July 15th, 2019 at 3:15 pm
Fact Pattern: We are the listing agent. We received a lowball offer from Buyer 1, and so we issued a Seller Counter Offer (SCO). Before we got an answer from Buyer 1, we received a much better offer from Buyer 2 that the seller wanted to accept immediately. So we issued an SCO to Buyer 2 stating nothing more than “subject to receipt of a Withdrawal of Offer (WOO) from another buyer.”
Multiple Choice Question: Was that the best way for us to handle the situation? Pick the best answer.
B. No, because instead of writing “subject to receipt of WOO,” the listing agent should have attached a completed Back-Up Offer Addendum (BUO) to the SCO to Buyer 2.
C. No, because the listing agent should have issued a WOO to Buyer 1, followed by a Seller Multiple Counter Offer (SMCO) to both buyers.
D. No, because the seller should have just accepted Buyer 2’s offer. (more…)
July 8th, 2019 at 8:02 am
C.A.R.’s Forms Release 2 weeks ago included several under-the-radar revisions that agents may find significant. C.A.R. does not generally announce these changes because they are considered to be “silent changes” to correct typos and other minor matters. Here, however, are 2 recent “silent changes” that agents should be aware of: (more…)
July 1st, 2019 at 2:57 pm
Fact Pattern: I am the listing agent for a pending sales transaction with a 30-day escrow period. The last day falls on Thursday, July 4, 2019, which is a holiday. The seller wants to serve a 3-day Demand to Close Escrow.
Multiple Choice Question: What is the earliest day that the seller can serve the buyer with a Demand to Close Escrow (DCE)? Pick the best answer.
A. Friday, July 5.
B. Thursday, July 4.
C. Tuesday, July 2.
D. Monday, July 1. (more…)
June 24th, 2019 at 9:42 am
Fact Pattern: An agent at another brokerage was the listing agent for the leasing of a beachfront home. To make the home look more attractive to prospective tenants, the landlord wanted to get rid of the homeless people who hung around the nearby boardwalk. The landlord arranged to give one of the homeless men $5,000 in cash to pay the other homeless people to move away. The landlord had to go out of town, so he told the agent to take his cash to the homeless man. The agent did as she was told. She then not only leased out the property, but she also represented a buyer for another property a few doors down.
Question: How many legal issues involving the agent can you spot? (more…)
June 17th, 2019 at 2:06 pm
Fact Pattern: I am the buyer’s agent. My buyer, Betty, submitted an offer to purchase to the seller. The seller also received another offer from another set of buyers. In response, the seller issued counter offers asking for everyone’s “highest and best offer.” We submitted our highest and best offer using a Buyer Counter Offer (BCO) form. The other set of buyers did not. They went away.
Multiple Choice Question: Under these circumstances, is the seller now obligated to sell the property to Betty? Pick the best answer.
A. Yes, because Betty submitted the highest and best offer.
B. Yes, if the seller had used a Seller Counter Offer (SCO), but not if it was a Seller Multiple Counter Offer (SMCO).
C. No, because Betty should have simply accepted the seller’s counter offer, rather than submit a BCO.
D. No, because asking for a buyer’s “highest and best offer” is generally understood to be non-binding on the seller. (more…)