What is a Seller Carryback? How to Protect the Seller and Yourself in a Seller Carryback Transaction
Seller carryback financing is when the seller of a given property acts as a lender for a buyer on the seller’s property. The end result is that the buyer signs a promissory note to the seller, for the amount of the carryback with a set interest rate, set monthly payments, and a set time forRead 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
Creation of an “Associate Licensee” and the Duty to Investigate and Disclose
Real Estate Agent Fiduciary Duties Ruling In November 2016, California’s Supreme Court affirmed the Appellate Court’s decision in Horiike v. Coldwell Banker (2014) 225 Cal. App. 4th 427. Its significance is that where a real estate brokerage is representing the buyer and the seller in a transaction, albeit with separate real estate agents for theRead More
Legal Review: What Is a RESPA Violation?
The purpose of the Real Estate Settlement Procedures Act (RESPA) is to prevent abusive settlement charges that plagued this country’s real estate industry in the past — and led to the “Great Recession” in 2008. The key provision under RESPA is that, “No person shall give and no person shall accept any fee, kickback, orRead 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
Legal Duties of Licensed Real Estate Agents or Brokers in Residential and Commercial Transactions
Introduction – The Law and Primary Issue California Civil Code section 2079 sets forth the statutory duty of a real estate licensee in the State of California to both the buyer and the seller of a real estate transaction, whether it involves residential, commercial or vacant land. Civil Code section 2079.2 sets forth that theRead More
How to Advise Foreign Language or Visually Impaired Real Estate Clients
Advising a client who is sight impaired or who cannot read or write in the English language Over the years as a real estate attorney in litigated and risk management inquiries, I have had to deal with situations where a licensed real estate agent in the State of California is representing a client who isRead More
I’ve Had A Data Breach – Now What?
A business that maintains records that include a customer’s name along with any one of the following: signature, social security number, address, telephone number, physical description, passport number, driver’s license number, insurance policy number, education, employment, employment history, bank account number, credit card number, or any other financial, medical or health insurance information, must giveRead More
Disposal of Files
Business and Professions Code Section 10148 requires that a real estate licensee maintain his or her file for 3 years after the transaction closes or for 3 years after a listing if no transaction is consummated. Because some statutes of limitations (the time period within which a lawsuit must be filed) do not begin untilRead More