Broker Procedure Acknowledgement Form

I have received and read the Meridian Asset Services Procedure Manual.

I agree to adhere to all of the terms and conditions listed for the following services:

REO Sales and Marketing

I am forwarding the following documentation along with this acknowledgment:

  • Current copy of the Declaration page from my Errors & Omissions or Professional Liability Insurance Policy
  • Current copy of my state real estate license
  • Resume
  • W-9
  • List of Zip Codes that I service within a reasonable proximity to my office
  • E-mail address

I understand that failure to adhere to the terms and conditions listed in the Broker Procedures may result in termination of my services or hold me or my company liable for damages.

Meridian reserves the right to cancel services at any time for any reason.

Listing agents must disclose personal or familial relationships with any and all vendors. To safeguard against integrity concerns and the perception of impropriety, Meridian Asset Services does not permit agents hiring specialized contractors, home improvement, lawn services, inspectors, trash removal or any vendor where a personal or familial relationship exists without prior approval. Violation of this agreement is grounds for immediate termination, and if evidence of fraud is found, broker/agent may be prosecuted and enjoined in any potential legal action.

I acknowledge receipt, acceptance and understanding of the following information:

SignatureDate

Print NameEmail Address

Completed forms may be emailed to:

Meridian Broker Procedure Manual

Contents

REO Sales & Marketing Timeline

Verification of Occupancy

Vacant Property Procedures

Initial Services & Repair Procedures

Occupied Property Procedures

Cash-For-Keys Procedures

Agent Guidelines and Responsibilities

BPO Guidelines

Utilities

Winterization

Initial Cleanup/Preparing the Property for Sale

Exterior

Interior

Listing the Property for Sale

Repairs

Offers

Accepted Offers

Closing

Submitting Bills

REO Sales & MarketingTimeline

As a Meridian agent you are acting as a representative of our company. Agent performance will be closely monitored for professionalism, ethical practices and adherence to expected REO property management and disposition time-frames. Agent selection is based upon performance and cooperation in working with affiliates.

Please refer to the referral email from your Asset Management (AM) Team to verify services that are approved to be performed on each property – the timeline below is a basic scenario/example of the “typical” timeline for services and the process and authorization of work may vary by client and is subject to change.

Please work to exceed the timeline expectations below so that the AM team can meet or exceed their own timelines, and Meridian can meet or exceed their client’s expectations.

Agent Task / Timeline
Referral Acceptance / Day 1
Occupancy status confirmation (must be complete in 24 hrs regardless of weekends/holidays) / Day 1
Personal Property Evaluation (must include photos) / Day 3
“Coming Soon” sign up at property (once vacant) / Day 3
Lockbox (rekey to 76763, code of MAS or 7924) / Day 3
Utilities On in Agent’s Name / Day 5
Initial Premarketing Forms (sent by AS) returned to MAS / Day 5
BPO (Ext. if occupied, Int. if vacant) / Day 5
Trashout (if ordered/authorized by AM Team) / Day 7
Initial Services as requested by your AM Team complete / Day 10
Repair Bids, if requested by AM Team / Day 10
MLS Copy, Signed Listing Agreement, Marketing Photo and Description (*upon receipt of approved listing terms from AM Team) / Day 21*
Weekly Inspections (See email from AS for requirements) / Every Week
Status Report on Marketing and Pricing / Every Two Weeks
Interior BPO’s subsequent to Initial BPO / Every 60 Days

Verification of Occupancy

The Real Estate Agent must communicate the occupancy status (complete online task and communicate by e-mail) to Meridian within 24 HOURS after the property assignment regardless of weekends or holidays.

Suggested Methods to Determine Occupancy

  • Visit The Premises

Agent should leave their business card on the front door if it appears there is no one home.

  • Contact The Local Utility Company

Inquire if the utilities have been disconnected. If they are connected, the name on the account should be acquired.

  • Contact U.S. Postal Service

Verify if change of address has been initiated.

  • Visit Neighboring Properties

Visit the neighbors on both sides of the property to inquire about any activity at the property.

  • Contact the HOA (if applicable)

Upload the “Property, Tax, HOA & Utilities” formthrough Meridian’s Agent Portal.

  • Property Registration

Within three days of property assignment, the Agent is responsible for registering properties with local municipalities following specifically mandated guidelines* for vacant, non owner occupied and occupied properties.

The agent should confirm with the local housing authority any procedural requirements and specifically required forms for the area before submission, this will expedite the process.

*Property registration guidelines are located on our Agent portal in CAM at

Vacant Property Procedures

To prepare the vacant property for marketing, please ensure the following steps are completed.

  • Vacancy Notification:Notify Meridian of the vacancy status within 24 HOURS. Please put up a “Coming Soon!” sign if the property is vacant (both of occupants and personal property).
  • Coordinate agent access for 2ndBPO:Meridian will order a second opinion BPO upon notification of vacancy. The BPO source company’s agent will contact you for access to the property. In the event you have not been contacted within three days, it is your responsibility to notify Meridian.
  • Contactyour Asset Specialist Regarding Personal Property on the Premises: In the event personal property is found on the premises, do not re-key or remove items. Contact your Meridian asset manager immediately for further instructions.
  • Secure The Premises: All locks must be re-keyed by a licensed, bonded locksmith, and the premises secured within 48 HOURS of vacancy. Please use a lockbox code of MAS or 7924.Kwick Set Code 76763.
  • Have the Property Winterized (as applicable): Detailed MAS winterization guidelines and checklist are found on the Agent portal. In general for northern cold weather states, winterization should be completed no later than September 30th and southern states no later than November 30th. Completing winterization by these deadlines is critical. If you have questions regarding our winterization instructions or are unable to access them via our website, contact your asset manager immediately.
  • Complete the Broker’s Price Opinion (BPO): Complete the Broker’s Price Opinion (BPO) online through the REO system within five (5) days of vacancy. Please include a minimum of 30 photos detailing the interior and exterior of the subject property, and one photo of each comparable. Digital photos should be uploaded via the REO system.
  • Complete the “Initial Condition and Inspection” form: This form can be found on the Agent portal.

Initial Services & Repair Procedures

In certain market areas, Meridian has developed a network of contractors who are able to provide initial services. Initial services include trash out, lawn service, providing repair bids and inspections as well as pool service and snow removal, where applicable. Depending on the market area, you may or may not be asked to perform the following services. Please check for specific instructions in the Agent portal and contact your Asset Specialist if you have any questions.

  • Initial Services Bids. All properties require a bid for the completion of initial services. Initial services include trash out, interior cleaning, lawn service, pool service, snow removal and boarding if applicable. The Initial Services Bid form is located within CAM’s Vendor Portal on the Forms tab. If total initial services exceed $1,000, a 2nd bid will be required.(Depending on the market area, you may or may not be asked to perform these services.)
  • Order Bids and Inspections:Two (2) complete contractor’s bid for repair is required on all files. We may also require a roof, pest, and HVAC inspection and additional rehab bids. Check the Agent portal or with your Asset Specialist to determine what bids are required. (Depending on the market area, you may or may not be asked to perform these services.)

Occupied Property Procedures

A timely eviction is critical in saving money and valuable marketing time. It is important that you opendialog with the occupants to understand their needs and concerns and convey the specifics to your asset manager.

Important Note: Some of our clients have contracted with third parties to manage the eviction process. If this is the case, Meridian will notify you and you will hear from the third party regarding Eviction& Cash-For-Keys procedures.

  • Complete a Drive-By BPO

If the property is occupied, a drive-by BPO, which includes exterior photos of subject and street scenes, must be emailed to yourAsset Specialist within 24 hours of determining occupancy.

  • Obtain Occupant Information

Open dialogue with the occupant(s) to obtain the following information:

  1. Names of all Occupant(s)
  2. Confirmation of Occupants are borrower or tenant
  3. The time-frame Occupant(s) planto vacate the premises
  • Coordinate Cash-For-Keys When Possible

(Detailed procedures are outlined on the next page)

Inform the occupant thatMeridian has initiated an eviction preceding, which will continue until property is vacant. Discuss relocation assistance and point out that, shouldcash for keys agreement be reached, the eviction action will continue until the actual cash for keys settlement at the time the property is vacated.

Marketing an Occupied Property

In some instances Meridian may consider selling occupied properties. If you feel that your current assignment might be a good candidate to market occupied, discuss the situation with your asset manager and get their prior approval. If we are considering marketing occupied, always request permission from the occupants to view the interior. Offer a $100.00 incentive for their cooperation in allowing you to inspect the property and complete your BPO. Inform the occupants that a second broker price opinion will be ordered as well.

Cash-For-Keys Procedures

To encourage occupants to vacate, a “relocation assistance” cash-for-keys offer must be extended within 3 days of determining the property is occupied. Unless the occupant is a tenant; we will need their prior lease and will review prior to offering CFK.

  1. Have the Occupant(s) Sign the “CashForKeys Release Agreement”

Meridian’s “Cash Forkeys Release Agreement” must be completed and executed by you and the occupant(s). In addition, a W-9 must be completed and signed by the occupant(s).

  1. RequestCash-For-Keys Check Issuance

Once the “Cash for Keys Release Agreement”and W-9 is signed by the occupant(s), please e-mail the signed documents immediately to yourEviction Coordinator. Meridian will generate a check made payable to the occupant, and send it by overnightdelivery to you.

Day of – CashforKeys (CFK) Requirements

In order for the occupant(s) to receive the cash for keys relocation assistance check, the following minimum requirements must be met the day the property is to be vacated:The check should only be released to the occupant(s) after you have confirmed the following conditions are satisfied.

  • General Property Condition

The property must be in “broom cleaned” condition upon vacancy, and all personal property and trash should be removed. Exterior trash and debris must be removed and the lawn mowed as well(weather permitting).

  • Fixtures and Appliances

All attached fixtures and installed appliances will remain as installed. All permanent landscaping features (items not “potted”) must also be left unharmed.

  • Release of Keys

All keys, garage door openers, community keys, gate openers and cards, must be given to the Meridian agent.

If the above conditions have been met, the Cash for Keys Acknowledgement must be signed by both you and the occupant(s) before the occupant(s) are given the check.

  1. Photograph the Interior/Exterior of The Property

Photograph the interior and exterior of the property once the cash for keys settlement with the occupant(s) is complete and the premises have been vacated. Please provide these photographs immediately to the Eviction Coordinator.

  1. Rekey the Property

A Locksmith should accompany you to the property on the day of the scheduled cash for keys. Upon delivery of the cash for keys check, ensure all locks are re-keyed and the property is secured.

Agent Guidelines and Responsibilities

BPO Guidelines

The BPO should be completed on the REO system and all of the sections must be completed with detailed information or the BPO will be considered incomplete. Please note the following:

  • The prior sales price of the subject, along with the approximate rental income the property will produce should be completed.
  • Comments on the Sales and Listing comparisons MUST be completed. If three comparisons are not available, then the reason for the lack of comparisons should be noted.
  • All comments sections on the neighborhood should be completed.
  • MAS requires the agent to give his/her recommendation of the repairs that should be completed, along with his/her best estimate of the cost of those repairs. Do not steer the repair amounts to justify selling the property on an “As-Is” basis.
  • ALL of the comments sections MUST be completed.

Please submit a minimum of 30 photos that give MAS a clear vision of the condition of the property. You should include photos of each room, all appliances, roof, and any damage to the property. The photos must be of the interior and exterior of the property, along with appropriate examples of street scenes which may affect the value. In addition, you must also submit photos of the comparable properties that you have included in your BPO – both Listed and Sold.

Utilities

In general, water, sewer, and electric should be turned on in the agent’s name ASAP. If there are conditional/vocational concerns, please contact your MAS Asset Specialist to verify which utilities should be turned on. Unless it poses a risk, electric should always be turned on. Utilities should be terminated as of the closing date of property.

The “Vendor Reimbursement Form” should be submitted monthly for the expenses incurred; please see the “Submitting Bills” section of this document for further details.

Winterization

At the onset of winter weather, all properties should be winterized following Meridian winterization guideline unless otherwise directed. Any problems detected in the plumbing system should be made known to asset manager immediately; failure to comply could result in the broker being held responsible for any damage. Winterization guidelines and checklist are found on the Agent portal at

Initial Cleanup/Preparing the Property for Sale

Once bids have been approved by the Meridian Asset Management team for the trashout or initial clean up of the property, agent should immediately authorize the contractor of the approved bid. The work should be completed according to MAS instructions and as bid by the contractor. Expense amounts for the trashout should conform to MAS Authorized Expenses (please see prior section). The contractor’s responsibility is to submit both before and after photos of the work. Invoices will not be approved for payment without before and after photos.

No property will be listed by MAS until photos are submitted to indicate the property has been prepared for sale as directed by your Asset Manager.

Exterior

All exterior trash and debris is removed, lawns are mowed, always rake; blow clippings off drive and porch, edge driveway and walkways.

Interior

Whether the property has been repaired or is being sold as is, the following criteria must be met. An Initial Sales Clean bid should have been provided as part of Initial Services Bid. Please contact your Asset Specialist if the following has not been completed:

  1. Vacuum
  2. Clean flooring
  3. Window coverings have been removed if worn/old/dusty/smelly.
  4. Install air fresheners in strategic areas throughout the home (“neutral” odors, please – citrus, vanilla, etc.)
  5. Toilets, tubs and showers should be cleaned.
  6. All appliances should be cleaned inside and out. Clean or replace drip pans at range.
  7. Wipe down all counter tops, clean out all cabinets and drawers.
  8. Replace missing light bulbs.All lighting fixtures should be operational.
  9. Flyers, newspapers, advertising materials and mail should be removed.

Property must be inspected weekly by the agent. A light cleaning and “refresh” of the property should be completed every 30 days:

  1. Vacuum floors and window sills; remove all dead bugs, cobwebs…
  2. Clean flooring.
  3. Clean toilets.
  4. Wipe down countertops.
  5. Install new air fresheners.
  6. Flyers, newspapers, advertising materials and mail should be routinely removed.

Listing the Property for Sale

Prior to listing the property for sale, the following actions must have been completed: