Curtis Bullock- June 23, 2020
SL Realtors® Legal Tip – I started a short list of some the legal issues I’ve seen over the last several years and thought I would post them here. Feel free to add to the list in the comments.
In no particular order, here is the list:
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- Wrong signatures on the REPC. Invalid contract.
- Fence needs to be moved.
- Sellers removed the refrigerator when it should have been left behind.
- Solar panel lease wasn’t transferred to buyer properly causing a legal dispute.
- Multiple addenda back and forth with incorrect numbering causing confusion.
- Missing signatures.
- Accepting an offer or counteroffer after Acceptance deadline expires. Causing a dispute.
- Earnest money check not delivered and deposited in time.
- EM held at a Title Co. but the REPC not amended to reflect that.
- House is smaller sq footage than represented.
- Canceling the REPC incorrectly (i.e., not in time, or not in writing). Causing an earnest money dispute.
- Sprinkler system isn’t working properly.
- Roof leaks.
- Foundation leaks.
- Furnace needs replacement.
- Carpet stains weren’t visible.
- Carpet odors can’t be eliminated.
- Earnest money check bounced.
- Buyer enters home without permission causing major dispute.
- Remodel doesn’t meet code.
- Mother in law apartment is illegal.
- No legal access to the lot. Implied easement issue.
- Husband or wife didn’t sign the REPC.
- CC&R’s not given to buyer causing problems.
- Seller disclosure form not delivered to buyer by the deadline. Causing lawsuit.
- Buyer not reviewing the Commitment for Title Insurance.
- Seller not providing Buyer Agent with Commitment for Title insurance by the deadline.
- Double contract. Loan fraud.
- Not using the Limited Agency Consent Form when needed.
- Failing to have the Buyer sign the Buyer Broker Agreement.
- Buyer’s receive the key prior to recording, funding doesn’t occur, dispute arises.
- Buyer moving from out of state on friday to Settle at title company, doesn’t fund until Tuesday (Monday is a holiday) and becomes upset.
- Confusion on how the Time Clause Addendum works. Causing a disagreement.
- Lease agreements not provided to buyer before seller disclosure deadline.
- Seller misunderstanding what “as-is” condition means.
- Low appraisal. Buyer sends notice of cancellation but forgets to include the appraisal.
- Multiple offers. Seller puts the property under contract with two buyers at the same time. Dispute arises.
- Counter offer is not withdrawn before accepting another offer. Problem arises.
- 10 different addenda included with the REPC. Confusion as to what has been agreed upon.
- Subject to Sale contingency not happening causing a domino effect resulting in two cancelled contracts.
- Missing initials on one page of the REPC causing a dispute.
- Seller repairs not completed.
- Not delivering a document by the deadline. Dispute arises.
- Mold in the home detected.
- $10,000 earnest money never collected. Major dispute arises.
- Money wired and lost due to wire fraud.
- Mechanics lien filed on home that was “recently remodeled.”
- Sloppy language in an addendum causing a dispute.
- Air conditioner doesn’t work.
- Conflict between what is on the MLS and what is in the REPC.
- Procuring cause dispute.
- Multiple offers disclosed without seller approval, prospective buyers back out.
- Seller decides not to sell a week before settlement. Seller default. Lawsuit arises.
- Buyer backing out after deadlines expires. Buyer default. Lawsuit arises.
- Dispute over who pays for the HOA transfer fee.
- Dispute over who pays for the HOA special assessment.
- After Settlement but prior to Funding & Recording, house is vandalized.
- Missing dates on the REPC.
- Can’t get the HOA docs.
- Language on the REPC crossed out causing ambiguity.
- Sections of the REPC left blank causing ambiguity.
- The wrong address listed on the REPC.
- Two addendum number 4 – causing ambiguity and dispute.
- Seller failing to disclose major structural problem with the home.
- Fair Housing issue created after buyer submits letter with offer.
- “TBD” filled in on the REPC in too many places causing uncertainty.
- Poorly filled out forms and contracts causing problems.
- Representing multiple buyers at the same time on the same property causing a conflict.
- Angry tenant when showing a property.
- Seller didn’t accurately fill out the seller disclosure form.
- Checking “Acceptance” on page 6 of the REPC, then checking “Counter” on Addendum #1 that was also included in the offer.
Who said selling real estate is easy? Real estate transactions are more technical and more complicated than I have ever seen and they require a great deal of expertise to get the job done.
Hiring an expert Realtor® is the best decision you will ever make to protect your investment.