C.A.R.’s June Forms Release

During the week of June 24, 2024, C.A.R. plans to roll out its June Standard Forms Release. Their rollout includes roughly 50 new and newly revised forms. However, C.A.R. has decided to delay for now the release of 21 additional forms related to the recent NAR Settlement Agreement.

Here are some of the highlights of C.A.R.’s June 2024 Forms Release:  (more…)

New “Insurance Contingency” to be Added to RPA

C.A.R. will be rolling out its Standard Forms Release the week of June 24, 2024, including some changes to the Residential Purchase Agreement (RPA). Probably the most significant RPA change is the new stand-alone “insurance contingency” under paragraph 3L(4). Similar to the other buyer contingencies, the new insurance contingency defaults to 17 days after acceptance, unless another number of days is inserted in the blank space provided.  (more…)

Adding Another Buyer’s Name to Safe Harbor List

Fact Pattern: You are the listing agent. Your listing agreement just expired yesterday. Right before the listing expired, you submitted to the seller a list of prospective buyers to be protected under your 180-day safe harbor period. However, you forgot to add one more name to the list.

Multiple Choice Question: Can you still add that name to your list? Pick the best answer:

A. Yes, but only if your original list was on C.A.R.’s standard-form Notice of Prospective Buyers (NPB).
B. Yes, because you have 3 days after the listing expired to submit names of prospective buyers.
C. Yes, because the oversight was just an honest mistake.
D. No.  (more…)

Accepting a Prior SMCO After Issuing a BCO

Fact Pattern: This is almost the same Fact Pattern as the Legal Tip from 2 weeks ago involving an Seller Counter Offer (SCO), instead of a Seller Multiple Counter Offer (SMCO). You are the buyer’s agent. Your buyer submitted an offer using C.A.R.’s Residential Purchase Agreement (RPA). The seller responded with an SMCO #1. The buyer responded to the seller with a Buyer Counter Offer #1 (BCO #1). Right after submitting the BCO #1, the buyer has a change of heart, and just wants to go back and accept the seller’s SMCO #1 after all. SMCO #1 has not yet expired.

Multiple Choice Question: Can your buyer submit to the seller a Withdrawal of Offer (WOO) for BCO #1, along with the buyer’s signature on SMCO #1? Pick the best answer:

A. Yes.
B. Yes, but there’s no valid, binding contract unless the seller signs again.
C. Yes, the buyer must submit a WOO and a new BCO restating the terms in SMCO #1, in hopes that the seller will accept.
D. No, the buyer must submit a new offer in hopes that the seller will accept.  (more…)

Accepting a Prior SCO After Issuing a BCO

Fact Pattern: You are the buyer’s agent. Your buyer submitted an offer using C.A.R.’s Residential Purchase Agreement (RPA). The seller responded with a Seller Counter Offer (SCO #1). The buyer responded to the seller with a Buyer Counter Offer #1 (BCO #1). Right after submitting the BCO #1, the buyer has a change of heart, and just wants to go back and accept the seller’s SCO #1 after all. SCO #1 has not yet expired.

Multiple Choice Question: Can your buyer submit to the seller a Withdrawal of Offer (WOO) for BCO #1, along with the buyer’s signature on SCO #1? Pick the best answer:

A. Yes.
B. Yes, but there’s no valid, binding contract unless the seller signs again.
C. No, the buyer must submit a WOO and a new BCO #1A restating the terms in SCO #1, in hopes that the seller will accept.
D. No, the buyer must submit a new offer in hopes that the seller will accept. (more…)