After requests from real estate companies, a nonprofit consumer watchdog group the Consumer Federation of America has developed a list of factors to consider when creating a buyer contract in preparation for upcoming practice changes in the industry. CFA released its “Proposed Criteria for Evaluating Home Buyer Contract Forms” on Tuesday. The 15 criteria focus on the contracts’ form — whether the documents are readable and understandable — and content — whether they are fair to homebuyers. -the document’s expiration date (CFA recommends buyers asks for a three-month contract and never sign one longer than six months) -the right to terminate the contract -the disclosure that compensation is negotiable -the broker’s compensation clearly stated and that the buyer broker can’t receive additional compensation for facilitating a sale -that any additional fees, such as for showing a home, will be deducted from the broker’s commission if there is a successful sale -that the commission is due only if there is a successful closing -that buyers have an obligation — for no longer than 60 days, CFA recommends — to pay a broker who earlier showed them a home they purchased after the contract ended -seller concessions paid directly to buyers -dual agency not pre-approved by the contract -an explanation of how a broker treats different buyer clients interested in the same property -that buyers should not be required to first go through mediation or arbitration if they have a complaint Contact me for more information. 702-303-0243 or TPayne@loandepot.com We are a direct nationwide lender. EQUAL HOUSING LENDER