November 12th, 2018 at 2:43 pm
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?
Answer: Probably not, unless revised. If the buyer is already in a contract with the seller that says nothing about the buyer signing the listing broker’s Addendum, the buyer is not obligated to sign the Addendum. However, it’s true that both the buyer’s lender and the title company will require that the buyer, before close of escrow, provides a quitclaim deed signed and notarized by her husband releasing any interest he may have in the property. The military should have notarization services available for its active duty personnel.
The issue, however, is the timing. The buyer is likely to want to do all her inspections, negotiate repairs, and get her loan approved, before asking her husband to sign a quitclaim deed. The “10 calendar day” deadline should be more like 30 days. The buyer may also prefer that the seller be required to deliver to the buyer at least a 2-day Notice to Buyer to Perform before cancelling, rather than a “written notification to Escrow Holder” as stated in the Addendum.
-Thank you to Kellye Patterson (Ventura Office) for suggesting this week’s legal tip.
-Happy Veteran’s Day! We honor all the brave men and women who served our beautiful country.
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