Contract — Page 1: Buyer, Property, Offer & Loan Details

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Residential Purchase Agreement (RPA)

Open the contract as you work through this lesson — every Line reference below maps to the PDF.

Open RPA PDF

Section 1 of the Buyer Contract Training course. This lesson walks through page 1 — buyer, property, offer & loan details. Open the RPA PDF below and follow every line reference as you read.

RPA p1-image1

Buyer Occupancy

  • ALWAYS mark if the buyer intends to occupy the property or not.
RPA p1-image2

EMD & Wire

  • Line 12 (EMD rule of thumb): under FHA Limit (2026 = $561k) → $3k max, start at $1–2k. $561k–$832k → $3k–$5k. Above $832k → $10k+.
  • Line 14: Allow your buyer two (2) business days to wire the earnest money.
  • EMD $$ amount is 100% negotiable.
  • Line 13: Always to be wired — and send the Wire Fraud Notice Disclosure with the RPA.
  • Line 15: Escrow Holder — always.
RPA p1-image3

Loan Details

  • Line 22 (Loan amount): FHA = 96.5% of purchase. Conventional = 80–90% (10–20% down). VA = 100% (full purchase price).
  • Line 23 (Loan Type): Choose the appropriate loan type. To change in escrow, must be mutually agreed with the seller.
RPA p1-image4

Balance of Purchase

  • Line 36: If VA, subtract EMD ($$).
  • Line 39: Purchase Price.
  • All lines from EMD → Loan → Balance of Purchase Price add up to Line 6 & Line 39.

🎯 Why this matters

Page 1 done right means the right occupancy intent, the right EMD, wired with Wire Fraud Notice, the right loan type and percentage, and every dollar adds up to the purchase price.

💼 Coaching Tips — Showing & Buyer Consultation Playbook

Showing & Touring Best Practices

Your job is to coach the buyer through the process — not just unlock doors. Educate as you tour.

  • Financing and loan limitations
  • Property condition concerns
  • Viewing homes site unseen
  • Inspection expectations
  • Appraisal risks
  • Loan contingency timelines
  • HOA / CIC resale package reviews
  • Seller responses and negotiations
  • Market conditions and competition

Financing & Loan Coaching

  • The home must qualify for the buyer’s loan type
  • The buyer is responsible for choosing a lender that performs
  • Buyers must understand that timelines matter in financing
  • Common loan concerns: FHA/VA property condition issues, condo certification approvals, appraisal gaps, lender documentation delays

Inspection Expectations

Coach buyers BEFORE inspections happen.

  • Inspections are informational
  • Every home has issues
  • Focus on major concerns first
  • Repairs are negotiated — not guaranteed
  • Early inspections give more time for repair requests

Appraisal & Loan Contingencies

  • What an appraisal is
  • What happens if value comes in low
  • Buyer options if appraisal issues arise
  • Loan contingency deadlines
  • Financing timelines and lender communication

HOA / Condo / CIC Packages

  • HOA documents can reveal important issues
  • Condo financing has additional requirements
  • Condo approvals depend on owner occupancy ratios, litigation, and down payment percentages
  • Important: Condo certifications are NOT automatically included in the contract — additional terms must be added

The 5-Part Buyer Consultation Framework

  • 1. Appropriate Preparation
  • 2. Buyer Questionnaire
  • 3. Explain the Buying Process
  • 4. Educate on the Market
  • 5. Gain Exclusivity

Buyer Consultation Preparation — Set the Environment

  • Meet at the office whenever possible
  • Eliminate distractions
  • Create a professional experience
  • MMFI — Make Me Feel Important: Greet buyer by name, welcome sign at office, office tour, introduce support team
  • Have resources ready: Current market reports, sample listings, financing resources, lender contact

Buyer Discovery Questions

  • Motivation: Why are you buying? Timeline? What’s most important?
  • Home Search: How long have you been searching? What websites? Written offers before?
  • Area Preferences: Neighborhoods? Community priorities? Schools/commute/lifestyle?
  • Home Criteria: Bedrooms? Bathrooms? Must-haves? Deal breakers?
  • Financial Readiness: Pre-approved? Down payment? Desired payment range?
  • Decision Makers: Who else is involved?
  • Agent Expectations: What’s important to you in the agent you choose?

Step-by-Step Buyer Process (explain this to every buyer)

  • 1. Choose the Right Agent — the buyer hires representation
  • 2. Financing Approval — meet with lender and establish budget
  • 3. Active Home Search — online, showings, open houses
  • 4. Off-Market Opportunities — coming soon, team inventory, agent-to-agent
  • 5. Offer & Negotiation — write offers and negotiate terms
  • 6. Due Diligence — inspections, appraisal, HOA review, financing deadlines
  • 7. Closing Day — funding, recording, keys, and possession

Securing Buyer Exclusivity — Show Your Value

  • Daily listing monitoring
  • Off-market outreach
  • Team collaboration
  • Community prospecting
  • Expired/canceled listing outreach
  • Strong negotiations
  • Full transaction management
  • Constant communication
  • Mission: Reduce stress, create confidence, guide buyers professionally, protect clients throughout

⚠️ VA Loan — Termite Inspection Required

If the loan type on Page 1 is VA, a termite (wood-destroying organism) inspection is required. Seller pays for the inspection in most cases. Build it into your contract terms up front so it does not blow up your timeline. FHA and Conventional do not have the same termite requirement — VA is the one you have to flag.

📧 Hard Rule — Email [email protected] on every deal

Before you send any contract to a client for signature, email it to [email protected] for broker review.

  • Every deal, no exceptions. Brokers@ catches the mistakes before the client signs them.
  • Use brokers@ for any deal-specific question too — call or email. Faster than DMing a team lead and the answer is on record.
  • Skipping broker review is a write-up — and the deal usually has to be re-papered anyway. Send it before signatures.
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