October 11th, 2022 at 9:43 am
This Week’s Fact Pattern: Let’s say that you are the listing agent, and you have just received a BCO #1 that fails to address the fact that the seller’s prior SCO #1 had already expired.
Question: As the agent involved, should you treat this week’s Fact Pattern the exact same way as last week’s Fact Pattern? Yes or No?
Answer: The answer is “no,” generally speaking. Most buyers enter into a contract with the benefit of numerous contingencies that allow them to cancel if needed and keep their deposit. Most sellers do not. In last week’s Fact Pattern, the possibility that the seller could cancel by claiming that there’s no valid contract would be a legitimate concern for the buyer and buyer’s agent. But in this week’s Fact Pattern, the possibility that the buyer could cancel by claiming that there’s no valid contract is usually of minimal concern to the seller, because the buyer can generally cancel under the buyer’s contingencies anyway (or upon review of the seller disclosures). That said, the listing agent in this week’s Fact Pattern should nevertheless advise the seller that the SCO #1 has already expired.
-Thank You to Rinde Philippe (Santa Monica Office) for suggesting this week’s legal tip!
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