August 29th, 2022 at 4:11 pm
Multiple Choice Question: A seller selling a home wants to remain in possession rent-free for one month after close of escrow. In this situation, what is the maximum security deposit that the buyer can require the seller to pay? Pick the best answer:
A. Whatever the buyer can successfully negotiate with the seller.
B. No more than the equivalent of 2 months of the market rent for the property.
C. It depends on whether the parties use a Seller License to Remain in Possession Addendum (SIP) or a Residential Lease After Sale (RLAS).
D. Zero. (more…)
August 22nd, 2022 at 2:42 pm
Summary of New Law: Starting July 1, 2022, any real estate agent who knows of a possibly discriminatory restrictive covenant in a deed, CC&Rs, or other instrument, should notify the seller and buyer accordingly, and inform them that they can have the language redacted through a new Restrictive Covenant Modification (RCM) process. (more…)
August 15th, 2022 at 1:39 pm
Multiple Choice Question: Oftentimes the only contingency that a buyer has left in a pending sales transaction is the loan contingency under the C.A.R. Residential Purchase Agreement (RPA). The following are different reasons that a lender may give for declining a buyer’s loan. Under which situation can a buyer cancel under the loan contingency and get the deposit back? Pick the best answer:
A. The appraisal came in below the purchase price.
B. The buyer has insufficient funds for the down payment.
C. The buyer refuses to provide prior tax returns.
D. The lender requires the buyer to sell the buyer’s existing home.
E. None of the above. (more…)
August 15th, 2022 at 1:36 pm
Recap From Last Week: Last week’s Legal Tip involved a buyer who submitted offer on a 16-page C.A.R. Residential Purchase Agreement (RPA) with initials for both the Liquidated Damages and Arbitration paragraphs. The seller responded with just a one-page Seller Counter Offer (SCO), which the buyer counter signed and delivered back to the listing agent on August 3. (more…)
August 1st, 2022 at 3:43 pm
Fact Pattern: You are the buyer’s agent. On August 1, you submit to the listing agent your buyer’s offer written on a 16-page C.A.R. Residential Purchase Agreement (RPA). Your buyer initialed both the Liquidated Damages and Arbitration of Dispute paragraphs. On August 3, you receive a one-page Seller Counter Offer (SCO) concerning the purchase price and the seller’s selections for escrow and title. Also on August 3, your buyer counter-signs the SCO, and you deliver it back to the listing agent. You also immediately follow that up with a phone call to the listing agent who confirms receipt. On August 5, you receive the original 16-page RPA counter-initialed and counter-signed by the seller. On page 15 of the RPA, the seller indicated that the seller’s acceptance is subject to the “Seller Counter Offer.” The seller’s signature on page 15 of the RPA is dated August 5, 2022.
Multiple Choice Question: Is there a valid contract between the seller and buyer as of August 3? Pick the best answer:
A. Yes, most likely.
B. No, most likely.
C. It depends on whether an email address was inserted as the listing agent’s Designated Electronic Delivery Address (DEDA) on page 16 of the RPA.
D. It depends on whether the seller initialed both the Liquidated Damages and Arbitration of Dispute paragraphs. (more…)
