Contracts and Transactions
What to Do When Buyers Discover Post-Closing Issues
Everything looked great in the house. You closed. The buyers were happy. And then … they discovered a leaky pipe and a hole in the floor. The buyer did have a home inspection before closing, and the agent advised another one, which the buyer declined. But after closing, the buyers discovered the leaky pipe andRead More
Managing the Risks of Remote or Drive-Thru Real Estate Closings
Many people have been severely affected by the coronavirus through illness, job losses, and business closures. As a result, some clients, understandably, will want to cancel transactions because their circumstances have changed as a result of the pandemic. Most contracts include a ‘Force Majeure’ or ‘Acts of God’ clause which offers an out to partiesRead More
Dealing with Real Estate Clients with Dementia and Alzheimers
According to the Alzheimers Association, one in three seniors dies with Alzheimer’s or dementia. Every 65 seconds, someone in the United States develops the disease. In your real estate business, you may come across clients in various stages of these conditions. When dealing with clients with reduced mental capacity, you need to be aware ofRead More
Lessons Learned from Real Estate Contract Errors
Copy-and-paste can be a huge time saver in your real estate contract, but if you aren’t careful, it can cause more than a headache. Recently a CRES-insured broker called our ClaimPrevent® Hotline with just such a copy-and-paste challenge. She had prepared a real estate contract offer on an investment property that was listed on theRead More
Should Brokers Complete Note and Deed of Trust?
Have you ever been asked to complete a note and deed of trust? Recently a CRES-insured broker called our CRES ClaimPrevent® Hotline, because he was asked to complete a note and deed of trust for a client. The broker asked if it was proper to do so — and if the parties should sign aRead More
What You Need to Do About Post-Closing Problems
You’ve closed a transaction in which you were the selling agent for the buyer. Everything went well … until the buyer discovered leaks and drainage issues that weren’t disclosed. Leaks, mold, termites, low water pressure, septic problems … any number of things can go wrong with a house that leaves buyers with large bills andRead More
Multiple Offers Gone Wrong: How the CRES Legal Hotline Prevented Multiple Claims Against One Agent
A listing received multiple offers. The seller narrowed it down to two, and the agent sent out two counteroffers – but failed to specify which counter was back up. The only contingency was the seller’s ability to find a new home. Before the agent realized the mistake, both counters were accepted and returned within minutesRead More
Closing Issues & Managing the Risk
As a real estate agent, there’s nothing more exciting than closing on a real estate deal. But, sometimes things can go wrong — things which can delay closing or, worse, stop it from happening altogether. Many of these possible scenarios will be completely out of your control — for example, if a buyer loses his/herRead More
Are Oral Contracts Legal in Real Estate?
Sometimes it pays to review the basics: You need a written contract when selling property. CRES ClaimPrevent Hotline was recently contacted by a client who wanted to know if an oral contract to sell land in California is enforceable. One of our attorneys noted that in theory the sale of land can be accomplished:Read More
Representing Buyers of Income Property with Tenant Agreements
Buying a duplex can be appealing to clients for a number of reasons. Your buyers of multi-family homes need to know what happens to tenant agreements when property transfers to a new owner. CRES Risk Management recently heard from a client who was representing the buyer of a duplex. In this situation, one side ofRead More