December 12th, 2022 at 12:23 pm
News Alert! Fraudsters wreak so much havoc on the real estate industry that it is very heartening to announce a possible win for the victims for a change! (more…)
December 4th, 2022 at 7:36 pm
Fact Pattern: A listing agent takes a new listing using C.A.R.’s Residential Listing Agreement (RLA). Paragraph 3D(1) of the RLA states that the listing agent is authorized to compensate cooperating brokers through the MLS as follows: “either [ ] ____ percent of the purchase price, or [ ] $______.” For this particular listing, neither checkbox has been checked, and nothing has been inserted in the blank spaces provided.
Multiple Choice Question: What is the meaning of the unchecked boxes and blank spaces in paragraph 3D(1) of the RLA? Pick the best answer:
A. The listing agent will offer “zero” in the MLS.
B. The listing will be excluded from the MLS.
C. The listing agent will offer whatever the listing agent deems to be appropriate.
D. The listing agent will offer a reasonable amount. (more…)
November 28th, 2022 at 11:43 am
Fact Pattern: A seller and buyer enter into a C.A.R. Residential Purchase Agreement (RPA). They enter into the contract on Day 0. The buyer has a 14-day inspection contingency ending on Day 14, and a 17-day loan contingency ending on Day 17. On Day 14, the seller serves the buyer with a Notice to Buyer to Perform (NBP) to remove all contingencies.
Multiple Choice Question: What is the legal effect of the NBP? Pick the best answer:
A. The notice is valid.
B. The notice is valid with respect to the inspection contingency, but invalid with respect to the loan contingency.
C. The notice is invalid and void.
D. It depends on whether Day 17 is a Saturday, Sunday, or legal holiday. (more…)
November 21st, 2022 at 1:16 pm
Question: As background, a Fire Hardening and Defensible Space Disclosure and Addendum (FHDS) is generally required for the sale of a property with one-to-four residential units located in a high or very high fire hazard severity zone (and the seller is not TDS-exempt). But for condominiums, the maintenance of the common areas is typically the responsibility of the Homeowners’ Association (HOA), and not the seller. Is the FHDS required for the sale of a condo? Yes or No? (more…)
November 14th, 2022 at 12:09 pm
Fact Pattern: Before taking this week’s quiz, you may want to review last week’s Legal Tip for a quick refresher on the Notice to Buyer to Perform (NBP) under the C.A.R. Residential Purchase Agreement (RPA). For this week, we focus on the seller’s right to cancel. Let’s say that a seller properly serves a 2-day NBP requiring the buyer to remove all contingencies by 11:59 p.m. on Wednesday, November 23, 2022. The buyer misses that deadline. The seller should be able to cancel starting at 12:00:01 a.m. on the next day, but that day is Thursday, November 24, 2022, which is Thanksgiving Day and a legal holiday.
Multiple Choice Question: If the seller does not cancel on Thanksgiving Day, can the buyer remove all applicable contingencies on Thanksgiving Day to stop the seller from cancelling? Pick the best answer:
A. Yes.
B. No, because the buyer cannot remove any applicable contingencies after the buyer’s 2-day NBP timeframe has already expired.
C. No, because, if the first day for the seller to cancel falls on a Saturday, Sunday, or legal holiday, the seller can wait until the next business day to cancel.
D. No, because the buyer cannot remove contingencies on a legal holiday. (more…)
