September 8th, 2024 at 8:31 pm
Multiple Choice Question: You are a buyer’s agent entering into a C.A.R. Buyer Representation and Broker Compensation Agreement (BRBC). What is the difference between an exclusive BRBC and a non-exclusive BRBC? Pick the best answer:
A. With an exclusive BRBC, you are the only agent representing the buyer, whereas with a non-exclusive BRBC, there could be other agents also representing the same buyer.
B. With an exclusive BRBC, compensation is payable if the buyer acquires a property described in the BRBC during your representation period, whereas with a non-exclusive BRBC, compensation is payable only if there was broker involvement with the property during your representation period.
C. With an exclusive BRBC, the buyer must give you a 30-day notice before cancelling, whereas with a non-exclusive BRBC, the buyer can cancel immediately.
D. All of the above. (more…)
September 8th, 2024 at 8:29 pm
Fact Pattern: You are a listing agent. A buyer submits an offer to purchase along with a Seller Payment to Buyer’s Broker (SPBB). The SPBB asks the seller to pay 2.5%. Instead of signing that, the seller issues a counter offer agreeing to pay only 2%, not 2.5%. The parties enter into an agreement on August 24, 2024. After opening escrow, the buyer’s broker is now asking for the seller to sign the SPBB, given that it was a part of the buyer’s offer. The seller would like to cooperate to maintain a good relationship with the buyer’s side.
Multiple Choice Question: What should the seller do? Pick the best answer:
A. Sign the SPBB as it is.
B. Take the following 3 steps: (1) Cross out (e.g., with a pen) the 2.5% on the SPBB, insert 2% in its place, and have the seller initial and date next to the revision, as well as sign and date on the signature line below; (2) Require the buyer to counter-initial and counter-sign next to the seller’s initials and signature on the SPBB; and (3) Require the buyer’s agent to also agree in writing.
C. Write “subject to the terms of SCO #1” directly above the seller’s signature line, and then the seller can sign and date.
D. Use an Amendment of Existing Agreement (AEA) to clarify that the parties agree to an SPBB for 2%. (more…)
August 19th, 2024 at 2:59 pm
Fact Pattern: You are a buyer’s agent with a pending C.A.R. Buyer Representation and Broker Compensation Agreement (BRBC). You have shown the buyer a few homes, but the buyer has not entered into any purchase agreement yet. Both you and the buyer now want to mutually cancel the BRBC.
Multiple Choice Question: What C.A.R. form should you use to cancel the BRBC? Pick the best answer:
A. Modification of Terms – Buyer Representation Agreement (MT-BR).
B. Cancellation of Listing (COL).
C. Cancellation of Buyer Representation (COBR).
D. Termination of Buyer Agency (TBA).
E. Any of the above. (more…)
August 12th, 2024 at 3:09 pm
Question: I have a pending listing agreement on the older-version C.A.R. Residential Listing Agreement (RLA) (revised December 2023). With the changes to the MLS under the NAR Settlement, my client says that she is willing to just switch over to a newly-revised RLA form (with a July 2024 revision date). But I am worried that, right after we mutually sign a Cancellation of Listing (COL) for the old RLA, my client will somehow decide that she will not sign a new RLA with me after all. How do I protect myself? (more…)
August 5th, 2024 at 2:13 pm
Question: I have a pending listing agreement with a problematic seller. The listing agreement is written on the older-version C.A.R. Residential Listing Agreement (RLA) revised December 2023. If I ask the seller to sign the new Disclosure and Modification of Listing Agreement (DM-LA), can the seller use that as an excuse to cancel our listing? (more…)
