March 24th, 2025 at 3:02 pm
Background: In last week’s Legal Tip, we addressed a situation involving a buyer who submitted an offer asking the seller to pay a coop comp of 2.5%, which was more than the 2% provided for in the written buyer-broker agreement. The seller countered the coop comp down to 2%, and the buyer accepted. (more…)
March 17th, 2025 at 1:54 pm
Fact Pattern: A buyer and buyer’s agent agree to a 2% compensation using a C.A.R. Buyer Representation and Broker Compensation Agreement (BRBC). During the BRBC representation period, the buyer writes an offer using C.A.R.’s Residential Purchase Agreement (RPA). In the offer, the buyer asks the seller to pay 2.5% to the buyer’s broker. The seller counters the 2.5% coop comp down to 2%. The buyer accepts the seller’s counteroffer.
Multiple Choice Question: What is the seller required to pay the buyer’s broker? Pick the best answer:
A. 2% under the NAR Settlement Agreement.
B. 2% under California law.
C. 2% under the terms of the RPA.
D. Zero. (more…)
March 11th, 2025 at 10:19 am
The anti-gouging protections for rental housing has been extended until July 1, 2025. On March 7, 2025, Governor Gavin Newsom issued an Executive Order extending California’s anti-gouging protections for victims of the L.A. fires. Those protections were previously scheduled to expire on March 8, 2025.
Here’s a quick summary of the current anti-gouging protections, but refer to the law itself for additional details: (more…)
March 3rd, 2025 at 2:58 pm
Fact Pattern: A buyer submits an offer to purchase using a C.A.R. Residential Purchase Agreement (RPA). The buyer also submits a loan approval letter from Lender A. The parties enter into a binding purchase agreement. During escrow, the buyer makes a lot of demands, and the seller is fed up. At the 11th hour, Escrow asks the seller to sign an amendment to the Escrow Instructions indicating that the buyer’s lender will be Lender B (not Lender A). Lender B specifically requires this Escrow Amendment. The seller refuses to sign the Amendment.
Multiple Choice Question: What does the RPA say about this situation? Pick the best answer:
A. The seller is required to sign the Amendment.
B. The seller is not required to sign the Amendment.
C. If the seller does not sign the Amendment, the buyer can serve a Notice to Seller to Perform (NSP).
D. The seller must sign the Amendment under the seller’s obligation to act in good faith and deal fairly with the buyer. (more…)
February 24th, 2025 at 2:42 pm
Multiple Choice Question: You are a buyer’s agent with an exclusive C.A.R. Buyer Representation and Broker Compensation Agreement (BRBC). Which of the following statements is true? Pick the best answer:
A. You should give the buyer a list of properties to establish Broker Involvement.
B. For a BRBC cancellation, you should give the buyer a list of properties within 5 days after receiving a notice of cancellation from the buyer.
C. For a BRBC expiration, you should give the buyer a list of properties before the expiration of the BRBC.
D. All of the above. (more…)
