June 10th, 2024 at 1:38 pm
Fact Pattern: You are the listing agent. Your listing agreement just expired yesterday. Right before the listing expired, you submitted to the seller a list of prospective buyers to be protected under your 180-day safe harbor period. However, you forgot to add one more name to the list.
Multiple Choice Question: Can you still add that name to your list? Pick the best answer:
A. Yes, but only if your original list was on C.A.R.’s standard-form Notice of Prospective Buyers (NPB).
B. Yes, because you have 3 days after the listing expired to submit names of prospective buyers.
C. Yes, because the oversight was just an honest mistake.
D. No. (more…)
June 3rd, 2024 at 11:35 am
Fact Pattern: This is almost the same Fact Pattern as the Legal Tip from 2 weeks ago involving an Seller Counter Offer (SCO), instead of a Seller Multiple Counter Offer (SMCO). You are the buyer’s agent. Your buyer submitted an offer using C.A.R.’s Residential Purchase Agreement (RPA). The seller responded with an SMCO #1. The buyer responded to the seller with a Buyer Counter Offer #1 (BCO #1). Right after submitting the BCO #1, the buyer has a change of heart, and just wants to go back and accept the seller’s SMCO #1 after all. SMCO #1 has not yet expired.
Multiple Choice Question: Can your buyer submit to the seller a Withdrawal of Offer (WOO) for BCO #1, along with the buyer’s signature on SMCO #1? Pick the best answer:
A. Yes.
B. Yes, but there’s no valid, binding contract unless the seller signs again.
C. Yes, the buyer must submit a WOO and a new BCO restating the terms in SMCO #1, in hopes that the seller will accept.
D. No, the buyer must submit a new offer in hopes that the seller will accept. (more…)
May 20th, 2024 at 4:01 pm
Fact Pattern: You are the buyer’s agent. Your buyer submitted an offer using C.A.R.’s Residential Purchase Agreement (RPA). The seller responded with a Seller Counter Offer (SCO #1). The buyer responded to the seller with a Buyer Counter Offer #1 (BCO #1). Right after submitting the BCO #1, the buyer has a change of heart, and just wants to go back and accept the seller’s SCO #1 after all. SCO #1 has not yet expired.
Multiple Choice Question: Can your buyer submit to the seller a Withdrawal of Offer (WOO) for BCO #1, along with the buyer’s signature on SCO #1? Pick the best answer:
A. Yes.
B. Yes, but there’s no valid, binding contract unless the seller signs again.
C. No, the buyer must submit a WOO and a new BCO #1A restating the terms in SCO #1, in hopes that the seller will accept.
D. No, the buyer must submit a new offer in hopes that the seller will accept. (more…)
May 13th, 2024 at 4:21 pm
Fact Pattern: You are the listing agent for a pending sales transaction. The seller has completed Sections I and II of the Real Estate Transfer Disclosure Statement (TDS). You, however, have not yet finished conducting your own visual inspection of the property nor have you completed your Agent Visual Inspection Disclosure (AVID). You nevertheless want to deliver the TDS to the buyer now, before you do your AVID. The first checkbox in Section III of the TDS concerning the listing agent’s Inspection Disclosure says, “See attached Agent Visual Inspection Disclosure (AVID Form).” The second checkbox in Section III says, “Agent notes no items for disclosure.” The third checkbox says, “Agent notes the following items:” followed by some blank lines.
Multiple Choice Question: How should you complete the TDS under these circumstances? Pick the best answer:
A. You cannot submit the TDS to the buyer until after you do your visual inspection, complete your AVID, check the first box in Section III of the TDS, sign and date Section III, and attach your AVID.
B. Check the second box in Section III, and sign and date.
C. Check the third box in Section III, insert “AVID to follow” in the blank lines provided, and sign and date.
D. Check no box in Section III, and sign and date. (more…)
May 6th, 2024 at 3:29 pm
Fact Pattern: In last week’s Legal Tip, we addressed a seller’s right to get the buyer’s loan status directly from the buyer’s lender under paragraph 5C(3) of C.A.R.’s Residential Purchase Agreement (RPA). This week is a follow-up question. Let’s say that you are the listing agent for a pending sales transaction. You are not getting a straight answer from the buyer’s agent as to the status of the buyer’s loan. You contact the buyer’s lender directly under paragraph 5C(3) of the RPA. But the buyer’s lender refuses to discuss the matter with you, absent the buyer’s written permission. You even show the lender paragraph 5C(3) of the RPA, but to no avail. You then ask the buyer’s agent for the buyer’s written permission, but the buyer refuses to give it.
Multiple Choice Question: Under these circumstances, can the seller serve the buyer with a 2-day Notice to Buyer to Perform (NBP)? Pick the best answer:
A. Yes, because the buyer has failed to perform.
B. No, because the RPA only allows the seller, not the listing agent, to get the buyer’s loan status from the buyer’s lender.
C. No, because the RPA does not require the buyer to provide the lender with written permission.
D. No, because the RPA does not allow the seller to serve an NBP for this particular reason. (more…)
