September 28th, 2020 at 1:51 pm
Fact Pattern: You are the listing agent for a sales transaction. The seller wants to remain in possession for 3 days after close of escrow. The buyer does not want to charge the seller anything for remaining in possession.
Multiple Choice Question: What should you insert as consideration for the seller remaining in possession in paragraph 2A of C.A.R.’s Seller License to Remain in Possession Addendum (SIP)? Pick the best answer:
A. Zero.
B. $1.00.
C. Zero if the SIP is entered into at the same time as the RPA, but $1.00 if the SIP is a subsequent amendment to the RPA.
D. The buyer’s PITI as a per diem. (more…)
September 21st, 2020 at 2:11 pm
Question: This is a follow-up to the Legal Tip from 2 weeks ago addressing how “5 Days Prior to Close of Escrow” in the RPA includes Saturdays, Sundays, and legal holidays. Let’s say you are the buyer’s agent for a pending sales transaction. Five days before close of escrow, you discover that the seller repairs have not yet been completed as agreed. Can your buyer delay the buyer’s final walk-through and the closing of escrow accordingly, without risking the seller’s service of a 3-day Demand to Close Escrow (DCE)? (more…)
September 14th, 2020 at 12:58 pm
The California legislature recently enacted the sweeping COVID-19 Tenant Relief Act of 2020 to generally protect nonpaying residential tenants (who are natural persons) from eviction until February 1, 2021, unless the law is extended. Tenants, however, still owe the full amount of rent.
The new law, effective September 1, 2020, is comprehensive and complicated. The new requirements may be superseded by federal or local laws, including the CDC COVID Order dated September 4, 2020 generally halting evictions nationwide until December 31, 2020 (see below), and local eviction moratoriums and rent control laws.
Here are the key provisions of the new COVID-19 Tenant Relief Act: (more…)
September 7th, 2020 at 10:27 am
Fact Pattern: You are the listing agent for a pending sales transaction. In response to the buyer’s Request for Repair, the seller agreed to have Section 1 work completed. Escrow is scheduled to close this Friday, September 11, 2020.
Multiple Choice Question: By what day should the Section 1 work be completed? Pick the best answer:
A. Thursday, September 10, 2020.
B. Wednesday, September 9, 2020.
C. Tuesday, September 8, 2020.
D. Labor Day Monday, September 7, 2020.
E. Sunday, September 6, 2020. (more…)
August 31st, 2020 at 1:29 pm
Multiple Choice Question: You are the buyer’s agent. Should you include the C.A.R. Arbitration Agreement (ARB) in your buyer’s offer to purchase? Pick the best answer:
A. Yes; it should ultimately be signed by you, the buyer, and the seller.
B. Yes; it should ultimately be signed by you and the buyer only.
C. No.
D. Heck no. (more…)
