April 22nd, 2019 at 11:37 am
Multiple Choice Question: You are the listing agent for a new sales transaction. The buyer has failed to submit the initial deposit into escrow within 3 business days after acceptance, as required under the C.A.R. Residential Purchase Agreement (RPA). Can the seller cancel? Pick the best answer:
A. Yes, there is no valid contract without a deposit.
B. Yes, the buyer has materially breached the contract.
C. No, the seller must first serve a Notice to Buyer to Perform (NBP).
D. No, unless the seller had already served an NBP on the date of acceptance. (more…)
April 15th, 2019 at 3:36 pm
Question: We went over your legal tip from last week at our office meeting. You said that creating a contract using C.A.R.’s Seller Counter Offer (SCO) requires the seller’s (or listing agent’s) personal receipt of the SCO signed by the buyer before the end of the 3-day expiration period. Let’s assume that the listing agent inserts his or her name in paragraph 2A of the SCO to become an authorized recipient of the SCO signed by the buyer. Here are some of the questions concerning personal receipt that came up at our office meeting: (more…)
April 8th, 2019 at 1:51 pm
Fact Pattern: A buyer submits an offer on a 10-page C.A.R. Residential Purchase Agreement (RPA) form. The seller issues a Seller Counter Offer (SCO). According to paragraph 2A of the SCO, the seller’s counter offer will expire at 5 p.m. on April 5, 2019, unless the buyer signs and returns the SCO, and a copy is personally received by the seller. The SCO form has a line for the listing agent to insert her name to become an authorized recipient of the SCO signed by the buyer. That line has been left blank. Right before the expiration of the SCO at 5 p.m. on April 5, 2019, the buyer’s agent sends an email to the listing agent, which includes the return of the SCO signed by the buyer. However, unbeknownst to the buyer and buyer’s agent, starting at about 2 p.m. that afternoon, the listing agent has intentionally stayed away from her phone and computer to avoid receiving the SCO signed by the buyer before 5 p.m.
Multiple Choice Question: Has the seller and buyer formed a contract? Pick the best answer:
B. No, but the listing agent has acted illegally.
C. No, but the listing agent has acted unethically.
D. No. (more…)
April 1st, 2019 at 1:12 am
Fact Pattern: A buyer and seller are in a pending sales transaction. The buyer inserted into the contract that the “patio furniture” would be included in the sale. Before close of escrow, the seller removed many pieces of furniture from the backyard area, valued at about $11,000. When questioned, the seller claimed the furniture he took was not located on the patio, but on the pool deck and grassy areas.
Multiple Choice Question: Is the seller obligated to return or credit the buyer for the furniture he removed from the backyard area? Pick the best answer:
C. It depends.
D. We don’t know. (more…)
March 25th, 2019 at 3:54 pm
Multiple Choice Question: C.A.R. has many standard-form addendums and amendments. At the top of the C.A.R. addendum or amendment form is usually a reference to a preexisting listing or purchase agreement, followed by the word, “dated,” and then a blank space. What date do we use for the blank space? Pick the best answer:
A. Date used for Confirmation of Acceptance.
B. Date of Acceptance.
C. Date by which all parties have signed.
D. Date Prepared (on the upper left-hand corner of the first page).
E. Any of the above. (more…)