Jon GoodmanI am a listing broker who often lists property for small builders. I understand that I might use the Real Estate Commission approved contract form for the sale of completed, or nearly completed speculation houses. But why shouldn’t I use the Commission’s Sales Contract for the sale of a home yet to be built? … Continue Reading
Pickle in the Middle or Gladiator on One Side? Brokers may sell their own listings while remaining a seller’s agent. This is a specific example of the general phenomenon that brokers may work on a transaction as an agent of one party and assist the other unrepresented party with the ministerial tasks identified in Real … Continue Reading
Question: Did I have a responsibility to ask the buyer about a home sale contingency? I listed a property as a Seller’s agent. During an open house, a buyer, who is not working with any broker, fell in love with the property. Prior to any serious discussion with the buyer, I disclosed to the … Continue Reading
QUESTION #1: If the property does not appraise for the purchase price, may the seller terminate the contract if the buyer still wishes to proceed? My seller no longer wants to sell and is looking for a way to get out of the contract. If the property does not appraise for the purchase price, may … Continue Reading
Co-Author: Patricia A. Leighton, Esq. Quit Claims & The $500K Exclusion Consider the following parent who has allowed her adult son to live in her second house for the last 2 ½ years. The parent now wants to sell the house. Can the parent quit claim the house to her son so that he can … Continue Reading
The new financing contingency in the Real Estate Commission-approved contract is §5b and reads as follows: “Loan Commitment. If Buyer is to pay all or part of the Purchase Price by obtaining a new loan as specified in §4b, this contract is conditional upon Buyer obtaining a written loan commitment including, if required, (i) … Continue Reading
I. Affirmative Obligations vs. Contingencies. Many contract issues which could be addressed by affirmative obligations could also be addressed by contingencies. The first step in writing contingencies is deciding whether you wish to create an “affirmative obligation” or a “contingency.” An affirmative obligation is a provision which requires one of the parties to do … Continue Reading
Co-Author: Brad M. Lund, Esq. Who has the responsibility for making the FHA inspection disclosure notice to buyers: listing brokers, selling brokers or lenders? What are the consequences if the buyer does not execute such a disclosure? Technically, the lenders have the obligation to make the disclosure. However, real estate brokers should monitor timely execution … Continue Reading
Co-Author: Amy E. Allison, Esq. Question: I am starting my own real estate company and will invest much of my time and money promoting my company. I have hired a graphic artist to design a logo. How can I avoid using someone else’s name? How can I protect against someone taking advantage of the goodwill I … Continue Reading
Question: The basic facts are as follows: Seller lists. Buyer 1 makes an offer. Seller makes counter-offer with an acceptance deadline. Buyer 1 counters the Seller’s offer. Buyer 1 learns that Seller has received a competing offer from a Buyer 2 and to avoid losing the property to Buyer 2 . . . Buyer … Continue Reading
