On the Second Saturday of each month, we have a class for all levels of agents focussing on risk management and other legal issues. This month:
- You represent a buyer who wants to write an offer on a particular property. You did have them sign a Disclosed Limited Agency Agreement when you first started working with them. Then you get contacted by another buyer who wants to write an offer on the same property. You’re going to have them sign a DLAA too, but do you need to tell these buyers about each other?
⏹ Yes, because it’s DISCLOSED limited agency.
⏹ No, because you’re supposed to treat the activities of each client as confidential. That’s what the DLAA says.
⏹ Let’s talk about the conversation you documented with each buyer when they signed the DLAA.
- You represent a buyer who’s been put into backup position on a property. Since getting moved to first position is pretty iffy, they’ve continued to look at other properties.They’ve found one they want to write an offer on, but they don’t want to back out of the first offer until their second offer is accepted and they’ve had an inspection. Can they do this?
⏹ No, because that would not be bargaining in good faith with either seller.
⏹ Yes, so long as the second offer contains no undisclosed contingencies—the plan needs to be disclosed to the sellers.
⏹ What if the first property is not subject to the Property Disclosure law? Might your client end up obligated on two purchases with the intent and ability to close only one? What could have been done when your client agreed to be put in backup position to protect them?
- Speaking of the Seller’s Property Disclosure form, if a seller provides the form, but not all questions were answered, does the revocation period not begin until the buyer gets an answer to every question?
⏹ Yes, because the SPD must be “completed” by the seller which means answering every question.
⏹ No, the seller just has to hand over the form. How they “complete” it is up to them.
- What if every question was answered, but there’s an important update to one of the questions—does that restart the revocation period?
FREE and earns two hours toward your license renewal. Taught by Oregon First’s president, Mickey J. Lindsay.