Compliance Process

This process is to confirm that agents have all the proper documents completed in their closing reports. The process needs to be completed every day to stay up to date.

STEP 1 Open up RealScale > Transactions > Closing Report

https://app.realscale.com/v2/transactions?active_status_link=purchase_closed&q%5Baasm_state_in%5D%5B%5D=closed&q%5Btransaction_type_in%5D%5B%5D=buyer&q%5Btransaction_type_in%5D%5B%5D=seller

Go into every report and check that each report has the proper documents.

What closing report needs:

Contract + Addenda
Signed Seller's Disclosure Notice (SDN)
Signed Wire Fraud Notice
Initialed Information About Brokerage Service (IABS)
Any amendments (you'll sometimes see these and sometimes not)

Sometimes Required or Not Required

If "seller representation" then you also need a “Listing Agreement”
Seller Disclosure is not required if the property is a “new build” or on "land/lot deals" or an estate

This is the most common resale contract you'll see: https://www.trec.texas.gov/sites/default/files/pdf-forms/20-17%20draft%2011.2022.pdf

This is the second most common: https://www.trec.texas.gov/sites/default/files/pdf-forms/30-16_0.pdf

If the contract is one of these, then an SDN is required (there's an edge case with estate/probate sales and foreclosures that don't required SDN). If the contract is not one of these, then the SDN isn't required.

IGNORE ANY “SIGNED SETTLEMENT STATEMENT” (NOT REQUIRED)

How to determine if the property is a new build

The most common contract forms are:

1-4 Family Contract - https://www.trec.texas.gov/sites/default/files/pdf-forms/20-17_accessible_1.pdf
Residential Condo Contract - https://www.trec.texas.gov/sites/default/files/pdf-forms/30-16_0.pdf
Unimproved PropertyContract - https://www.trec.texas.gov/sites/default/files/pdf-forms/9-16_0.pdf

If it's not on these forms, then it's new. You can also reference the date in RealScale of when property was built if applicable.

STEP 2 When all documents are good

Comment “documents look good” and leave your initials

STEP 2 When documents are missing or not completed properly

Email someone on the management team

Please include a link to the file like this:

#####

This is missing amendments https://app.realscale.com/v2/transactions/0980b4d3-adc9-4e86-9a12-3aa07ed5f87e

####

If an agent is missing any documents or they are incorrect please leave the agent a note.

Go to "description" under "Notes"
Tell the agent in a polite manner what documents they are missing and ask them to kindly submit the proper documents
Click "Notify Team" then select the agent on the deal and then "Create Note"
After making this note "Reject" the closing report by pressing "Edit" then scroll down to where you will see "Status" and select "Rejected" then "update transaction"