Jon GoodmanI have an Exclusive Right-to-Buy (Buyer Agency) agreement with my buyers. Over the last three months, I have shown them approximately 30 homes. My clients now wish to make an offer on an unlisted property which is for sale by its owner. My buyers do not want to pay me my commission; they want … Continue Reading
I am the listing broker for a transaction set to close tomorrow. My seller and I have just learned that the buyer’s lender will not fund tomorrow. The buyer needs a three-day extension. All of the contingency deadlines in the contract have passed so that there is no longer any contingency excusing the buyer from … Continue Reading
Co-Author: Amanda S.P. Howe, Esq. Question: I am the only broker involved in a transaction. Our company agency policy says that I become a transaction-broker. My listing agreement with the seller says I become a transaction-broker. My Exclusive Right-to-Buy Agreement with the buyer says I become a transaction-broker. If I make a mistake and check the … Continue Reading
Question #1: My company does not permit cold calling. Do I still need to have a written policy addressing the Do Not Call regulations? Answer: Not if you are a one person company. If you have licensees working under you, they may violate your prohibition. Employing brokers need a written policy to create a … Continue Reading
I am working on a transaction on behalf of the seller. The buyer would like to agree to a letter of intent. What are the legal ramifications of such a letter? While letters of intent can be a constructive step towards reaching a contract, they have pitfalls, especially for sellers and landlords. Parties frequently … Continue Reading
Question: I am starting a real estate company with two other partners. We are leasing office space. The landlord has requested personal guarantees from each of the three partners. Is there a way for me to guarantee one-third of the obligations under the lease, without being personally liable for the entire obligation? Response: A … Continue Reading
For foreclosures filed after January 1, 2008, Colorado law no longer provides for an owner’s redemption period. (See Colorado Foreclosure Revolution (Part I). This article explains short pay-off transactions and the ramifications of the loss of owner’s redemption period.) A “short pay-off” or “short sale” is a transaction in which a lender agrees to accept … Continue Reading
Question: How can a buyer purchase a property and remain anonymous? Response: Contracts must identify a buyer against whom the contract can be enforced. Yet sometimes buyers seek to remain anonymous. For example, Joe Developer wants to assemble contiguous lots in downtown Denver on which to build a new skyscraper. Mary seeks to buy … Continue Reading
Question 1: I am the listing broker. The offer from the buyer, counter from the seller, and acceptance of the counter from the buyer was all done by fax. I received a faxed copy of the earnest money check from the buyer with the initial offer. The buyer accepted and signed the counterproposal five … Continue Reading
I am listing a property and my Seller has entered into a contract with “Buyer 1.” We also received an offer from a second competing buyer, “Buyer 2.” We countered Buyer 2’s offer with a backup contingency. The closing date on Contract 1 is approaching and Buyer 1 has asked for an extension. If … Continue Reading
