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:
A. Yes.
B. No.
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…)
March 18th, 2019 at 2:33 pm
Fact Pattern: A seller and buyer are in a pending sales transaction. The timeframes for the buyer’s contingencies have all expired. On Monday, March 11, 2019, at 8:30 p.m., the listing agent emails to the buyer’s agent a 2-day Notice to Buyer to Perform (NBP) to remove all contingencies. The buyer’s agent, however, does not actually receive the email until the next day, Tuesday, at 9 a.m. The buyer’s agent confirms receipt of the NBP at 9:10 a.m.
Multiple Choice Question: What is the deadline for the buyer to remove all contingencies to prevent the seller from cancelling? Pick the best answer:
A. Wednesday, March 13, 2019, at 8:30 p.m.
B. Wednesday, March 13, 2019, at 11:59 p.m.
C. Thursday, March 14, 2019, at 9:00 a.m.
D. Thursday, March 14, 2019, at 9:10 a.m.
E. Thursday, March 14, 2019, at 11:59 p.m. (more…)
March 11th, 2019 at 1:58 pm
Question: I have always been told to stay away from an interim storage agreement that allows a buyer to move personal property into a home before the buyer acquires title to the property. However, I noticed that, as of December 2018, C.A.R. now has a standard-form Buyer Pre-Occupancy Storage Addendum (POSA). Can we go ahead and use this as part of our sales transactions? (more…)
March 4th, 2019 at 12:52 pm
We continue to have new issues with the newly formatted Agency Confirmation (see last week’s legal tip). At least you are amongst the first agents in California to be “in the know.” Because of the new Agency Confirmation wording, listing agents who offer their sellers a lower commission rate when the listing agent represents both the seller and buyer, should be careful setting forth that arrangement in the listing agreement. (more…)
