September 24th, 2023 at 11:56 am
Fact Pattern: You are the listing agent for a sales transaction using C.A.R.’s Residential Purchase Agreement (RPA). After contract acceptance, the buyer’s agent, John Doe, sends over a one-page, stand-alone Designated Electronic Delivery Address Amendment (DEDA Amendment). He wants you to complete and sign that form.
Multiple Choice Question: What should you do? Pick the best answer:
A. If John Doe merely inserted his own DEDA email address on the DEDA Amendment, go ahead and sign and return the form.
B. If John Doe merely inserted his own DEDA email address on the DEDA Amendment, go ahead and insert your DEDA email address, and sign and return the form.
C. If John Doe inserted both his own and your DEDA email addresses, go ahead and sign and return the form.
D. Do not sign or return the form. (more…)
September 18th, 2023 at 2:30 pm
What is a DEDA?
A DEDA or “Designated Electronic Delivery Address” is a specially designated email address (and/or texting phone number) of a real estate agent involved in a sales transaction under C.A.R.’s Residential Purchase Agreement (RPA). When agents voluntarily check their own “DEDA” checkbox, any RPA-related documents from the other side of the transaction shall be deemed delivered when such documents are sent to that DEDA (see paragraph 25K of the RPA). As an example, let’s say that a buyer’s agent checks the box agreeing that his or her own email address will be used as a DEDA. In that case, an RPA-related document (such as notices, disclosures, and reports) that the listing agent emails to that DEDA shall be deemed delivered to the buyer’s agent when the listing agent sends the email, regardless of whether or when that buyer’s agent actually receives the email. (more…)
September 11th, 2023 at 12:34 pm
Multiple Choice Question: A landlord receives and reviews a prospective tenant’s rental application and supporting documentation, including a consumer credit report. The landlord decides not to rent to the applicant. Is the landlord required to give the applicant a reason for the denial? Pick the best answer:
A. Yes.
B. Yes, because the landlord cannot refuse to rent based on race, color, sex, and other fair housing categories.
C. No.
D. No, unless the reason is the applicant’s credit. (more…)
August 28th, 2023 at 2:22 pm
Fact Pattern: A buyer and seller are in a pending sales transaction using the C.A.R. Residential Purchase Agreement (RPA). The buyer submits a Request for Repair asking the seller to do a list of repairs to the property. In response, the seller issues a Seller Response and Buyer Reply to Request for Repair (RRRR). In paragraph 1 of the RRRR, the seller agrees to credit the buyer $5,000 in lieu of any repairs. In paragraph 2 of the RRRR, the seller also requires the buyer to remove all contingencies as identified on the Contingency Removal (CR) form that the seller attaches to the RRRR. Right before the RRRR expires, the buyer counter-signs and returns the RRRR, but does not sign or return the CR form.
Multiple Choice Question: Is the seller required to credit $5,000 to the buyer, and has the buyer removed all contingencies? Pick the best answer:
A. Yes, the seller must credit the buyer, and yes, the buyer has substantially complied with the requirement to remove contingencies.
B. Yes, the seller must credit the buyer, but no, the buyer has not removed contingencies.
C. No, the seller is not required to credit the buyer, and no, the buyer has not removed contingencies.
D. The answer depends on whether the buyer’s failure to sign and return the CR was intentional or inadvertent. (more…)
August 21st, 2023 at 12:42 pm
Background: This is Week 4 and the final week of our series of Legal Tips involving the “5-Day Rule” in C.A.R.’s Residential Purchase Agreement (RPA). Please take a look at the Legal Tip discussions from 2 weeks ago for the 5-Day Rule for late reports (under paragraph 14B(3)), and last week for new discoveries (under paragraphs 11A(4) and 11G(1)). This week, we will drill down on the 5-Day Rule under the TDS law.
Multiple Choice Question: A buyer is in a pending sales transaction using the RPA. The seller, who must comply with the TDS requirements, provides the buyer with a TDS. The buyer then removes all contingencies. After that, an inaccuracy in the TDS that materially affects the property is discovered. Does the buyer have a right to cancel within 3-to-5 days and keep the deposit? Pick the best answer:
A. Yes.
B. Yes, if the seller provides the buyer with an amended TDS.
C. Yes, as long as the inaccuracy was not discovered by the buyer or disclosed in reports or documents provided to or ordered and paid for by the buyer.
D. No. (more…)
