Contracts and Transactions
Understanding the Earnest Money Deposit in Real Property Sales
What Is Earnest Money And Its Purpose? Earnest money is cash deposited by a buyer to a seller into escrow (in states that use escrow), demonstrating the buyer’s intent to purchase an offered property. Essentially, it’s a way for a buyer to secure a contract with a seller to demonstrate they’re serious about making aRead More
What To Do When Your Client Is In Contract and Does Not Want To Close?
Buyer’s (or seller’s) remorse becomes a legal issue when the buyer or seller does not want to close after they are under contract to buy or sell. This is true for commercial, residential or vacant lot property. Documentation is critical for claim prevention. Let’s take a look at what the listing agent and the sellingRead More
Multiple Offers: How to Reduce Your Risk of a Real Estate Lawsuit
While multiple offers are certainly enviable for listing agents, they also increase the risk of a real estate lawsuit when certain steps, procedures, and laws are not followed. An agent with multiple offers on a listing should take time to strategize with the seller about options for proceeding, and review the pros and cons associatedRead More
The Significance of the Liquidated Damages Provision in the Residential Purchase Agreement
The vast majority of real estate agents and brokers are familiar with pre-printed purchase contracts for land such as the Residential Purchase Agreement and Deposit Receipt published by the California Association of Realtors Form RPA-CA Rev. 11/14 (C.A.R. ©). However, you may not be familiar with paragraph 21 B of this document entitled “Liquidated Damages”.Read More
The Pros and Cons of Binding Arbitration
Many times I have consulted with my real estate clients as to the advantages and disadvantages of binding arbitration to resolve a dispute concerning real property as opposed to resolving the dispute in a litigated case in a California court room. There are advantages and disadvantages of the binding arbitration process of the binding arbitrationRead More
Cancellation of Escrow Considerations
Invariably I have come across disputes in real estate sales where a cancellation of contract, release of deposit and cancellation of escrow on a California Association of Realtors© form CC has been sent to either the listing or selling agent for his or her client(s) to date, sign and return to the party sending theRead More
Contract Formation and Agency in the Digital Age
Most brokers and agents know that a contract for the sale of real estate generally must be in writing to be enforceable, and signed by the party against whom enforcement is sought. This is what lawyers call the “statute of frauds” requirement, and is designed to avoid, well fraud, in transactions involving real estate. ComplicatingRead More
Dual Broker/Associate Licensee Beware!
If being a real estate broker or salesperson acting in a dual agent capacity was not already risky enough, the California Court of Appeal just made it even more dicey. Real estate brokers and associate licensees know that the risk is great in acting in a dual agent capacity, but the reward most of theRead More
Solar Power Systems — a Hot Topic!
Issue – Solar Power Systems are Fixtures When we think of fixtures that are included in the sale of a property, it is likely that some Brokers and Agents have not considered the application of the modern day solar power system. Similar to a hot water heater, a furnace, or other major component, the solarRead More
Guest blog written by B. Blake Cox B. Blake Cox | www.lawsnakard.com Mr. Cox graduated from Texas Tech University in 1982 with a Bachelor of Arts Degree; and graduated from Texas Tech University School of Law in 1986 with a Doctorate of Jurisprudence. Mr. Cox’s practice centers primarily on civil litigation involving the defense of service providers suchRead More