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5.13 Maintain Purchaser Agreements
Purpose of application is to create or update purchaser agreements.


5.13 Maintain Purchaser Agreements
Step Action
1. Open Maintain Purchaser Agreements application.
2. Select a project from the Select A Project To Create A New Offer In drop down list and click .
3. Existing purchasers can be added to the offer by clicking on the link beside an empty Purchaser ID input field. Once a purchaser has been added, you can revise his/her personal information by clicking on the update link (e.g. ).

However, if you are trying to add a new purchaser, you must use Maintain Purchasers application to add purchaser to the database first. To do so, click on the link. For details, see Maintain Purchasers section of the Purchaser training guide.
4. The next step is to fill out the House Information section of the form. Enter the lot, floor plan and elevation. All three fields of this section are mandatory.

FORM FAQ
Lot ID For which lot are you going to create a purchase agreement? Enter the lot ID or click on the link to find one.

NOTE: If you want to view/update lot premiums, discounts, etc., click on the link. For details, see Maintain Lot Marketing Information section of this training guide.
Floorplan Select a floor plan for the lot; there might be more than one available. If you know the floor plan ID, enter it in the Floorplan field or click on the link to find one.
Elevation Select a floor plan elevation; there might be more than one available. If you know the elevation ID, enter it in the Elevation field or click on the link to find one.
5. Click before continuing to the Pricing section of the form. This will update some of the Pricing fields (e.g. lot premium, floor plan base price).
6. Review Pricing section of the form. Notice that most of the fields are conveniently pre-calculated for you.

FORM FAQ
Lot Premium Amount of premiums for the lot in dollar amount (e.g. a house can have a premium (+) of $5,000 by being close to a park). Premiums can be set up or modified via Maintain Lot Marketing Information application. For details, see Maintain Lot Marketing Information section of this training guide.
Lot Discount Amount of discount for the lot in dollar amount (e.g. a house can have a discount (-) of $12,000 by being near a rain track). Discounts can be set up or modified via Maintain Lot Marketing Information application. For details, see Maintain Lot Marketing Information section of this training guide.
Floorplan Base Price The base price of the floor plan. This price is initially set up in Maintains Floorplans application. For details, see Maintain Floorplans section of Job Costing training guide.
Elevation Premium The elevation premium of the floor plan. This premium is initially set up in Maintains Floorplans application. For details, see Maintain Floorplans section of Job Costing training guide.
Phase Premium The phase premium of the floor plan. This premium is initially set up in Maintains Floorplans application. For details, see Maintain Floorplans section of Job Costing training guide.
Offer Options Total Click on the link to add new or review existing options. NOTE: If this is a spec or model home lot, then several options have already been added for you and you can only add more options or modify/remove ones that are NOT structural and NOT already installed.

You can search for options in several ways: by Room, Group, Option Code, etc. Once you have selected your search criteria, click on the corresponding button. For example, if you want to search by Group, then select a group type (e.g. appliances) and click .

You should now see a list of all options that fall into the above selected group. To add an option to the offer, enter a quantity in the Quantity input field and, when done, click to return to the previous form.

At this point in time, if you wish to add more options then do so in the same manner or click to exit from the Offer Options form.
Prepaid Decor Options If purchaser is willing to pay upfront for some extra options, enter this dollar amount in the Prepaid Decor Options input field.
Estimated Purchase Price Purchasing price of the home. Tip: Click on the link to recalculate purchase price after making changes to options, premiums, etc.
Offer Amount The amount of money purchaser is willing to buy this property for, must be entered in the Offer Amount input field.
7. Enter the initial deposit and any other subsequent payment amounts in the fields below. These amounts will be applied against the property's purchasing price at closing. Every deposit must have a deadline.

FORM FAQ
Cancel To cancel the deposit, select the check box and click .
Expected Amount Expected amount of the deposit.
Expected Date Expected date of the deposit.
Cheque Amount An actual cheque's amount.
Cheque Date The date of the actual cheque on hands.
Acquired Whether or not the deposit has been received from the purchaser.
Received / Deposited Whether or not the deposit has been deposited.
Name on Cheque Name of the purchaser appearing on the cheque.


FORM FAQ
Cheque Number Number appearing on the cheque.
Deposit Holder Who is the deposit holder? Division or escrow company?
Deposit Method Deposit method (e.g. certified cheque, cash).

Deposit methods are initially set up, at the corporate level, in Maintain Deposit Methods (Corporate) application, and can be then edited in Maintain Deposit Methods (Division) application. For details, see Maintain Deposit Methods (Corporate) and Maintain Deposit Methods (Division) sections of this training guide.
Change Reason When replacing a deposit, select a reason for doing so.
Replace If, for example, an NSF cheque was given, a deposit can be replaced. To replace a deposit, select the check box and fill out new cheque details.
8. Each offer may be subject to specific conditions. These conditions could be the arranging of a mortgage or a home inspection, the examination of legal documents, or the selling of an existing home. There is always a time limit stipulated within which the specified conditions must be met.

If this is a conditional offer, select all applicable condition types and enter a deadline for each.

FORM FAQ
Financial Offer is conditional upon a purchaser getting approved for a mortgage.

Finance Deadline: by when finance condition should be met.
Lawyer Offer is conditional upon lawyer reviewing legal documents (e.g. Agreement of Purchase and Sale).

Lawyer Deadline: by when lawyer condition should be met.
Property Sale Offer is conditional upon the purchaser selling his/her current home.

Sale Deadline: by when sale condition should be met.
Listing Agent Offer is conditional upon the purchaser's agent saying, "we are going ahead with it".

Sometimes a purchaser will hire a sales agent to buy a house for him/her. The agent will research and sign a few deals for the "best candidates". The purchaser then reviews, picks and signs the best one, while agent cancels other conditional deals.

Agent Deadline: by when agent condition should be met.
Decor Offer is conditional upon purchaser selecting decor options (e.g. tiles, carpet).

Decor Deadline: by when decor condition should be met.
Other Offer is conditional upon some other miscellaneous reason that's not listed above.

Other Deadline: by when "other" condition should be met.
Other Condition Description Description of the "other" condition.
9. Fill out Offer Date Information section of the form.

FORM FAQ
Offer Date Date when offer was received from the purchaser.
Estimated Closing Date Date when construction will be completed.
Irrevocable Date Official date the offer is valid until. It is typically the "same day the offer is signed", or up to 48 hours after the signing (or counter-signing) date.
Occupancy Date Date when purchaser will be able to move in.
10. If your purchaser has a lawyer, enter the lawyer's ID in the Lawyer ID input field or click on the Look Up Lawyer link to find one. If the lawyer you are trying to select does not exist in our database, use Maintain Lawyers application to add one. For details, see Maintain Lawyers section of this training guide.

NOTE: This section is applicable in Canada, only.
11. This section is used only if current purchaser was referred by one of our existing purchasers. Enter the referral purchaser's ID in the Referral Purchaser ID input field or click on the link to find one.

To update referral's contact information, click on the link. For details, see Purchaser Maintenance section of the Purchaser training guide.

To notify the referral, by email, of the new offer, click on the button.
12. This section is used only if a realtor referred the purchaser.

Enter the realtor's ID in the Referral Realtor ID input field or click on the link to find one. If the realtor you are trying to select does not exist in our database, use Maintain Realtors application to add one. For details, see Maintain Realtors section of this training guide.

Once you have selected a realtor, you can update his/her commission by filling out the Realtor Commission section of the form. Commission can be either a specific dollar amount (e.g. $10,000.00) or a percentage of offer amount, base amount, etc.

Click on the button to notify the referral, by email, of the new offer.
13. Fill out the Mortgage Lender Information section of the form. Enter the lender name, type and amount of borrowed money.

FORM FAQ
Mortgage Lender Name Name of mortgage lender company (e.g. BMO Bank).
Mortgage Lender Type Type of mortgage lending company (e.g. bank, private investor).
Mortgage Lender Amount Amount of money to be borrowed (e.g. 90% or $250,000.00).
14. Fill out Comments section of the form.

FORM FAQ
Analysis Comments Add any comments about the pricing of the deal (e.g. realtor is giving $1,000 of his commission to the closing of the deal).
Offer Comments Add any comments about the deal itself (e.g. purchaser is in a big rush to close the deal).
15. When you are done, click . NOTE: Prior to proceeding with any of the additional steps listed below, make sure offer is complete and signed (meaning you should first print out the offer).

You should now see a list of the following options:
  • To create a mortgage estimate, click . For details, see Maintain Mortgage Estimates section of this training guide.
  • If the deal has been cancelled, click . NOTE: If you delete the deal you will not be able to undelete it.
  • To print out a copy of the offer, click . Put a checkmark beside each HTML addendum below that you need to print and click .
  • To do deal analysis, click . Review/update the values in discount fields: Less Sales Incentive Discount and Other Adjustment. You can update the discounts and recalculate the difference on the spot by clicking on the button. Any amount that's entered in the Other Adjustment input field must have a corresponding explanation in the Analysis Comments section of the form. NOTE: If the Difference amount is negative, then this deal is probably not worth pursuing for the builder.

    When ready, submit the offer for approval by clicking . For details, see Do Deal Analysis and Review section of this training guide.

    FORM FAQ
    Analysis Comments Add any comments about the pricing of the deal (e.g. LOT 129 IS A PREMIUM W/O LOT - A PREMIUM OF $40,000.00 HAS BEEN ADDED TO THE PURCHASE PRICE).
    Offer Comments Add any comments about the deal itself (e.g. purchaser is in a big rush to close the deal).
Updated June 11, 2014