February 16th, 2021 at 11:09 am
Fact Pattern: You are the listing agent. The seller had entered into a contract to sell his property to Buyer #1. The seller now believes he has the right to cancel with Buyer #1, and sell his property to Buyer #2 instead. Buyer #1 threatens to file a lis pendens against the property.
Multiple Choice Question: What is a lis pendens? Pick the best answer:
A. A lawsuit brought by a buyer against a seller.
B. A notice recorded against a property prohibiting any subsequent sale.
C. A notice recorded against a property of a pending litigation.
D. Disallowed under the RPA because a buyer must first attempt mediation and/or arbitration. (more…)
February 8th, 2021 at 3:05 pm
Fact Pattern: You are taking a new listing for a property owned by newlyweds Harry and Wendy Love. Wendy wants you to get started selling their home right away. Harry, however, is out of town for about a week, and he cannot sign any paperwork until he returns.
Multiple Choice Question: How should you write up your listing agreement? Pick the best answer:
A. Put the listing in both names, but only get Wendy’s signature for now.
B. Put the listing in both names, and have Wendy sign for both Harry and herself.
C. Take the listing in Wendy’s name only.
D. Do not take a listing until Harry can sign. (more…)
February 1st, 2021 at 1:47 pm
Fact Pattern: You are the listing agent for a pending sales transaction for a home built before 2010. The Home Fire Hardening Disclosure (HHDA) is legally required for homes built before 2010 that are located in either a very high or high fire hazard severity zone. According to the Natural Hazard Disclosure Statement (NHD), this particular house is not located in a fire zone identified by the NHD. The buyer’s agent is nevertheless asking that the seller provides an HHDA after checking the box in paragraph I.3. What paragraph I.3. of the HHDA says is that the property is in a very high or high fire zone, unless the seller checks a box indicating that the property is not in those fire zones.
Multiple Choice Question: What should you do? Pick the best answer:
A. Ask the seller to complete the HHDA if the home is built before 2010.
B. Ask the seller to complete the HHDA if the home is built before 2010 and located in either a very high or high fire hazard zone.
C. Ask the seller to complete the HHDA if the home is built before 2010 and located in a fire zone identified on the NHD.
D. Any of the above. (more…)
January 25th, 2021 at 1:56 pm
Fact Pattern: You are the listing agent in a multiple offer situation. To help make sure that the ultimate buyer does not cancel, you want to propose to your seller that you send out Seller Multiple Counter Offers (SMCOs) stating that, “Buyer’s deposit shall be nonrefundable 14 Days After Acceptance.”
Multiple Choice Question: Which of the following statements best describes the proposed nonrefundable language? Pick the best answer:
A. It’s binding and enforceable.
B. It’s enforceable only if the buyer is also required to remove all contingencies within 14 days.
C. It’s enforceable only if the buyer and seller initial the liquidated damages clause.
D. It’s unenforceable. (more…)
January 19th, 2021 at 11:57 am
Fact Pattern: You are a dual agent for a pending sales transaction using the C.A.R. Residential Purchase Agreement (RPA) and the Representative Capacity Signature Disclosure (RCSD-B). The buyer’s name is “Kingdom, LLC.” The authorized representative for the LLC signed all documents as “Kingdom, LLC,” instead of his actual name.
Multiple Choice Question: Which one of the following statements is true? Pick the best answer:
A. The signatures are valid.
B. The signatures are invalid, and we should get the representative’s actual signatures.
C. The signatures could be valid, but we should get the representative’s actual signatures anyway.
D. The validity of the signatures depends on how the RCSD-B was completed. (more…)
