1. We will be having these once a month from now on.

We will send out email reminders

2. Few updates
a. $8000 tax credit will expire at end of month. Fully executed contract is buyer and seller signing. If a short
sale the bank does not own it yet so the contract just needs to be buyer and seller and close by end of June.

b. Please make sure that you have your client whether it be a buyer or seller, sign The Realty Factor
Buyer/Seller Disclosure. Just go to the FAI Agent website and download it from the ‘Download Center’ then
The Realty Factor’ sub tab. On each deal go there and download it because we have been updating it weekly.
So that link will have the newest form. You must have it. This addendum has all the recommendations from
FAR that should be clear to your clients. Remember we have E&O but we don't want to have to use it.

c. Short sale addendums....buyers and sellers. Use this addendum on all short sales.

3. As an agent you must realize it is your duty and the brokers to let a tenant know that they would be renting
a home that is in a foreclosure situation. Biggest complaint to ORRA is that agents are not telling tenants that
the home is in foreclosure. We must let them know.

4. If your client asks you whether they should pay there mortgage thru this process you must tell them to
consult an attorney. That advice is beyond the scope of your license. As far as the Mortgage Forgiveness Act of
2007 and whether the lender will forgive the debt on a short sale (the difference between what is owned on
the mortgage and what the home is sold for) it is solely up to the IRS to make that assessment. According to
the IRS the seller must be insolvent to try to get it waived and even then it is solely up to the IRA to decide.

5. If you list a home that is a short sale and there is a tenant, you must use the "existing tenant rider" in your
listing package. The new owner could be buying that lease as well.

6. In May of 2009 Obama passed Law for protection of Tenant. If it is a bonified tenant in there before the
foreclosure then you must give that tenant 90 days to vacate. However a short sale does not qualify so you
must disclose to buyer they may be buying a lease as well.

7. Escrow. If you fill out the initial escrow that must be in in 3 days, line 17 of the FAR/BAR As-Is Contract. That
language is past tense. So if you do not want to put escrow in before the bank approval you fill it out in the
“additional escrow” which is line 19 of the FAR/BAR As-Is Contract. This way along with the short sale
addendum you do not have to put escrow in until you are notified of a bank approval.

8. We have had a couple instances where the agent did not put an agreement they had with the listing agent
in writing (such as keeping the pool clean until closing…or…A/C in working order). Any verbal agreement must
be in writing. He said, she said does not constitute a contract. Even though the contract states that a home
should be in the condition it was when the contract was signed we need to have those items such as A/C,
pools, appliances etc. written out in clear language. The seller may not care to keep it in shape but the realtor
and his broker will if it is in a separate addendum clearly spelled out.

9. PIPELINE SYSTEM. You must have every fully executed contract (between buyer and seller and also bank
approval), real estate referrals and all listings uploaded in the FAI Agnet back end pipeline system. Having
contract and listings out there without paperwork into the office is against FREC rules. If you have a scanner
you can upload the documents yourself. If you do not you can fax them to the office and we will scan them in
and email them back to you for YOU to upload.

All paperwork pertinent to the contracts such as contracts, copy of escrow checks, addendums must be
uploaded. A clear case this week was an agent went out of town, did not upload contracts and did not have
file with them. When a question came in the office we could not answer it because we did not know about it.
This is not acceptable. DPBR is on the rampage visiting offices. We have already had the Dept of Finance visit
us 6 wks ago. We had everything in order. However this occurrence brought to light that there are contracts
out there.

Message Log System is now working although we are perfecting it. This is your communication point with us.
Please listen to the archived conference call for a detailed explanation.

Everyone has 72 hours to get all their contracts uploaded or faxed to us. We do not want to fine anyone but
this is serious and if we keep having issues we might have to talk about doing that.

10. Call the legal hotline at will. Legal hotline attorneys log every conversation and keep a record of it. Better
to be safe then sorry.

11. FLASH – Florida Attorneys Saving Homes – 866-607-2187. Pro-bono. Buyers and sellers to call them with
any questions regarding foreclosure/short sale process.