Removal of Investigation Contingency from Seller’s Perspective

Multiple Choice Question: You are the listing agent in a pending sales transaction using C.A.R.’s Residential Purchase Agreement (RPA). After the buyer’s investigation contingency expires, you help the seller serve a Notice to Buyer to Perform (NBP) to remove the buyer’s investigation contingency. Instead of removing the “Entire Buyer’s Investigation Contingency,” the buyer just removes “All Buyer Investigations (including insurability) other than the physical attributes.” Which one of the following statements is false? Pick the best answer:

A. The buyer can still cancel based on any physical attribute of the property.
B. The buyer can still cancel based on insurability.
C. The seller is not required to serve another NBP to remove the investigation contingency before the seller issues a cancellation.
D. The seller can issue a cancellation of the Agreement, but the seller must return the deposit to the buyer.  (more…)

What is an ABAD?

Multiple Choice Question: You are the buyer’s agent. Your buyer receives an Affiliated Business Arrangement Disclosure Statement (ABAD) from the listing agent. The listing brokerage’s ABAD is 5 pages long, and it lists a lot of charges and fees. The buyer wants to know what the buyer is being asked to sign. Which of the following is a good explanation of the ABAD? Pick the best answer:

A. It provides a list of companies owned by the listing brokerage that may be charging certain fees to the buyer.
B. It provides a list of preferred companies that the listing brokerage is referring to the buyer to use if desired.
C. It provides a list of companies affiliated with the listing brokerage that will also profit from the buyer’s sales transaction.
D. It provides a list of companies affiliated with the listing brokerage that the buyer is not required to use.  (more…)

C.A.R.’s March 2024 Forms Release

C.A.R. has recently released 4 new and newly-revised landlord-tenant forms, including the Application to Lease or Rent (LRA), and Notice of Termination of Tenancy (NTT).  (more…)

Follow-up on Disclosing Prospective Buyer’s Name

Background: The Legal Tip from 2 weeks ago addressed the disclosure of a buyer’s name. The issue usually arises when a listing agent wants a buyer’s agent to disclose the name of a buyer. The listing agent generally wants that information to include in the listing agent’s safe harbor list of prospective buyers when the listing expires. The legal conclusion that we reached 2 weeks ago was that it’s best practices for a buyer’s agent to ask the buyer for permission before divulging the buyer’s name to the listing agent. The reason is the buyer’s agent has a duty of confidentiality that may prevent the buyer’s agent from disclosing the buyer’s name.

Follow-Up Question: The follow-up question for this week is whether a buyer’s agent must first get the buyer’s approval before giving the buyer’s name to the listing agent. Is the answer Yes or No?  (more…)

Handling Square Footage Issues

Agents Beware! Square footage discrepancies in a real estate transaction can give rise to disputes and legal claims. Here are some quick tips for agents dealing with square footage issues:  (more…)