October 14th, 2024 at 12:19 pm
Multiple Choice Question: Why do people frown upon seller counter offers (SCO or SMCO) that ask for buyers to submit their “highest and best” price? Pick the best answer:
A. The law requires the essential sales terms to be clear.
B. It’s an NAR Code of Ethics violation.
C. It doesn’t move the parties closer together in the negotiations.
D. The buyer can just accept the seller counter offer as written. (more…)
October 7th, 2024 at 3:17 pm
Question: Let’s say that a buyer and seller enter into a C.A.R. Residential Purchase Agreement (RPA). After close of escrow, the buyer discovers that the seller took away items that should have been left behind, including the drapes, blinds, and pool equipment. What should the buyer do? (more…)
September 30th, 2024 at 2:57 pm
Multiple Choice Question: You are the buyer’s agent. The buyer and seller enter into a C.A.R. Residential Purchase Agreement (RPA). After close of escrow, the buyer takes possession of the house, and discovers that the seller left behind an old sofa and a bunch of junk. What should the buyer do? Pick the best answer:
A. Dispose of the items, because the buyer is now the owner of the house.
B. Dispose of the items, because the items have been abandoned.
C. Dispose of the items after giving the seller a 3-day notice to remove them.
D. Sue the seller in small claims court. (more…)
September 23rd, 2024 at 2:52 pm
Multiple Choice Question: A buyer’s agent is having a hard time getting a buyer to sign a buyer-broker agreement. The buyer does not want to owe any compensation to the buyer’s agent. According to the NAR Settlement Agreement, which of the following terms can be used in a buyer-broker agreement to describe the agent’s compensation? Pick the best answer:
A. Compensation to be determined before Buyer writes an offer.
B. Compensation to be whatever amount the seller offers to pay.
C. Compensation to be whatever amount Buyer offers to pay.
D. Compensation to be zero. (more…)
September 17th, 2024 at 3:31 pm
Multiple Choice Question: You are the listing agent. A buyer submits an offer on a C.A.R. Residential Purchase Agreement (RPA). The offer says “zero” for both an initial earnest money deposit (EMD) and increased deposit. What is the legal meaning of a purchase agreement with no EMD? Pick the best answer:
A. It means that there is no consideration, and so the contract is invalid.
B. It means that, if the liquidated damages clause is initialed, and the buyer later defaults on the contract, the seller has to go after the buyer for 3% of the purchase price as liquidated damages.
C. It means that the seller may have less leverage over the buyer, as compared to a transaction with an EMD.
D. All of the above. (more…)
