June 13th, 2022 at 1:24 pm
A. Yes, the RPA requires you to give the keys to the buyer at close of escrow.
B. Yes, the SIP requires you to give the keys to the buyer at close of escrow.
C. Yes, the landlord-tenant laws require you to give the keys to the buyer, regardless of what the RPA and SIP say.
D. No, you have no legal nor contractual obligation to the buyer to give the keys.
Answer: Answers A and B are wrong. Both the RPA and SIP require a seller, not listing agent, to provide the keys to the buyer at close of escrow (see paragraph 7E of the RPA and paragraph 6A of the SIP). Additionally, paragraph 6A of the SIP has an optional checkbox to indicate that the keys will not be given to the buyer until the end of the seller’s possession of the property.
Answer C is also wrong. It’s true that landlords generally have copies of the keys to their own properties. However, the landlord-tenant laws do not specifically require a tenant to provide keys to the landlord. Additionally, you are the listing agent for the sale, not the tenant.
Answer D is the best answer. As the listing agent, you are not a party to the agreement between the buyer and seller (see item #1 in the “Real Estate Brokers Section” on page 16 of the RPA). You can point out to your client, the seller, the relevant language about keys in the RPA and SIP. You can also give the keys to the buyer as instructed by the seller. But if, for example, your seller does not want you to give any keys to the buyer at close of escrow, regardless of what is stated in the RPA or SIP, you should not give any keys to the buyer.
-Thank you to Luisa Rengifo (Pasadena Office) for suggesting this week’s legal tip!
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