May 22nd, 2023 at 3:52 pm
Fact Pattern: You are the listing agent for a property for lease. The total commission is 8%, and you have offered 4% to a cooperating broker through the MLS. A tenant is interested in leasing the premises. The tenant is not represented by any agent. To complete the lease form, you must fill in the Confirmation of Agency Relationships in paragraph 41 of C.A.R.’s Residential Lease or Month-to-Month Rental Agreement (RLMM).
Multiple Choice Question: How should you complete the blank spaces for the Tenant’s Agent in the RLMM? Pick the best answer:
A. Insert your name as the tenant’s agent (dual agency).
B. Refer the tenant to another agent, and insert that other agent’s name.
C. Insert the tenant’s name.
D. Insert “None.” (more…)
May 8th, 2023 at 1:55 pm
Fact Pattern: A buyer enters into a sales contract using the C.A.R. Residential Purchase Agreement (RPA). All timeframes in the “Contingencies” section (paragraph 3L) of the RPA default to 17 days. During escrow, the buyer removes all contingencies. A few days later, the buyer asks for access to the property to conduct a mold inspection.
Multiple Choice Question: Must the seller allow the buyer access to the property? Pick the best answer:
A. Yes, because that would be “best practices.”
B. Yes, if within the first 17 days after acceptance.
C. No, because the buyer has already removed all contingencies.
D. No, because the buyer is just trying to find a way to cancel. (more…)
May 1st, 2023 at 3:02 pm
Successfully negotiating the Request for Repair is one of the final hurdles before reaching the “close of escrow” finish line. Unfortunately, however, it can be challenging sometimes navigating your way when using the C.A.R. repair forms (RR and RRRR). Here are 7 quick tips for you to help your clients conduct their Request for Repair negotiations, including some common pitfalls to avoid: (more…)
April 24th, 2023 at 2:33 pm
Fact Pattern: To quickly recap last week’s Legal Tip, you are the listing agent with our company. For ease of reference, your name for this Fact Pattern will be “Yew Lista.” Another agent, Aggie, from another company, Realbiz, is your co-listing agent. The buyer is represented by Baggie, who also works for Realbiz. As discussed in last week’s Legal Tip, you and our company are the Seller’s Agent and Broker, whereas Aggie, Baggie, and Realbiz are all dual agents. Baggie is now asking you (Yew) how to confirm these agency relationships when submitting the buyer’s offer.
Multiple Choice Question: What should you tell Baggie? Pick the best answer:
A. In “Agency Confirmation” in paragraph 2B of the RPA, insert all names (separated by a slash if needed), and then use a pen to draw circles and arrows to show that Yew and our company are the Seller’s Agent only, whereas Aggie, Baggie, and Realbiz are dual agents.
B. Use an Additional Broker Acknowledgment form.
C. Use an Agency Confirmation form.
D. Any of the above. (more…)
April 17th, 2023 at 2:41 pm
April 17, 2023
Fact Pattern: You are an agent with our brokerage company. You co-list a property for sale with an agent, Aggie, who works for another brokerage called Realbiz. As it turns out, the buyer’s agent, Baggie, also works for Realbiz.
Multiple Choice Question: What are the agency relationships in this situation for purposes of completing the agency confirmation? Pick the best answer:
A. You and Aggie are the Seller’s Agent only, and Baggie is the Buyer’s Agent only.
B. You are the Seller’s Agent only, and Aggie and Baggie are dual agents.
C. You, Aggie, and Baggie are all dual agents.
D. The answer depends on whether Aggie and Baggie work out of the same branch office, regardless of whether they work for the same brokerage. (more…)
