May 6th, 2019 at 1:33 pm
A. Ask escrow to draft a new vesting of title.
B. Use a C.A.R. Amendment of Existing Agreement Terms (AEA).
C. Use a C.A.R. Assignment of Agreement Addendum (AOAA).
D. Any of the above.
Answer: The best answer is C. Under paragraph 26 of the C.A.R. Residential Purchase Agreement (RPA), a buyer cannot assign all or any part of the agreement without obtaining the seller’s written consent. Although such consent cannot be unreasonably withheld, using the AOAA is likely to be the best way to obtain the seller’s consent. After all, paragraph 26 specifically references the use of the AOAA. More importantly, the AOAA does all of the following: (1) lays out precisely what the buyer intends to do; (2) addresses the mom’s (assignee’s) review and approval of the disclosures; (3) advises the seller as to whether the buyer will be receiving any monetary consideration for the assignment; and (4) provides the signature of both the buyer and the assignee.
The remaining answers are possible approaches, but they are not the best answer. A seller may be reluctant to sign either an amendment to the escrow instructions (Answer A), or the AEA (Answer B), without knowing about the matters addressed in a properly completed AOAA. Furthermore, addressing the issue of the mom’s review and approval of all the disclosures is important not just for the seller, but also for us as the buyer’s agent.
-Thank you to Wayne Woodyard (Monarch Beach and San Clemente Manager) for suggesting this week’s legal tip.
-Happy Mother’s Day! There’s nothing like a mother’s love!
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