October 3rd, 2022 at 2:10 pm
Multiple Choice Question: A buyer submits an offer to the seller’s side. After the buyer’s offer has already expired, the seller issues a Seller Counter Offer (SCO). The SCO does not address the expiration of the buyer’s offer. Other than that, the buyer wants to accept the seller’s terms. What should the buyer’s agent do under these circumstances? Pick the best answer:
A. Just have the buyer counter-sign the SCO and hope for the best.
B. Insert right above the buyer’s signature on the SCO that the parties agree that they have a valid contract even though the buyer’s offer had already expired.
C. Issue a new Buyer Counter Offer (BCO) stating that the parties agree that they have a valid contract even though the buyer’s offer had already expired.
D. Let the buyer decide how to proceed. (more…)
September 26th, 2022 at 7:35 pm
Multiple Choice Question: The safe harbor clause in the C.A.R. Residential Listing Agreement (RLA) generally protects a listing agent’s commission if certain buyers buy the property after the listing expires (as discussed in last week’s Legal Tip). But what if you’re the next listing agent? Let’s say that you’re about to take a new listing, and the sellers tell you that they previously listed the property with Agent Ada from another brokerage. As the new listing agent, how should you handle Ada’s list of prospective buyers? Pick the best answer:
A. You can ignore it.
B. You must exclude those names from your listing agreement.
C. You must discuss the matter with the sellers, as according to the NAR Code of Ethics.
D. You must discuss the matter with the sellers, as according to both the NAR Code of Ethics and the law. (more…)
September 19th, 2022 at 2:14 pm
Any time the housing market cools down from blazing hot is a good time to brush up on the safe harbor clause in the C.A.R. Residential Listing Agreement (RLA). Inserting a timeframe in paragraph 3A(2) of the RLA generally entitles you to compensation if certain prospective buyers purchase the listed property after your listing period has already expired.
Multiple Choice Question: Which of the following statements concerning the RLA’s safe harbor clause is false? Pick the best answer:
A. You should try to get as long of a timeframe as possible.
B. You can protect a prospective buyer who has physically entered into and previewed the property, or who has written an offer.
C. You can use the C.A.R. Notice of Prospective Buyers (NPB) for your list of names.
D. You must give the list of the prospective buyers’ names to the seller within 3 days after your listing expires.
E. None of the above. (more…)
September 12th, 2022 at 11:37 am
Multiple Choice Question: Last week’s Legal Tip addressed how a landlord’s best course of action is to disclose a recent death that occurred on the premises within the last 3 years (except for a death from AIDS-related complications). Which C.A.R. form should be used to disclose this information to a tenant? Pick the best answer:
A. Seller Property Questionnaire (SPQ).
B. Lease Listing Agreement (LL).
C. Residential Lease Agreement (LR).
D. Addendum (ADM) to the lease agreement. (more…)
September 6th, 2022 at 3:33 pm
Multiple Choice Question: Is a residential landlord required to disclose to a prospective tenant that a death occurred on the leased premises within the last 3 years? Pick the best answer:
A. Yes, disclosure is required by law (except for a death from AIDS-related complications).
B. Yes, disclosure is a landlord’s best course of action (except for a death from AIDS-related complications).
C. No, unless the tenant specifically asks.
D. No, disclosure is only required for sales, not leases. (more…)
