AgentTechnology

Faira out to eliminate earnest money deposits, offer contingencies

Faira posts inspection and title reports, disclosure docs and offers on listings
  • Faira has created a transaction system that it says removes the need for earnest money deposits and offer contingencies.
  • The platform provides FSBO services and third-party title, home inspection reports and appraisals (if requested) all for free, but charges buyers a transaction fee and sells transaction insurance to sellers.
  • Faira will pay referral fees to listing agents who get their clients to use Faira.
  • Faira's transaction system is complicated (at least to this reporter).

A purchase agreement has been signed. The buyer has handed over a deposit. Things are rolling. But then the deal hits a roadblock. A property inspection reveals faulty plumbing and asbestos in the home's duct work. The buyer says the seller must either repair the defects, come down on price or return his deposit -- citing a contingency clause he included in his offer. That type of scenario is par for the course for real estate transactions in many states, sometimes imperiling deals and leaving buyers, sellers and agents banging their heads. But, theoretically, there’s a way to head off these snafus: eliminate the need for contingencies altogether. Buyers pay to make an offer; transactions are insured against failure That’s what Seattle-based Faira believes it can do by providing a behind-the-scenes look at a seller’s home to buyers upfront, requiring buyers to pay a fee to make an offer, rather than hand over a deposit, and offering insurance to sellers that pays ou...