Legal Coop Program
Unfortunately, legal services are expensive. Given the cost of an attorney's insurance, facility costs, licensing, continuing education, staffing, investigation, document preparation, document retention, and escalating costs of court filing fees, attorneys can seldom afford to work pro bono.
To assist Sellers with the costs of probate and trust, Elevate has created the Legal Coop Program allowing counsel to help clients with legal expenses. Elevate is offering to pay part of the client's legal fees when Elevate represents the sale of the estate's real property.
Elevate will pay 20% of the commission earned by Elevate through the Legal Coop Program as a fee. This can either be paid to the Attorney as a legal fee, which the Attorney can then credit to their Seller to lower legal costs, or it can be credited to the Seller in escrow or it can be a reduction of Buyer's agent commission at the discretion of counsel.
Example:
Sale Price: $ 750,000
RE commission at 5% $ 37,500
Paid to Buyer's Agent $ 18,750
Paid to Elevate $ 18,750
Legal Coop fee at 20% $ 3,750
Elevate's Net Commission $ 15,000
Services Provided by Elevate
Elevate understands both Probate and Trust transactions. Documentation and the proper real estate information can make an attorney's job less stressful. Elevate strives to take on many of the mundane real estate-related documentation and services. This is a win-win for both the attorney and the Seller.
Services Provided by Elevate
Third party and legal costs will be the responsibility of either Seller or Attorney. Elevate does the following at no cost:
Provide a memorandum of understanding including the below specifics for acknowledgment by Attorney.
Create a Residential Listing Agreement (RLA) and requisite disclosures for Seller signature.
Create a Comparable Market Analysis (CMA) as of the date of death. This provides documentation for the step-up value to minimize capital gains tax. CMAs are much cheaper than expensive appraisals costing hundreds of dollars. If the IRS or court requires a more thorough analysis, Elevate will create a free Broker Price Opinion (BPO). BPOs are used by banks and other institutional lenders when establishing value for a foreclosure sale and are legally recognized by most courts.
Create a Comparative Market Analysis (CMA) to be used by Attorney and court when establishing the present worth of real property for either probate or trust sale. Most courts, even probate, often recognize the CMA as adequate valuation negating the need for a costly appraisal. If a more thorough analysis is required, Elevate will create a free BPO for the court.
Provide a Bi-monthly Property Condition Report to be used by Attorney and Seller to inform both of condition of the real property. The initial report will be done within five days of acceptance of a listing and will contain:
Assessment and documentation of present condition of subject property.
Report on occupants, whether legally there or not, and recommend procedures for removing occupants (Cash for Keys, eviction, or sell with a tenant in place).
If abandoned by a tenant, Elevate will create a Notice of Tenant Abandonment and, if tenant is known through documentation (lease agreement), mail a notice to both last known address and the Trust/Probate property address. Notice will also be posted on the front door of Trust/Probate house.
If Cash for Keys is the preferred procedure, Elevate will follow the process and maintain contact with tenant through completion. A Cash for Keys Agreement will be signed by tenant. Cash for Keys money, usually cash, will be provided by Seller or Attorney, and will not be released to the occupant till the occupant has moved, removed all personal property, and left Trust/Probate property in broom-clean condition.
If eviction is the chosen avenue, Elevate will mail three-day Notice to Pay or Quit by return receipt, and post on the front door of Trust/Probate house.
Elevate will attend the eviction hearing on behalf of Attorney and Seller at the sole discretion of Attorney.
Elevate will arrange and appear at Trust/Probate property for re-key when Sheriff arrives with Writ of Possession at Trust/Probate house. Payment for Sheriff serving Writ of Possession, special mailings, locksmith, trash out, Eviction Court costs, and eviction service, if any, are the responsibility of either Seller or Attorney.
Post a 15 Day Notice of Abandoned Property when the tenant leaves personal property behind, Elevate will At the end of the fifteen days, if property is less than $700 in value, Elevate will contract a Trash Out company at Attorney/Seller expense (usually billed through escrow). If personal property is worth more than $700 Elevate will arrange for an auctioneer, at Attorney/Seller expense, to sell the property as required by law.
Make recommendations for repairs that will increase value or sell more quickly and recommendations to avoid repairs that will not increase value or reduce time to sell. Attorney or Seller to pay for any required repairs.
Provide a Preliminary Title Report disclosing any title issues that might affect close. Elevate will use best efforts, working with title contacts, to remove any impediments found.
Written Estimate of net closing proceeds
Provide a Progress report (included with Bi-monthly Property Condition Report) listing in process and completed repairs, showings, offers and status, escrow status, and updated estimate of escrow closing date
Order escrow to request HOA documents required for close. Review HOA documents and payoff for potential issues. Elevate is an expert at working with HOAs to assure that any fines or fees are consistent with Davis/Stirling (HOA law). Attorney or Seller to pay for HOA charges to prepare HOA documents.
A review of closing documents and RESPA required closing estimate to ensure that charges are being paid by the correct party, identifying any overcharges for services or fees.
Arrange for a Home Warranty to protect Seller. It is a common belief that Home warranties protect the Buyer, and they do. But they are also insurance for the Seller if something goes wrong immediately after close of escrow. The Transfer Disclosure Statement (TDS) required by law, only discloses what the Seller knows to be true. But what happens when something the Seller didn't know goes wrong? Buyers are suspicious by nature and will assume the Seller knew. With a Home Warrantee whatever is broken can be fixed for a small fee paid by the Buyer. The good news in both Probate and Trust sales: if the Executor/Trustee did not live in the home, they are not required to "know" anything and a TDS is not required, eliminating the potential for risk of house failures. A $600 Home Warranty may still be cheap protection for any "what if" if the Seller or Attorney is concerned. Attorney or Seller to pay for Home Warranty, usually through close of escrow.
Meet with appraisers, home inspectors, repair companies, Buyer's home improvement companies, et al.
Attend local Probate Court in the event necessary at no expense to attorney or Seller (no witness fee) as long as Probate court is within forty (40) miles of Trust/Probate property.
Negotiate Request for Repairs and termite clearance requested by Buyer. The standard contractual agreement when termite inspection is required is for Seller to pay for Section One but not Section Two repairs. If the Buyer’s Agent fails to check the requirement for a termite report it may be possible to avoid making termite repairs. That said, the Buyer, when making their Request for Repairs, can always ask for termite repairs. As stated in the Residential Purchase Agreement (RLA), ALL PROPERTIES ARE SOLD AS IS as stated in the standard which means that all requests for repair are a negotiation.
Monitor escrow and Buyer's Agent to ensure timely close consistent with the Residential Purchase Agreement (RPA)
After the close of escrow, Elevate will provide Attorney with completed transaction documents in PDF format on a memory stick.
Any other reasonable documentation requested by Attorney.