August 26th, 2019 at 2:22 pm
Question: In last week’s legal tip, you addressed paragraph 8 of C.A.R.’s Contingency for Sale of Buyer’s Property (COP), which allows a seller to accept a written backup offer and then serve the first buyer with a written notice to do 3 things: (1) remove the sale contingency; (2) remove the loan contingency; and (3) provide proof of sufficient funds to close escrow without selling the buyer’s property. I understand that you called that a “bump notice” to emphasize the fact that it’s not a Notice to Buyer to Perform, a right of first refusal, or what some agents call a “first right of refusal.” However, we do not have a C.A.R. form called a “Bump Notice.” What form does a seller use to serve the notice under paragraph 8 of the COP? (more…)
August 19th, 2019 at 2:06 pm
Multiple Choice Question: Paragraph 8 of C.A.R.’s Contingency for Sale of Buyer’s Property (COP) allows a seller to accept a written backup offer and then serve the first buyer with a written notice to do 3 things: (1) remove the sale contingency; (2) remove the loan contingency; and (3) provide proof of sufficient funds to close escrow without selling the buyer’s property. What is that notice called? Pick the best answer:
A. Bump Notice.
B. Notice to Buyer to Perform.
C. Notice of First Right of Refusal.
D. Notice of Right of First Refusal. (more…)
August 12th, 2019 at 2:09 pm
Multiple Choice Question: In last week’s legal/escrow tip, you talked about using C.A.R.’s standard-form Amendment of Existing Agreement (AEA) and Addendum (ADM) to revise an existing agreement. The AEA is preprinted for the signatures of a seller and buyer (or landlord and tenant). What do we use when revising other types of agreements, like a Cooperating Broker Compensation Agreement (CBC)? Pick the best answer.
A. C.A.R.’s Modification of Listing, Buyer Representation or Other Agreement Between Principal and Broker (MT).
B. C.A.R.’s Amendment of Existing Terms (AEA).
C. C.A.R.’s Addendum (ADM).
D. BHHS’s Addendum. (more…)
August 5th, 2019 at 9:55 am
Legal Question: A seller and buyer are in a pending sales transaction, but they want to change one of the terms of their agreement. Should we use the C.A.R. standard-form Addendum (ADM) or Amendment of Existing Agreement (AEA)? (more…)
July 29th, 2019 at 3:32 pm
Multiple Choice Question: You are taking a new listing on a home that was just previously listed with another company. The previous listing agent gave the seller a list of 7 names of prospective buyers to be protected under his safe harbor clause (or paragraph 3A(2) of the C.A.R. Residential Listing Agreement). Are you obligated to exclude those buyers from your listing agreement? Pick the best answer.
A. Yes, as a matter of law.
B. Yes, under the NAR Code of Ethics.
C. Yes, under both legal and ethical requirements.
D. No. (more…)
