December 30th, 2024 at 2:38 pm
Fact Pattern: You are a buyer’s agent. The buyers tell you that they have no money to pay your 2.5% compensation. You check the box concerning the buyers’ insufficient funds in paragraph 2G(2) of C.A.R.’s Buyer Representation and Broker Compensation Agreement (BRBC). Both sides sign the BRBC. You then help the buyers submit an offer for a property listed for sale with another brokerage. The offer includes a request that the seller pays you 2.5%, but the seller refuses to pay you anything.
Multiple Choice Question: Can you cancel the BRBC with respect to this particular property? Pick the best answer:
A. Yes, by mutual agreement only.
B. Yes, but the buyers can proceed with the purchase of this property without your representation.
C. No, because you have a fiduciary duty to act in the buyers’ best interest.
D. No, because the buyers must buy something else. (more…)
December 23rd, 2024 at 3:46 pm
On December 17, 2024, C.A.R. rolled out its December 2024 Forms Release. Please take a look at last week’s Legal Tip for the highlights of roughly 64 new and newly revised forms. As part of their Forms Release, C.A.R. also discontinued 2 forms as follows: (more…)
December 16th, 2024 at 3:02 pm
On December 17, 2024, C.A.R. plans to roll out its December 2024 Forms Release. The roll-out includes roughly 64 new and newly revised forms, although many of the changes are minor revisions. Here are some of the highlights of C.A.R.’s December 2024 Forms Release: (more…)
December 9th, 2024 at 1:26 pm
Fact Pattern: You are a buyer’s agent with a signed buyer-broker agreement. Your buyer is interested in buying a home in a certain neighborhood. You know that the sellers of 2 MLS listings in that neighborhood have said that they will not pay any compensation to a cooperating broker.
Multiple Choice Question: Can you elect not to share these 2 listings with your buyer-client? Pick the best answer:
A. Yes.
B. Yes, if your buyer-broker agreement says that you will screen out listings with no offer of coop comp from the seller.
C. Yes, if you believe that your buyer will never be interested in buying either of the 2 properties.
D. No. (more…)
December 2nd, 2024 at 1:30 pm
Fact Pattern: A buyer’s agent from another brokerage is charging buyer-clients an advance fee of $1,000 before the salesperson will schedule showings. The salesperson includes the terms of the advance fee in the C.A.R. Buyer Representation and Broker Compensation Agreement (BRBC). The advance fee is credited against any broker compensation that the buyer may be obligated to pay.
Multiple Choice Question: Can a salesperson charge a buyer with an advance fee as described above? Pick the best answer:
A. Yes.
B. Yes, if, among other requirements, the salesperson submits the advance fee agreement to the Department of Real Estate for approval.
C. Yes, if, among other requirements, the advance fee is placed in the salesperson’s trust account.
D. No, an advance fee is illegal. (more…)
