title or transfer of
Possession, the risk of loss to the Property, shall be on the Seller; after transfer
of Title or transfer of Possession, the risk of loss shall be on the Buyer.

Acceptance of Property [9] provision states, unless otherwise agreed to in

writing, once the Buyer accepts title or takes possession of the Property, the
Buyer shall have accepted the Property in its present condition.

The Seller, Broker(s), and affiliated licensees of the Broker provide no warran-
ties, expressed or implied, in regard to the condition of the Property and such
shall survive the Closing. An exception to this would be those warranties that


may be available from a builder on new construction, manufacturer of a new
product or a Residential Service Agreement [12] purchased by the Buyer or
Seller for a limited time after the Closing.

Title Evidence [10] this provision outlines the Seller’s and the Buyer’s Ex-
penses and time requirements for the parties. To accomplish this, the Seller
must make the Abstract of Title available to the Title Closing Company so the
abstract can be brought up to date. Buyer, at Buyer’s expense, may obtain an
Attorney’s Title Opinion or a Commitment for issuance of a Title Insurance
Policy.

There are two types of Title Insurance policies – a Lender’s Policy and a Buyer’s
(Owner’s) Policy. In most financed transactions, Title Insurance is required
by the Lender (Lender’s Policy) to cover the lender’s loan. The Lender’s Title
Insurance does not protect the Buyer, even though the Buyer pays the title
insurance premium. It is recommended that the Buyer, while purchasing the
portion to protect the Lender also purchase the portion that protects the Buyer.
The Owner’s Title Policy for the Buyer costs very little more.

Land or Boundary Pin Stake Survey. Buyer can pay for a Pin Stake Sur-
vey instead of the Seller paying for and providing the Buyer with a Mortgage
Inspection Certificate; however, the Buyer must initial the space provided in
the Contract. A Pin Stake Survey is more expense and seldom used in today’s
platted residential real estate transactions. Note: A Pin Stake Survey shows
boundaries of the Property with physically located stakes.

Buyer to Examine Title Evidence. Buyer may have it examined by an attorney

who will render an Attorney’s Title Opinion, or Buyer may obtain a Title Insur-
ance Policy, or both.

Seller to Correct Issues with Title, Possible Closing Delay. The Seller is to
make reasonable efforts to cure title defects that have been identified. This may
cause the Closing Date to be extended as referenced in the Contract. Items
such as utility easements serving the property, building and use restrictions of
record, set back and building lines (unless the structure extends beyond the
lines), zoning regulations, and reserved and severed mineral rights, are not
considered objections to the Title.

Taxes, Assessments and Pro-rations. [11] The day of Closing shall be the
responsibility of the Seller.

Residential Service Agreement. [12] The parties decide whether or not a

Residential Service Agreement (a limited home warranty) will be included in
the purchase of the Property. If included, the Seller and/or Buyer can pay an
amount toward the purchase of such agreement; however, Buyer is responsible
for all costs in excess of agreed amounts. The real estate broker may receive

a fee for the referral and processing of a Residential Service Agreement and
is required to notify all parties in writing in regard to the referral. The Buyer is
advised that the limited home warranty does not replace or substitute the prop-
erty inspection rights the Buyer has and the Buyer is encouraged to perform all
inspections.

Additional Provisions. [13] Allows the Buyer to address items of particular

interest that are not already addressed in the Contract.

Mediation. [14] If a Dispute arises regarding the Contract the Dispute shall be
submitted to an Alternative Dispute Resolution System available in the county
wherein the Property is located. Any Settlement Agreement shall be binding.
In the event an agreement is not reached between the parties, the parties may
pursue legal remedies as provided by the Contract. If the parties are unable to
locate a system in the area, the parties can call the Early Settlement Program
under the jurisdiction of the Oklahoma Supreme Court at 1-877-521-6677 or
www.oscn.net and click on Alternative Dispute Resolution in the left margin.

Breach and Failure to Close. [15] If a Breach of Contract occurs by either

party, the prevailing party shall have remedies as stated in the Contract.

Incurred Expenses and Release of Earnest Money. [16] This provision

states that the Seller and Buyer, respectively, are responsible for any expenses
incurred on their behalf and such shall be paid by the party incurring the ex-
pense and shall not be paid from the Earnest Money Deposit. The Earnest
Money shall be disbursed in accordance with the Contract.

Delivery of Acceptance of Offer or Counteroffer. [17] The parties authorize

their respective Brokers to accept delivery of acceptance of the offer or coun-
teroffer.

Execution By Parties. [18] The date when parties sign the Contract.

Termination of Offer states the date and time when the Buyer’s Offer will ter-
minate.

Earnest Money Receipt and Broker Acceptance section contains the amount
of money the Buyer pays as an Earnest Money Deposit when making an Offer. The
deposit will be held by the Listing Broker unless otherwise stated in the Contract
[under Provision 2.].


 Additional Information Pertaining to the Contract

Allowable and non-allowable closing costs on government loans: Allow-

able closing costs on FHA loan that may be paid by either the Buyer or the
Seller include origination fee, appraisal fee, credit report, amortization schedule,
closing title company fee, title insurance, survey or mortgage inspection certifi-
cate, recording fees, mortgage certification, pest inspection, flood certification,
home inspection and mortgage tax. The Buyer is required to have a 3% cash
investment in the property. It is allowed for the Seller to pay all of the prepaids
(interest to the end of the month, hazard insurance policy, flood insurance, es-
crows for insurance, taxes); however this does not affect the down payment.
The Seller concessions are limited to a total of 6% of the sales price on all the
items mentioned above.

On a VA loan either the Buyer or Seller may pay the closing costs detailed
above except the Seller must pay all of the title company closing fee, termite
certificate, amortization schedule, photos taken by the appraiser and any fi-
nal inspection by appraiser. Seller could not pay any down payment if veteran
decided to obtain less than a 100% loan. On the VA loan, the Seller may pay
everything including some other concessions which lender should advise.

Non-allowables (expenses the Buyer cannot pay on a VA loan), include a final

inspection fee, if appraiser must come back to the property to verify repairs
made, or fees the lender charges such as documentation fees, processing fees,
tax service, etc. If a Seller agrees to pay funds toward closing for Buyer under
FHA, funds go to prepaids first then to allowables.

Due to January, 2006 changes in Buyer’s closing costs on FHA loans, Buyer’s
former non-allowable closing costs may be paid by the Buyer or negotiated be-
tween the Buyer and Seller except, the Seller must pay the tax service fee. Buy-
er may seek the advice of the lender on other costs regarding these changes.

The Buyer, obtaining a government loan, is not allowed to pay transaction fees
or commissions to the broker assisting them in the transaction.

Broker Relationship Disclosure:

Written Disclosure Required that Describes Transaction Broker’s Role
[TB] to the Party. Prior to the signing by a party of a contract to purchase,
lease, option or exchange real estate, a broker who is performing services as
a transaction broker without a written brokerage agreement shall describe and
disclose, in writing, the broker’s role to the party. Note: Transaction brokerage
relationship with a party does not have to be in writing; however, the transaction
broker must provide the party a written disclosure describing and disclosing the
broker’s role to the party.


Written Brokerage Agreement Shall Disclose Relationship to Party. Prior
to entering into a written brokerage agreement as either a transaction broker or
single-party broker, the broker shall describe and disclose in writing the broker’s
relationship to the party.

Vicarious Liability. A broker assisting a party as a transaction broker shall

disclose to the party that the party is not vicariously liable for the acts of the
transaction broker. However, a broker assisting a party as a single-party broker
shall disclose to the party that the party may be vicariously liable for the acts of
the single-party broker.

Transaction Broker and/or Single-Party Broker. A broker can assist a party

in a transaction as a transaction broker or a single-party broker. A broker can-
not assist both parties in a transaction as a single-party broker. If a broker as-
sists both parties in a transaction, the broker must provide services to at least
one party or both parties as a transaction broker.

In-House Transactions. If a broker provided services to a party [Seller] in a real

estate transaction as a single-party broker; and thereafter, another associate in
the firm provided services to a party [prospective Buyer] as a single-party broker,
then the broker shall obtain the consent of both parties to change the relationship
[from single-party broker relationship] to assist at least one or both parties under
a transaction broker relationship. Title 59, Section 858-355 addresses this situa-
tion and requires specific written disclosures to be given to both parties before the
broker begins to perform services as a transaction broker to either one or both of
the parties and the Single-Party Broker Disclosure Form includes this disclosure.
However, in the event a broker assists one party as a single-party broker and the
other party as a transaction broker, an additional form is required to be completed
and is titled “TB for One Party SP for Other.”

Confidential Information. Certain information as stated in Title 59, Section

858-357 shall be considered confidential and shall not be disclosed by a broker:
1) without the consent of the party disclosing the information unless consent to
disclosure is granted by the party disclosing the information; 2) the disclosure is
required by law; or 3) the information is made public or becomes public from a
source other than the broker.

Broker’s Compensation. The broker’s compensation is a matter of negotia-

tion between the Broker and Buyer or Seller, and is not fixed, controlled, recom-
mended or maintained by the Oklahoma Real Estate Commission.

Environmental Risks. It is the Buyer’s responsibility to determine whether there

are environmental hazards such as hydrocarbon, chemical, carbon, asbestos,
mold, methamphetamine, radon gas, lead-based paint, or any other toxic materi-
als that are of concern. A good resource for this information is the Department of
Environmental Quality (DEQ) whose web site is www.deq.state.ok.us.

10
The Buyer may want to check with local authorities, police departments, etc. as
these authorities have the location of properties where they have found a meth-
amphetamine (Meth) lab on the premises. An information pamphlet on Meth-
amphetamines is also available on the Oklahoma Real Estate Commission’s
Web site: www.orec.ok.gov

Lead-Based Paint Disclosure. With regard to properties built BEFORE 1978,

HUD/regulations require that the Buyer receive the Seller’s “Disclosure of
Infor­­mation on Lead-Based Paint and Lead-Based Hazards,” the EPA booklet
entitled “Protect Your Family From Lead in Your Home,” and the following
written warning:

“Every purchaser of any interest in residential real property on which a

residential dwelling was built prior to 1978 is notified that such property
may present exposure to lead from lead-based paint that may place
young children at risk of developing lead poisoning. Lead poisoning in
young children may produce permanent neurological damage, including
learning disabilities, reduced intelligence quotient, behavioral problems,
and impaired memory. Lead poisoning also poses a particular risk to
pregnant women.”

The Seller is required to provide the Buyer 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.

If the Buyer elects to have a risk assessment for the presence of lead-based
paint and/or lead-based paint hazards, the assessment is to be completed within
the 10-day period for investigations, inspections, or review as stated in Provision
7 of the Contract. Any repairs to the property following the assessment are
covered under provision 7C2b of the Contract.

Megan’s Law. Oklahoma has enacted a law that requires sex offenders con-
victed of certain sex crimes to register with law enforcement. Record keeping
and notification cover only those crimes committed since 1989. Potential home-
buyers can check with law enforcement to obtain a list of those registered and
living in a particular area by contacting their respective local police department
or the Department of Corrections at (405) 425-2500.

Psychologically Impacted Property. Psychologically-impacted property is

any property where certain circumstances, suspicions or facts may create emo-
tional or psychological disturbances or concerns to a Buyer. If this is of concern
to the Buyer, the law requires that the real estate Licensee adhere to the follow-
ing procedure:

11
 1. The Buyer must be in the process of making a bona fide offer.
2. The real estate Licensee must receive a request in writing from the
Buyer.
3. The Buyer’s written request must state that such factor is important to
the decision of the Buyer.
4. The real estate Licensee shall make inquiry of the owner by submitting
the written request to the owner.
5. With the consent of the Seller, the real estate Licensee will furnish the
Seller’s response to the Buyer or Buyer’s Broker.
6. If the Seller refuses to furnish the information requested, Seller’s Broker
shall so advise the Buyer or Buyer’s Broker.
7. If the Buyer is requesting information concerning Acquired Immune De-
ficiency Syndrome (AIDS) disease which falls under the privacy laws,
the information can only be obtained in accordance with the Public
Health and Safety Statute, Title 63, O.S., 1992, Section I-502.2A.
Termites and other Wood Destroying Insects. FHA Financing - HUD requires
form NPMA-33 Wood Destroying Insect Infestation Inspection Report for all
inspections performed on existing construction. The form is valid for 90 days
from the date of the inspection and is required on all single-family properties
where termite inspections are required. VA Financing - A termite inspection
report (VA Form 26-8850) is required on all existing construction (in applicable
areas) and must state that there is no evidence of active infestation. If there is
evidence of active infestation or evidence of prior termite damage, the property
must be treated and/or the damage repaired prior to loan closing. If the termite
report indicates possible structural damage or if appraiser makes a requirement,
a structural inspection should be required.

The Real Estate Settlement Procedures Act (RESPA) is a consumer protection

statute, first passed in 1974. The purposes of RESPA are to help: 1) consumers
become better shoppers for settlement services; and 2) to eliminate kickbacks
and referral fees that unnecessarily increase the costs of certain settlement
services.

Details about RESPA - Corresponding with the above purposes:

1. RESPA requires that borrowers receive disclosures at various times. Some disclo-
sures spell out the costs associated with the settlement, outline lender servicing and
escrow account practices and describe business relationships between settlement
service providers.

2. RESPA also prohibits certain practices that increase the cost of settlement
services. Section 8 of RESPA prohibits a person from giving or accepting any
thing of value for referrals of settlement service business related to a federally
related mortgage loan. It also prohibits a person from giving or accepting any
part of a charge for services that are not performed. Section 9 of RESPA pro-

12
hibits home Sellers from requiring home Buyers to purchase title insurance from
a particular company.

RESPA in General - RESPA covers loans secured with a mortgage placed on a

one-to-four family residential property. These include most purchase loans, as-
sumptions, refinances, property improvement loans, and equity lines of credit.
HUD’s Office of RESPA and Interstate Land Sales is responsible for enforcing
RESPA.

RESPA required disclosures — At the time of loan application - When borrow-

ers apply for a mortgage loan, mortgage brokers and/or lenders must give the
borrowers:

• a Special Information Booklet, which contains consumer information re-

garding various real estate settlement services. (Required for purchase
transactions only) and

• a Good Faith Estimate (GFE) of settlement costs, which lists the charg-
es the Buyer is likely to pay at settlement. This is only an estimate and
the actual charges may differ. If a lender requires the borrower to use
a particular settlement provider, then the lender must disclose this re-
quirement on the GFE.

• a Mortgage Servicing Disclosure Statement, which discloses to the bor-

rower whether the lender intends to service the loan or transfer it to
another lender. It also provides information about complaint resolution.

If the borrowers don’t get these documents at the time of application, the
lender must mail them within three business days of receiving the loan applica-
tion.

If the lender turns down the loan within three days, however, then RESPA
does not require the lender to provide these documents. For more information
regarding RESPA requirements, please go to www.hud.gov.

13
 Glossary of Terms
Abstract of Title—A recorded history of a piece of land (accumulation of recorded
documents) usually prepared for a mortgagee or purchaser of real property,
summarizing the history of a piece of land, including all recorded conveyances,
interests, liens, and encumbrances that affect title to the property.
Attorney Title Opinion—A legal opinion on the state of title for a given piece
of real property, usually describing whether the title is clear and marketable or
whether it is encumbered.
Ad Valorem Taxes—Property taxes are ad valorem taxes; taxes that are levied
annually according to the value of property.
Alternative Dispute Resolution System—The Alternative Dispute Resolution
System in Oklahoma is currently made up of twelve community-based mediation
centers and eleven programs developed by state agencies. This system, which
was authorized (1983) and funded (1985) by the state legislature through the
Oklahoma Dispute Resolution Act, 12 O.S. Supp. 1997, Section 1801 et seq., is
administered and supervised by the Administrative Director of the Courts (ADC).
The purpose of the system, as stated in the Act is “to provide to all citizens of
this state convenient access to dispute resolution proceedings which are fair,
effective, inexpensive, and expeditious.” The Act also anticipates that “such pro-
ceedings can also help alleviate the backlog of cases which burden the judicial
system in this state.” To locate a system in your area go to www.oscn.net .
Appurtenances—A right, privilege, or improvement belonging to and passing
with a principal property, i.e., easement, a right-of-way, etc.
Breach of Contract—Violation of a contractual obligation, either by failing to
perform one’s own promise or by interfering with another party’s performance.
Broker Relationship Act—Became effective November 1, 2000 and describes
the relationships a broker can enter into with the client or customer. You can
locate the Act at www.orec.ok.gov, and click on Publications.
Built in Appliances—Are appliances wherein normally a structure surrounds
multiple sides of such and includes slide-in ranges.
Certified—Authenticated or verified in writing; attested as being true or as
meeting certain criteria.
Closing—In real estate, the final transaction between the Buyer and Seller,
whereby the conveying documents are concluded and the money and property
are transferred, unless otherwise agreed to by the parties.
Closing Date—A date agreed upon by the parties to the Contract to close the
transaction.
Comparable Market Analysis (CMA)—Prior to selling or purchasing real es-
tate the Seller or Buyer may engage the services of a real estate licensee who
will render a CMA giving the Seller or Buyer an idea of the value of the property
they desire to sell or purchase. The CMA is based on sales that have occurred
recently in proximity to the subject property. The CMA should not be confused
with a real estate Appraisal that must only be prepared by a person licensed
with the Oklahoma Insurance Department.

14
Conditional Loan Approval—A letter whereby a financial institution advis-
es that the applicant has made application for pre-approval of a loan amount
and based on information, i.e., pay stubs, bank statements, credit report, etc.,
the institution indicates that the applicant is pre-approved for a particular loan
amount.
Contract—An agreement between two or more parties creating obligations that
are enforceable or otherwise recognizable at law.
Counteroffer—A party’s new offer that varies in terms from the original offer
and therefore modifies the original offer.
Counterparts—One of two or more copies or duplicates of a legal instrument
that may be executed by a party, each of which may be considered an original.
Deed—A written instrument by which title to land is conveyed. At common law,
any written instrument that is signed, sealed, and delivered and that conveys
some interest in real property. There are various types of Deeds, i.e., General
Warranty Deed, Special Warranty Deed, Quitclaim Deed and others. Each is
unique and has different provisions.
Delivery of Deed—Delivery and acceptance is required; a Deed should be re-
corded at the county clerk’s office.
Earnest Money—A deposit paid (usu. in escrow) by a prospective Buyer (esp.
of real estate) to show a good-faith intention to complete the transaction, and or-
dinarily forfeited if the Buyer defaults. Although earnest money has traditionally
been a nominal sum (such as a nickel or a dollar) used in the sale of goods, it is
not a mere token in the real estate context; it may amount to many thousands
of dollars. As used in this Contract, Earnest Money shall also mean an item of
value.
Escrow Holder—The holder of such a document, property, or deposit; a third
party depositary of an escrow.
Estimated Expenses of Transaction (Net to Seller/Cost to Buyer)—The
Federal Real Estate Settlement Procedures Act requires a Seller and Buyer to
be informed of costs in connection with obtaining financing on the purchase of
real property.
Executed—A document that has been signed.
Expiration of Offer—The date on which an offer or the like ceases to exist.
Fences—Include chain link, stockade, metal, electrical, includes sub-surface
electric and components, etc.
Final Walk Through—The right given to a Buyer to re-inspect the property just
prior to Closing.
Fixtures—Personal property that is attached to land or a building and that is
regarded as an immoveable part of the real property, such as a fireplace built
into a home.
Foundation—A fund established for charitable, educational, religious, research,
or other benevolent purposes; an endowment.
Homeowner’s Association—An Association of people who own homes in a
given area and have united to improve or maintain the area’s quality due to
such area not being maintained by a local city or county office. The Association
normally has restrictions and covenants that all property owners abide with and

15
which should be recorded in the County where the property resides. Further,
each property owner is assessed an amount of money determined by the As-
sociation in its bylaws.
Homeowner’s Association - Special Assessment—Dues - The assessment
of a tax on property to maintain property in an association and/or to make im-
provements to such property.
HUD-1 Settlement Statement—The HUD-1 Settlement Statement is a stan-
dard form that clearly shows all charges imposed on borrowers and Sellers
in connection with the settlement. RESPA allows the borrower to request to
see the HUD-1 Settlement Statement one day before the actual settlement.
The settlement agent must then provide the borrowers with a completed HUD-1
Settlement Statement based on information known to the agent at that time.
Improvements—An addition to real property that increases its value or utility or
that enhances its appearance.
Lease—A contract by which a rightful possessor of real property conveys the
right to use and occupy that property in exchange for consideration, usu. rent.
Legal Description—A formal description of real property, including a descrip-
tion of any part subject to an easement or reservation, complete enough that a
particular piece of land can be located and identified. The description can be
made by reference to a government survey, metes and bounds, or lot number
of a recorded plat.
Lender Required Documents—Documents the lender may require prior to
processing the loan.
Liquidated Damages—This law can be found in Title 15, O.S., Section 215.
State law indicates that a provision in a real estate sales contract, providing for
the payment for damages in the event damages are sustained by a breach of
the contract, shall be limited to five percent (5%) of the purchase price.
Listing Broker—A broker licensed by the Oklahoma Real Estate Commission
and who has entered into a brokerage agreement with the Seller to list their
property for sale.
Mechanic Liens—A statutory lien that secures payment for labor or materials
supplied for improvements to real property such as a building. It is also termed
as laborer’s lien (for labor) and materialman’s lien (for materials.)
Mediation—The act or process of bringing about a resolution; wherein an un-
biased third-party assists the parties [which are in conflict] and promotes or
encourages a solution to the conflict that both parties can agree to.
Mortgagee—A person to whom property is mortgaged.
Mortgage Inspection Certificate—Means a representation of the boundaries
of a parcel of real property and the improvements thereon and shall not be
designated as or construed as being a land or boundary survey.
Mortgagee’s (Lender) Title Policy—A title policy designed to protect the inter-
est of the lender against unknown defects.
Mortgagor—A person who mortgages property.
Normal Working Order—Normal working order is defined as a system or com-
ponent function, without defect, for the primary purpose and manner for which

16
it was installed. (Defect means a condition, malfunction or problem, which is
not decorative, that would have a materially adverse effect on the value of a
system or component, or would impair the health or safety or the occupants or
Buyer.)
Offer—Expressed written intent of Buyer, to enter into a contract on specified
terms, made in a way that would lead a reasonable person, the Seller, to under-
stand that acceptance of such offer will result in a binding contract.
Offeree—One who recieves an offer.
Offeror—One that makes an offer.
Oklahoma Affordable Housing Foundation—To be established in the near
future. In general, it is a non-profit Foundation that donates funds to charities
for education, research and housing assistance for the homeless. Foundation
would receive the interest accrued from broker’s funds that are placed in an in-
terest bearing account. Broker would sign a form to allow the sweep of broker’s
interest into the Foundation.
Owner’s Title Policy (Title Insurance)—A policy protecting the equity of the
Buyer against monetary loss resulting from unknown defects.
Party - The Buyer(s) or Seller(s).
Pin Stake Survey—There are different types of surveys and the Buyer’s cost
will depend on the type of survey selected by the Buyer. For example: A bound-
ary (staked survey) is the physical location of boundary corners, and some de-
tails such as fence lines, platted easements and other easements given to the
surveyor.
Possession—The right under which one may exercise control over something
to the exclusion of all others on the date as stated in the Contract.
RESPA—The Real Estate Settlement Procedures Act (RESPA) is a consumer
protection statute, first passed in 1974. The purposes of RESPA are:
   1. to help consumers become better shoppers for settlement services.
   2. to eliminate kickbacks and referral fees that unnecessarily increase the
costs of certain settlement services.
   RESPA requires that borrowers receive disclosures at various times. Some
disclosures spell out the costs associated with the settlement, outline lender
servicing and escrow account practices and describe business relationships
between settlement service providers.
   RESPA also prohibits certain practices that increase the cost of settlement
services. Section 8 of RESPA prohibits a person from giving or accepting any
thing of value for referrals of settlement service business related to a federally
related mortgage loan. It also prohibits a person from giving or accepting any
part of a charge for services that are not performed. Section 9 of RESPA
prohibits home sellers from requiring home buyers to purchase title insurance
from a particular company.
   RESPA covers loans secured with a mortgage placed on a one-to-four
family residential property. These include most purchase loans, assumptions,
refinances, property improvement loans, and equity lines of credit. HUD’s Office

17
of RESPA and Interstate Land Sales is responsible for enforcing RESPA.
Repair Cap—The amount a Seller agrees to pay towards treatments, repairs
and/or replacements in connection with the sales contract.
Residential Property Condition Disclaimer Statement Form—Seller’s
statement that: 1) they are unaware of any defect on the property; 2) they have
no knowledge about the condition of the property; and 3) they have never lived
in the property.
Residential Property Condition Disclosure Statement Form—Seller is re-
quired to disclose knowledge and information regarding the condition of the
property. This form is to be given to the Buyer prior to the Seller accepting the
Buyer’s offer to purchase.
Residential Service Agreement—A service agreement that covers a home for
a period of time against items listed in the policy.
Selling Broker—A broker who is licensed by the Oklahoma Real Estate Com-
mission and has entered into a broker relationship with the Buyer.
Security Deposits—Funds paid in advance by a person who is leasing real
property to guarantee the performance of an obligation.
Special Assessments and Dues—Money assessed to property owners within
a homeowner’s association to improve and maintain common areas.
Special Tax Assessment—A tax levied for a unique purpose.
Specific Performance—A court-ordered remedy that require precise fulfillment
of a legal or contractual obligation when monetary damages are inappropri-
ate or inadequate, as when the sale of real estate or a rare article is involved.
Specific performance is an equitable remedy that lies within the court’s discre-
tion to award whenever the common-law remedy is insufficient, either because
damages would be inadequate or because the damages could not possibly be
established.
Square Footage—Square footage measurements of a dwelling can vary from
a few feet to several hundred feet regardless of source (County Assessor’s re-
cords, appraisal or appraisal measurement report, etc.). Buyer shall satisfy that
the size and/or square footage of the dwelling is acceptable to the Buyer.
Sub-Surface, Mineral and Water Rights—The right to search for, develop,
and remove minerals from land or to receive a royalty based on the production
of minerals. Such a right is usually granted by a sub-surface, mineral and water
rights lease that is entered into between the owner and company desiring to
lease the rights.
Termites—Any of numerous pale-colored soft-bodied insects that live in colo-
nies consisting of winged or wingless forms that feed on wood, and are very
destructive to wooden structures and trees.
Time Reference Date—The date on which a contract or other instrument
becomes enforceable or otherwise takes effect, which sometimes differs from
the date on which it was signed.
Title Examination Standards of the Oklahoma Bar Association—Criteria by
which a real estate title can be evaluated to determine whether it is defective
or marketable. Many states, through associations or conveyancers and real
estate attorneys, have adopted title standards.

18
Title Insurance Commitment and Policy - A comprehensive indemnity con-
tract under which a title insurance company warrants to make good a loss aris-
ing through defects in title to real estate or any liens or encumbrances thereon­.
Trust Account—An account held by a real estate broker to deposit items (mon-
ies or other valuables of others) held in regard to the real estate transaction.
Utility Districts—Private utility companies that provide service to local resi-
dents wherein no public service is available.
Warranty Deed—A deed containing one or more covenants of title; especially,
a deed that expressly guarantees the grantor’s good, clear title and that con-
tains covenants concerning the quality of title, including warranties of seisin,
quite enjoyment, right to convey, freedom from encumbrances, and defense of
title against all claims.
Wood Destroying Insects—Insects, other than termites, which damage or de-
stroy wood or other cellulose materials, including but not limited to carpenter
ants, carpenter bees, powder post beetles. This term shall not include other
fungi which inhabit but do not damage or destroy wood or other cellulose materi-
als, health hazard molds, or stain fungi.
Wood Infestation Report—A document issued which contains statements or
certifications as to the presence or absence of termites and other wood destroy-
ing insects, and the presence or absence of damage. The Wood Infestation
Report does not include a bid or proposal for treatment.

A person completing a Wood Infestation Report must be certified or licensed

and is under the jurisdiction of the Oklahoma Agricultural Department (www.
oda.state.ok.us). Each report prepared must be in compliance with the stan-
dards set by the Department. A person performing an inspection must be a cer-
tified applicator or a certified service technician; any person issuing such report
must be certified in structural pest control. The business responsible for the
Wood Inspection Report must have a current license in structural pest control.

19
20
Protect
Your
Family
From
Lead In
Your
Home
United States
Environmental
Protection Agency

United States
Consumer Product
Safety Commission

United States
Department of Housing
and Urban Development
Are You Planning To Buy, Rent, or Renovate
a Home Built Before 1978?

M
any houses and apartments built before 1978 have
paint that contains high levels of lead (called lead-
based paint). Lead from paint, chips, and dust can
pose serious health hazards if not taken care of properly.

OWNERS, BUYERS, and RENTERS are

encouraged to check for lead (see page 6)
before renting, buying or renovating pre-
1978 housing.

F
ederal law requires that individuals receive certain
information before renting, buying, or renovating
pre-1978 housing:

LANDLORDS have to disclose known infor-

mation on lead-based paint and lead-based
paint hazards before leases take effect.
Leases must include a disclosure about
lead-based paint.

SELLERS have to disclose known informa-

tion on lead-based paint and lead-based
paint hazards before selling a house. Sales
contracts must include a disclosure about
lead-based paint. Buyers have up to 10
days to check for lead.

RENOVATORS disturbing more than 2 square

feet of painted surfaces have to give you
this pamphlet before starting work.
 IMPORTANT!

Lead From Paint, Dust, and

Soil Can Be Dangerous If Not
Managed Properly
FACT: Lead exposure can harm young
children and babies even before they
are born.
FACT: Even children who seem healthy can
have high levels of lead in their bodies.
FACT: People can get lead in their bodies by
breathing or swallowing lead dust, or by
eating soil or paint chips containing
lead.
FACT: People have many options for reducing
lead hazards. In most cases, lead-based
paint that is in good condition is not a
hazard.
FACT: Removing lead-based paint improperly
can increase the danger to your family.

If you think your home might have lead

hazards, read this pamphlet to learn some
simple steps to protect your family.

1
Lead Gets in the Body in Many Ways

People can get lead in their body if they:

Childhood
◆ Breathe in lead dust (especially during
lead renovations that disturb painted
poisoning surfaces).
remains a ◆ Put their hands or other objects
major covered with lead dust in their mouths.
environmen- ◆ Eat paint chips or soil that contains
tal health lead.
problem in
the U.S. Lead is even more dangerous to children
under the age of 6:
◆ At this age children’s brains and nervous
systems are more sensitive to the dam-
aging effects of lead.
Even children ◆ Children’s growing bodies absorb more
who appear lead.
healthy can ◆ Babies and young children often put
have danger- their hands and other objects in their
ous levels of mouths. These objects can have lead
lead in their dust on them.
bodies.
Lead is also dangerous to women of
childbearing age:
◆ Women with a high lead level in their
system prior to pregnancy would expose
a fetus to lead through the placenta
during fetal development.

2
Lead’s Effects
It is important to know that even exposure
to low levels of lead can severely harm
children.
In children, lead can cause:
◆ Nervous system and kidney damage.
◆ Learning disabilities, attention deficit Brain or Nerve Damage

disorder, and decreased intelligence. Hearing

Problems
◆ Speech, language, and behavior
problems.
◆ Poor muscle coordination.
Slowed
◆ Decreased muscle and bone growth. Growth

◆ Hearing damage.
While low-lead exposure is most
common, exposure to high levels of
lead can have devastating effects on
children, including seizures, uncon­
sciousness, and, in some cases, death.
Although children are especially
susceptible to lead exposure, lead
can be dangerous for adults too.
Digestive
In adults, lead can cause: Problems

◆ Increased chance of illness during Reproductive

Problems
pregnancy. (Adults)

◆ Harm to a fetus, including brain

damage or death. Lead affects
◆ Fertility problems (in men and women). the body in
many ways.
◆ High blood pressure.
◆ Digestive problems.
◆ Nerve disorders.
◆ Memory and concentration problems.
◆ Muscle and joint pain.

3
Where Lead-Based Paint Is Found

Many homes built before 1978 have lead­

In general, based paint. The federal government
the older your banned lead-based paint from housing in
home, the 1978. Some states stopped its use even
more likely it earlier. Lead can be found:
has lead- ◆ In homes in the city, country, or suburbs.
based paint. ◆ In apartments, single-family homes, and
both private and public housing.
◆ Inside and outside of the house.
◆ In soil around a home. (Soil can pick up
lead from exterior paint or other sources
such as past use of leaded gas in cars.)

Checking Your Family for Lead

To reduce your child's exposure to lead,
Get your get your child checked, have your home
children and tested (especially if your home has paint
home tested in poor condition and was built before
if you think 1978), and fix any hazards you may have.
Children's blood lead levels tend to increase
your home rapidly from 6 to 12 months of age, and
has high lev­ tend to peak at 18 to 24 months of age.
els of lead. Consult your doctor for advice on testing
your children. A simple blood test can
detect high levels of lead. Blood tests are
usually recommended for:
◆ Children at ages 1 and 2.
◆ Children or other family members who
have been exposed to high levels of lead.
◆ Children who should be tested under
your state or local health screening plan.
Your doctor can explain what the test results
mean and if more testing will be needed.

4
Identifying Lead Hazards

Lead-based paint is usually not a hazard if

it is in good condition, and it is not on an Lead from
impact or friction surface, like a window. It paint chips,
is defined by the federal government as which you
paint with lead levels greater than or equal
to 1.0 milligram per square centimeter, or can see, and
more than 0.5% by weight. lead dust,
Deteriorating lead-based paint (peeling, which you
chipping, chalking, cracking or damaged) can’t always
is a hazard and needs immediate attention. see, can both
It may also be a hazard when found on sur­ be serious
faces that children can chew or that get a hazards.
lot of wear-and-tear, such as:
◆ Windows and window sills.
◆ Doors and door frames.
◆ Stairs, railings, banisters, and porches.
Lead dust can form when lead-based paint is scraped, sanded, or
heated. Dust also forms when painted surfaces bump or rub togeth­
er. Lead chips and dust can get on surfaces and objects that people
touch. Settled lead dust can re-enter the air when people vacuum,
sweep, or walk through it. The following two federal standards have
been set for lead hazards in dust:
◆ 40 micrograms per square foot (µg/ft2) and higher for floors,
including carpeted floors.
◆ 250 µg/ft2 and higher for interior window sills.
Lead in soil can be a hazard when children play in bare soil or
when people bring soil into the house on their shoes. The following
two federal standards have been set for lead hazards in residential
soil:
◆ 400 parts per million (ppm) and higher in play areas of bare soil.
◆ 1,200 ppm (average) and higher in bare soil in the remainder of
the yard.
The only way to find out if paint, dust and soil lead hazards exist is
to test for them. The next page describes the most common meth­
ods used.
5
Checking Your Home for Lead

You can get your home tested for lead in

Just knowing several different ways:
that a home ◆ A paint inspection tells you whether your
has lead­ home has lead-based paint and where it
based paint is located. It won’t tell you whether or not
may not tell your home currently has lead hazards.
you if there ◆ A risk assessment tells you if your home
is a hazard. currently has any lead hazards from lead
in paint, dust, or soil. It also tells you what
actions to take to address any hazards.
◆ A combination risk assessment and
inspection tells you if your home has
any lead hazards and if your home has
any lead-based paint, and where the
lead-based paint is located.
Hire a trained and certified testing profes­
sional who will use a range of reliable
methods when testing your home.
◆ Visual inspection of paint condition
and location.
◆ A portable x-ray fluorescence (XRF)
machine.
◆ Lab tests of paint, dust, and soil
samples.
There are state and federal programs in
place to ensure that testing is done safely,
reliably, and effectively. Contact your state
or local agency (see bottom of page 11) for
more information, or call 1-800-424-LEAD
(5323) for a list of contacts in your area.
Home test kits for lead are available, but
may not always be accurate. Consumers
should not rely on these kits before doing
renovations or to assure safety.

6
What You Can Do Now To Protect
Your Family

If you suspect that your house has lead

hazards, you can take some immediate
steps to reduce your family’s risk:
◆ If you rent, notify your landlord of
peeling or chipping paint.
◆ Clean up paint chips immediately.
◆ Clean floors, window frames, window
sills, and other surfaces weekly. Use a
mop or sponge with warm water and a
general all-purpose cleaner or a cleaner
made specifically for lead. REMEMBER:
NEVER MIX AMMONIA AND BLEACH
PRODUCTS TOGETHER SINCE THEY
CAN FORM A DANGEROUS GAS.
◆ Thoroughly rinse sponges and mop
heads after cleaning dirty or dusty
areas.
◆ Wash children’s hands often, especial-
ly before they eat and before nap time
and bed time.
◆ Keep play areas clean. Wash bottles,
pacifiers, toys, and stuffed animals
regularly.
◆ Keep children from chewing window
sills or other painted surfaces.
◆ Clean or remove shoes before
entering your home to avoid
tracking in lead from soil.
◆ Make sure children eat
nutritious, low-fat meals high
in iron and calcium, such as
spinach and dairy products.
Children with good diets absorb
less lead.

7
Reducing Lead Hazards In The Home

In addition to day-to-day cleaning and good

Removing nutrition:
lead ◆ You can temporarily reduce lead hazards
improperly by taking actions such as repairing dam­
can increase aged painted surfaces and planting grass
the hazard to to cover soil with high lead levels. These
actions (called “interim controls”) are not
your family permanent solutions and will need ongo­
by spreading ing attention.
even more ◆ To permanently remove lead hazards,
lead dust you should hire a certified lead “abate­
around the ment” contractor. Abatement (or perma­
house. nent hazard elimination) methods
include removing, sealing, or enclosing
Always use a lead-based paint with special materials.
professional who Just painting over the hazard with regular
is trained to paint is not permanent removal.
remove lead Always hire a person with special training
hazards safely.
for correcting lead problems—someone
who knows how to do this work safely and
has the proper equipment to clean up
thoroughly. Certified contractors will employ
qualified workers and follow strict safety
rules as set by their state or by the federal
government.
Once the work is completed, dust cleanup
activities must be repeated until testing
indicates that lead dust levels are below the
following:
◆ 40 micrograms per square foot (µg/ft2)
for floors, including carpeted floors;
◆ 250 µg/ft2 for interior windows sills; and
◆ 400 µg/ft2 for window troughs.
Call your state or local agency (see bottom
of page 11) for help in locating certified
professionals in your area and to see if
8 financial assistance is available.
Remodeling or Renovating a Home With
Lead-Based Paint

Take precautions before your contractor or

you begin remodeling or renovating any­
thing that disturbs painted surfaces (such
as scraping off paint or tearing out walls):
◆ Have the area tested for lead-based
paint.
◆ Do not use a belt-sander, propane
torch, high temperature heat gun, dry
scraper, or dry sandpaper to remove
lead-based paint. These actions create
large amounts of lead dust and fumes.
Lead dust can remain in your home If not
long after the work is done.
conducted
◆ Temporarily move your family (espe­ properly,
cially children and pregnant women)
out of the apartment or house until
certain types
the work is done and the area is prop­ of renova­
erly cleaned. If you can’t move your tions can
family, at least completely seal off the release lead
work area. from paint
◆ Follow other safety measures to and dust into
reduce lead hazards. You can find out the air.
about other safety measures by calling
1-800-424-LEAD. Ask for the brochure
“Reducing Lead Hazards When
Remodeling Your Home.” This brochure
explains what to do before, during,
and after renovations.
If you have already completed renova­
tions or remodeling that could have
released lead-based paint or dust, get
your young children tested and follow
the steps outlined on page 7 of this
brochure.

9
Other Sources of Lead

◆ Drinking water. Your home might have

plumbing with lead or lead solder. Call
your local health department or water
supplier to find out about testing your
water. You cannot see, smell, or taste
lead, and boiling your water will not get
rid of lead. If you think your plumbing
might have lead in it:
• Use only cold water for drinking and
While paint, dust, cooking.
and soil are the
• Run water for 15 to 30 seconds
most common
sources of lead, before drinking it, especially if you
other lead have not used your water for a few
sources also exist. hours.
◆ The job. If you work with lead, you
could bring it home on your hands or
clothes. Shower and change clothes
before coming home. Launder your work
clothes separately from the rest of your
family’s clothes.
◆ Old painted toys and furniture.
◆ Food and liquids stored in lead crystal
or lead-glazed pottery or porcelain.
◆ Lead smelters or other industries that
release lead into the air.
◆ Hobbies that use lead, such as making
pottery or stained glass, or refinishing
furniture.
◆ Folk remedies that contain lead, such as
“greta” and “azarcon” used to treat an
upset stomach.

10
For More Information

The National Lead Information Center

Call 1-800-424-LEAD (424-5323) to learn
how to protect children from lead poisoning
and for other information on lead hazards.
To access lead information via the web, visit
www.epa.gov/lead and
www.hud.gov/offices/lead/.
EPA’s Safe Drinking Water Hotline
Call 1-800-426-4791 for information about
lead in drinking water.
Consumer Product Safety
Commission (CPSC) Hotline
To request information on lead in

consumer products, or to report an

unsafe consumer product or a prod-

uct-related injury call 1-800-638-

2772, or visit CPSC's Web site at:

www.cpsc.gov.

Health and Environmental Agencies

Some cities, states, and tribes have

their own rules for lead-based paint

activities. Check with your local agency to

see which laws apply to you. Most agencies

can also provide information on finding a

lead abatement firm in your area, and on

possible sources of financial aid for reducing

lead hazards. Receive up-to-date address

and phone information for your local con­

tacts on the Internet at www.epa.gov/lead

or contact the National Lead Information

Center at 1-800-424-LEAD.

For the hearing impaired, call the Federal Information

Relay Service at 1-800-877-8339 to access any of
the phone numbers in this brochure.

11

EPA Regional Offices

Your Regional EPA Office can provide further information regard­

ing regulations and lead protection programs.

EPA Regional Offices

Region 1 (Connecticut, Massachusetts, Region 6 (Arkansas, Louisiana, New
Maine, New Hampshire, Rhode Island, Mexico, Oklahoma, Texas)
Vermont) Regional Lead Contact
Regional Lead Contact U.S. EPA Region 6

U.S. EPA Region 1

1445 Ross Avenue, 12th Floor

Suite 1100 (CPT)

Dallas, TX 75202-2733

One Congress Street

(214) 665-7577

Boston, MA 02114-2023

1 (888) 372-7341

Region 7 (Iowa, Kansas, Missouri,

Region 2 (New Jersey, New York, Nebraska)
Puerto Rico, Virgin Islands)
Regional Lead Contact
Regional Lead Contact U.S. EPA Region 7

U.S. EPA Region 2

(ARTD-RALI)

2890 Woodbridge Avenue

901 N. 5th Street

Building 209, Mail Stop 225

Kansas City, KS 66101

Edison, NJ 08837-3679
(913) 551-7020

(732) 321-6671

Region 8 (Colorado, Montana, North

Region 3 (Delaware, Maryland, Dakota, South Dakota, Utah, Wyoming)
Pennsylvania, Virginia, Washington DC,
West Virginia) Regional Lead Contact
U.S. EPA Region 8

Regional Lead Contact 999 18th Street, Suite 500

U.S. EPA Region 3 (3WC33)

Denver, CO 80202-2466

1650 Arch Street

(303) 312-6021

Philadelphia, PA 19103

(215) 814-5000

Region 4 (Alabama, Florida, Georgia, Region 9 (Arizona, California, Hawaii,

Kentucky, Mississippi, North Carolina, Nevada)
South Carolina, Tennessee) Regional Lead Contact
Regional Lead Contact U.S. Region 9

U.S. EPA Region 4

75 Hawthorne Street

61 Forsyth Street, SW
San Francisco, CA 94105

Atlanta, GA 30303
(415) 947-4164

(404) 562-8998

Region 10 (Alaska, Idaho, Oregon,

Region 5 (Illinois, Indiana, Michigan,
Washington)
Minnesota, Ohio, Wisconsin)
Regional Lead Contact
Regional Lead Contact
U.S. EPA Region 10

U.S. EPA Region 5 (DT-8J)

Toxics Section WCM-128

77 West Jackson Boulevard

1200 Sixth Avenue

Chicago, IL 60604-3666

Seattle, WA 98101-1128

(312) 886-6003

(206) 553-1985

12
CPSC Regional Offices

Your Regional CPSC Office can provide further information regard­

ing regulations and consumer product safety.

Eastern Regional Center Western Regional Center

Consumer Product Safety Commission Consumer Product Safety Commission
201 Varick Street, Room 903 1301 Clay Street, Suite 610-N
New York, NY 10014 Oakland, CA 94612
(212) 620-4120 (510) 637-4050

Central Regional Center

Consumer Product Safety Commission
230 South Dearborn Street, Room 2944
Chicago, IL 60604
(312) 353-8260

HUD Lead Office

Please contact HUD's Office of Healthy Homes and Lead Hazard
Control for information on lead regulations, outreach efforts, and
lead hazard control and research grant programs.

U.S. Department of Housing and Urban Development

Office of Healthy Homes and Lead Hazard Control
451 Seventh Street, SW, P-3206
Washington, DC 20410
(202) 755-1785

This document is in the public domain. It may be reproduced by an individual or

organization without permission. Information provided in this booklet is based
upon current scientific and technical understanding of the issues presented and
is reflective of the jurisdictional boundaries established by the statutes governing
the co-authoring agencies. Following the advice given will not necessarily pro­
vide complete protection in all situations or against all health hazards that can
be caused by lead exposure.

U.S. EPA Washington DC 20460 EPA747-K-99-001

U.S. CPSC Washington DC 20207 June 2003
U.S. HUD Washington DC 20410
13
Simple Steps To Protect Your Family
From Lead Hazards
If you think your home has high
levels of lead:
◆ Get your young children tested for lead, even if
they seem healthy.
◆ Wash children’s hands, bottles, pacifiers, and toys
often.
◆ Make sure children eat healthy, low-fat foods.
◆ Get your home checked for lead hazards.
◆ Regularly clean floors, window sills, and other
surfaces.
◆ Wipe soil off shoes before entering house.
◆ Talk to your landlord about fixing surfaces with
peeling or chipping paint.
◆ Take precautions to avoid exposure to lead dust
when remodeling or renovating (call 1-800-424-
LEAD for guidelines).
◆ Don’t use a belt-sander, propane torch, high
temperature heat gun, scraper, or sandpaper on
painted surfaces that may contain lead.
◆ Don’t try to remove lead-based paint yourself.

Recycled/Recyclable
Printed with vegetable oil based inks on recycled paper
(minimum 50% postconsumer) process chlorine free.