November 12th, 2018 at 2:43 pm
Question: We are the buyer’s agent for a pending sales transaction with a 45-day escrow period. Our buyer plans to take title to the property as a married woman as her sole and separate property. Her husband is on active military duty in the Middle East.
We just received a 3-page standard form Addendum from the listing broker. The boilerplate language states in relevant part as follows:
Purchase by One Spouse. If one spouse is purchasing the subject property as his or her sole and separate property, the other spouse shall sign appropriate documentation consistent with the party spouse’s agreement within 10 calendar days after acceptance or Seller shall have the right to cancel at his or her sole discretion with written notification to Escrow Holder.
Should our buyer agree to this provision? (more…)
November 5th, 2018 at 2:10 pm
Multiple Choice Question: We are taking a new listing for a home that was previously listed with Previous Brokerage (“PB”). PB’s listing has just expired. The owner wants to know what happens if one of the prospective buyers on PB’s exclusion list purchases the property during its safe harbor period. Pick the best answer:
A. PB would act as the listing broker, and PB would be entitled to the commission.
B. We would act as the listing broker, and we would be entitled to the commission.
C. We would act as the listing broker, and the seller would be obligated to pay both PB’s commission and our commission.
D. None of the above. (more…)
October 29th, 2018 at 10:35 am
Question: Last week you discussed the revocable Transfer on Death (TOD) deed which generally allows homeowners to leave their homes to their loved ones, without the hassles of having a will or trust, or going through probate. You said that a homeowner need only fill out, sign, notarize, and record the TOD deed to leave the property to a designated beneficiary when the homeowner dies. Can a homeowner file a TOD deed only when he or she is the sole person on title to the property, or even when he or she is a joint owner with someone else? (more…)
October 22nd, 2018 at 2:58 pm
Question: My client’s name is Donna. Her mother, Marcy, owns a home in Marcy’s name only. Marcy is elderly. She has permanently moved to a nursing home, and she will need to sell her house at some point. I’m not sure about Marcy’s current mental or health status. Donna has 2 somewhat estranged siblings who Donna expects will fight over her mother’s assets if she passes away. Donna and Marcy will be consulting with an attorney about how to handle Marcy’s situation. But can you go over their options with me? (more…)
October 15th, 2018 at 11:30 am
Question: In last week’s legal tip, you gave us a detailed explanation of the Notice to Buyer to Perform (NBP), but it didn’t address my situation. I am the listing agent for a $1 million property with an accepted offer. The buyer reviewed all disclosures and removed all contingencies upfront. The buyer was supposed to submit an initial deposit of 3% or $30,000 within 3 days after acceptance, but he only deposited $10,000. Now the buyer is threatening to cancel.
Multiple Choice Question: If the seller serves a 2-day NBP for the buyer to deposit the remaining funds, and the buyer fails to perform within the next 2 days, can the seller cancel the agreement, yet be entitled to keep the $10,000 already in escrow as liquidated damages? Pick the best answer:
A. Yes, because the buyer defaulted by failing to deposit the remaining $20,000 into escrow.
B. No, because the seller must return the deposit to the buyer if the seller cancels after serving an NBP.
C. It depends on the reason for the buyer’s cancellation. (more…)
