September 8th, 2017 at 11:28 am
A – At 10 a.m. on September 7.
B – At 3 p.m. on September 7.
C – After the listing agent receives confirmation of recording.
D – At 10 a.m. on September 8.
Answer: The correct answer is A because that’s what the contract says. Answers B and C are wrong because nothing in the RPA requires escrow to close, or for the listing agent to confirm recording, before the buyer takes possession. Answer D is wrong because “Close of Escrow” is defined in paragraph 30D of the RPA as the date the grant deed is recorded, or September 7 in this scenario.
This question serves as a good reminder to listing agents to be careful when reviewing offers. The RPA defaults to possession at 6 p.m. on the closing date. A buyer’s insertion of “10 a.m.” instead looks harmless enough. But sellers may prefer keeping the time at 6 p.m. to account for special recordings and to help ensure that they get a confirmation of recording before the buyer moves in.
-Thank you to Randy Freed (Santa Barbara 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 September 5, 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.
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