Reprinted from REALTOR® Magazine( www.realtor.org/realtormag) by permission of the NATIONAL ASSOCIATION OF REALTORS®. Copyright 2002. All rights reserved. Oxymoron: Words used together that have opposite meanings – jumbo shrimp, for example. A seeming oxymoron is nonrefundable earnest money, a euphemism that some sellers use for a deposit that they intend to keep whether or … Continue Reading
Owner purchased Black Acre in 1987 for $60,000 from Seller. Seller conveyed Black Acre to Owner through a general warranty deed. Seller paid for a title policy. The title company which issued Owner’s policy did not find a recorded mineral reservation against Black Acre and therefore failed to show the mineral reservation as an exception … Continue Reading
I would like to buy a property I have listed for a seller/client for my own use, or for future resale. I do not want to buy the property to facilitate the seller’s purchase of another property. I want to own the property and do not wish to continue to market it after I … Continue Reading
I 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
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
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
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
Question: I am the listing broker for a builder who put a property under contract with Buyer #1. Buyer #1 attempted to back out of the contract, claiming that his loan was not approved. My builder wants to keep Buyer #1’s earnest money and Buyer #1 objects. The builder would like to resell the property … Continue Reading
Co-Author: Richard Byron Peddie, Esq. In a previous article, we explored the ambiguity associated with the meaning of “loan approval” in loan contingencies. We examined the existing caselaw on the subject and saw that the law is underdeveloped in this area, leaving the parties unsure as to when the contingency is satisfied. We also saw how … Continue Reading
Co-Author: Richard B. Peddie, Esq. What is necessary to satisfy a requirement for “loan approval” in a financing contingency contained in a real estate contract? The answer to this question depends upon two things: (1) what constitutes loan approval under the contract; and (2) whether or not the loan approval clause, and its requirement, can be … Continue Reading
