October 30th, 2023 at 2:29 pm
Fact Pattern: You are the buyer’s agent for a buyer in “back-up position number 1” under a C.A.R. Back Up Offer Addendum (BUO) to the Residential Purchase Agreement (RPA). The BUO and RPA are signed by both the buyer and seller. The buyer now wants to cancel in the manner provided.
Multiple Choice Question: What form should your buyer use to cancel? Pick the best answer:
A. Withdrawal of Offer (WOO).
B. Amendment of Existing Agreement (AEA).
C. Cancellation of Contract (CC).
D. Any of the above. (more…)
October 23rd, 2023 at 2:00 pm
To follow-up on last week’s Legal Tip, the housing market is generally experiencing an uptick in buyer cancellations. Here’s a quick checklist to help ensure that you are properly handling a buyer cancellation: (more…)
October 16th, 2023 at 4:00 pm
Fact Pattern: You are the buyer’s agent for a pending sales transaction using the C.A.R. Residential Purchase Agreement (RPA). Your buyer is protected by certain contingencies, including loan, appraisal, investigation, and the review of seller documents. Your buyer has decided to cancel. You have suggested certain options for moving forward with the deal, but your buyer just wants to cancel. The listing agent demands to know the reason that the buyer is cancelling.
Multiple Choice Question: Is the buyer required to give the seller a reason for cancelling? Pick the best answer:
A. Yes, as required under paragraph 14 of the RPA.
B. Yes, as required under the buyer’s obligation to act in good faith and deal fairly with the seller.
C. No, the buyer can cancel under any of the buyer’s contingencies.
D. No, the buyer can cancel for any reason. (more…)
October 9th, 2023 at 12:57 pm
Multiple Choice Question: Can a seller demand that a buyer use a certain title insurance company? Pick the best answer:
A. Yes.
B. Yes, if the seller is paying for the homeowner’s title insurance policy.
C. No, if the transaction falls under RESPA, which pertains to sales involving one-to-four residential units with a federally-related mortgage loan.
D. No. (more…)
October 2nd, 2023 at 1:47 pm
Multiple Choice Question: Which of the following is a true statement? Pick the best answer:
A. A landlord must allow a disabled tenant’s service animal.
B. A landlord must make reasonable accommodations for a disabled tenant’s support animal.
C. A landlord can prohibit pets.
D. All of the above. (more…)
