May 22nd, 2017 at 9:55 am
A. As soon as possible.
B. Within 3 business days.
C. At the time the signature is obtained.
D. Giving the seller a copy is recommended, but not required.
Answer: The correct answer is C or “at the time the signature is obtained.” An agent who secures a client’s signature for a real estate service contract must give a copy of the agreement to the client at the time the signature is obtained (Cal. Bus. & Prof. Code section 10142). This rule applies to listing agreements, buyer-broker agreements, lease listing agreements, and other agreements pertaining to licensed real estate services. A failure to comply with this requirement is grounds for disciplinary action by the California Bureau of Real Estate (CalBRE).
If you send a listing agreement to your client for signature either electronically or by fax, you’ve already complied with the requirement to provide a copy to the client. Compliance, however, can get tricky if your client is signing a hard copy in person and there’s no copier around. Let’s say, for example, you’ve printed out the listing agreement and you’re going to the client’s house to get it signed. In that situation, you should also print out and bring with you a second copy for the client to keep.
-Thank you to Gladys Azenzer (Sherman Oaks Manager) for suggesting this week’s legal tip.
Copyright© 2017 Berkshire Hathaway HomeServices California Properties (BHHSCP). All rights reserved. Any unauthorized reproduction or use of this material is strictly prohibited. This information is believed to be accurate as of May 22, 2017. It is not intended as a substitute for legal advice in individual situations, and is not intended to nor does it create a standard of care for real estate professionals.
Like what you see here? Sign up for more! Our free e-newsletter informs you of listings in your community, insider real estate tips, the latest in home trends, and more.
