February 20th, 2023 at 3:40 pm
Fact Pattern: You are the listing agent for a pending sales transaction. The buyer submits to you as follows: (1) A Request for Repair (RR) form requesting a $20,000 credit; and (2) A Contingency Removal (CR) form removing all contingencies. The seller responds with a “Partial Agreement” for a $12,000 credit (as indicated in paragraph 1B on page 2 of the RR). The buyer is now planning to cancel under the buyer’s contingencies and get the deposit back, whereas the seller claims entitlement to the deposit because the buyer’s contingencies have been removed.
Multiple Choice Question: Are the buyer’s contingencies removed? Pick the best answer:
A. Yes.
B. Yes, if the buyer had accepted the seller’s $12,000 credit.
C. No.
D. It depends on how the forms were completed. (more…)
February 13th, 2023 at 2:02 pm
Summary: C.A.R. recently released a new Rental Property Owner Disclosure (RPOD) form to be used for lease transactions. Here are 6 frequently-asked questions about the RPOD:
1. What is the RPOD? The RPOD is a list of questions for a landlord to answer concerning the condition and other aspects of the property being leased or rented. It is formatted the same way as the Seller Property Questionnaire (SPQ). The RPOD is auto-bundled in zipForms with the C.A.R. Lease Listing Agreement. (more…)
February 6th, 2023 at 2:40 pm
Background: As a buyer’s agent, you should thoroughly understand your entitlement to compensation in any given situation. One way to help seal the deal is to enter into a C.A.R. Buyer Representation and Broker Compensation Agreement (BRBC) with your buyer-client. The new BRBC form uses a new term, “Broker Involvement,” which means certain tasks that you may be required to perform to claim your commission (see paragraph 4B(1)). It’s a very low threshold that you will satisfy for a certain piece of property by acting on your buyer’s behalf, such as by showing the property, providing your buyer with a written broker analysis, or submitting the buyer’s offer. However, merely sending a list of properties to your buyer, absent more, is not considered to be “Broker Involvement” under the BRBC.
Multiple Choice Question: When are you, as the buyer’s agent, required to have “Broker Involvement” to be entitled to compensation under the BRBC? Pick the best answer:
A. When you have a non-exclusive BRBC.
B. Both Answer A and when identifying properties to protect under your safe harbor period.
C. When you have a procuring cause claim.
D. All of the above. (more…)
January 30th, 2023 at 2:17 pm
Fact Pattern: Your client, a prospective buyer, wants to buy a condo to rent the unit out. The condo’s listing agent from another brokerage tells you and your client that, based on a recent new law, the HOA cannot prohibit rentals.
Multiple Choice Question: Is the listing agent correct? Pick the best answer:
A. Yes.
B. No.
C. It depends on what the HOA docs say.
D. Unclear. (more…)
January 23rd, 2023 at 3:06 pm
Fact Pattern: A seller enters into a contract with Buyer #1. The seller provides Buyer #1 with a repair estimate for seemingly minor and non-urgent repairs in the patio area. Buyer #1 eventually cancels for other reasons. The seller has now told the listing agent that the seller still wants to disclose the patio issues to the next buyer, but the seller wants to exclude the repair estimate from the disclosure packet.
Multiple Choice Question: Is the seller legally required to provide a buyer with the repair estimate? Pick the best answer:
A. Yes.
B. Yes, for one-to-four residential unit transactions only.
C. No.
D. Unclear. (more…)
