Co-Author: Peter G. Sotiropoulos In Augenstein v. Coldwell Banker Real Estate LLC, decided on August 30, 2011, a federal district court held that a brokerage firm violated Section 8(b) of the Real Estate Settlement Procedures Act of 1974 (“RESPA”) by charging a client $199 plus three percent of the purchase price for sale and settlement services. … Continue Reading
Co-Author: Mike Smeenk, Esq. At various times during the Great Recession and its aftermath, different economists have estimated that approximately 25% of American households with mortgages are “upside down.” That is, for approximately 25% of American households with mortgage debt, the debt exceeds the property’s fair market value. While these percentages vary from place to … Continue Reading
Co-Author: David A. Farus, Esq. Leasing Brokers may now lien property when the owner defaults on its obligation to pay leasing commissions for commercial properties. At the closing of most real estate sales, the buyer brings new money to the table. Even in short sales, where the seller’s debt exceeds the purchase price, the amount … Continue Reading
Don’t Run the Risk of Listing Your Own Home for Sale If you are a broker, check your E & O insurance policy. You may not want to list your own property for sale if you do not have coverage. Sellers and Brokers alike are being sued by buyers on claims of alleged misrepresentations regarding … Continue Reading
Right of First Refusal— Kick Out Clauses You’ve just received an otherwise desirable offer on one of your listings. Unfortunately, it is not clear whether Buyer will be able to qualify for the loan. Your Seller is inclined to accept the offer, but wants to preserve the flexibility of replacing this Buyer with another one, … Continue Reading
Some markets have improved sufficiently that we are now starting to see competing buyers pursue garden variety seller re-sales. Sellers seek guidance on how to use the competition among buyers to maximize the sales price. Consider the following scenario. You are the listing agent and responded to First Buyer’s offer with a counterproposal allowing … Continue Reading
It is more complicated to diagnose whether some potential problems exist, than to simply address them, regardless of whether the problems exist or not. It is so easy to put on a seat belt, the risk analysis of whether it is worth wile to do so is complicated, and the consequences of not buckling up … Continue Reading
Consider the following buyer, Frank, in your sphere of influence. He saved his nest egg over a successful 25 year career. Frank accepted a buyout from his employer in another state and took early retirement to begin his encore career, starting a new small business in Colorado. He funded his venture with his own … Continue Reading
Co-Author: David A. Farus, Esq. On September 1, 2008, Colorado became one of the last states in the Country to impose a warranty from a landlord to a residential tenant that the leased premises are fit for human habitation. Whether this statute will have a significant impact in day-to-day leasing remains to be seen. Even … Continue Reading
Supervision, Office Policy and Attention to Detail You have just opened a new brokerage company and things are really happening. Agents want to “come over” and people are taking listings, showing buyers and making sales. Man, that is the way it should be. What should you be doing to make sure that it all … Continue Reading
