Legal Updates

Legal Alert: Commissions

RealPro, Inc. v. Smith Residual Co.; Fourth Dist. February 28, 2012 Smith Residual Co. (the Sellers) owned 46.8 acres of vacant land in Riverside County, CA. They retained MGR Services, Inc, a real estate broker, as their exclusive agent for the sale of the property. On September 21, 2005, the sellers entered into a standardRead More

LEGAL ALERT: New Case on Homeowners Association

On February 23, 2012, the Second District Court of Appeal announced its decision in Glen Oaks Estates Homeowners Association v. Re/Max Premier Properties, Inc. Factual Background The Glen Oaks Homeowners Association (HOA) filed suit against two Real Estate brokers: (1) Re/Max Premier Properties and (2) Dilbeck Realtors. The complaint alleges that the Realtors acted asRead More

2012 Changes and Additions to Real Estate Laws

Each year, new requirements and regulations are enacted in the real estate industry. Below is an overview of the items discussed at the C.A.R. legal forum held on January 20, 2012. Addition to the TDS The TDS has been revised to provide a checkbox in Section llA. This deals with Water-Conserving Plumbing Fixtures. The SellerRead More

Agent’s Provision of Visual Inspection Documentation

Concern: Some REO Sellers and their Listing Agents seem to adopt a pretty stern approach to the sale, calling the shots and trying to control the entire process. This is common, and can also be dangerous. Here are some pitfalls to avoid: “My Seller is not required to supply a Transfer Disclosure Statement. Since theyRead More

Chinese Dry Wall

Signs of Possible Chinese Drywall Presence Residence was built after 2004 Mild to strong sulphur or “rotten egg” smell in the residence Rapid corrosion and blackening of metal in air conditioning coils, plumbing piping and fixtures, wiring, and silver items Unexplained respiratory distress of occupants that ceases when they leave the residence What to DoRead More

Do you REALLY know what your real estate agents are doing?

In today’s tough market, agents are doing whatever they can to make money. How much do you really know about their actions? We are seeing a dramatic increase in claims where real estate agents are doing business that is not condoned by the broker. More and more agents are getting involved in activity outside theirRead More

Avoiding Lender Fraud

The recent cooling of the residential real estate market in most areas of the state has created a new opportunity for those inclined to defraud their lenders.  We have seen buyers making offers that exceed the listing price and then requesting a credit to be refunded back to the buyers.  The credit is usually equal to or slightlyRead More

Short Sale Deficiencies

On January 1, 2011, the California Civil Code Section 580e was enacted. This statute prohibited a First Trust Deed lender from receiving a deficiency judgment against a short sale seller of 1 to 4 residential unit properties. Through the efforts of C.A.R. on July 15th of the same year, the statute was broadened to includeRead More

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