June 10th, 2019 at 10:48 pm
Question: I am the buyer’s agent for a probate transaction. The hearing for the court confirmation of the sale has just been set, but my buyer will be out of the country on that day. My buyer wants to give me a power of attorney to act on his behalf. Should I agree? (more…)
June 3rd, 2019 at 2:11 pm
Question: I am the listing agent for a pending sales transaction. The buyer, Ben, has a sale contingency. My seller has just received a good backup offer. The seller wants to try to cancel the contract with Ben under paragraph 8 of the C.A.R. Contingency for Sale of Buyer’s Property (COP).
Multiple Choice Question: What should the seller do before cancelling? Pick ALL of the correct answers from the following list:
A. Accept the backup buyer’s offer in writing (using the C.A.R. Backup Offer Addendum).
B. Give a copy of the backup offer to Ben.
C. Give Ben a 3-day notice to remove his loan contingency.
D. Give Ben a 3-day notice to remove his sale contingency.
E. Give Ben a 3-day notice to provide verification of sufficient funds to close escrow without selling his existing home. (more…)
May 28th, 2019 at 11:18 am
Question: I am an agent in our Beverly Hills office. The listing agent, Larry Listo, works for the Downtown Los Angeles Regional Office of Berkshire Hathaway HomeServices California Properties. His brokerage’s license number is 00338699. Our brokerage’s license number is 01317331.
Multiple Choice Question: How do I complete the Agency Confirmation in my buyer’s offer to purchase (i.e., paragraph 2B of the RPA)? Pick the best answer:
A. Check all 4 dual agent boxes.
B. Check the boxes indicating that the 2 brokerages are dual agents, but Larry is the seller’s agent and you are the buyer’s agent.
C. Check the boxes indicating that both Larry and his brokerage represent the seller, whereas both you and our brokerage represent the buyer.
D. Answer C is correct, except that the 2 brokerage names entered into the form must be different, otherwise zipForm will prevent you from checking those boxes. (more…)
May 20th, 2019 at 1:35 pm
Question: As the landlord’s agent for a new lease listing, can I require the tenant to submit 3 cashier’s checks? The 3 checks would be made payable as follows: (1) to our brokerage for our share of the commission; (2) to the tenant’s brokerage for its share of the commission (if no dual agency); and (3) to the landlord for the remaining balance. (more…)
May 13th, 2019 at 3:17 pm
Fact Pattern: In last week’s legal tip, you said that under the RPA, a buyer who wants to partially assign the contract by adding another buyer, must obtain the seller’s written consent (which cannot be unreasonably withheld). Let’s assume that Buyer Bob is in a pending sales transaction. He signs off on all the seller’s disclosures and removes all his contingencies. Bob wants to add his mom to the contract, and the seller agrees.
Multiple Choice Question: Can Bob’s mom, as the new assignee, now review the disclosures and cancel the agreement without forfeiting the deposit? Pick the best answer:
A. Yes, a buyer’s cancellation rights under the TDS and other laws cannot be waived.
B. No, paragraph 3 of the C.A.R. Assignment of Agreement Addendum (AOAA) states that the assignee approves “all prior approvals and acts of Buyer.”
C. No, an assignment gives the assignee the rights of the assignor, and nothing more.
D. It depends on whether the parties have initialed the liquidated damages clause. (more…)
