Legal Updates

Lost Mineral Rights Claims On The Rise in Colorado
Real estate brokers in Colorado increasingly face lawsuits filed by sellers who have unintentionally contracted away their mineral rights when they intended to only sell the surface property rights. The most common scenario is where the seller tells the listing broker about the intent to reserve the mineral rights. However, when the deed isRead More

Roofing Scam Alert
Real estate brokers, beware of a fraudulent scheme involving listed vacant properties. Here is the scenario. Acting as the property owner or an agent of the listing office, the scammer contacts roofers asking for a quote to replace a roof. The scammer explains that the roof is covered by insurance, and the roofer agrees toRead More

Now Prospective Tenants Must Also Be Informed if a Property is in a Special Flood Zone
Changes in California Law: Disclosure Requirements Flood Zones California’s legislature within the past year made the following findings and declaration: (a) In February 2017, several neighborhoods within the City of San Jose experienced severe flooding that forced the evacuation of 14,000 residents and caused significant damage to public and private property throughout the city. ARead More

“My Client’s Home Was Destroyed in the Wildfires – Now What?”
In early October 2017, a series of 250 wildfires started burning throughout Northern California, bringing terror and destruction to the region. The wildfires broke out throughout Napa, Lake, Sonoma, Mendocino, Butte, and Solano Counties. These fires included the Tubbs Fire (which grew to become the most destructive wildfire in the history of California), the AtlasRead More

2018 Swimming Pool Inspection Law – California
The California Senate Bill 442 was passed, signed by the Governor, and codified as Business and Professions Code, Section 7195, effective January 1, 2018. This Statute provides standards for new residential swimming pools and spas, or any remodeling of an existing pool or spa. The new law requires at least two of the seven drowningRead More

Dealing with Malicious Acts by Tenants – a Guide for Property Managers
It’s every property manager’s and property owner’s worst nightmare — when a tenant does malicious damage. This is why it’s important to know what the liabilities are, and what you can do to reduce your risk of a lawsuit. Not only does it allow you to protect your clients by offering sound advice, but itRead More

Disclosing and Documenting Before Closing
Document All Client Advisories about Third-Party Experts Do you advise your clients in writing to consult with third-party experts before closing? And if you do, do you document it in the client’s file? If you want to reduce your risk of a real estate lawsuit, the answers should be yes and yes. I’ve defended manyRead More

How to Ensure Offer Terms Survive the Real Estate Closing: the Doctrine of Merger
Errors and Omissions claims against real estate agents or brokers are often based on the Purchase Agreement and Sales Disclosures. Clients who feel their interests were not adequately protected often turn to filing a claim against their agent or broker. Often, claims arising from the Purchase Agreement are based on a legal concept called theRead More

Real Estate Agents: Understanding Easements and How to Minimize Liability
Easements are a non-possessory right to use land or a portion of property belonging to another person. Failing to recognize and educate clients as to the existence of any easements can curtail an otherwise routine real estate transaction and potentially lead to litigation. An easement may exist in one of two forms: affirmative easement orRead More

How to Withdraw Counteroffers to Prevent Real Estate Lawsuits
The good news is that you’ve gotten multiple offers on an open listing. The bad news, you accidentally sent out two counter-offers. What should you do? One of our clients faced that exact situation. Our client realized that this put the seller in a potential situation of being under contract to sell to two buyers,Read More