March 4th, 2024 at 8:02 pm
Background: In the Legal Tip for the last 2 weeks, we’ve been discussing how a seller is generally obligated to disclose to the buyer any known material fact affecting the property. Yet, sellers sometimes refuse. As the listing agent, that situation places you between that proverbial rock-and-a-hard-place. If you do not disclose, the buyer may eventually come after you and the seller for non-disclosure. If you do disclose, the seller may come after you for breach of your fiduciary duty by failing to abide by the seller’s instruction not to disclose. The only viable solution may be for you to convince the seller to disclose. Here are some pointers to help you convince the seller to disclose: (more…)
February 26th, 2024 at 4:08 pm
Multiple Choice Question: In last week’s Legal Tip, we discussed a seller’s general obligation to disclose known material facts affecting the property. But sometimes the seller refuses. What should a listing agent do if a seller refuses to allow disclosure of a known material fact to a buyer? Pick the best answer:
A. Do not disclose under the listing agent’s fiduciary duty to the seller.
B. Disclose to the buyer anyway, because the listing agent has an independent duty to disclose.
C. Convince the seller to disclose.
D. Terminate the agency relationship with the seller. (more…)
February 19th, 2024 at 1:45 pm
Multiple Choice Question: Under what circumstance is a seller legally obligated to provide a buyer with property-related reports that are in the seller’s possession? Pick the best answer:
A. In every circumstance.
B. When the seller falls under the Transfer Disclosure Statement (TDS) requirement for one-to-four residential units.
C. In most circumstances.
D. When the report is less than 4 years old. (more…)
February 12th, 2024 at 5:10 pm
Question: You are the buyer’s agent, and the seller will be staying in possession of the property for 32 days after close of escrow. To put that agreement in writing, C.A.R. has a long 8-page standard-form Residential Lease After Sale (RLAS) with a lot of supporting documents. It says at the top of the RLAS form that it is “Intended for possession of 30 or more days.” Instead of the RLAS, C.A.R. also has a simple one-page Seller License to Remain in Possession Addendum (SIP) form that is “Intended for Possession of 29 days or less.” Can you just use the SIP instead of the RLAS for this seller’s 32-day stay after close of escrow? (more…)
February 5th, 2024 at 3:07 pm
When it rains like it has, I will usually get questions from agents about storm-related damage during escrow. So here are some general guideposts if you encounter any storm-related damage during a pending sales transaction: (more…)
