This agreement outlines the terms of the relationship between the buyer and broker, including whether the broker will represent the buyer for all properties or only specific identified properties. It specifies the compensation that is earned and due, including when and how it will be paid, and defines the term of the agreement, along with provisions for early termination. Additionally, it covers other important terms such as dispute resolution and confidentiality.

Buyers should review this agreement carefully when entering into a relationship with their broker to fully understand their rights and obligations.

Please Note: This form—creating a written buyer-brokerage relationship—is now required before touring properties (as of August 2024). 

This document outlines key points about brokerage compensation in real estate transactions. Buyers typically enter into a Buyer Brokerage Agreement, which specifies the compensation they agree to pay their broker. The seller or listing brokerage may also contribute to the buyer’s broker compensation, but this is not guaranteed and must be negotiated. Buyers should carefully review and understand their Buyer Brokerage Agreement before signing, as it is a legally binding contract. Multiple agreements for the same property or time period should be avoided to prevent potential liability for paying multiple brokerages. 

This document from the U.S. Department of Housing and Urban Development (HUD) emphasizes the importance of getting a home inspection before purchasing a property. A home inspection provides detailed information about the home's condition, helping buyers make informed decisions. Buyers should arrange and pay for the inspection themselves, as FHA does not conduct inspections or guarantee the home's value or condition. The document also highlights the difference between an appraisal and a home inspection, recommends radon gas testing, and suggests checking for other health and safety issues like mold or lead paint. 

The TRID rules (TILA-RESPA Integrated Disclosures) mandate that all U.S. lenders use standardized, federally approved forms—the Loan Estimate (LE) and Closing Disclosure (CD)—to ensure transparency and consistency in mortgage transactions. 

• Loan Estimate (LE): A standardized form lenders must provide within 3 business days of a mortgage application. It details the loan terms (e.g., interest rate, monthly payments), estimated closing costs, and fee tolerances, helping borrowers compare offers.
  (See also: Loan Estimate Explainer)

• Closing Disclosure (CD): A standardized form provided at least 3 days before closing. It finalizes the loan terms, exact closing costs, and any changes from the LE, ensuring transparency and compliance with federal rules (TRID).

(See also: Closing Disclosure Explainer)

The TRID framework empowers borrowers with clear, consistent information and holds lenders accountable for transparency. Borrowers should compare their LE and CD carefully, and consult with their lender for clarification.

This document outlines the requirements for providing prospective buyers in New Mexico with an estimated property tax levy for a residential property they are considering purchasing. The seller or seller's broker must request this estimate from the county assessor and buyer's broker must provide it to the buyer before submitting an offer. The estimate is based on the listed price and includes a disclaimer noting that actual taxes may differ. Buyers can waive this disclosure in writing. Sellers and brokers who comply with these requirements are immune from liability related to the estimated tax levy. 

Sellers use NMAR Form 1110 to disclose any Adverse Material Facts they have actual knowledge of regarding the property. This includes defects or conditions that could affect the property's value or desirability. The form covers various aspects such as structural issues, flooding, environmental hazards, and mechanical systems. Sellers are not required to investigate unknown issues but must update the form if they become aware of new problems before closing. The disclosure helps buyers make informed decisions while protecting sellers from potential liability for non-disclosure. 

The "Price Modification/Seller Credits Addendum" is a form used to modify the purchase price or adjust seller credits in a real estate transaction. Buyers and sellers can agree to a new purchase price or specify any credits the seller will provide to help cover the buyer’s closing costs. This addendum ensures that any changes are documented and will override conflicting terms in the original agreement. If the buyer is financing the purchase and the lender disallows some of the seller credits, this addendum outlines whether the purchase price will be adjusted accordingly. 

Transferring utilities before closing ensures a smooth move-in without interruptions in essential services like electricity, water, and gas. It prevents unexpected delays or extra fees from service reactivations. Scheduling the transfer ahead of time helps avoid gaps in coverage, ensuring the home is ready on day one. 

Note: Lenders must provide this form to buyers within three business days of applying for a loan.

A Loan Estimate is a document provided by lenders that outlines the key details of a mortgage loan, including the loan amount, interest rate, monthly payments, and closing costs. It helps buyers compare different loan offers and understand the financial commitment before they make a decision. 

The Closing Disclosure provides a detailed breakdown of your loan terms, monthly payments, and closing costs. It includes your loan amount, interest rate, estimated total monthly payment, and any escrow details for taxes and insurance. The document also outlines the total closing costs, the cash needed to close, and a summary of payments made by both the buyer and seller. Reviewing this form ensures you understand the final terms before completing your home purchase. 

Note: Lenders must provide this form to buyers no later than three days before closing.