June 24th, 2019 at 9:42 am
Fact Pattern: An agent at another brokerage was the listing agent for the leasing of a beachfront home. To make the home look more attractive to prospective tenants, the landlord wanted to get rid of the homeless people who hung around the nearby boardwalk. The landlord arranged to give one of the homeless men $5,000 in cash to pay the other homeless people to move away. The landlord had to go out of town, so he told the agent to take his cash to the homeless man. The agent did as she was told. She then not only leased out the property, but she also represented a buyer for another property a few doors down.
Question: How many legal issues involving the agent can you spot? (more…)
June 17th, 2019 at 2:06 pm
Fact Pattern: I am the buyer’s agent. My buyer, Betty, submitted an offer to purchase to the seller. The seller also received another offer from another set of buyers. In response, the seller issued counter offers asking for everyone’s “highest and best offer.” We submitted our highest and best offer using a Buyer Counter Offer (BCO) form. The other set of buyers did not. They went away.
Multiple Choice Question: Under these circumstances, is the seller now obligated to sell the property to Betty? Pick the best answer.
A. Yes, because Betty submitted the highest and best offer.
B. Yes, if the seller had used a Seller Counter Offer (SCO), but not if it was a Seller Multiple Counter Offer (SMCO).
C. No, because Betty should have simply accepted the seller’s counter offer, rather than submit a BCO.
D. No, because asking for a buyer’s “highest and best offer” is generally understood to be non-binding on the seller. (more…)
June 10th, 2019 at 10:48 pm
Question: I am the buyer’s agent for a probate transaction. The hearing for the court confirmation of the sale has just been set, but my buyer will be out of the country on that day. My buyer wants to give me a power of attorney to act on his behalf. Should I agree? (more…)
June 3rd, 2019 at 2:11 pm
Question: I am the listing agent for a pending sales transaction. The buyer, Ben, has a sale contingency. My seller has just received a good backup offer. The seller wants to try to cancel the contract with Ben under paragraph 8 of the C.A.R. Contingency for Sale of Buyer’s Property (COP).
Multiple Choice Question: What should the seller do before cancelling? Pick ALL of the correct answers from the following list:
A. Accept the backup buyer’s offer in writing (using the C.A.R. Backup Offer Addendum).
B. Give a copy of the backup offer to Ben.
C. Give Ben a 3-day notice to remove his loan contingency.
D. Give Ben a 3-day notice to remove his sale contingency.
E. Give Ben a 3-day notice to provide verification of sufficient funds to close escrow without selling his existing home. (more…)
May 28th, 2019 at 11:18 am
Question: I am an agent in our Beverly Hills office. The listing agent, Larry Listo, works for the Downtown Los Angeles Regional Office of Berkshire Hathaway HomeServices California Properties. His brokerage’s license number is 00338699. Our brokerage’s license number is 01317331.
Multiple Choice Question: How do I complete the Agency Confirmation in my buyer’s offer to purchase (i.e., paragraph 2B of the RPA)? Pick the best answer:
A. Check all 4 dual agent boxes.
B. Check the boxes indicating that the 2 brokerages are dual agents, but Larry is the seller’s agent and you are the buyer’s agent.
C. Check the boxes indicating that both Larry and his brokerage represent the seller, whereas both you and our brokerage represent the buyer.
D. Answer C is correct, except that the 2 brokerage names entered into the form must be different, otherwise zipForm will prevent you from checking those boxes. (more…)
