December 18th, 2017 at 2:36 pm
Multiple Choice Question: Last week, you told us about C.A.R.’s new standard form, the Amendment of Existing Agreement Terms (AEA), for revising an existing purchase agreement. You explained it can also be used by one side of a purchase agreement to propose a change to the other side. If, for example, the buyer submits an AEA #1 to propose a change that the seller wants to counter, what is the best way for the seller to do that?
A. Use a Seller Counter Offer (SCO).
B. Use an Addendum (ADM).
C. Write the seller’s proposed changes on the buyer’s AEA #1.
D. Use a new AEA. (more…)
December 11th, 2017 at 10:34 am
C.A.R. released today 3 new and 13 newly revised standard forms for its December 2017 Forms Release. Here are some of the highlights:
Amendment of Existing Agreement Terms (AEA): This new form can be used to revise an existing agreement between a seller and buyer (or landlord and tenant). It can also be used by one party to propose a change to an existing purchase agreement (or lease). If the proposal is not accepted by the other party, it will expire after 3 days unless otherwise indicated.
Property Images Agreement (PIA): An agent can use this new form to enter into an agreement with a photographer to take photos and videos, and to give to the agent the rights to those images or a license to use those images. (more…)
December 4th, 2017 at 1:23 pm
Question: I am the listing agent for a pending sales transaction. In paragraph 7D(10) of the Residential Purchase Agreement (RPA), the buyer requested that the seller pay up to $750 for a standard home warranty plan. The boxes for upgrades and optional coverages were not checked. As it turns out, a standard policy is only $295. But the buyer’s agent has ordered a plan with options to come up to the $750 price. The seller, however, will only pay for the $295 standard plan. Who is correct? (more…)
November 27th, 2017 at 11:37 am
Fact Pattern: I just got a listing to sell a house with an existing tenant. We may run into difficulty getting access to the property from the tenant.
Multiple Choice: What is a seller’s right to enter leased premises? Pick the best answer:
A. At any time with the tenant’s permission.
B. During normal business hours with a 24-hour verbal notice.
C. During normal business hours with a 6-day written notice and a 24-hour verbal notice.
D. Both A and B.
E. Both A and C. (more…)
November 13th, 2017 at 12:00 pm
Question: I am the listing agent. We just received an offer to purchase the property from a limited liability company (LLC). The buyer’s agent says this company is a big local developer. Out of curiosity, I did a google search of the LLC, but I came up with nothing. What should I do?
Answer: The fact that you found no online presence for the LLC is a red flag that you should disclose to your seller when presenting the offer. However, to check whether the LLC has been formed or has registered to do business in California, use the California Secretary of State’s Business Search. This resource is a database of all business entities properly doing business in (more…)
