September 13th, 2021 at 3:10 pm
Listing Agents Beware! Non-contingent sales obviously give sellers certain leverage over their buyers. Sure enough, some non-contingent sales work like a dream. However, others do not. As the listing agent, be careful not to give your sellers any false assurances concerning a non-contingent deal. For example, in a multiple offer situation, resist any urge to steer your seller towards accepting a non-contingent offer over the other offers, because you may later regret doing that.
Here are some quick tips to consider when working on a non-contingent deal: (more…)
September 7th, 2021 at 3:52 pm
Fact Pattern: A buyer writes a $1 million offer for a single-family home using a C.A.R. Residential Purchase Agreement (RPA). The buyer indicates in paragraph 9A of the RPA that he will not be occupying the property as his primary residence. The seller accepts the offer, with both sides initialing the liquidated damages clause. The buyer submits his initial deposit of $50,000 into escrow.
Multiple Choice Question: If the buyer defaults on the contract, how much money can the seller recover as liquidated damages? Pick the best answer:
A. Zero.
B. $30,000.
C. $50,000.
D. Whatever the seller actually suffers as monetary damages. (more…)
August 30th, 2021 at 4:12 pm
Multiple Choice Question: Can an individual seller require a buyer to cross-qualify with the seller’s own preferred lender? Pick the best answer:
A. Yes.
B. No.
C. No for a RESPA transaction involving the sale of a property with one-to-four residential units, and a federally-related mortgage loan.
D. No if the buyer has already qualified through his or her own lender. (more…)
August 23rd, 2021 at 12:02 pm
August 23, 2021
Multiple Choice Question: You are the buyer’s agent writing a new offer. Your buyer wants to use the proceeds from the sale of another property to buy this property as the upleg of a 1031 tax exchange. What C.A.R. standard form(s) should you include with your buyer’s offer? Pick the best answer:
A. Buyer’s Intent to Exchange Supplement (BES).
B. Contingency for Sale of Buyer’s Property (COP).
C. Both A and B, because the BES is merely a letter of intent, whereas the COP is a sale contingency.
D. Either A or B. (more…)
August 16th, 2021 at 5:35 pm
Multiple Choice Question: You are the listing agent, and you have just received a non-contingent offer written on a C.A.R. Residential Purchase Agreement (RPA), along with a signed Contingency Removal (CR) form removing all the buyer’s contingencies. If the seller accepts this offer, is the seller still required to allow the buyer to conduct inspections? Pick the best answer:
A. Yes, unless the seller counters that the buyer shall have zero days (instead of 17 days) to inspect under paragraph 14B(1) of the RPA.
B. Yes, unless the seller counters that the buyer shall have zero days (instead of 17 days) to access the property under paragraph 14B(5) of the RPA.
C. Yes, because the seller must “make the Property available for all Buyer Investigations” under paragraph 12B of the RPA.
D. No, because the buyer has removed the “physical inspection portion of Buyer’s Investigation” under paragraph I.2.A.3.a of the CR. (more…)
