ARA contract not required

Janet Braden

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Mar 18, 2011, 10:14:52 AM3/18/11

to HudInfo

At the training Wednesday, March 16, someone had spoken with an AREC
investigator who suggested we execute an ARA contract in addition to
the HUD contract in order to demonstrate due diligence.

In an email to Deb Randolph, Investigations Supervisor with AREC, I
asked:

"Yesterday I was at a HUD training and it was mentioned that an AREC
investigator had advised that when writing a HUD offer that the ARA
contract be completed along with the HUD contract and I need some
clarification.

Can you tell me why an ARA contract would need to be completed? All
offers to HUD are submitted online and they only use their documents.
It seems to me that it would confuse a buyer if we were to explain the
ARA contract to them when the document will not be executed by the
seller. It would appear to me that we do need to address agency and
have an agency agreement executed by the buyer."

Here is Deb's response:

"You are so correct, there is not a need for an ARA form when doing a
HUD contract. I regret that someone was misled. Again you are correct
any agent would want to address Agency with their Buyer.

Let me know what I can do to “fix” this miscommunication."

From her response you can see no ARA contract is required, but don't
forget to explain Agency to your buyer and have them execute an Agency
Agreement.

Carole Wilcoxen

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Mar 18, 2011, 10:44:50 AM3/18/11

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Thank you for clearing that up for us. I used the supporting documents: Buyer Agreement, Survey Waiver, Inspection report, etc. just to be sure that I covered my assets...may not have been necessary but gave me peace of mind.

.

Janet Braden

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Mar 18, 2011, 11:22:27 AM3/18/11

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For my agents I require an Inspection, Repair and Survey Addendum for any contract that allows for an inspection, even if the seller doesn’t/won’t sign, because it demonstrates that the buyer did/did not do the inspection. I certainly agree that any other ARA document that applies and/or provides a disclosure to your client can be used.

Janet Braden

Principal Broker

RE/MAX associates, REALTORS

2011 President Arkansas Regional MLS