Can Seller Unilaterally Cancel?

Multiple Choice: Can a seller unilaterally cancel an agreement after serving a Notice to Buyer to Perform (NBP) and the buyer fails to perform, as set forth in paragraph 14D of the Residential Purchase Agreement (RPA)? Or are mutually-signed cancellation instructions required in accordance with paragraph 14H of the RPA? Pick the best answer:

A.     Seller can unilaterally cancel.
B.     Mutually-signed cancellation instructions are required.
C.     Both A and B.
D.     Neither A nor B.
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Sellers Beware of Burglars During Tenting

If recent break-ins are any indication, colorful fumigation tents are beacons to burglars to ransack the homes. Your seller-clients are well-advised to take safety precautions before having their homes tented, including, but not limited to the following:

• Remove or otherwise safeguard all cash, jewelry, documents, drugs, firearms, and other valuables and belongings;
• Hire a qualified, insured, and reputable pest control company;
• Maintain adequate insurance against loss, damage, and injury;
• Contact local law enforcement authorities that offer extra patrolling during tenting; and
• Install security alarms, hire security guards, or take other security measures as appropriate.

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Upcoming Webinar on C.A.R. Forms

Please join me for a fast-paced, interactive legal webinar on Friday, January 20, 2017, from 11 a.m. to 12:30 p.m. We will go over the new and newly revised C.A.R. forms, including the new water-conserving plumbing fixture forms, summary of offer forms, and much more. Please register now to attend this free 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 January 16, 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.

Handling Disclosures for Assignees

Question: A few weeks ago, you said to use C.A.R.’s Assignment of Agreement Addendum (Form AOAA) for a buyer to request the seller’s approval to assign the buyer’s contractual rights to another person (assignee) under paragraph 26 of the Residential Purchase Agreement (RPA). What about the disclosures? Is the AOAA adequate, or does the assignee have to also sign all the disclosures? If the assignee has to sign the disclosures, should the disclosures accompany the AOAA or do we do them after the seller approves the assignment?

Answer: The answer to your first question is “no.” The AOAA is not enough. Even if an assignee signs the AOAA, he or she must still sign each disclosure under paragraph 2 of the AOAA. From a risk management standpoint, having the assignee sign each disclosure is the preferred approach anyway to show that the assignee has received and reviewed each disclosure. (more…)

Plumbing-Fixture Disclosures for Pending Transactions

Question: I am a listing agent for a pending sales transaction that began before the New Year. Back in November 2016, we opened escrow and I gave the buyer’s side all the required disclosures. I know that the new water-conserving plumbing fixture law came into effect on January 1, 2017. Should I do any additional disclosures?

Answer: It depends. The answer is generally “yes” if the property is a single-family home built before January 2, 1994. However, the answer is “no” for newer homes because the new law does not apply to those properties. The answer is also “no” for properties in Los Angeles and other cities with existing local (more…)