SCR released new versions of the forms listed below on September 1, 2017. This mid year change was primarily a risk management change to the earnest money language. You can view the changes as highlighted by clicking the links below: Recently Updated Forms: SCR310: AGREEMENT/CONTRACT: TO BUY AND SELL REAL ESTATE (RESIDENTIAL) SCR311: DUE DILIGENCE… Continue Reading Recently Updated & Proposed Changes to SCR Forms
SCR forms committee does not want REALTORS® and parties bickering if a contract was accepted and delivered and received at 9:59 am or 10:00 am or 10:01 am. So, always look to the next day....do not look at a contract formed at 9 am then counting forward an hour later at 10 am. Contract language. (D) “Effective Date” - the final date upon… Continue Reading How to Start the Business Day Count?
Don't conceal. The laws and ethics do not favor concealing property defects from future purchasers. The seller agrees by signing the SCR residential listing agreement to disclose (e.g. seller disclosure, RPCDS). A seller breach of the listing agreement (non disclosure) allows brokerage to sue the seller for full commission and brokerage's attorney fees. Your ethics… Continue Reading What if Your Seller Client Directs You to Conceal a Property Defect?
Repair Procedure in SCR310 (commonly used for single family homes). SCR310 has a repair procedure in Section 8 and is useful for buyers who only want a property where the basic systems are operable. There is a Section 11 Wood Infestation Report in SCR310 that has a similar procedure for repairs for wood destroying organisms… Continue Reading Information about the SCR Residential Contract (SCR 310 and SCR 300)
Due to risks from LLR, any BIC should only disburse held good funds earnest money per these two recommendations: A disbursement agreement signed by all the buyers and all the sellers. Can self settle (split the money somehow) or use a mediator to assist with self settlement. A court order from a court of… Continue Reading How to deal with Earnest Money
The Legal Hotline is getting reports that buyer reps are not using DUE DILIGENCE correctly. This can increase the risks for the buyers rep to get sued, face ethics charges, and face license law violations. While there is no way to force a seller to respond to the repair request in DUE DILIGENCE (SCR311 due diligence addendum attached to… Continue Reading How to Use Due Diligence Correctly
LLR updated Residential Property Condition Disclosure Statement to account for license law defining "material adverse facts" which must be disclosed even if seller's refuse to disclose. Always best for listing brokerages to strongly persuade seller's to disclose on the seller disclosure. SCR listing agreements require seller disclosure. The new license law carves down the broad "material fact" which case law defined as basically… Continue Reading Notice about changes to the LLR updates the Seller Disclosure…SCR updates SCR230 (Seller Disclosure)
The SCR forms committee wanted to make it virtually impossible for parties and REALTORS® to put a deadline on a day that makes it hard to comply with contractual requirements. So, the SCR310 Business Day is defined in common terms...Monday, Tuesday, Wednesday, Thursday, and Friday. But, there are some common holidays that can fall on… Continue Reading Why is the SCR definition of Business Days unusual?
SCR391 - this addendum is a great addition to every contract! Use SCR391 to shift the burden to provide deed restrictions to the seller. Surveys are a great risk management tool and SCR391 covers survey issues and who orders/pays. Always use SCR391 for beachfront property to get the beachfront disclosures into the contract per state law. … Continue Reading Commonly Forgotten SCR Residential Addendum
Due to federal RESPA laws (max penalties: $10,000 fine and year in federal prison) and state real estate license law, it is risk to pay anything of value in exchange referrals for leads on buyers to property managers or other folks not licensed to receive referrals (e.g. relatives, friends, people asking for money). It is legal for a… Continue Reading WARNING: It is Risk to Pay Referral Fees to PMIC’s (or Unlicensed Folks)