July 24th, 2017 at 10:59 am
Question: In last week’s legal tip, you made a distinction between the word “Days” with a capital D, and “days” not capitalized, as used in the C.A.R. Residential Purchase Agreement (RPA). Aside from the first word of a sentence, is there a meaning for all the other capitalized words in the RPA?
Answer: Yes. Words that are capitalized in the RPA are specifically defined. Capitalized words, such as “Days,” “Days After,” or “Deliver” are specifically defined in paragraph 30 of the RPA. Their contract definitions are more elaborate than their dictionary meanings. In addition to words defined in paragraph 30, other words in the RPA are capitalized and set out in quotation marks (e.g. a blank line followed by the word “Buyer”). Every subsequent use of that capitalized word in the RPA is a reference back to what was previously set out.
(more…)
July 17th, 2017 at 10:56 am
Multiple Choice Question: Escrow closes on Friday. The seller has an additional 2 “calendar days” to deliver possession to the buyer, according to paragraph 9B of the Residential Purchase Agreement (RPA). Monday and Tuesday of the following week are not legal holidays. What day is the seller supposed to be out? Pick the best answer:
A – Saturday, because you count Friday as Day 1.
B – Sunday, because that’s 2 calendar days after Friday.
C – Monday, because the last day cannot fall on a Sunday.
D – Tuesday, because you don’t count weekends.
Answer: The correct answer is B or Sunday, which is 2 calendar days after Friday. The special rule for excluding Saturdays, Sundays, and legal holidays does not apply in this situation because the word, “days,” is not capitalized in paragraph 9B of the RPA. Saturday is a wrong answer, because Friday is Day 0, not Day 1. Monday is wrong too. The word, “days,” must have a capital “D” before the special rule kicks in for excluding weekends and holidays under paragraph 30F of the RPA. Tuesday is wrong, because, even under the special rule (not applicable here), you still include Saturday, Sunday, and legal holidays when counting days, but if the last day to perform falls on a weekend or legal holiday, the buyer or seller has until the next business day to perform.
-Thank you to Aaron Gaston (Ventura Office) for suggesting this week’s legal tip.
Copyright© 2017 Berkshire Hathaway HomeServices California Properties (BHHSCP). All rights reserved. Any unauthorized reproduction or use of this material is strictly prohibited. This information is believed to be accurate as of July 17, 2017. It is not intended as a substitute for legal advice in individual situations, and is not intended to nor does it create a standard of care for real estate professionals.
July 10th, 2017 at 10:51 am
Please join Stella Ling for an online legal webinar on Common Legal Mistakes Agents Make (and How to Avoid Them) on Wednesday, July 12, 2017 at 12 noon. In this interactive and fast-paced presentation, Stella will cover the most common legal pitfalls involving agency, commissions, disclosures, contracts, and documentation. What do agents do wrong in agency relationships? What aspects of the contracts tend to trip agents up? For the answers to these questions and much more, sign up now to attend the Legal Webinar .
Copyright© 2017 Berkshire Hathaway HomeServices California Properties (BHHSCP). All rights reserved. Any unauthorized reproduction or use of this material is strictly prohibited. This information is believed to be accurate as of July 10, 2017. It is not intended as a substitute for legal advice in individual situations, and is not intended to nor does it create a standard of care for real estate professionals.
July 3rd, 2017 at 10:49 am
Question: For July 4th each year, a real estate agent in my neighborhood places a small U.S. flag with her attached business card in front of every house. Doesn’t that violate a law for displaying the flag?
Answer: Yes, but keep reading. The United States Flag Code provides the rules for the respectful display and care of the U.S. flag. Under the Flag Code, the “flag should never be used for advertising purposes in any manner whatsoever.” More specifically, advertising signs, such as a business card, “should not be fastened to a staff” from which the flag is flown.
(more…)
June 26th, 2017 at 10:15 am
