March 22nd, 2021 at 3:38 pm
Question: I have a listing until April 30, 2021, and a 90-day safe harbor period after that. The seller is extremely problematic, and my manager and I have decided to go ahead and cancel the listing agreement now. However, I am confused by the paperwork for cancelling a listing. Can you help me? (more…)
March 15th, 2021 at 2:31 pm
Background: Last week’s legal tip addressed how buyers’ agents have a duty under the NAR Code of Ethics to inform their buyers that, absent a confidentiality agreement, the seller and listing agent might not treat the buyer’s offer as confidential. Buyers’ agents fulfill that ethical requirement by providing their clients with C.A.R.’s Possible Representation of More Than One Buyer or Seller (PRBS), which includes a section on “Offers Not Necessarily Confidential.”
Question: What about listing agents? Given that revealing competing offers is permitted by both the law and NAR Code of Ethics, should a listing agent reveal a buyer’s offer to a competing buyer and buyer’s agent? (more…)
March 8th, 2021 at 3:04 pm
Fact Pattern: You are the buyer’s agent for a new listing with another brokerage. Your buyer intends to write a very competitive offer. Your buyer does not want the seller’s side to use your buyer’s offer to shop for a better one, especially if another buyer uses an escalation clause.
Multiple Choice Question: Are the seller and listing agent required to treat your buyer’s offer as confidential? Pick the best answer:
A. Yes, as a matter of both law and ethics.
B. Yes, as a matter of law only.
C. Yes, as a matter of ethics only.
D. No, as a matter of both law and ethics. (more…)
March 1st, 2021 at 2:35 pm
Fact Pattern: You are the buyer’s agent for a pending RPA sales transaction. The timeframes for all buyer contingencies have just expired. On Monday, March 1, the seller serves a 2-day Notice to Buyer to Perform (NBP) requiring the buyer to remove all contingencies. Later that same day, the seller delivers to the buyer an inspection report that the seller just received from a previous buyer who cancelled.
Multiple Choice Question: Which of the following statements best describes the buyer’s contractual rights? Pick the best answer:
A. The seller must now issue a new NBP before the buyer is required to remove any contingency.
B. The buyer now has 5 days to remove all contingencies.
C. The buyer has 2 days to remove all contingencies, including the buyer’s review of the recently-delivered inspection report.
D. The buyer has 2 days to remove all contingencies, except for the review of the recently-delivered inspection report. (more…)
February 22nd, 2021 at 11:10 am
What is an Escalation Clause? An escalation clause is a provision included in a buyer’s offer that proposes to pay a purchase price of a certain dollar amount over the highest competing offer that the seller receives. Although buyers in multiple offer situations may be tempted to use an escalation clause, our buyers’ agents should generally discourage clients from doing so for the reasons set forth below. (more…)
