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CONTRACT PROCEDURES

Real Estate Brokerage DisclosureSIR Idaho Listing Contract

SIR Idaho Contract to Buy and Sell Real Estate

SOTHEBY’S INTERNATIONAL REALTYJACKSON HOLE BROKERAGE

IDAHO OFFICES

NOVEMBER 2008

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Table of ContentsGENERAL PROCEDURES...............................................................................................................4SIR GUIDELINES..........................................................................................................................5REAL ESTATE BROKERAGE RELATIONSHIP.................................................................................6

Agency Law in Idaho a.k.a. Blue Brochure............................................................................6INSTRUCTIONS FOR COMPLETING AN IDAHO LISTING CONTRACT..............................................9

First Timers.............................................................................................................................9TAB.........................................................................................................................................9Invalid Contract.......................................................................................................................9Exhibit.....................................................................................................................................9Listing Contract Sections........................................................................................................9Exclusive Right to Sell Listing Contract.................................................................................9Seller Authorization and Agency Disclosure........................................................................11Price And Terms....................................................................................................................12Broker Compensation...........................................................................................................12Existing Financing................................................................................................................13Closing Costs........................................................................................................................13Items Included in Purchase Price..........................................................................................14Title.......................................................................................................................................15Closing and Possession.........................................................................................................15Condition of Property............................................................................................................16Inspections/Defaults, Remedies and Attorney’s Fees/Agreements and Covenants..............17Additional Provisions............................................................................................................18Acknowledgements and Additional Disclosures....................................................................18Sotheby’s Agency Disclosure (for listing)............................................................................20Listing Contract Review.......................................................................................................22

SUBMIT NEW LISTING & AD COPY...........................................................................................22PHOTOS......................................................................................................................................22INSTRUCTIONS FOR COMPLETING AN IDAHO CONTRACT TO BUY & SELL..............................23

Offer to Purchase...................................................................................................................23Earnest Money......................................................................................................................24Purchase Terms.....................................................................................................................25Financing...............................................................................................................................25Loan Application...................................................................................................................25Closing and Possession.........................................................................................................26Closing Costs........................................................................................................................26Items Included in Purchase Price..........................................................................................27Condition of Property............................................................................................................28Inspections............................................................................................................................29Repairs to be Performed........................................................................................................30Risk of Loss..........................................................................................................................30Title.......................................................................................................................................31Default and Remedies...........................................................................................................31Additional Provisions............................................................................................................32Disclosures, Consents and Acknowledgements....................................................................32Final Walk Through...............................................................................................................34Seller Response.....................................................................................................................34Receipt and/or Acceptance of Seller.....................................................................................35

Sotheby’s International Realty Rev. 11/08

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Rejection By Seller...............................................................................................................35Buyer’s Receipt of Acceptance Contract..............................................................................36Receipt of Earnest Money.....................................................................................................36Bottom of Each Page of Contract.........................................................................................36Sotheby’s Agency Disclosure (for buyer).............................................................................36

CHECKLIST FOR PENDING CONTRACT.......................................................................................39FORMS.......................................................................................................................................39


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GENERAL PROCEDURES

This Contract Manual has been designed to provide a standardized method for all Sotheby’s International Realty (SIR) Jackson Hole Brokerage licensees to complete Idaho Contracts. The following are Idaho Real Estate License Law requirements and Idaho Real Estate Commission Rules and regulations pertaining to completing contracts:

1. All contracts must be in writing.Chapter 5, Title 9, Section 9-508. Real Estate Commission Contracts to be in Writing. No contract for the payment of any sum of money or thing of value, as and for a Commission or reward for the finding or procuring by one person of a purchaser of real estate of another shall be valid unless the same shall be in writing, signed by the owner of such real estate, or his legal, appointed and duly qualified representative.

2. Changes to a contract must be initialed and dated by all parties. 54-2051. Offers to Purchase. (5) All changes made to any offer to purchase or other real estate purchase agreement shall be initialed and dated by the parties to the transaction.

Alterations in the Contract. If the changes required by the seller are minor, the seller may choose to make changes on the original document, then initial and date these changes. To complete the contract, the buyer also initials the changes, noting the date of the initialing.

3. A contract is no longer valid if there are more than three changes. A counter offer or addendum should be utilized to clarify the changes.

Alterations in the Contract. If the seller wishes to make any changes in the contract, the best practice is to prepare a counter offer form according to the seller’s proposed terms and have both parties sign this agreement.

4. Always make enough copies so that all parties involved receive a copy. Whenever a customer signs a document, you must immediately give them a copy of what they have signed.

54-2051. Offers to Purchase. (2) Immediately upon receiving any offer to purchase signed and dated by the buyer and any consideration, a broker or salesperson shall provide a copy of the offer to purchase to the buyer as a receipt. (3) Upon obtaining a properly signed and dated acceptance of an offer to purchase, the broker or sales associate shall promptly deliver true and legible copies of such accepted offer to both the buyer and the seller.

5. You do not have a binding contract until an offer is accepted. This acceptance must be conveyed in writing.

54-2051.Offers to Purchase. (1) A broker or sales associate shall, as promptly as practicable, tender to the seller every written offer to purchase obtained on the real estate involved, up until time of closing, and shall obtain the signature of the seller or seller’s agent verifying time and date such offer was received. A purchase and sale agreement signed by the prospective buyer shall be deemed in all respects an offer to purchase.


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SIR GUIDELINES

1. Idaho Contracts, Counter Offer Forms, Indemnity Agreements and other forms on http://geek.jhsir.com are templates with SIR standard language. Changes and/or additions are made on occasion, so update your Master Forms when instructed.

2. Contracts MUST be typed and legible. It is common with multiple faxes to receive signed contracts that are no longer legible; an illegible contract should be followed-up with original forms. Please provide “Clarity Copies” for the file. If you cannot read it, neither can the judge!

3. Proof your contracts. If you need any help, please do not hesitate to ask the Driggs office staff for assistance.

4. Exhibits are attachments to Listings . Once a reference is made to a particular Exhibit in the Listing Offer (i.e. “See Exhibit ‘A’, attached hereto and made a part hereof”), it is not necessary to add “attached hereto and made a part hereof” when referencing Exhibit ‘A’ again in the same Listing Contract.

5. Attachments are attachments to Offers . Once a reference is made to a particular Attachment in the Offer Contract (for example: “See Attachment ‘A’, attached hereto and made a part hereof”) it is not necessary to add “attached hereto and made a part hereof” when referencing Attachment ‘A’ again in the same Offer Contract

6. Do not use “sticky notes” where the customer has a choice or if it covers language in the contract.

7. If a Seller is married and owns the property as their sole and separate property, it is required to have both of the Sellers (husband and wife) sign the Listing and/or Offer. In order for a married Seller to close on a property his/her spouse will have to sign off on their Homestead Rights. If they refuse and have not signed the Contract, the transaction will NOT close.

8. It is the agent’s responsibility to keep copies of all contracts. Original copies are to be kept with the Idaho SIR office. Files are maintained for 10 years.


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REAL ESTATE BROKERAGE RELATIONSHIP

Idaho Rules and Regulations require discussion of the real estate brokerage relationships take place as soon as practicable and that a relationship be established in writing prior to entering any written agreement. When establishing a relationship with a buyer or seller, the state of Idaho requires that the Idaho Agency Disclosure brochure be signed and dated. The original must go to the buyer or seller and a copy of the signed page must go to the office file. The Idaho Agency Disclosure brochure is also known as “The Blue Brochure” or “Agency Law in Idaho” and can be found at http://geek.jhsir.com.

Agency Law in Idaho a.k.a. Blue Brochure

54-2084. Brokerage Agency Relationships – Creation. A buyer or seller is not represented by a brokerage in a regulated real estate transaction unless the buyer or seller and the brokerage agree, in a separate written document, to such representation. No type of agency representation may be assumed by a brokerage, buyer or seller or created orally or by implication.

54-2085. Disclosure and Writing Requirements – Agency Disclosure Brochure and Representation Confirmation.

(1) A licensee shall give to a prospective buyer or seller at the first substantial business contact the agency disclosure brochure adopted or approved by the Idaho Real Estate Commission. The Commission by motion shall establish the form and contents of the brochure in accordance with the provisions of this chapter. Each brokerage shall keep a signed and dated record of a buyer or seller’s receipt of the agency disclosure brochure.

(2) The agency disclosure brochure shall list the types of representation available to a buyer or seller in a regulated real estate transaction, the legal duties and obligations owed to the buyer or seller in each type of representation and a conspicuous notice that no representation will exist absent a written agreement between the buyer or seller and the brokerage.

(3) A brokerage’s relationship with a buyer or seller as an agent, nonagent, limited dual agent, or limited dual agent with assigned agents must be determined and all necessary agreements executed no later than the preparation or presentation of a purchase and sale agreement.

(4) In addition, a purchase and sale agreement, an attachment thereto, or other document drafted in connection with a regulated real estate transaction shall contain the following confirmation of the relationship, whether it involved representation or not, between the buyer, seller and licensees involved:


Prior to completing any contract, the Agency Law in Idaho Brochure (a.k.a. Blue Brochure as found on GEEK) must be explained and given to your customer or potential client to read, understand, sign and date. It is imperative in the state of Idaho that the agency relationship between the broker and the seller be established at the “first substantial business contact” as per the Idaho Real Estate License Law and Rules July 2005 handbook. In addition, the receipt in the Blue Brochure must be signed and dated and kept in the contract files, as per Sotheby’s requirements.

http://geek.jhsir.com/

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REPRESENTATION CONFIRMATION AND ACKNOWLEDGMENT OF DISCLOSURECheck one (1) box in Section 1 below and one (1) box in Section 2 below to confirm that in this transaction, the brokerage(s) involved had the following relationship(s) with the BUYER(S) and SELLER(S).Section 1:A. The brokerage working with the BUYER(S) is acting as an AGENT for the BUYER(S).B. The brokerage working with the BUYER(S) is acting as a LIMITED DUAL AGENT for the BUYER(S), without an ASSIGNED AGENT.C. The brokerage working with the BUYER(S) is acting as a LIMITED DUAL AGENT for the BUYER(S), and has an ASSIGNED AGENT acting solely on behalf of the BUYER(S).D. The brokerage working with the BUYER(S) is acting as a NONAGENT for the BUYER(S).Section 2:A. The brokerage working with the SELLER(S) is acting as an AGENT for the SELLER(S).B. The brokerage working with the SELLER(S) is acting as a LIMITED DUAL AGENT for the SELLER(S), without an ASSIGNED AGENT.C. The brokerage working with the SELLER(S) is acting as a LIMITED DUAL AGENT for the SELLER(S), and has an ASSIGNED AGENT acting solely on behalf of the SELLER(S).D. The brokerage working with the SELLER(S) is acting as a NONAGENT for the SELLER(S).

(5) The failure of a licensee to timely give a buyer or seller the agency disclosure brochure or the failure of a licensee to properly and timely obtain any written agreement or confirmation required by this chapter shall be a violation of the Idaho real estate license law and may subject the licensee to disciplinary action according to the provisions of sections 54-2058 through 54-2078, Idaho Code.

(6) Neither the Commission brochure nor the representation confirmation shall create a brokerage relationship. A separate, signed, written agreement is required for that purpose.

When a buyer or seller chooses to work with a real estate professional, it is important for the buyer or seller to understand the real estate brokerage relationship. The first step in any dealings with a potential buyer or seller is to disclose to them the various types of working relationships that exist with a real estate professional. Such terms as customer, client, non-agent, agent, agency, limited dual agency, and limited dual agency with assigned agents need to be understood. These terms are defined in the Agency Law in Idaho brochure and the SIR Agency Disclosure (last page of the listing and offer contracts) as found on http://geek.jhsir.com. Be sure to read both thoroughly so that you fully understand the relationship options and can explain it with ease. In the state of Idaho, the Blue Brochure must be signed and dated by the buyer and seller for each transaction due to the potential of having different working relationships with an individual on different transactions.

For ease of understanding, a client is a buyer or seller of real estate who has a written agreement for representation from an agent in the transaction. A customer is a buyer or seller of real estate who is NOT represented (NO written agreement), but who receives services from a non-agent. The limited dual agent is a real estate brokerage that offers specific and limited representation to both a buyer and a seller with their written consent. And a limited dual agency with assigned agents is when a brokerage has obtained written consent to represent both parties and may assign individual agents to act solely on behalf of each party.

It is required that both the Blue Brochure and SIR Agency Brochure are signed for each transaction due to the licensee potentially having a different working relationship with an individual on different transactions.



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GEEK

All contracts and most forms are available on GEEK. If you are looking for a form that is not on GEEK, contact the Driggs office staff to inquire about that form.

The SIR Listing contract for Idaho is not the standard Idaho contract, so if you have not completed an SIR Listing Contract for an Idaho property please follow this guide:

1. Go directly to your web browser and go to the intranet: http://geek.jhsir.com.

2. Navigate to the “Contracts” page, specifically:

Idaho Contracts and Supplemental Documents

For best results with these documents, right click on the link below and select "Save Target As..." to save a copy of the document to your computer. Once there, open the file (usually in Word), save it as something specific (Smith Intermediary.doc) and then make your changes.

Listing, Idaho (.doc format)

3. Follow the instructions above as shown on GEEK for saving documents. Remember that contracts are periodically updated and downloaded to Geek, so be sure that you have the latest version saved to your computer prior to completing the contract.

4. If you have not yet carefully read through the contract to understand the language, print out a blank copy and read it thoroughly prior to completing it for your customer. You should be able to competently explain the contract to your customer. It is imperative that you understand what the contract means in order to answer any specific questions your customer may have.


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INSTRUCTIONS FOR COMPLETING AN IDAHO LISTING CONTRACT

SIR has created an Exclusive Right to Sell Listing Contract specific to SIR utilizing the State of Idaho Requirements. The SIR listing contract that is used by SIR Agents when listing an Idaho property is not a standard Idaho Listing contract, so it may be a little difficult at first when completing. Please follow the steps below to help in the process of completing the contract correctly. If you have any questions, please call the SIR Driggs, Idaho office and talk with the Office Administrator for guidance at (208) 354-8880 or toll free (888) 354-8880.

First Timers Remember that if you have not yet completed an Idaho Listing Contract, it is imperative to read it thoroughly so that you understand the language and are ready and able to answer any questions your customer may have when signing the listing contract.

TABWhen completing an Idaho Listing Contract, it is necessary to fill in every portion in the contract. No line should be left blank. Please note that it is essential to TAB (not enter) through each part of the contract. You may also point the mouse and click.

Invalid Contract It is important that you fill in the contract correctly the first time because an Idaho Listing Contract is NOT VALID if it has more than 3 (three) changes. A change must be initialed and dated by the Seller and Broker.

Exhibit When making a reference to a listing contract, it is called an Exhibit. For example, you may wish to attach a lengthy Metes and Bounds description to the Listing as an Exhibit. If so, you would state in the contract, “See Exhibit ‘__’, attached hereto and made a part hereof.” Note that Exhibits should go in order starting with A, B, C, etc. Once a reference is made to a particular Exhibit, for example Exhibit ‘A’, it is not necessary to add “attached hereto and made a part hereof” if referencing Exhibit ‘A’ again in the same Listing Contract.

Listing Contract Sections How to complete each section of the SIR Listing Contract will be explained in detail. A number will be shown in each blank with a corresponding number and instructions below each section. Remember to TAB between each field. (Do NOT use your “enter” key between fields.) To select the boxes, you can use your space bar or your mouse to click in the box. Do not leave any space blank; insert “N/A” in any spaces where appropriate.

Exclusive Right to Sell Listing Contract ..........................................................................................................................................................Prepared on

In v , Idaho

I. EXCLUSIVE RIGHT TO SELL LISTING CONTRACT from through x inclusive, for and in consideration of the real estate brokerage services described below to be performed by Sotheby’s International Realty, a duly licensed Idaho real estate broker (hereinafter “Broker”), and (hereinafter “Seller”), whether one or more, hereby lists with said Broker, upon the terms and conditions set forth herein, the following described real estate situate

in the Town of County of , Idaho, commonly known as: and more particularly described as:


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1. Enter date prepared as Month/Day/Year. For example 12/1/08. Press TAB to go to the next field.

2. Enter “Driggs” as the city that the contract is prepared in. Even if you are physically in the Jackson office while writing the contract, you will still need to enter “Driggs” since you are preparing an Idaho Listing. Press TAB to go to the next field.

3. Enter the date that the listing contract will begin. You may enter as Month/Day/Year or Month Day, Year. This field will automatically default to Month Day, Year when you TAB to the next field.

4. Enter the date that the listing contract will end. If the listing is planned for less than six months, you must have the broker’s approval.

5. Enter the complete name(s) with middle initials and marital status. Example:a. If single: “John P. Doe, a single man”b. If 2 single people: “John P. Doe, a single man and Jane I. Smith, a single

woman.”c. If married: “John P. Doe and Jane I. Doe, Husband and Wife” (or H&W)d. If married and owns property as Sole Ownership: “Jane Doe, a married woman

as her sole and separate property.”e. If divorce: make sure you get a copy of the divorce decree and attach it to the

listing. The divorce decree will be public record.f. If Trust: “The Doe Family Trust, John Doe and Jane Doe Trustee, UTD dated

<<date>>.”g. If Corporation, LLC or Partnership, indicate the state where it was formed:

“Sneaker, Inc., an Idaho Corporation” attach LLC/Corporate paperwork – title page, evidence of authority to sell, signature page.

6. Type the town where the property is located only if located within city limits. If the property is not located in a town, you must type slashes “///////” in that field to signify that the property is not located in a town.

7. Type the county that the property is located in. This section must always have the county listed.

8. Type in the common street address for the property that is being listed.9. Insert the correct and proper legal description:

a. City: “Lot(s) <<Lot No.>> of Block <<Block No.>> of the <<Addition>> Addition to the Town of <<Town>>, <<County>> County, Idaho according to that plat recorded on <<Date>> as Instrument # <<Instrument No.>> in the Office of the County Clerk of <<County>> County, Idaho.

b. County: “Lot(s)s <<Lot No.>> of the <<Subdivision>>, <<County>> County, Idaho according to that plat recorded on <<Date>> as instrument # <<Instrument#>> recorded on in the Office of the County Clerk in <<County>> County, Idaho.”

c. Metes and Bounds: If it is a Metes and Bounds description and it is too lengthy to put in the space available, attach it as an Exhibit “__” and state “See Exhibit “___”, attached hereto and made a part hereof”. Title companies are a good source for getting Metes and Bounds legal descriptions. Note: Exhibits should go in order starting with A, B, C, etc.


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Seller Authorization and Agency Disclosure

II. SELLER AUTHORIZATION AND AGENCY DISCLOSURE.A. Seller hereby grants to Broker the exclusive right to sell such property within said time at the price and

on the terms herein stated, or at such other price and terms which may be accepted by Seller.B. Seller hereby acknowledges the Broker and Broker’s Sales Associates will be acting as Seller’s Agents in

any transaction contemplated by this contract unless a Buyer who has a signed agency agreement with us requests to look at or submit an offer on the subject property. In that event, our relationship with the Seller and Buyer will automatically change to that of a Limited Dual Agency relationship. A Limited Dual Agent may assist the parties throughout the transaction with communication, advisement, negotiation, contract terms, documents, and closing of the transaction.

C. Seller has received, read, and understands the Idaho Real Estate Agency Disclosure Brochure, a summary of which is attached hereto and made a part hereof, as the Real Estate Agency Disclosure. That form describes the Agent/Client/Customer relationships, and their effect within a real estate transaction.

D. Seller further authorizes Broker, at Broker’s expense, to:1. Accept earnest money deposits given as consideration for any purchase offers received and retain such

deposits in its trust account until the parties thereto have agreed in writing to the disbursement of such deposits;2. Advertise the property, place a For Sale sign on the property, show the property at reasonable times,

and conduct open house promotions.3. Submit the property to and disclose information regarding the condition of the property and the listing

price and terms thereof to any Multiple Listing Service (MLS) or Board of REALTORS of which it is a member. 4. Allow property to be shown and offer cooperation and compensation to other Brokers who:

a. Are acting as Buyer’s Agents: ________ ________ YES ________ ________ NO (Seller initial choice). Buyer’s Agents represent the Buyer, not the Seller, but Seller is not legally responsible for acts of Buyer’s Agents. It is agreed that the Seller shall be notified by Broker whenever a Buyer Client of Broker desires to see Seller’s property.

b. Are acting as Limited Dual Agents: ________ ________ YES ________ ________ NO (Seller initial choice). Limited Dual Agents must exercise reasonable skill and care for all parties. Seller authorizes the Broker to introduce any interested client of Broker to Client Seller’s property and hereby agrees to relieve Broker of any conflicting agency duties including the duty to disclose confidential information known to the Broker at that time and the duty of loyalty to either party. Relieved of all conflicting duties, Broker will act in an unbiased manner to assist the Buyer and Seller in the introduction of Buyer to Seller’s property and in the preparation of any contract of sale which may result.

5. Represent and accept compensation from any other party in case of exchange, as well as from Seller.6. Report the closed sale and the terms thereof to the County Assessors Office, any MLS or Board of

REALTORS of which it is a member for further release to its members, or to potential clients or customers, for their use as comparable market data and statistics.

7. Broker may list properties of other prospective Sellers without breaching any duty or obligation to the Seller.

8. Broker may inform Buyers that the reason for selling is as follows: .E. Seller hereby directs Broker to disclose to any MLS or Board of REALTORS of which it is a member, all

prospective Buyers and/or Buyer’s Agents, and/or Limited Dual Agents, conditions disclosed by Seller to Broker regarding the real and/or personal property.

1. Be sure to explain to the Seller your agency relationship with them.2. If the CC&Rs do not allow “For Sale” signs or the seller requests not to have a sign placed

on the property, then line out “place a For Sale Sign on the property.”3. If the Seller does not want to advertise through MLS, you MUST line out that portion of

the sentence that pertains to MLS in section D(3) and all of sections D(6) and E. You must also have the Seller sign a letter declining MLS service. You will find a copy of this letter in the forms section of this manual and on GEEK.

4. This section addresses Buyer’s Agents and Limited Dual Agents as it pertains to the seller. SIR Brokers/Sales Agents must discuss each of these and answer any questions that the Seller may have pertaining to compensation paid to brokers/agents. In sections 4a and 4b, the Seller must initial either Yes or No. You may stamp an arrow in the far left margin pointing in the general direction of the Yes and No blanks. However, do NOT stamp an arrow pointing directly at the Yes or directly at the No blank.


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5. This line MUST contain something such as reinvestment, relocating, etc.

Price And Terms

III. PRICE AND TERMS. The listing price shall be ($ u ) v Dollars payable upon the following terms and conditions (select those that apply) Cash Assumption New Loan Seller carry-back (describe): x . Other: y .

1. Fill in listing price. 2. Dollar amount must be written out with “and no/100”. 3. Select all terms and conditions that apply. If the Seller will accept cash only but does not

care where the buyer gets the money, make sure you “x” both the Cash and New Loan box. 4. If the Seller will finance, complete terms in this section. 5. Any “other” price and terms should be written here in this section.

Broker Compensation

IV. BROKER COMPENSATION.A. The amount or rate of real estate commission is not fixed by law. It is set by each Broker individually and

may be negotiable between Seller and Broker. B. Seller hereby agrees to pay Broker as compensation for Broker’s services: Six (6) % of the selling

price; OR $ N/A ; OR N/A (select one).C. In case of any sale or exchange of the subject property within said listing period by Broker, or by any

person, Seller shall pay the compensation provided by Section IV B in cash at closing.D. Seller shall pay Broker the compensation provided by Section IV B hereof within seven (7) days of the date

written demand is mailed by Broker to Seller upon the occurrence of any of the following events:1. If Seller shall, within the listing period provided herein, either reject or fail to accept a written offer to

purchase the subject property from a Buyer who is ready, willing and able to purchase the subject property for the price and upon the terms provided herein at the time when another written offer to purchase the property has not been accepted by Seller; OR

2. If Seller shall refuse or fail to close a sale of subject property even though Seller, within said listing period has entered into a fully executed contract for the sale of said property. 3. Seller shall have the right to cancel this listing agreement in the event that Seller elects to withdraw the property from sale with a ten (10) day written notice. If Seller cancels this agreement and later sells the property to any party within the period of time of the original term of the listing agreement, whether or not Seller has made contact with such party through Broker, Seller shall be obligated to pay a commission equal to the commission which broker would have been paid if the property had been sold prior to the cancellation hereof. Seller shall be obligated to pay Broker such commission whether the sale is consummated with the services of Sotheby’s International Realty as Broker, or whether the sale is consummated without the services of any real estate agency as Broker, provided that such sale is placed under contract and/or closed within the original term of this listing agreement.

4. If the subject property or any part thereof is sold, exchanged, leased or optioned, or if any other transaction occurs which causes an effective change of ownership of such property from Seller to a third party within 120 days after expiration of this Contract, to or with any person, firm, corporation or other entity or anyone acting for such person, firm, corporation or other entity to whom the property was introduced by Seller, Broker or any of Broker’s Salespeople or by any other person and whose name was disclosed by Broker to Seller prior to expiration or by written notice, deposited in the U.S. Mail, certified mail, return receipt requested and postage prepaid, before midnight of the seventh day following the date of the termination of this Contract, exclusive of the date of termination. A written offer to purchase this property submitted to Seller during the term of this Contract shall constitute the notice required by this subparagraph without further notice to Seller.

E. In the event of forfeiture of payments made by prospective Buyer on any contract obtained during the term of this Contract, the sums so forfeited shall be divided between Broker and Seller, Fifty (50) % thereof to Broker, but not to exceed the commission agreed upon herein, and the balance to Seller.

F. A lease commission of: 10% (ten percent) of the total lease payments; OR $ N/A ; OR N/A (select one); in the event that Broker or any other person negotiates a lease acceptable to Seller during the term of this Contract, payable immediately upon receipt of lease payments by Seller.


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G. In the event that a commission is earned for the lease, sale or exchange of this property by another Idaho licensed real estate broker with whom Seller lists the property at any time after termination of this Contract, the provisions stated in Section IV D 3 above shall be waived so that Seller is not liable for dual commissions.

H. LIMITATION ON BROKER’S COMPENSATION. Broker shall not accept compensation from the Buyer, the Buyer’s agent, or any entity participating in or providing services for the Sale without the written consent of the Seller.

1. The standard way to insert the percentage is to spell the numeral and then type the number in parentheses. For example: “six (6)”. It is company policy to receive at least six percent (6%) for all Idaho listings. A commission reduction form will be required prior to agreeing to a commission of less than six percent (6%). Make sure that you enter “N/A” in all blank spaces.

2. Standard earnest money forfeiture shall be 50% to the Broker and 50% to the Seller. Type “Fifty (50)”.

3. Complete if applicable or leave “N/A” in blanks.

Existing Financing

V. EXISTING FINANCING.A. The existing loan type is (RECD, VA, FHA, IHA, Conv., etc.): loan #: . The Lender is .

The approximate remaining balance is $ with payments of $ (P.I.T.I.) with all payments current as of ; interest rate of % (fixed) (variable), (is) (is not) assumable; qualification by Buyer (is) (is not) required. Seller (will) (will not) permit assumption without release of liability. Seller understands that assumption of the existing mortgage(s) without release of Seller’s liability will have the effect of continuing Seller’s existing liability. Seller is aware that some loans have a recapture provision of prepayment penalty and Seller may be required to pay additional funds to satisfy such recapture or penalty.

B. Any additional financing shall be disclosed in ADDITIONAL PROVISIONS.C. Seller hereby directs the holder of any note, lien, security agreement, financing statement or other

encumbrance secured by the above listed property to disclose to Broker the amount owing on said encumbrances and other terms thereof and provide copies of any and all documents relating to such encumbrances to Broker. Seller hereby directs all utility companies providing service to the property to disclose the history of charges thereof to Broker.

1. If there is existing financing and it is anticipated the loan will be assumed, complete Section A. Otherwise type “N/A” in the blank spaces or “Z” out Sections A and B. Make sure you do not “Z” out Section C because of the utility disclosure.

Closing Costs

VI. CLOSING COSTS.A. Seller shall pay the following additional closing costs in cash or collected funds at closing:

1. Recording fee for any mortgage release(s) and Owner’s title insurance policy as stated in Section VIII B below;2. Any cost of repairs Seller agrees to pay in the Offer, Acceptance and Receipt contract;3. Other: u

B. General taxes for the year of closing based on the most recent assessment, personal property taxes, prepaid rents, water rents, sewer rents, homeowner’s and condominium association fees, dues or assessments, mortgage insurance premiums, hazard insurance premiums and interest on encumbrances, if any and if applicable, shall be apportioned through date of closing. Seller shall pay assessments for all special improvements now installed, to the extent due and payable on or before closing. Any such installments becoming due after closing shall be paid by Buyer.

C. Closing fee shall be: split equally between buyer and seller .D. Any unreleased judgments, liens or encumbrances affecting the property included in the purchase price, and

required to be paid, shall be paid by Closing Agent from the proceeds of this transaction or paid by the responsible party in cash or collected funds at time of closing.


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1. The standard language for this section is “cost for preparation of warranty deed”. If there is personal property, add “and bill of sale” and if there is a carry-back, add “note and mortgage”.

2. Standard language for this section is “split equally between the buyer and the seller”. If different than stated, delete and enter appropriate wording.

Items Included in Purchase Price

VII. ITEMS INCLUDED IN PURCHASE PRICE. A. Unless otherwise provided herein, the price shall include all fixtures currently on premises, including but not limited to, all lighting, heating and plumbing fixtures, all outdoor plants, air conditioning, ventilating fixtures and evaporative coolers, built-in appliances, permanently attached floor coverings, windows, doors, screens, garage door openers and controls, smoke/fire detection devices, curtain and drapery rods, attached TV antennas, TV satellite dish, antenna and controls, attached mirrors, awnings, water softeners (if owned by Seller), any fuel tanks (if owned by Seller) heating stove(s) and fireplace inserts, auto gates/cattle guards, irrigation/domestic water systems and no others PROVIDED, HOWEVER, that trade fixtures and the following fixtures of a permanent nature are to be EXCLUDED from the sale: no exclusions .Seller agrees to remove all such excluded fixtures in a workmanlike manner without causing damage to the premises, on or before the date of possession or closing, whichever is sooner. Any such damages shall be repaired at the Seller’s expense.

B. The price shall also include any of the following personal property/equipment items currently on the premises: N/A in the condition as stated in Section X below.

C. Seller agrees to comply with the Uniform Commercial Code-Bulk Sales Transfer, if applicable. D. Mineral Rights: Seller agrees to convey all minerals owned by Seller, which are appurtenant to the

property, if any, without warranty. Seller recognizes and agrees that a Buyer of the property shall have the right to obtain a report or other information as to mineral ownership, and to approve the same as a condition of any offer made to Seller.

E. Water Rights (ground, surface, storage, and stock water). Seller agrees to convey all water rights owned by Seller, which are appurtenant to the property, if any, without warranty regarding such water rights or any aspect thereof. Seller recognizes and agrees that a buyer of the property shall have the right to obtain a report or other information as to water rights ownership, and to approve the same as a condition of any offer made to Seller.

F. To include the following lease permits: N/A

G. To include the following growing crops :N/A

H. To include the following livestock: N/A

To select or unselect the boxes, use the tab, space bar or mouse to click an “x” in the box. 1. Ensure that all property included in the purchase price is checked. You must go over this

word-by-word with your client. If it is land only that is being listed, be sure to check “all outdoor plants” (if applicable) as being included in the purchase price.

2. Standard language for this section is “no others” if there are none. It is recommended that you go on a tour of the house with the Seller and when you see a fixture (remember a fixture is permanently attached to the property) question the Seller as to whether it stays with the house of will be removed. Make sure you list all additional fixtures that are included in the purchase price. Do not be surprised at closing by having permanently attached fixtures removed.

3. List fixtures that are permanently attached that are excluded from the sale. If none, standard language will be “no exclusions”.

4. Personal property is that which is not attached to the real estate. Particular attention should be paid to washers, dryers, microwaves, refrigerators, freezers, hot tubs, etc. If using an inventory list, you must label it as an Exhibit and attach it to the listing. Insert the wording “See Exhibit ‘___’, attached hereto and made a part hereof”. An inventory should be done


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when the listing is taken. Remember to label the inventory: “EXHIBIT ‘___’ ” and have the Seller(s) and the Broker (you) initial and date the bottom of each page of the inventory list. If no personal property is included, standard language is “none known”.

5. List any lease permits, growing crops or livestock here. If there are none then the standard language is “N/A”.

Note: Make sure to list the Make and Model of appliances, TVs, stereo equipment, etc. on the Property Condition Statement so that they cannot be switched out before closing. The Property Condition Statement must be done when the listing is taken.

Title

VIII. TITLE.A. The Owners of Record are who hold such fee interest as (Sole Owner), (Husband and Wife),

(Joint Tenants with Rights of Survivorship), (Tenants in Common), (Partnership), (Corporation), (LLC) (select one.) The Sellers (if different from the Owners of Record) are same as above .

B. In case of sale or exchange, Seller agrees to furnish, at Seller’s expense, an Owner’s title insurance policy in an amount equal to the purchase price, showing merchantable title in Seller.

C. In case of sale or exchange, Seller agrees to execute and deliver a general warranty deed including the release and waiver of all homestead rights, if any, and a good and sufficient bill of sale to Buyer conveying said real and personal properties. Title shall be subject to general taxes for the year of closing, local improvement districts, guaranteed revenues to utility companies, building and zoning regulations, city, county and state subdivision and zoning laws, easements, restrictive covenants, and reservations of record and the following additional encumbrances which will NOT be released or discharged at closing: N/A .

1. Call the Title Company and get the actual owner of record, not what the Seller told you. If there has been a divorce involved, make sure that you get a copy of the divorce decree and attach it to the listing. The divorce decree will be public record.

2. Check how owner(s) are holding such fee interest. Note that if the owner of record has “Sole Ownership”, you must specify whether or not the person is single or married and taking the property as their sole and separate property.

3. If the sellers are not the Owners of Record you MUST type in the name of the sellers here. If not, you will fill in this as: “same as above”

4. Generally this is “N/A”, however if you should understand this paragraph and discuss with the seller.

Closing and Possession

IX. CLOSING AND POSSESSION.A. Closing shall occur as mutually agreed in writing between the parties, at a time and place that shall be

designated by listing broker. Seller, at Seller’s option, may continue to offer subject property for sale until closing. Seller understands, however, that any additional offer accepted may subject Seller to remedies provided by law for breach of the original Contract.

B. Possession shall be delivered to Buyer as mutually agreed in writing between the parties but in no event, without agreement, later than .

C. Possession shall be subject to the following leases or tenancies: which is/are subject to termination on days after written notice from the Seller.

1. Copies of any applicable leases and/or tenants’ written verifications of rental terms, security/damage deposits are attached hereto. Seller agrees to notify Broker of any change in tenant status immediately.


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2. In the event that property is subject to an existing agreement of lease the Seller agrees to give written notice of termination upon the request of the Buyer. Seller agrees that Seller shall indemnify the Buyer from and against any and all loss, liability or expense arising or resulting from the lease.

3. All security/damage deposits shall be transferred to Buyer at closing.

1. Talk with the Seller. Do not automatically put in “date and time of closing”. Discuss with the Seller what would be comfortable for him/her, somewhere between date of closing and 30 days. What condition will the property be left in if possession is 30 days after closing? What guarantee is there that the property will be in good shape?

2. If there are no leases or tenancies, the standard language is “none known”.

Note: If Seller is leasing back from the Buyer or the Buyer is leasing from Seller, always have parties sign a lease.

Condition of Property

X. CONDITION OF PROPERTY. Seller agrees that any defects of a material nature regarding the condition of the property or condition of title, actually known by the Broker, must be disclosed by Broker to any Buyer. Seller hereby indemnifies and holds Broker harmless from all claims arising from Seller’s failure to completely and accurately disclose, on an ongoing basis during the terms of this Contract, all conditions of the property, the status of all financing and encumbrances and all special facts which may be material to Broker’s representation of Seller’s property. (Select A or B): A. Seller has completed and attaches as an addendum hereto, a Seller’s Property Condition Disclosure Form, which the Broker is directed to disclose to any Buyer. All known conditions of the real and/or personal property have been set forth on that property disclosure. B. A Property Disclosure is not available, due to Seller having limited knowledge of condition of property, except for the following known defects: .

1. If you are listing a home, structure or commercial building, always get a Property Condition Disclosure and check “A”. This is a requirement of Idaho License Law. IREC Forms RE-25 and RE-26 deal with the Property Condition Disclosure requirements.

2. If you are listing vacant land, you do not need to acquire a Property Condition Disclosure per state license law, but it is SIR policy to have a Property Condition Disclosure for ALL listings. A PCD may be necessary, however, if the vacant land contains minimal improvements like irrigation equipment or storage shed. If it is New Construction you may select “B” and provide the Property Condition Disclosure for New Construction (RE-26, which can be found on GEEK).

3. Complete this section if “B” is selected. If the property is New Construction, type, “New Construction” here. If you know of any defects, encourage or remind the Seller to insert them in this blank. Otherwise standard language is “none known”. If “A” is selected, insert “N/A” so as not to leave this line blank.

Note: If the Seller is reluctant to complete a Property Condition Statement, discuss this with them. In today’s legal climate, it is always better to disclose. If the Seller has withheld information, it will be far worse than disclosing now. If the Seller truly does not have knowledge, then complete as “unknown” on Property Condition Disclosure.

Inspections/Defaults, Remedies and Attorney’s Fees/Agreements and Covenants

XI. INSPECTIONS.


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A. Seller agrees to permit all electrical, mechanical, structural, environmental and/or other inspections of the property by Broker, prospective Buyers, Buyer’s Agents, Limited Dual Agents or by third persons acting on their behalf, at reasonable times, upon at least 24 hours advance notice, and without expense to Seller unless otherwise agreed in writing.

B. Broker has no duty to conduct an independent inspection of the property for the benefit of the Buyer and has no duty to independently verify the accuracy or completeness of statements made by Seller or independent inspectors. Broker has no duty to conduct an independent investigation of Buyer’s financial condition or to verify the accuracy or completeness of any statement made by Buyer.

XII. DEFAULTS, REMEDIES AND ATTORNEY’S FEES.A. In the event that any party shall become in default or breach of any terms of this Contract, such defaulting

or breaching party shall pay all reasonable attorney’s fees and other expenses which the non-breaching or non-defaulting party may incur in enforcing this Contract with or without formal proceedings. This provision shall not limit any other remedies to which the parties may otherwise be entitled.

B. MEDIATION AND ARBITRATION. The parties agree that if a dispute arises between them relating to this Contract, they will not file litigation, but will informally resolve the dispute between themselves or submit the dispute to mediation or arbitration. When a dispute arises which the parties are unable to resolve between themselves, the parties shall proceed in good faith to jointly appoint an acceptable mediator and will share equally in the cost of such mediator. The mediation shall be privileged and confidential as provided by Idaho law. In the event the mediation fails to resolve the matter within forty-five (45) calendar days from the date the dispute arises, the parties agree that the matter shall be submitted to binding arbitration. The arbitration shall be governed by any applicable Idaho arbitration laws as now in effect or later amended, and, absent agreement of the parties to the contrary, each party shall select an arbitrator within fifteen (15) days of the failure of mediation and the two arbitrators shall name a third arbitrator. Unless otherwise decided by the arbitration panel, the parties shall share equally in the cost of such arbitrators.

C. Seller agrees that in the event of any controversy regarding earnest money or things of value held by Broker, unless Broker receives written instructions from both Buyer and Seller regarding disposition of the earnest money or things of value, Broker, in its sole discretion, may hold the earnest money or things of value or may interplead all parties and deposit the earnest money deposit or things of value into a court of competent jurisdiction. Broker shall be entitled to recover its attorneys’ fees and costs from the losing party in the action in which the funds are interpled, but if no such award or payment is made, Broker shall recover its court costs and reasonable attorneys’ fees from the interpled funds or things of value. The Arbitration/Mediation clause XII B does not apply and is not a prerequisite to the exercise of this remedy.

XIII. AGREEMENTS AND COVENANTS.A. Broker agrees that, until closing, he shall convey to Seller every written offer and counter offer delivered to

him as soon as practicable after receipt.B. NONDISCRIMINATION. The parties agree not to discriminate unlawfully against any prospective Buyer

because of the race, creed, color, sex, marital status, age, national origin, familial status, physical or mental handicap, or religion of such person.

C. Seller agrees to refer to Broker all inquiries from other Brokers and all prospective Buyers received by Seller during the term of this Contract.

D. Seller agrees that Broker shall not be responsible for property management or maintenance of the premises, or utilities; nor shall Broker be liable for damage of any kind occurring to the premises or injury to third parties, unless such damages or injuries shall be caused by the negligence of Broker.

E. The undersigned covenants that upon execution of this Contract:1. If Seller is a partnership, association or corporation, the undersigned is duly authorized to execute this

Contract on behalf of such entity. Evidence of authority is attached hereto.2. If Seller is a person or entity other than the owner of record, such Seller has the authority to execute this

Contract and perform each and all of the obligations of Seller herein, including the delivery of merchantable title at closing.

3. There are no outstanding or contemplated claims in connection with any insurance policy covering the above described property, except: No exceptions .

4. There are no legal proceedings that could affect title to the property such as: bankruptcy, foreclosure, divorce, delinquent child support, probate, will contest, etc., except: No exceptions .

5. There have been no alterations, repair work or new construction, services performed or materials furnished during the last 12 months for which there are unpaid bills or claims, except:No exceptions .

6. On items included in purchase price, there are no chattel mortgages, conditional sales contracts, security agreements, financing statements, or personal property leases affecting any materials, fixtures, appliances, furnishings or equipment placed upon, or installed in or upon said real property or the improvements thereon, except: No exceptions .

7. There are no judgments or liens against the subject property or the Owner or Seller, EXCEPT general taxes for the year of closing and No others .


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1. Ensure that you have evidence of authority to list property. If the Seller is a Corporation, LLC, Trust or Partnership, you must attach the evidence to the listing. Remember to attach the paperwork which states that the LLC/Company/Trust can sell property (title page, evidence in the body of the paperwork which states that the LLC/Company/Trust can sell real estate and the signature page).

2. Read each question to the Seller and make sure that there are no outstanding liabilities. If none, standard language shall be “no exceptions”.

3. Standard language if there are no liens will be “no others”.

Additional Provisions

XIV. ADDITIONAL PROVISIONS.

1. If there is enough room to type your additional provisions here, then do so. If not, then the standard language is “See Exhibit ‘__’, attached hereto and made a part hereof”. If so, be sure to label the top of your Exhibit as “EXHIBIT ‘__’ ” to coincide with the Exhibit as stated here.

Acknowledgements and Additional Disclosures XV. ACKNOWLEDGEMENTS AND ADDITIONAL DISCLOSURES.

A. “n/a” is understood to mean “not applicable” wherever it is used in this contract.B. NONDISCRIMINATION. The parties agree not to discriminate unlawfully against any

prospective buyer because of the race, color, sex, marital status, national origin, familial status, physical or mental handicap, or religion of such person.

C. A “day” is herein defined as a business day and as Monday through Friday in the local time zone where the subject real property is physically located. A business day shall not include any Saturday or Sunday, nor shall a business day include any legal holiday recognized by the state of Idaho as found in Idaho Code §73-108. The time in which any act required under this agreement is to be performed shall be computed by excluding the date of execution and including the last day. The first day shall be the day after the date of execution. If the last day is a legal holiday, then the time for performance shall be the next subsequent business day.

D. This Contract shall be executed in multiple copies and by their signatures hereon the parties acknowledge receipt of a signed copy at the time of signing. Signature pages transmitted by telecopier or electronic transmittal via scanned pdf copy shall be deemed to be original signature pages with the same legal effect as manual signatures.

E. This Contract is made in accordance with, interpreted and governed by the laws of the State of Idaho and, shall be binding upon and inure to the benefit of the respective parties hereto, their successors, representatives and assigns.

F. All representations made by Broker in the negotiations of this Contract have been incorporated herein; there are no oral agreements between Seller and Broker to modify the terms and conditions hereof and this Contract may be modified only in writing and executed by all parties hereto.

G. Seller shall have the right to require that a provision giving the Seller the option and right to complete the sale of the property through an IRS 1031 exchange, and providing for the Buyer’s participation in such exchange at no cost to Buyer, will be included in an agreement for the sale of the property whether such provision is set forth in an offer or counteroffer from the Buyer or in a counteroffer from the Seller.

H. CONSENT TO LIMITED DUAL REPRESENTATION. The undersigned have received, read and understand the Agency Disclosure Brochure. The undersigned understand that the brokerage involved in this transaction will be or may be providing agency representation to both the buyer(s) and the seller(s). The undersigned each understand that as agents for buyer and seller, the brokerage(s) will be limited dual agents and cannot legally disclose to either party certain confidential information concerning price negotiations, terms or factors motivating the buyer to buy or the seller to sell without specific written permission of the disclosing party. The specific duties, obligations and limitations of a limited dual agent are contained in the Agency Disclosure Brochure as required by Section 54-2063, Idaho Code. The undersigned each understand that a limited dual agent does not have a duty of undivided loyalty to either client.


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THIS IS A LEGALLY BINDING CONTRACT. IF YOU DO NOT UNDERSTAND THE TERMS AND CONDITIONS, CONSULT LEGAL OR OTHER COUNSEL BEFORE SIGNING.

Seller Date

Position or Title

Seller Date

Position or Title Phone Fax

Address 1 Address 2

Seller’s Initials Date Broker’s Initials Date Seller’s Initials Date ______

1. Make sure that you sign and date the contract on behalf of the Broker AFTER the clients have signed and dated it.

2. Make sure you have ALL Sellers sign contract. For example: husband and wife’s signature, or all trustees of a trust.

3. Social Security number is not a required field.4. Make sure that you fill in the Seller’s phone number and address.5. Remember that ALL sellers must initial AND date at the bottom of EACH page of the

contract.6. Remember that you must initial AND date on behalf of the Broker at the bottom of EACH

page of the contract.


SOTHEBY’S INTERNATIONAL REALTYOne South Main StreetDriggs, ID 83422Fax 208.354.8895208.354.8880888.354.8880

By: Date

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Sotheby’s Agency Disclosure (for listing)

A real estate brokerage and its licensees can provide buyers and sellers valuable real estate services, whether in the form of basic customer services, or at a higher level by providing Agency Representation. The services you can expect will depend upon the legal relationship you define with the brokerage. Effective July 1, 2007.WHAT TO LOOK FOR IN ANY AGREEMENT FOR AGENCY REPRESENTATION

Whatever type of representation you choose, your written Agency Representation Agreement should answer these questions:

How will the brokerage be paid? When will the Agreement expire? What happens when a transaction is completed? Can I cancel this Agreement, and if so, how? Can I work with other brokerages during the time of the Agreement? And what happens if I sell

or buy on my own? Am I willing to allow this brokerage to represent me and the other party in the same

transaction?REAL ESTATE LICENSEES ARE NOT INSPECTORS

Even if you have written agreement for agency representation, you should not expect the brokerage or its licensees to conduct and independent inspection of the property, or to independently verify any statement or representation made by an party to the transaction or other reasonably reliable sources (such as a licensed appraiser, home inspector, or the county assessors office). Real estate licensees are entitled to reasonably rely on the statement of their clients and other third-party sources. If the condition of the property is important to you, you should hire an appropriate professional, such as a home inspector, surveyor, or engineer. IDAHO REAL ESTATE BROKERAGE REPRESENTATION ACT

The specific duties owed by the real estate brokerage and its licensees to a costumer or client are defined by the “Idaho Real Estate Brokerage Representation Act,” located at Idaho Code Section 54-2052, et seq.

When you sign a real estate Purchase and Sale Agreement, as a buyer or seller, you will be asked to confirm:

(1) that this brochure was given to you, and that you have read and understood its contents; and(2) the agency relationship, if any, between you and the brokerage working with you.

RIGHT NOW YOU ARE A CUSTOMER? The law requires all real estate licensees to perform certain basic duties when dealing with any real estate buyer or seller. A licensee working with a customer is referred to as a non-agent. You can expect all real estate licensees you deal with to provide the following “customer-level” services, whether an agent or non-agent:

To perform necessary and customary acts to assist you in the purchase or sale of real estate; To perform these acts in good faith and with reasonable care; To properly account for money or other property you place in his or her care; and To disclose “adverse material facts” which are, or should be, within that licensee’s knowledge. These

include facts that would significantly affect the desirability or value of the property to a reasonable person, and facts that would indicate to a reasonable person that one of the parties cannot, or will not, complete his obligations under the contract. (Note” Idaho law exempts “psychological” impacts from this disclosure requirement. See Section 55-2701, Idaho Code).

Unless or until you enter a written agreement with the brokerage for agency representation, you are considered a “Customer” of the brokerage, and the brokerage will not act as our agent. As a Customer, you should not expect the brokerage or its licensees to promote your best interest, or to keep your bargaining information confidential.

Whenever you speak to a licensee who represents a party on the other side of the transaction, (e.g. you are seeking to buy the property, and the licensee represents the seller), you should assume that any information you provide will be shared with the other party.

In offered by the real estate brokerage, you may enter a written agreement for “Agency Representation,” requiring that the brokerage and its licensees enhance the basic duties owed by a non-agent, by adding those duties owed by and “Agent”. As your agent, the brokerage and its licensees will act on your behalf and promote your best interests as the “Client.” In addition to the basic Customer/Non-Agent relationship, Idaho law authorizes three types of Client/Agency Representation. SINGLE AGENCY

If you enter a written agreement for Agency Representation, you, as a Client, can expect the real estate brokerage to provide the following services, in addition to the basic duties and obligation required of all licensees:

To perform the terms of your written agreement with skill and care; To promote your best interest, in good faith, honesty and fair dealing; If you are the seller, this includes seeding a buyer to purchase your property at a price and under terms

and conditions acceptable to you, and assisting in the negotiation thereof; and, upon your written request, asking for reasonable proof of a prospective buyer’s financial ability to purchase your property;


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If you are the buyer, this includes seeking a property to purchase at an acceptable price, terms and conditions, and assisting in the negotiation thereof; and, when appropriate, advising you to obtain professional inspections of the property, or to seek appropriate tax, legal and other professional advice or counsel.

To maintain the confidentiality of specific client information, including bargaining information, even after the representation has ended.

LIMTED DUAL AGENCYAt the time you enter an agreement for Agency Representation, you may be asked to give written

consent allowing the brokerage to represent both you and the other party in a transaction. This “dual agency” situation can arise when for example, the brokerage that represents you, the seller, also represents buyers who may be interested in purchasing your property. When this occurs, it is necessary that the brokerage’s representation duties be “limited” because a buyer and seller have built-in conflicts of interest. Most significantly, the buyer typically wants the property at the lowest price, while the seller wants top dollars. As a “limited dual agent,” the brokerage and its licensees cannot advocate on behalf of one client over the other, and cannot disclose confidential client information concerning price negotiations, terms or factors motivating the client/buyer to buy or the clients/seller to sell. However, the brokerage must otherwise promote the best interests of both parties, perform the terms of the written representation agreement with skill and care, and perform all other duties required by law.

Buyers and sellers alike often find it desirable to consent to limited dual agency: buyers do no want the brokerage to be restricted in the search for suitable properties, and sellers do not want the brokerage to be restricted in the search for suitable buyers. This, when all parties agree in writing, a brokerage may legally represent both the buyer and the seller in the same transaction, but only as a “limited dual agent.”LIMITED DUAL AGENCY WITH ASSIGNED AGENTS

In some situations, a brokerage that has obtained consent to represent both parties as limited dual agent may assign individual licensees (“sales associates”) to act solely on behalf of each party. (The brokerage must have an office policy that ensures client confidences are protected.) Where this is the case, the sales associate, or “assigned agent,” is not limited by the brokerage’s agency relationship with the other party, but instead has a duty to promote the best interest of the client that he or she is assigned to represent including negotiating a price. The designated broker (the licensee who supervises the sales associates in the brokerage firm) remains a limited dual agent for both clients, and ensures the assigned agents fulfill their duties to their respective clients.

YOUR SIGNATURE BELOW INDICATES ONLY THE RECEIPT OF THE IDAHO REAL ESTAET COMMISSION’S BROCHURE TITLED “AGENCY LAW IN IDAHO.” SIGNING THIS DOCUMENT DOES NOT CREATE AN AGENCY RELATIONSHIP, OR A CONTRACTUAL RELATIONSHIP OF ANY KIND. EACH BROKERAGE SHALL KEEP A SIGNED AND DATED RECORD OF A BUYER OR SELLER’S RECEIPT OF THE AGENCY DISCLOSURE BROCHURE. IC 54-2085.

On , I provided a copy of this Disclosure to the undersigned and have retained a copy for the files of Sotheby’s International Realty.

by ________________________________________________________________________ Date

I/WE ACKNOWLEDGE I/WE HAVE RECEIVED AND READ A COPY OF THIS DISCLOSURE.

Seller Date Seller

If you have any questions about the information in the disclosure, contact: Idaho Real Estate Commission 633 N. 4th Street, PO Box 83720 Boise, ID 83720-0077. (208) 334-3285 Toll free in Idaho (866) 447-5411 Fax (208) 334-2050 TRS (800) 377-3529 www.irec.idaho.gov

The agency relationship should have been discussed prior completing this portion of the contract because it is the same information as is found in the Blue Brochure. Be sure that you carefully review this SIR Agency Disclosure so that your clients thoroughly understand your working relationship with them. It may seem redundant; however, it is state law to have your client complete the Blue Brochure and a SIR requirement to complete the SIR Agency Disclosure.


http://www.irec.idaho.gov/

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1. Enter the date as MM/DD/YY, for example: 2/1/082. Make sure that the Broker (you) sign and date here.3. Make sure that the Sellers sign and date here.

Listing Contract Review

Be sure that you have completed all of the key items below and submit to the Driggs office within 24 hours of the effective date of the new listing.

1. GEEK New Listing submission form2. Listing Contract (must have marital status, all pages initialed, dated and last page signed)3. Idaho Agency Disclosure (Blue Brochure) signed by seller4. SIR Agency Disclosure signed and dated by agent and seller5. Lead Based Paint disclosure if structure built prior to 19786. Showing Instruction Sheet7. Property Condition Disclosure Statement 8. Keys (if home or structure)9. Photo (submit to marketing & Driggs office with seller’s last name and SIR#)10. Corporate, LLC, Trust, etc. paperwork if applicable (title page, sell page, signature page)

SUBMIT NEW LISTING & AD COPY

Once you have a signed, completed listing agreement from the seller and an MLS number for your new listing, you must submit your new listing and ad text on GEEK within 24 hours. When you go on to GEEK, select:

Submit New Listing

It is imperative that you complete the new listing form on GEEK and print a copy to turn in with the completed listing to the Driggs office within 24 hours of having a listing contract signed. Carefully craft your ad copy. Be sure to include details such as location, size (acres, square feet), number of bedrooms, number of bathrooms, water rights, etc. Do not use cliché phrases and fluffy words. This is a very important marketing tool and should be taken seriously. Whatever is written on GEEK in the ad copy section will be used for the web site as well as all print publications.

PHOTOS

It is recommended that all photos, especially interiors, be taken by a professional photographer for marketing purposes. Once you have taken digital photos, save a copy on your computer under the seller’s last name, SIR# and name of picture (i.e. Smith 0221313 Front). Once you have saved it to your computer, send a copy to the marketing department in the Jackson office. You must label the e-mail (or disk) and file with the last name of the seller and the SIR#.


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INSTRUCTIONS FOR COMPLETING AN IDAHO CONTRACT TO BUY & SELL

SIR has created an Idaho Contract to Buy and Sell specific to SIR utilizing the State of Idaho requirements. Please follow the steps below to help in the process of completing the contract correctly. If you have any questions, please call the SIR Driggs, Idaho office and talk with the Office Administrator for guidance at (208) 354-8880 or toll free (888) 354-8880.

If you have not completed an SIR Contract to Buy & Sell for an Idaho property, go directly to http://geek.jhsir.com, scroll down to Idaho Contracts and Supplemental Documents and select:

Offer, Idaho (.doc format)

Follow the directions shown on GEEK for Saving documents.

If you have not yet carefully read through the contract to understand the language, print out a blank copy and read it thoroughly prior to completing it for your customer. Your customer may have questions when signing it, so it is imperative that you understand what the contract means in order to answer any specific questions your customer may have. As an agent, you can advise the buyer on how to complete the contract and what is generally accepted language and custom, but remember to refer your customer or client to a lawyer. Real Estate Agents must not give legal advice. Remember, if the Buyer, against your advice, wants to put something really odd in a contract, it is their offer and they can do what they want.

Offer to Purchase .........................................................................Prepared on FORMT EX T

.................................................................................................................................. In Driggs, Idaho

OFFER TO PURCHASE dated this day of from , (hereinafter “Buyer”, whether one or more) to , (hereinafter “Seller”, whether one or more). Subject to the provisions of this offer, if accepted by Seller, Buyer agrees to buy and Seller agrees to sell the following described real estate situated in the City or Town of ////// , County of , IDAHO commonly known as and more particularly described as: 10 with all improvements thereon and all fixtures of a permanent nature currently on the premises except as hereinafter provided, in their present condition, ordinary wear and tear excepted, and including all personal property described hereinafter.

1. Type the date the offer was prepared as month/date/year and it will automatically default to month date, year.

2. Use this drop down menu to choose “Driggs” to indicate where the contract was written. If you are preparing the contract from Jackson or your home office in WY, you must still enter “Driggs”, as it is the Idaho licensed office for SIR.

3. Enter the day of the month (for example type 5 for February 5th) which will be the reference date to the Offer. Reference this date also on Additional Provisions and Attachment titles.

4. This is the month and year – enter as MM/YY, for example, 02/08 for February 2008.5. Always put the full legal name of the Buyer as well as the marital status in this space.

For example, Joe and Jen Smith, H&W or Jodi Jones, a single woman. If there is a Trust, you need the date of the Trust agreement included after the name of the Trust. If a Partnership, you need to note what type of partnership and the General Partner’s name. If a Corporation or an LLC, you need to include the state in which it was formed for



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example, Purple LLC, a Colorado LLC. For a Trust, Partnership, Corporation or LLC you must include proof of authorization to sell real property by providing paperwork for the file. Paperwork must include the title page, page which states the authority to buy, and the signature page.

6. Type the complete legal name and status of the Seller(s). Check the listing file if it is an SIR listing or check with the listing brokerage to ensure accurate spelling and status.

7. If the property is in city limits, enter the town in this blank. If it is not in city limits, leave /////// marks as the default.

8. Type the county where the property is located in this blank.9. Type the “common” street address, if applicable. For example, 2 Teton Town Center10. Insert the proper legal description in this blank as described below:

a.City: “Lot(s) <<Lot No.>> of Block <<Block No.>> of the <<Addition>> Addition to the Town of <<Town>>, <<County>> County, Idaho according to that plat recorded on <<Date>> as Instrument # <<Instrument No.>> in the Office of the County Clerk of ,<<County>> County, Idaho.

b.County: “Lot(s)s <<Lot No.>> of the <<Subdivision>>, <<County>> County, Idaho according to that plat recorded on <<Date>> as instrument # <<Instrument#>> recorded on in the Office of the County Clerk in <<County>> County, Idaho.”

c.Metes and Bounds: If it is a Metes and Bounds description and it is too lengthy to put in the space available, attach it as an Exhibit ‘__’ and state “See Exhibit ‘___’, attached hereto and made a part hereof”. Title companies are a good source for getting Metes and Bounds legal descriptions. Note: Exhibits should go in order starting with A, B, C, etc.

d.Note: Attachments should go in order starting with A, B, C, etc.

Earnest Money

1. EARNEST MONEY. Sotheby’s International Realty acknowledges Receipt of ($ ) Dollars from Buyer in the form of personal check . The a Listing Broker ( b ), Selling Broker (Sotheby’s International Realty), Other (),shall be designated the Responsible Broker for this transaction and as such shall, a.) Deposit said funds in its trust account within 5 business days following acceptance by all parties, b.) Accept such deposit for Seller and/or Buyer and shall retain such deposit in its trust account, and c.) Shall not disburse such deposit until Buyer’s check has cleared Buyer’s bank and, if this offer has been accepted, until closing or until the parties hereto have otherwise agreed in writing to the disbursement of such deposit.

1. Type in the numeric amount of the earnest money. The program will automatically add the decimal.

2. Spell out the dollar amount of earnest money. At the end, remember to type in “and no/100” and be sure to fill in the whole line with dash (----) marks, if necessary. If the Buyer requests to have the earnest money placed in an interest bearing account, include the standard language in Additional Provisions – Interest Bearing Account, and please have the Buyer complete a W-9 Form (found on GEEK). If the earnest money is less than $20,000 and closing is less than 60 days, please discourage the Buyer from requesting earnest money to be placed in an interest bearing account. If the Buyer insists, you must do so.

3. In this space you must select from the drop down menu either personal check, money order or wire transfer.


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4. a) If the Listing Broker is the responsible broker, you must check this box. If the Listing Broker is not the responsible broker, leave this box blank. b) Type the Listing Broker’s firm in this space provided.

5. If SIR is the responsible broker, check this box.6. a) If another is designated as the responsible broker, check this box. b) Write the name of

the “other” responsible broker in this box provided.

Purchase Terms

2. PURCHASE TERMS. Buyer agrees to buy the above-described property upon the following terms and conditions and for a purchase price of ($ FORMTEX T ) DOLLARS payable as follows:$ 0.00 Earnest Money deposit: N/A . $ 0.00 N/A . $ 0.00 by obtaining a new loan (per Section 3); and/or$ 0.00 (approximate) by assuming Seller’s present loan (per Section 3B); and/or $ 0.00 (approximate) balance of purchase price to be paid in cash or collected funds at closing.

1. Fill in purchase price offered. After you have typed in the wording, add “and no/00--“ using the dash marks to fill in the rest of the line.

2. If Buyer would like earnest money deposited (for example: within three days of acceptance) indicate in here. If there is not enough room, please type these instructions in Additional Provisions.

3. Fill in amount on each line as applicable. If not applicable, insert “0”.4. The computer will automatically calculate the earnest money and balance of the purchase.

Financing

3. FINANCING. Yes No If yes, this agreement is contingent upon the Buyer securing the following financing: FHA VA CONV IHA RECD Assumption of existing loan(s) Other N/A .

If a new loan is to be obtained by Buyer:A. Said loan shall be amortized for a period of years (with entire balance due upon the payment) at an initial rate not to exceed % per annum resulting in initial monthly quarterly annual (select one) payments of principal and interest of approximately $ PLUS reserves for taxes and insurance if required. B. Loan discount points required by Lender, if any, shall be paid at closing and shall not exceed % of the loan amount. The first (1,2, etc.) loan discount point(s) shall be paid by N/A, and the balance, if any, shall be paid by N/A.

C. Any discount points to be paid by Seller as set forth above shall not be used for the origination fee, closing costs, reserves, or any other costs.

D. If Buyer agrees to accept and can qualify for terms other than above, approval of Seller shall not be required, provided Seller incurs no additional expense as a result thereof.

1. If there is financing, check yes. If not, check no. If yes, check the appropriate box as to the loan type (FHA, VA, CONV, IHA, RECD)

2. Fill in as applicable if checked Yes for financing. If No, enter “N/A” for all blanks.3. Fill in as applicable. If there will be no points paid, always enter “N/A” in the blank, not 0.

Loan Application

4. LOAN APPLICATION. If a new loan is to be applied for, and/or the existing loan is to be assumed by or assigned to Buyer, the Buyer agrees to


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A. Complete and tender the appropriate application to lender within business days after Seller’s acceptance of this offer;

B. Complete and promptly tender any and all documents and other information required to process the application;

C. Not withdraw the application or intentionally cause any change in circumstances, which would prejudice such application;

D. Accept the assumption/assignment or loan if approved at above-stated terms and conditions.E. In the event that the Buyer, after complying with the requirements set forth in Paragraph 4 (A-D) above

has not received written approval of financing from the lender within business days after the Buyer has submitted an application, Buyer shall have the right to terminate this contract, or to waive the financing contingency, at the Buyer's option. If the Buyer fails to notify the Seller of an approval, contingency waiver, or financing rejection within the period set forth above, the financing contingency shall be deemed to have failed and the contract shall terminate at the option of the Buyer, and all Buyer's earnest money deposits shall be refunded.

F. FHA / VA: If applicable, it is expressly agreed that notwithstanding any other provisions of this contract, BUYER shall not be obligated to complete the purchase of the PROPERTY described herein or to incur any penalty or forfeiture of Earnest Money deposits or otherwise unless BUYER has been given in accordance with HUD/FHA or VA requirements a written statement by the Federal Housing Commissioner, Veterans Administration or a Direct Endorsement lender setting forth the appraised value of the PROPERTY of not less than the sales price as stated in the contract. SELLER agrees to pay fees required by FHA or VA.

1. Make this as soon as is feasible, suggested time is no more than five days. Type out the numeral and in parentheses type the number, for example: five (5).

Closing and Possession

5. CLOSING AND POSSESSION.A. Closing shall occur on or as otherwise mutually agreed upon in writing between the parties, at a time

and place, which shall be designated by _________________________. Seller, at Seller’s option, may continue to offer Property for sale, on and subject to the following requirements. Seller must notify any other prospective buyer that this Contract has been previously signed and it is in full force and effect. Any other contract accepted by Seller must contain a provision that the other offer is subject and junior in right to this contract.

B. Possession shall be delivered to Buyer on Date and Time of Closing , or as otherwise mutually agreed in writing between the parties, subject to any existing leases and tenancies. Copies of all leases and/or tenants’ written verifications of rental terms, security/damage deposits and status shall be provided to Buyer prior to closing. Seller agrees to notify Buyer of any change in tenant status immediately. If the Seller fails to deliver possession by the date herein specified, the Seller shall be subject to eviction by Buyer and shall be liable for a daily rental of $ until possession is delivered. This remedy is in addition to any other remedies the Buyer may have.

C. All security/damage deposits shall be transferred to Buyer at closing.

1. Enter date as mm/dd/yy and the program will automatically convert it. For example: enter the date as 2/6/08 and the program will convert it to February 6, 2008.

2. The program will automatically have “Date and Time of Closing”. Make sure that you speak to the Buyer about this; they may want something different. You will need to select the year from the field that follows.

3. Discuss this with the Buyer. The amount should be an adequate amount to cover expenses should the Seller not deliver possession.

Closing Costs

6. CLOSING COSTS. NOTE: Buyer and/or Seller resulting from specific loan program requirements may incur Costs in addition to those listed below.

A. Buyer shall pay the following applicable loan and closing costs in cash or collected funds at closing: (1) Loan origination fee, discount points, credit report, survey and/or certificate of location if required, appraisal, inspections and/or certifications; (2) any other costs of securing financing; (3) any prepaid tax and insurance; (4) recording fees for warranty deed and mortgage; 5) mortgagee’s title insurance policy as stated in 13B below; (6) fuel in storage tanks, the amount to be determined by supplier at Seller’s expense; (7) unless otherwise agreed herein, or provided by law or required by lender, Buyer shall purchase Seller’s reserve account(s) if loan assumption.


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B. Seller shall pay for the following closing costs in cash or collected funds at closing: (1) preparation of Warranty Deed and Bill of Sale (if applicable); (2) title policy as stated in Section 13B and; (3) recording fees for any mortgage releases applicable to the subject property. C. Miscellaneous Costs. If required by lender or otherwise stated herein, the following costs will be paid as indicated, in cash or collected funds at closing: NA ALTA EXTENDED COVERAGE TITLE POLICY, NA LONG-TERM ESCROW: Set-Up Fee, Annual/Month, NA TAX SERVICE, NA CLOSING FEE(S), NA ADDITIONAL CONTRACT DOCUMENT PREPARATIONCodes for preceding blanks are: SELLER=SR BUYER=BR SHARED EQUALLY=SE NOT APPLICABLE=NA.

D. General taxes for the year of closing based on the most recent assessment, irrigation and drainage assessments, grazing fees, government program payments, personal payments, personal property taxes, prepaid rents, water rights, association fees, dues or assessments, utilities, insurance premiums and interest on encumbrances, if any and if applicable, shall be apportioned through date of closing. Assessments for all special improvements now installed, to the extent due and payable on or before closing, shall be paid by Seller. Any such installments becoming due after closing shall be paid by Buyer.

E. Any unreleased judgments, liens or other encumbrances affecting all property included in the purchase price and required to be paid, shall be paid by closing agent from the proceeds of this transaction, or, paid by the responsible party in cash or collected funds at time of closing.

1. Select from the drop-down boxes. SR = Seller, BR = Buyer, SE = Shared Equally, NA= Not Applicable.

Items Included in Purchase Price

7. ITEMS INCLUDED IN PURCHASE PRICE. The purchase price shall include:A. All fixtures, including but not limited to all lighting fixtures, heating fixtures, plumbing fixtures, all outdoor plants, air conditioning fixtures, ventilating fixtures, swamp coolers, built-in appliances, permanently-attached floor coverings, windows, doors, screens, garage door openers and controls, smoke/fire detection device, curtain and drapery rods, attached television antennas, TV satellite dish and antenna, attached mirrors, awnings, water softener(s) (if owned by Seller), fuel tanks (if owned by Seller), heating stove(s) inserts, fireplace inserts, gates, auto gates, cattle guards, fences, water systems and No others PROVIDED HOWEVER, that trade fixtures and the following fixtures of a permanent nature are to be EXCLUDED from the sale: No exclusions , Seller agrees to remove all such excluded fixtures in a workmanlike manner without causing damage to the premises, on or before the date of possession or closing, whichever is sooner. Any such damages shall be repaired at Seller’s expense.

B. The following personal property/equipment items currently on the premises in the condition as stated in Section 8 below.N/A .

C. The following leases and permits: None . D. The following growing crops: None . E. The following livestock: None . F. The following mineral rights: As a matter of due diligence, it is recommended that Buyer, with the help of

legal counsel, obtain and review information for mineral ownership and/or water rights which may or may not be appurtenant to the property. Seller shall convey all mineral rights owned by Seller which are appurtenant to the property, if any, without warranty regarding such mineral rights or any aspect thereof. Buyer shall have the right to obtain an ownership report or other information pertaining to the mineral ownership of the property and to approve the same, as satisfactory to Buyer at Buyer’s expense. Buyer shall obtain such report or other information within ten (10) business days after the Seller has provided a title insurance commitment, and shall approve or disapprove the condition of mineral ownership regarding the property within ten (10) business days after receipt of the title insurance commitment from the Seller. If Buyer fails to obtain such information within such time, or fails to make an objection to mineral ownership within such time by conveying such objection to Seller or Seller’s listing agent, in writing, this condition shall be deemed to have been satisfied.

G. The following water rights: Seller shall convey all water rights and ditch rights owned by Seller which are appurtenant to the property, if any, without warranty regarding such water rights or ditch rights or any aspect thereof. Buyer shall have the right to make inquiry with the Idaho Dept. of Water Resources as to the existence and validity of any water rights or ditch rights appurtenant to the property within fifteen (15) business days after Seller’s acceptance of Buyer’s offer. If Buyer notifies Seller that Buyer has disapproved the water rights or ditch rights within such time, this agreement shall terminate and Buyer’s deposit shall be refunded to Buyer. In the event that Buyer fails to make inquiry as to any water rights or ditch rights and/or fails to notify Seller of any objection thereto within the time specified above, this contingency shall be conclusively presumed to have been fully satisfied by Buyer.


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1. Go through each of these items with your customer and place an “X” by using the space bar in the box preceding the items included in the purchase price. If possible, please refer to the Listing Contract. If completing for a parcel of land, be sure to check the box preceding “all outdoor plants” if applicable.

2. Standard language shall be “no others” if applicable, or list additional permanent fixtures included in purchase price.

3. Standard language shall be “no exclusions” if applicable, or list additional permanent fixtures excluded from purchase price.

4. If you have an inventory list, standard language shall be “see Attachment ‘__’, attached hereto and made a part hereof.” Then you must attach and LABEL an inventory list. If there is no inventory list, standard language is “none”.a. If there is no inventory list, enter each item of personal property that will be included in

the purchase price. For example: refrigerator, washer, dryer, totem pole, etc.b. Make sure that you get Make and Model for appliances and electronic equipment to

ensure that the Seller will not change those items. 5. The standard time for each of the above is defaulted to 10, 10 and 15. The numbers may be

changed if necessary.

Condition of Property

8. CONDITION OF PROPERTY. A. Seller represents that upon execution of this Contract:

1. There are no known violations of applicable county and/or state subdivision, zoning, building and/or public health codes, ordinances, laws, rules and regulations and any recorded covenants in force and effect as of that date except: no exceptions .2. The condition of the property is as stated in the Seller’s Property Condition Statements, Supplements, or Disclosures: a. An accurate and complete copy of which is attached hereto and incorporated herein.

b. An accurate and complete copy of such shall be provided by Seller with acceptance of this offer.

c. Due to Seller having no knowledge of condition of property, except for the followingknown defects, a Property Condition Statement is not available: .

3. Buyer shall notify Seller in writing of any objections to Property Condition Statement(s)/Supplement(s) within days of receipt thereof, or Property Condition Statement(s)/Supplement(s) will be deemed acceptable to Buyer. B. Seller shall warrant that all appliances, electrical, plumbing and mechanical units, if any included in this sale shall be in proper working condition as of the date of closing.C. In the event that the subject property is a habitable residence on the date of closing, seller shall provide a basic cleaning of the property prior to such date; including wiping of all surfaces, cleaning of bathrooms, appliances, fixtures, carpets, walls, ceilings, basements and windows, and removal of trash from the exterior of the property.D. With respect to the condition of the subject property, Buyer acknowledges and agrees that, upon execution of this Contract:

1. Buyer is not relying upon any representations of the Seller or Seller’s agent as to any conditions which Buyer deems to be material to Buyer’s decision to Purchase this property.

2. Buyer has been advised by Seller’s agents of the opportunity to seek legal, financial, construction, environmental and/or home inspection professional services regarding this purchase.

3. SQUARE FOOTAGE/ACREAGE VERIFICATION: Buyer is aware that any reference to square footage or acreage of the real property or improvements is approximate. If square footage or acreage is material to the Buyer, it must be verified during the inspection period.

E. LEAD BASED PAINT DISCLOSURE - APPLICABLE IF SUBJECT PROPERTY WAS BUILT BEFORE JANUARY 1, 1978. Buyer shall have ten (10) days after the contract has been signed by the last party to execute the contract within which to complete a risk assessment or inspection of the property for lead-based paint and/or lead based paint hazards.


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This contingency will automatically terminate 9 PM MST on the 10th day after the contract has been signed by the last party executing the contract, unless prior thereto Buyer delivers to Seller a written notice listing any lead-based paint deficiencies or hazards and corrections needed, together with a copy of any inspection or risk assessment report.If the Buyer delivers to the Seller a notice of deficiencies within the time set forth above, the Seller shall notify Buyer in writing within ten (10) days thereafter whether the Seller has elected to remedy the deficiencies prior to closing. If the Seller elects to remedy the deficiencies, the Seller shall provide the Buyer certification of repairs from an inspector at or prior to closing. If the Seller does not elect to remedy the deficiencies, the Buyer shall have the option of waiving this contingency and purchasing the property in “as is” condition or terminating the contract and recovering any deposit made by Buyer.

1. Standard language shall be “no exceptions” if applicable. Ensure that the Buyer knows that they can and should contact the applicable departments to investigate these issues.

2. Select A, B or C. When it is for a structure, you should select A. If the property is listed by another brokerage obtain the Property Condition Statement from the listing agent so that you can attach it. Make sure that you have the Buyer sign the Property Condition Statement acknowledging that they have received and reviewed it. If you select B, understand that the Property Condition Statement under this condition must be returned with acceptance of the offer. Select and complete C only when there is no Property Condition Statement available. Refer to the listing agent or Listing Agreement for that information. The space may be filled in as “none known” or the information as applicable.

3. Enter any known defects or enter “N/A”.4. Enter number of hours here, if applicable. If not applicable, enter “N/A.” Suggested

time is typically 2 to 3 days.5. Read and understand.6. A Lead Based Paint Disclosure is required to be signed if the structure was built prior

to January 1, 1978. The Lead Based Paint Disclosure can be found on GEEK.

Inspections

9. INSPECTIONS. Seller agrees to permit all electrical, mechanical, structural and/or environmental inspections of the property by Buyer or third persons acting on behalf of Buyer, at reasonable times and upon that notice required by Section 9A, below. Any such inspection shall be without expense to Seller unless otherwise agreed in writing.

A. Notices. Buyer may obtain, at Buyer’s option and expense and upon the notice required herein, electrical, mechanical, structural and/or environmental inspections of the property. Buyer or Buyer’s agents or inspectors shall not have access to the property for such inspections unless and until Buyer has provided notice to Seller of the type(s) of inspection, name(s) of inspectors and the date upon such inspection(s) shall be performed. Buyer must provide such notice on or before day(s) following the acceptance of this contract, or it shall be deemed that the Buyer approves and accepts the conditions of the property and waives any defects thereof.

B. Condition Objection. If Buyer does have an inspection performed, Buyer agrees to provide a copy of any written report of such inspection to Listing Broker and to pay for any damage to the property caused by such inspection. Buyer shall provide written objections to defects of the property on or before FORMT EX T day(s) (Objection Deadline) following the previous notice given in Section 9A. If Listing Broker receives no written objections within such period it shall be deemed that the Buyer approves and accepts the condition of the property and waives any defects thereof.

C. Objection Resolution. Buyer shall have until the Objection Deadline as stated in Paragraph 9 B to complete any and all inspections of the Property including review of Covenants, Conditions and Restrictions, if any. Any and all inspections shall be completed at Buyer’s sole cost, and Buyer agrees to indemnify Seller against any cost or expense arising or resulting from any inspection conducted or authorized by Buyer. If Buyer notifies Seller in writing by 5 PM on or before the Objection Deadline, that Buyer has any objections to the condition of the Property, the parties shall have FORMT EX T ( ) days after Buyer’s notice to reach written agreement regarding correction of Buyer’s objection(s). If the parties do not reach agreement within such time, Buyer shall have the option to either terminate this Contract and recover Buyer’s


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earnest money deposit, or to waive any objections as to which agreement was not reached and proceed with closing. If Buyer fails to notify Seller in writing of any objections by the Objection Deadline, Buyer shall be deemed to have accepted the condition of the Property.

D. The term “environmental inspection” shall mean inspections to determine whether toxic or hazardous substances are present on the property, or whether other physical conditions exist on the property which would prevent the property from being used for residential purposes under applicable town and/or county zoning or building regulations, or whether other physical conditions exist on the property which will require remediation in order to comply with town, county, state or federal laws, rules or regulations.

E. Other than written objections raised by Buyer as set out above, or in the event no inspections are requested by Buyer, Buyer acknowledges that he has not been denied any opportunity to inspect property and has done so to his satisfaction. Buyer accepts the property in its entirety in “as is, where is” condition without any implied or express warranty by Seller or Selling Agent.

1. It is important that the inspection be performed as soon as possible. Please discuss this with your Buyer and/or their Lender.

Repairs to be Performed

10. REPAIRS TO BE PERFORMED.A. Seller agrees to perform the following repairs to the property at Seller’s expense: None unless

mutally agreed upon in writing after inspection .B. Should Buyer’s lender require any additional repairs or replacements of all or part of the operating systems

of the property, the cost thereof shall be paid by agreement of the parties or, if no agreement, this Contract shall be void and the Earnest Money deposit returned to Buyer.

1. Standard language shall be “None unless mutually agreed upon in writing after inspection” or fill out as applicable.

Risk of Loss

11. RISK OF LOSS. Risk of loss shall remain with the Seller until delivery of deed. In the event that premises shall be damaged by fire or other casualty prior to time of closing, in an amount of not more than 10% of the total purchase price, the Seller shall be obligated to repair the same before the date herein provided for delivery of deed. In the event such damage cannot be repaired within said time or if such damage shall exceed such sum, this contract shall be voidable at the option of Buyer. Should the Buyer elect to carry out this Contract despite such damage, Buyer shall be entitled to all of the insurance proceeds resulting from such damage.

Read and understand.

Subdivision/HOA

12. SUBDIVISION HOMEOWNER'S ASSOCIATION: BUYER is aware that membership in a Home Owner's Association may be required and BUYER agrees to abide by the Articles of Incorporation, Bylaws and rules and regulations of the Association. BUYER is further aware that the PROPERTY may be subject to assessments levied by the Association described in full in the Declaration of Covenants, Conditions and Restrictions. BUYER has reviewed Homeowner's Association Documents: Yes No N/A. Association fees/dues are $_______ per ________. BUYER SELLER N/A to pay Homeowner’s Association SET UP FEE of: $____________and/or PROPERTY TRANSFER FEES of $____________ at closing.

Title

13. TITLE.A. Title shall be conveyed to the following named Buyer(s): as Sole Owner, Husband and Wife,

Joint Tenants with Rights of Survivorship, Tenants in Common, Partnership, Corporation, LLC. (select one.)


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B. Seller agrees to furnish, at Seller’s expense: (a current commitment for an Owner’s title Insurance policy) showing merchantable title in the Seller. Seller agrees to deliver the title insurance commitment to Buyer no later than , deliver the policy to Buyer without unreasonable delay after closing and pay the premium thereon at the time of closing. Buyer shall pay for any mortgagee’s title policy and any endorsements required by the lender.C. Title shall be merchantable in Seller. Seller agrees to execute and deliver a general warranty deed including the release and waiver of all homestead rights, if any, and a good and sufficient Bill of Sale to the Buyer conveying said real and personal properties. Title shall be subject to general taxes for the year of closing, local improvement districts, irrigation, drainage, and reservoir assessments, government programs currently in effect, guaranteed revenues to utility companies, building and zoning regulations, city, county and state subdivision and zoning laws, easements, restrictive covenants, and reservations of record. D An Extended Coverage Title Policy is requested at this time? yes noE. Buyer shall have business day(s) after receipt of the title insurance commitment to object to any defect set forth therein which makes Seller’s title not merchantable or otherwise recordable. The determination of whether title is merchantable shall rest within the sole discretion of Buyer. Any and all monetary encumbrances shall be paid by Seller at closing. If written notice of a title defect is not received from Buyer within business day(s) after delivery of the commitment for title insurance from Seller, it shall be conclusively deemed between the parties that Seller has satisfied Seller’s obligation hereunder and title is merchantable as set forth in the commitment for title insurance. If written notice of a title defect is received from Buyer in accordance with the provisions hereof, Seller shall have business day(s) within which to cure such defect. In lieu of curing such defect, Seller may within business day(s), obtain a commitment for an owner’s title insurance in the amount of the purchase price reflecting title insurance protection in regard to such defect, together with a written commitment from the title insurance company to provide additional title insurance in the amount of any contemplated improvements on the property by Buyer. If both such conditions are met, Buyer shall accept the then existing insured title in lieu of merchantable title free of such notice of defect. Seller shall pay the full premium of such title insurance.

1. Always insert full legal names.2. You MUST check one box for the way that they will take title.3. You must have a specific date. DO NOT put “two weeks prior to closing.” Order the Title

Commitment as soon as you can. SIR will always be responsible for ordering the Title Commitment on our listings and getting a copy to the lending institution.

4. Enter the number of days as discussed with the buyer.

Default and Remedies

14. DEFAULT AND REMEDIES. Time is of the essence of this contract, and any party who fails to tender any payment, or perform any other condition hereof as herein provided, shall be in default under this Contract.

A. In the event that Buyer defaults and fails to complete the purchase of the Property without default of the Seller, Seller’s sole remedy shall be to receive 100% of Buyer’s deposit as stipulated as liquidated damages. Seller shall not have the right to specifically enforce the terms and conditions of this Contract. In the event of default by the Seller, the Buyer shall have the right, at Buyer’s option, to either terminate this Contract and recover Buyer’s deposit, or to specifically enforce the terms and provisions of this Contract.

B. In the event that any party shall become in default or breach of any of the terms of this Contract, such defaulting or breaching party shall pay all reasonable attorney's fees and other expenses which the non-breaching or non-defaulting party may incur in enforcing this Contract with or without formal proceedings. This provision shall not limit any other remedies to which the parties may otherwise be entitled.

C. Seller and Buyer agree that in the event of any controversy regarding earnest money or things of value held by Broker, unless Broker receives written instructions from both Buyer and Seller regarding disposition of the earnest money or things of value, Broker, in its sole discretion, may hold the earnest money or things of value or may interplead all parties and deposit the earnest money deposit or things of value into a court of competent jurisdiction. Broker shall be entitled to recover its attorney's fees and costs from the losing party in the action in which the funds are interplead, but if no such award or payment is made, Broker shall recover its court costs and reasonable attorney's fees from the interplead funds or things of value.


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15. MEDIATION AND ARBITRATION. The parties agree that if a dispute arises between them relating to this Contract, they will not file litigation, but will informally resolve the dispute between themselves or submit the dispute to mediation or arbitration. When a dispute arises which the parties are unable to resolve between themselves, the parties shall proceed in good faith to jointly appoint an acceptable mediator and will share equally in the cost of such mediator. The mediation shall be privileged and confidential as provided by Idaho law. In the event the mediation fails to resolve the matter within forty-five (45) days from the date the dispute arises, the parties agree that the matter shall be submitted to binding arbitration. The arbitration shall be governed by any applicable Idaho arbitration laws as now in effect or later amended, and, absent agreement of the parties to the contrary, each party shall select an arbitrator within fifteen (15) days of the failure of mediation and the two arbitrators shall name a third arbitrator. Unless otherwise decided by the arbitration panel, the parties shall share equally in the cost of such arbitrators.

Read and understand.

Additional Provisions

16. ADDITIONAL PROVISIONS:

1. Standard language is “See Attachment ‘___’, attached hereto and made a part hereof”. For example: if the Additional Provisions is the first attachment to the Contract, it shall be “See Attachment “A”… OR if there is some other attachment cited before the Additional Provisions, it shall say “See Attachment “B”…, etc. If you can fit your additional provisions here, you may do so. There is a copy of our Additional Provisions on Geek.

Disclosures, Consents and Acknowledgements

17. DISCLOSURES, CONSENTS AND ACKNOWLEDGEMENTS.

A. REPRESENTATION CONFIRMATION AND ACKNOWLEDGMENT OF DISCLOSURE. Check one (1) box in Section 1 below and one (1) box in Section 2 below to confirm that in this transaction, the brokerage(s) involved had the following relationship(s) with the BUYER(S) and SELLER(S).

Section 1:

A. The brokerage working with the BUYER(S) is acting as an AGENT for the BUYER(S).

B. The brokerage working with the BUYER(S) is acting as a LIMITED DUAL AGENT for the

BUYERS(S), without an ASSIGNED AGENT.C. The brokerage working with the BUYERS(S) is acting as a LIMITED DUAL AGENT for the

BUYERS(S), and has an ASSIGNED AGENT acting solely on behalf of the BUYERS.

D. The brokerage working with the BUYERS(S) is acting as a NONAGENT for the BUYERS(S).

Section 2:A. The brokerage working with the SELLER(S) is acting as an AGENT for the SELLER(S).

B. The brokerage working with the SELLER(S) is acting as a LIMITED DUAL AGENT for the

SELLER(S), without an ASSIGNED AGENT.C. The brokerage working with the SELLER(S) is acting as a LIMITED DUAL AGENT for the

SELLER(S), and has an ASSIGNED AGENT acting solely on behalf of the SELLER(S).

D. The brokerage working with the SELLER(S) is acting as a NONAGENT for the SELLER(S).

Each party signing this document confirms that he has received, read and understood the Agency Disclosure Brochure adopted or approved by the Idaho Real Estate Commission and has consented to the relationship confirmed above. In addition, each party confirms that the Brokerage's agency office policy was made available for inspection and review. EACH PARTY UNDERSTANDS THAT HE IS A "CUSTOMER" AND IS NOT


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REPRESENTED BY A BROKERAGE UNLESS THERE IS A SIGNED WRITTEN AGREEMENT FOR AGENCY REPRESENTATION.

B. “n/a” is understood to mean “not applicable” wherever it is used in this contract..C. A “day” is herein defined as a business day and as Monday through Friday in the local time

zone where the subject real property is physically located. A business day shall not include any Saturday or Sunday, nor shall a business day include any legal holiday recognized by the state of Idaho as found in Idaho Code §73-108. The time in which any act required under this agreement is to be performed shall be computed by excluding the date of execution and including the last day. The first day shall be the day after the date of execution. If the last day is a legal holiday, then the time for performance shall be the next subsequent business day.

D. This Contract shall be executed in multiple copies and by their signatures hereon the parties acknowledge receipt of a signed copy at the time of signing. Signature pages transmitted by telecopier or electronic transmittal via scanned pdf copy shall be deemed to be original signature pages with the same legal effect as manual signatures.

E. This Contract is made in accordance with, interpreted and governed by the laws of the State of Idaho and, shall be binding upon and inure to the benefit of the respective parties hereto, their successors, representatives and assigns.

F. All prior representations made in the negotiations of this sale have been incorporated herein, and supersede all prior agreements. There are no oral agreements or representations between Buyer, Seller or their agents to modify the terms and conditions of this Contract. No warranties including without limitation, a warranty of habitability, agreements, or representations not expressly set forth herein, shall be binding upon either party.

G. Either party agrees to cooperate with the other party in completing the sale/purchase of the property pursuant to an Internal Revenue Code Section 1031 Tax Deferred Exchange, or any successor or replacement provision. Each party’s cooperation is contingent upon such party being reimbursed for any cost or expense incurred and being held harmless against any liability directly resulting from conducting the transaction as a 1031 Tax Deferred Exchange. The cooperating party shall not be required to take title to any exchange property.

H. Buyer hereby acknowledges that Buyer has been advised to investigate, research and obtain a written commitment for adequate property and liability insurance prior to closing.

I. The parties to this Agreement acknowledge and authorize that sales price information and terms compiled as a result of this agreement may be provided, after closing the transaction, to the County Assessor’s Office, Multiple Listing Service, and Board of Realtors®, by either party’s Broker.

J. Buyer is responsible to obtain and review a copy of the Covenants, Conditions and Restrictions and any supplemental documentation pertaining to and associated with the Home Owner’s Association, if applicable. Buyer shall notify Seller in writing of any objections to the Covenants, Conditions and Restrictions and any supplemental documentation pertaining to and associated with the Home Owner’s Association, if applicable, within days of receipt thereof, or Covenants, Conditions and Restrictions and any supplemental documentation pertaining to and associated with the Home Owner’s Association will be deemed acceptable to Buyer.

K. Disclosure Regarding FDIC Coverage. Sotheby’s International Realty (SIR) deposits Earnest Money received in state or federally-chartered banks that are insured by the Federal Deposit Insurance Corporation (“FDIC”). FDIC deposit insurance coverage applies to a maximum amount of $250,000 per depositor for deposits held in the same legal ownership category at each bank. For example, Earnest Money held in an account maintained by SIR will be combined with any individual accounts held directly by you at the same bank. Both the Buyer and the Seller are responsible for monitoring the total amount of deposits that are owned directly or indirectly by you in any one bank. If you have questions about FDIC deposit insurance, contact your financial or legal advisors or go to http://www.fdic.gov/deposit/deposits/index.html. SIR does not guarantee the solvency of any bank into which funds are deposited and assumes no liability for any loss the Buyer or Seller may incur due to the failure, insolvency or suspension of operations of any bank or the $250,000 FDIC deposit insurance limit. While SIR does not guarantee the solvency of any bank, it attempts to deposit funds only in banks that appear to be safe and sound. Neither the FDIC nor other bank regulatory agencies provide ratings to the public so SIR obtains bank ratings from one or more commercial ratings services that provide ratings for a fee. A favorable rating from any rating service does not guaranty the solvency of a bank. Buyer and Seller acknowledge the foregoing disclosure and agree to SIR depositing and investing Earnest Money as described above.

L. This contract shall only be considered accepted and shall only become legally effective and binding on the parties when the last party to sign as accepted with no further changes delivers a full executed counterpart hereof to the other party (parties) by personal delivery, via fax or via email.

M. THIS IS A LEGALLY BINDING CONTRACT. READ THE ENTIRE DOCUMENT, INCLUDING ANY ATTACHMENTS. IF YOU DO NOT UNDERSTAND THE TERMS AND CONDITIONS, CONSULT LEGAL COUNSEL BEFORE SIGNING.


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If there is a signed contract, the Brokerage is acting as an agent. Remember that if your customer would like to sign a Buyers Representation Agreement, it must be approved by the Managing Broker first. In very rare cases, SIR acts as an agent for both the Buyer and Seller – in these rare circumstances, the Brokerage is acting as a Limited Dual Agent for both Buyer and Seller. In even more rare cases, Limited Dual Agent with Assigned Agents will be checked with permission from the Managing Broker.

1. Typically, the Brokerage working with the Buyers is acting as a non-agent, unless there is a signed contract between the Brokerage and the Buyers. Very rarely will SIR act as an agent for the Buyers. If your Buyer wants to sign a Buyer’s Representation Agreement, the Managing Broker must approve it first.

2. Typically, the Brokerage working with the Sellers is acting as an agent because there is a signed listing agreement with the Sellers.

3. Read and Understand the Blue Brochure in its entirety so that your customer understands it as well. It is SIR policy that all contract files contain a receipt or copy of the receipt of the Blue Brochure as proof that your customer/client read and understood the Agency Representation prior to signing the contract.

Final Walk Through

18. FINAL WALK THROUGH YES NO If yes, The SELLER grants BUYER and any representative of BUYER reasonable access to conduct a final walk through inspection of the premises approximately NA calendar day(s) prior to close of escrow, NOT AS A CONTINGENCY OF THE SALE, but for purposes of satisfying BUYER that any repairs agreed to in writing by BUYER and SELLER have been completed and in substantially the same condition as on acceptance date of this contract. SELLER shall make premises available for the final walk through and agrees to accept the responsibility and expense for making sure all the utilities are turned on for the walk through except for phone and cable. If BUYER does not conduct a final walk through, BUYER specifically releases the SELLER and Broker(s) of any liability.

Read and Understand. Complete if applicable.

Seller Response

19. SELLER RESPONSE: If this offer is accepted by the Seller in writing on or before : A.M. on the parties hereto, their heirs, successors, representatives and assigns shall become bound to the terms hereof.

Buyer Date Buyer Date

Witness Witness

Buyer’s Address

1. Insert the time the Buyer wants the Seller to respond by. For example 4:00. The A.M. or P.M. can be selected from the drop down menu. Just click on it to select.

2. Type the date the Buyer wants the Seller to respond by.3. Type in the Buyer(s) first and last names here. They will then be required to sign.4. Remind the Buyer(s) date next to their signature.5. If you are with the Buyer(s) at the time they sign, please witness their signatures. If you

are faxing the offer you should encourage a witness. You can never witness a faxed signature.

6. Please be sure to put the Buyer’s address in this blank, including city and zip code.


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Receipt and/or Acceptance of Seller

20. RECEIPT AND/OR ACCEPTANCE OF SELLER. THIS OFFER WAS RECEIVED by me as Seller on , at A.M./P.M.

(Seller’s Initials) (date) (time) THE UNDERSIGNED SELLER (whether one or more) ACCEPTS the foregoing offer on , at

A.M./P.M.

Seller Date Witness Date


Seller’s acceptance is subject to the attached Counter Offer. Seller’s Initials

1. The seller must initial that they received it.2. The seller must enter the month, day and year that the offer was received.3. The seller must record the time the offer was received.4. If the seller accepts the offer, they must put the date (month, day, year) and time that

they accepted the offer.5. If Seller accepts the offer, the Seller must sign and date here6. If you witness the Seller accepting the offer, sign and date here. If the accepted

offer is faxed, encourage a witness for the seller at the time of signature.7. If the Seller is NOT accepting the offer and is attaching a Counter Offer, have them

initial here.

Rejection By Seller

21. REJECTION BY SELLER: THIS OFFER IS HEREBY REJECTED ON , at A.M./P.M.



Seller has refused to execute a rejection of this offer and/or has authorized the Broker/Sales associate to reject this offer on their behalf.

Broker/Sales Associate Date

1. If the seller rejects the offer, they must put the date (month, day, year) and time that they rejected the offer.

2. If Seller rejects the offer, the Seller must sign and date here3. If you witness the Seller rejecting the offer, sign and date here. If the rejected offer is

faxed, encourage a witness for the seller at the time of signature.4. If the Seller has refused to sign the rejection, you may sign and date on the

Broker/Sales Associate line.


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Buyer’s Receipt of Acceptance Contract

22. BUYER’S RECEIPT OF ACCEPTANCE CONTRACT: BUYER ACKNOWLEDGES RECEIPT of accepted contract containing the full and complete legal description of the property on _____________________, 20 ______ at _________ A.M./P.M.

Buyer Date Witness Date

Buyer Date Witness Date

This section is very important. When a Seller accepts the offer, ensure that the Buyer acknowledges receipt of the accepted Contract with date, time and by signing where indicated. Do NOT use this section if a Counter Offer exists.

Receipt of Earnest Money

23. RECEIPT OF EARNEST MONEY

Sotheby’s International Realty hereby acknowledges receipt of Earnest Money deposit on .

at A.M./P.M. by .

Responsible Broker hereby acknowledges receipt of Earnest Money deposit on date .

At time A.M./P.M. Firm . Phone .

Address . By

You and an agent from the Responsible Brokerage must sign for the Earnest Money. If this is not filled out, you must submit a Receipt of Earnest Money form signed by both brokers/agents.

Bottom of Each Page of Contract

Ensure that the BOTH, Buyer(s) and Seller(s) initial and date the bottom of ALL pages of the contract including all Attachments and the Property Disclosure, if applicable.

Sotheby’s Agency Disclosure (for buyer)

A real estate brokerage and its licensees can provide buyers and sellers valuable real estate services, whether in the form of basic customer services, or at a higher level by providing Agency Representation. The services you can expect will depend upon the legal relationship you define with the brokerage. Effective July 1, 2007.WHAT TO LOOK FOR IN ANY AGREEMENT FOR AGENCY REPRESENTATION

Whatever type of representation you choose, your written Agency Representation Agreement should answer these questions:

How will the brokerage be paid? When will the Agreement expire? What happens when a transaction is completed? Can I cancel this Agreement, and if so, how?


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Can I work with other brokerages during the time of the Agreement? And what happens if I sell or buy on my own?

Am I willing to allow this brokerage to represent me and the other party in the same transaction?

REAL ESTATE LICENSEES ARE NOT INSPECTORSEven if you have written agreement for agency representation, you should not expect the brokerage or

its licensees to conduct and independent inspection of the property, or to independently verify any statement or representation made by an party to the transaction or other reasonably reliable sources (such as a licensed appraiser, home inspector, or the county assessors office). Real estate licensees are entitled to reasonably rely on the statement of their clients and other third-party sources. If the condition of the property is important to you, you should hire an appropriate professional, such as a home inspector, surveyor, or engineer. IDAHO REAL ESTATE BROKERAGE REPRESENTATION ACT

The specific duties owed by the real estate brokerage and its licensees to a costumer or client are defined by the “Idaho Real Estate Brokerage Representation Act,” located at Idaho Code Section 54-2052, et seq.

When you sign a real estate Purchase and Sale Agreement, as a buyer or seller, you will be asked to confirm:

(3) that this brochure was given to you, and that you have read and understood its contents; and(4) the agency relationship, if any, between you and the brokerage working with you.

RIGHT NOW YOU ARE A CUSTOMER? The law requires all real estate licensees to perform certain basic duties when dealing with any real estate buyer or seller. A licensee working with a customer is referred to as a non-agent. You can expect all real estate licensees you deal with to provide the following “customer-level” services, whether an agent or non-agent:

To perform necessary and customary acts to assist you in the purchase or sale of real estate; To perform these acts in good faith and with reasonable care; To properly account for money or other property you place in his or her care; and To disclose “adverse material facts” which are, or should be, within that licensee’s knowledge. These

include facts that would significantly affect the desirability or value of the property to a reasonable person, and facts that would indicate to a reasonable person that one of the parties cannot, or will not, complete his obligations under the contract. (Note” Idaho law exempts “psychological” impacts from this disclosure requirement. See Section 55-2701, Idaho Code).

Unless or until you enter a written agreement with the brokerage for agency representation, you are considered a “Customer” of the brokerage, and the brokerage will not act as our agent. As a Customer, you should not expect the brokerage or its licensees to promote your best interest, or to keep your bargaining information confidential.

Whenever you speak to a licensee who represents a party on the other side of the transaction, (e.g. you are seeking to buy the property, and the licensee represents the seller), you should assume that any information you provide will be shared with the other party.

In offered by the real estate brokerage, you may enter a written agreement for “Agency Representation,” requiring that the brokerage and its licensees enhance the basic duties owed by a non-agent, by adding those duties owed by and “Agent”. As your agent, the brokerage and its licensees will act on your behalf and promote your best interests as the “Client.” In addition to the basic Customer/Non-Agent relationship, Idaho law authorizes three types of Client/Agency Representation. SINGLE AGENCY

If you enter a written agreement for Agency Representation, you, as a Client, can expect the real estate brokerage to provide the following services, in addition to the basic duties and obligation required of all licensees:

To perform the terms of your written agreement with skill and care; To promote your best interest, in good faith, honesty and fair dealing; If you are the seller, this includes seeding a buyer to purchase your property at a price and under terms

and conditions acceptable to you, and assisting in the negotiation thereof; and, upon your written request, asking for reasonable proof of a prospective buyer’s financial ability to purchase your property;

If you are the buyer, this includes seeking a property to purchase at an acceptable price, terms and conditions, and assisting in the negotiation thereof; and, when appropriate, advising you to obtain professional inspections of the property, or to seek appropriate tax, legal and other professional advice or counsel.

To maintain the confidentiality of specific client information, including bargaining information, even after the representation has ended.

LIMTED DUAL AGENCYAt the time you enter an agreement for Agency Representation, you may be asked to give written

consent allowing the brokerage to represent both you and the other party in a transaction. This “dual agency” situation can arise when for example, the brokerage that represents you, the seller, also represents buyers who may be interested in purchasing your property. When this occurs, it is necessary that the brokerage’s representation duties be “limited” because a buyer and seller have built-in conflicts of interest. Most significantly, the buyer typically wants the property at the lowest price, while the seller wants top dollars. As a “limited dual


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agent,” the brokerage and its licensees cannot advocate on behalf of one client over the other, and cannot disclose confidential client information concerning price negotiations, terms or factors motivating the client/buyer to buy or the clients/seller to sell. However, the brokerage must otherwise promote the best interests of both parties, perform the terms of the written representation agreement with skill and care, and perform all other duties required by law.

Buyers and sellers alike often find it desirable to consent to limited dual agency: buyers do no want the brokerage to be restricted in the search for suitable properties, and sellers do not want the brokerage to be restricted in the search for suitable buyers. This, when all parties agree in writing, a brokerage may legally represent both the buyer and the seller in the same transaction, but only as a “limited dual agent.”LIMITED DUAL AGENCY WITH ASSIGNED AGENTS

In some situations, a brokerage that has obtained consent to represent both parties as limited dual agent may assign individual licensees (“sales associates”) to act solely on behalf of each party. (The brokerage must have an office policy that ensures client confidences are protected.) Where this is the case, the sales associate, or “assigned agent,” is not limited by the brokerage’s agency relationship with the other party, but instead has a duty to promote the best interest of the client that he or she is assigned to represent including negotiating a price. The designated broker (the licensee who supervises the sales associates in the brokerage firm) remains a limited dual agent for both clients, and ensures the assigned agents fulfill their duties to their respective clients.

YOUR SIGNATURE BELOW INDICATES ONLY THE RECEIPT OF THE IDAHO REAL ESTAET COMMISSION’S BROCHURE TITLED “AGENCY LAW IN IDAHO.” SIGNING THIS DOCUMENT DOES NOT CREATE AN AGENCY RELATIONSHIP, OR A CONTRACTUAL RELATIONSHIP OF ANY KIND. EACH BROKERAGE SHALL KEEP A SIGNED AND DATED RECORD OF A BUYER OR SELLER’S RECEIPT OF THE AGENCY DISCLOSURE BROCHURE. IC 54-2085.

On , I provided a copy of this Disclosure to the undersigned and have retained a copy for the files of Sotheby’s International Realty.

by _____________________________________________________________________________________________________

Date

I/WE ACKNOWLEDGE I/WE HAVE RECEIVED AND READ A COPY OF THIS DISCLOSURE.

Buyer Date Buyer Date

If you have any questions about the information in the disclosure, contact: Idaho Real Estate Commission 633 N. 4th Street, PO Box 83720 Boise, ID 83720-0077. (208) 334-3285 Toll free in Idaho (866) 447-5411 Fax (208) 334-2050 TRS (800) 377-3529 www.irec.idaho.gov

The agency relationship should have been discussed prior completing this portion of the contract because it is the same information as is found in the Blue Brochure. Be sure that you carefully review this SIR Agency Disclosure so that your customers thoroughly understand your working relationship with them. It may seem redundant; however, it is state law to have your customer complete the Blue Brochure and an SIR requirement to complete the SIR Agency Disclosure.

1. Enter the date as MM/DD/YY, for example: 2/1/082. Make sure that the Broker (you) sign and date here.3. Make sure that the Buyer(s) sign and date here.


http://www.irec.idaho.gov/

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CHECKLIST FOR PENDING CONTRACT

Below is a checklist for Pending Contracts. All items below must be completed and turned in to the Driggs Office within 24 hours of having gone under contract unless otherwise noted.

1.______Geek Under Contract Worksheet (please include city or county & state in address line)

2.______Use specific legal description (instrument #, date recorded, County, etc.)

3.______Completed Offer – Must have all pages initialed (and witnessed signatures, if possible).

4.______Receipt of Earnest Money signed and dated

5.______Counter Offer (if applicable) – receipt of acceptance signed by both Buyer(s) and Seller(s)

6.______SIR Agency Disclosure signed by Buyer(s) (if our Buyer)

7.______Idaho Agency Disclosure (new “Blue Brochure”) signed by Buyer(s)

8.______Property Condition Statement completed and signed by Seller & Buyer (for all structures)

9.______Representation Confirmation and Acknowledgement of Disclosure completed correctly

10._____Buyer Agency or Limited Dual Agency Forms (if applicable)

11._____Lead Based Paint Disclosure (Applicable if home was built before 1978)

12._____Addendum(s) and Attachment(s)

13._____Copy of all correspondence

14._____LLC, Corporate, Trust, etc. paperwork (title, real estate & signature page)

15._____Title Commitment

FORMS

Following is a list of forms that can be found on GEEK: Letter Declining MLS Additional Provision, Offer, Idaho Addendum, Idaho Counter Offer, Idaho Earnest Money Receipt Form (needed when offers come in from other brokerages) Estimated Closing Cost Forms (not required) Property Disclosure Forms Agency Law in Idaho (a.k.a. the Blue Brochure) Limited Dual Agency Agreement Lead Based Paint Disclosure Seller Compensation Agreement Commission Reduction Approval Form, Listing Commission Reduction Approval Form, Offer Wiring Instructions (First Bank of the Tetons, Idaho) Indemnity Agreements for Realtor Owned Property
