May 11th, 2020 at 12:19 pm
Listing Agents Beware! If you are taking a new listing or you have a pending listing agreement, you should be aware of the “physically entered” limitation of the safe harbor clause (paragraph 3A(2)) in the C.A.R. Residential Listing Agreement (RLA). The safe harbor clause generally protects your commission for a specified timeframe after your listing agreement expires. However, this protection is only for a prospective buyer who “physically entered and was shown the Property during the Listing Period,” or someone who submitted an offer. (more…)
May 4th, 2020 at 11:50 am
Question: I am working on a new lease listing. I know that the new C.A.R. Notice Regarding Background Investigation Reports (BIRN) is a required disclosure on BHHS’s Lease Listing Transaction Checklist. What do we insert in the blank lines for CRA and contact information? Also, why is there only one signature line for “Landlord or Manager or Agent” to sign, but no signature line for the tenant? Should I as the listing agent sign on the landlord’s behalf? (more…)
April 27th, 2020 at 2:45 pm
Fact Pattern: I am the buyer’s agent putting together a new offer to purchase. My buyer intends to include C.A.R.’s newly-revised Coronavirus Addendum or Amendment (revised 4/16/20). We will only be checking paragraph 4.B. for a 30-day extension to close escrow.
Multiple Choice Question: If, during escrow, the buyer removes all his contingencies but then loses his job, can he cancel and get his deposit back under the terms of the CVA? Pick the best answer:
A. No, because the buyer has removed all his contingencies.
B. Yes, if the buyer submits a C.A.R. Notice of Unforeseen Coronavirus Circumstances (NUCC) that identifies his job loss as an unforeseen coronavirus circumstance that affects his ability to perform on the purchase agreement.
C. Answer B is correct, except that the buyer must also provide the seller with proof that the job loss is an unforeseen coronavirus circumstance and proof that it affects the buyer’s ability to perform on the purchase agreement.
D. Answer C is correct, except that the buyer must also wait until the end of the 30-day extension period before cancelling. (more…)
April 22nd, 2020 at 1:29 pm
Question: In last week’s Legal Tip, you provided guidance for a listing agent dealing with a transaction involving a buyer who recently removed all his contingencies, but then cancelled. In his Cancellation of Contract (CC), the buyer stated that he was cancelling “due to unforeseen COVID-19 pandemic circumstances,” and requested the return of his entire deposit. I am a buyer’s agent for a buyer who also recently removed all his contingencies. He was just about to submit the exact same CC form to his seller, but he now realizes that the seller is unlikely to agree. Do you have any thoughts on how he should complete the CC? (more…)
April 13th, 2020 at 2:38 pm
Question: I am the listing agent of a pending sales transaction. The buyer recently removed all his contingencies, but now, a few days before we are scheduled to close, we received a C.A.R. Cancellation of Contract (CC). The CC states under paragraph 1.G. that: “Buyer is canceling due to unforeseen COVID-19 pandemic circumstances.” The CC also provides under paragraph 2.A. that the buyer’s deposit will be released to the buyer. My sellers are livid. They have already moved out-of-state. They are asking me what is their best course of action. What do I say? (more…)
