March 7th, 2022 at 1:50 pm
Fact Pattern: You are an agent working with buyers who are very interested in buying a home in a certain neighborhood that has virtually no properties for sale. You decide to get a farming package and solicit the homeowners in that neighborhood to see if any of them are interested in selling to your clients. Sure enough, one of the homeowners expresses an interest in selling to your clients. The homeowner also expects your buyers’ offer to be very good, so he even agrees to pay you a commission off the top.
Multiple Choice Question: What C.A.R. form should you get the seller to sign to bind the seller to that agreement? Pick the best answer:
A. Residential Listing Agreement (RLA).
B. Single Party Compensation Agreement (SP).
C. Commission Agreement (CA).
D. Any of the above. (more…)
February 28th, 2022 at 2:29 pm
Multiple Choice Question: In last week’s Legal Tip, we discussed how a listing agent must complete the “Presentation of Offer” box at the bottom of page 16 of the RPA, when the buyer’s agent makes a written request for that information. How about the “Offer Not Accepted” box at the bottom of page 15 of the RPA? Is a listing agent or seller required to complete that box if the seller rejects a buyer’s offer? Pick the best answer:
A. Yes.
B. Yes, as a matter of law.
C. Yes, as a matter of ethics.
D. No. (more…)
February 22nd, 2022 at 1:53 pm
Multiple Choice Question: You are the buyer’s agent in a multiple offer situation. Can you require the listing agent to provide you with written confirmation that your buyer’s offer has been presented to the seller, such as by completing the “Presentation of Offer” box at the bottom of page 16 of the RPA? Pick the best answer:
A. Yes.
B. Yes, as a matter of law.
C. Yes, as a matter of ethics.
D. No. (more…)
February 14th, 2022 at 3:16 pm
What is an “Appraisal-For-Less” Contingency? An “appraisal-for-less” contingency is a shorthand way of describing a buyer’s ability to cancel a purchase contract if the appraisal comes in below a certain target value other than the sales price (see “Here’s An Example” below).The newly-revised C.A.R. Residential Purchase Agreement (RPA) makes it very easy for a buyer to propose an “appraisal-for-less” contingency. In the “Appraisal Contingency” box in paragraph 3L(2) on page 2 of the RPA, it says “Appraisal contingency based upon the appraised value at a minimum of purchase price or . . . ,” followed by the option to check a box and insert a dollar amount for the target value. (more…)
February 7th, 2022 at 3:52 pm
February 7, 2022
What is TIC Ownership? A “tenancy in common” or TIC ownership is a way for 2 or more people to jointly hold title to real property together. The term, “TIC ownership,” is commonly used to refer to joint ownership of a property with 2 or more units, where each owner has exclusive use and possession of a particular unit. TIC ownerships first gained popularity in the Bay Area many years ago in response to the high price of real estate, given that a fractional interest in a TIC ownership is likely to be cheaper to buy than a comparable single-family home or condominium. (more…)
