November 13th, 2023 at 2:45 pm
Fact Pattern: An agent from another brokerage uses generic directional signs for his open houses every weekend. The signs do not include the agent’s name, broker’s name, or any branding. They just say “Open House,” and they have an arrow pointing in the direction of the listed property.
Multiple Choice Question: Do these signs comply with the law? Pick the best answer:
A. Yes.
B. Yes, but only if the signs have no name or branding on them.
C. No, the signs must include the broker’s name.
D. No, the signs must include the agent’s name, agent’s DRE license number, and broker’s name. (more…)
November 6th, 2023 at 3:28 pm
Fact Pattern: You are the listing agent for a pending sales transaction using C.A.R.’s Residential Purchase Agreement (RPA). The buyer had submitted an all-cash offer with no loan contingency. One week before escrow is scheduled to close, you are told that the buyer is trying to get a hard-money loan.
Multiple Choice Question: Can the seller immediately initiate a cancellation of the contract? Pick the best answer:
A. Yes, because the buyer has breached the contract.
B. Yes, after first serving a 2-day Notice to Buyer to Perform (NBP) to pay all-cash.
C. Yes, after first serving a 3-day Demand to Close Escrow (DCE).
D. No. (more…)
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…)
