Standard Operating Procedure

BROKER STANDARD OPERATING PROCEDURE (SOP) FOR BUYERS OF REAL PROPERTY March 21st 2022

The SOP Law effective April 20th, 2022, requires a real estate broker to provide specific guidance to prospective purchasers regarding three questions:

(1) Whether prospective clients shall show identification,

(2) Whether an exclusive broker agreement is required, and

(3) Whether pre-approval for a mortgage loan is required.

To be clear, a real estate broker is NOT required to ask for any of these three things. The real estate broker is simply required to let purchasers know whether or not they will require any of these items.  Therefore the Brokers Standard Operating Procedure for this office is:

Please be advised that prior to showing a purchaser a property:

(1) We do not require identification from a prospective purchaser,

(2) We do not require a purchaser to sign an exclusive brokerage agreement and

(3) We do not require a pre-approval for a mortgage loan in order to show a prospective purchaser any properties.”

However in light of current industry practices it will behoove any prospective purchaser to obtain a mortgage pre-approval prior to making any offers to purchase. The preapproval will require the purchaser to show identification, SS# and disclose various items regarding their personal assets and income. Most licensed Sales Agents and Associate Brokers will also find some security and feel more comfortable with their efforts to provide the best service if they are protected by an exclusive buyer agreement. Therefore if a client likes working with their licensed representative this office highly recommends the execution of a buyer broker agreement for a limited period as this will encourage the licensee to provide outstanding service to their client in the pursuit of a property, especially in light of the current seller oriented market where it is very difficult to find homes.