September 30th, 2024 at 2:57 pm
Multiple Choice Question: You are the buyer’s agent. The buyer and seller enter into a C.A.R. Residential Purchase Agreement (RPA). After close of escrow, the buyer takes possession of the house, and discovers that the seller left behind an old sofa and a bunch of junk. What should the buyer do? Pick the best answer:
A. Dispose of the items, because the buyer is now the owner of the house.
B. Dispose of the items, because the items have been abandoned.
C. Dispose of the items after giving the seller a 3-day notice to remove them.
D. Sue the seller in small claims court. (more…)
September 23rd, 2024 at 2:52 pm
Multiple Choice Question: A buyer’s agent is having a hard time getting a buyer to sign a buyer-broker agreement. The buyer does not want to owe any compensation to the buyer’s agent. According to the NAR Settlement Agreement, which of the following terms can be used in a buyer-broker agreement to describe the agent’s compensation? Pick the best answer:
A. Compensation to be determined before Buyer writes an offer.
B. Compensation to be whatever amount the seller offers to pay.
C. Compensation to be whatever amount Buyer offers to pay.
D. Compensation to be zero. (more…)
September 17th, 2024 at 3:31 pm
Multiple Choice Question: You are the listing agent. A buyer submits an offer on a C.A.R. Residential Purchase Agreement (RPA). The offer says “zero” for both an initial earnest money deposit (EMD) and increased deposit. What is the legal meaning of a purchase agreement with no EMD? Pick the best answer:
A. It means that there is no consideration, and so the contract is invalid.
B. It means that, if the liquidated damages clause is initialed, and the buyer later defaults on the contract, the seller has to go after the buyer for 3% of the purchase price as liquidated damages.
C. It means that the seller may have less leverage over the buyer, as compared to a transaction with an EMD.
D. All of the above. (more…)
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…)
