November 17th, 2018 at 8:50 am

Fact Pattern: You are a buyer’s agent. In discussing the liquidated damages clause with your buyer, he asks you whether there could be a liquidated damages clause protecting the buyer in the event that the seller defaults.

Multiple Choice Question: How should you respond to the buyer? Pick the best answer:

A. No, it’s illegal.
B. Yes, as the agent, you can draft one to include in the buyer’s offer.
C. Yes, but the buyer should hire his own attorney to draft it.
D. None of the above. (more…)

November 12th, 2018 at 2:43 pm

Question: We are the buyer’s agent for a pending sales transaction with a 45-day escrow period. Our buyer plans to take title to the property as a married woman as her sole and separate property. Her husband is on active military duty in the Middle East.

We just received a 3-page standard form Addendum from the listing broker. The boilerplate language states in relevant part as follows:

Purchase by One Spouse. If one spouse is purchasing the subject property as his or her sole and separate property, the other spouse shall sign appropriate documentation consistent with the party spouse’s agreement within 10 calendar days after acceptance or Seller shall have the right to cancel at his or her sole discretion with written notification to Escrow Holder.

Should our buyer agree to this provision? (more…)

November 5th, 2018 at 2:10 pm

Multiple Choice Question: We are taking a new listing for a home that was previously listed with Previous Brokerage (“PB”). PB’s listing has just expired. The owner wants to know what happens if one of the prospective buyers on PB’s exclusion list purchases the property during its safe harbor period. Pick the best answer:

A. PB would act as the listing broker, and PB would be entitled to the commission.
B. We would act as the listing broker, and we would be entitled to the commission.
C. We would act as the listing broker, and the seller would be obligated to pay both PB’s commission and our commission.
D. None of the above. (more…)

October 29th, 2018 at 10:35 am

Question: Last week you discussed the revocable Transfer on Death (TOD) deed which generally allows homeowners to leave their homes to their loved ones, without the hassles of having a will or trust, or going through probate. You said that a homeowner need only fill out, sign, notarize, and record the TOD deed to leave the property to a designated beneficiary when the homeowner dies. Can a homeowner file a TOD deed only when he or she is the sole person on title to the property, or even when he or she is a joint owner with someone else?  (more…)

October 22nd, 2018 at 2:58 pm

Question: My client’s name is Donna. Her mother, Marcy, owns a home in Marcy’s name only. Marcy is elderly. She has permanently moved to a nursing home, and she will need to sell her house at some point. I’m not sure about Marcy’s current mental or health status. Donna has 2 somewhat estranged siblings who Donna expects will fight over her mother’s assets if she passes away. Donna and Marcy will be consulting with an attorney about how to handle Marcy’s situation. But can you go over their options with me?  (more…)

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