A contract
a voluntary agreement between legally competent parties to perform or refrain from performing some legal act. A contract is what happens once the offer is signed, and this fact is communicated back to the person who made the offer (offeror) - this must ha
An offer .
Real estate contracts must be in writing as set forth in the statute of frauds to be enforceable. The state of frauds mandates that (1) All contracts for the sale of real property must be in writing to be enforceable; AND (2) All leases for mor
is a promise by one party to act or perform in a specified manner provided the other party acts or performs in the manner requested.
Until the buyers and sellers have both signed the papers, it is merely an offer.
Remember that an offer may be withdrawn p
The Exclusive Authorization and Right to Sell. Prior to signing the listing agreement, the seller should be given the agency disclosure form.
is a listing for sale of one or more specifically described parcels of real property. It does not authorize the broker to sign transaction documents for the seller.
Under the California Business and Professions Code Section 10147.5, it is required in the sale of residential property of not more than four units, including a mobile home, that the listing (or other document that initially establishes the broker's right
Under a listing's "safety clause," there will be a period of time set forth for after the expiration of the listing, during which the broker will be entitled to compensation if the owner personally sells to someone who physically entered and was shown the
MLS and the Broker's Authority
Remember that a listing agreement authorizes the broker to:
Place a "for sale" sign on the property;
Place the property in a multiple listing service;
Cooperate with subagents or buyer's agents; and
Accept (on the seller's b
A multiple listing service, or MLS, is a listing service that is usually operated by a group of brokers affiliated with a real estate. Keep in mind that the broker MUST have written permission from the seller before he can submit the property to the MLS.
Remember the following NET LISTING regulations under the California Real Estate Law:
A net listing may be taken on EITHER an "open, exclusive agency" form or an "exclusive authorization and right-to-sell" form.
On a net listing, the broker MUST notify the seller of the amount of the commission the broker is earning BEFORE the seller agrees to sign the purchase contract with the buyer.
If this fact is NOT disclosed, the broker's license could end up being revoked
California Real Estate Purchase Agreement
In California, the Real Estate Purchase Agreement is most commonly referred to as the "deposit receipt."
Offer: The prospective buyer stipulates the price AND terms of the offer, which are put on the purchase cont
This contract between the buyer and seller outlines the terms for the purchase of real property, and acts as a receipt for the buyer's deposit toward the purchase of the property. The purchase agreement sets forth all the details regarding the broker's co
California Residential Purchase Agreement and Joint Escrow Instructions:
Keep in mind that acceptance of the property's condition is a contract provision, which is subject to inspections (to be conducted at buyer's expense). The buyer must EITHER communic
Must include specific, fixed times for the delivery of disclosures and the removal of contingencies;
Must allow the buyer to cancel, within a specific time, without first asking the seller to make repairs;
The removal of contingencies must be WRITTEN;
The
Required Disclosures
Agency Relationship Disclosure: As we discussed earlier in this course, the Disclosure Regarding Real Estate Agency Relationships form states that both the listing broker and the selling broker provide written declaration of which par
Under Civil Code Section 1102, the following "Disclosures upon the sale of real property" are set forth:
Mold Disclosure: If the seller is aware of mold on the property, this should be indicated on the Transfer Disclosure Statement.
Illegal Controlled Sub
More Required Disclosures in California
Many of the following disclosures are required in residential real estate transactions, to protect consumers of entering into an agreement on a property with "hidden" defects.
These disclosures are as follows:
Disclosure of Military Ordinance Location: Certain areas that were used for military training and which may contain live ammunition, have been identified by federal and state agencies. A seller of residential property loc
Disclosure of Environmental Hazards
Lead-Based Paint
Lead exposure is VERY harmful, especially to pregnant women, their unborn babies, and children. Lead can cause damage to the brain, kidneys, nervous system, and blood.
Lead-based paint disclosure is nec
Residential Environmental and Earthquake Hazards Disclosure: The seller and agent provide the buyer with the Seismic Safety Commission's booklet: Homeowner's Guide to Earthquake Safety. Once the buyer receives a copy of this booklet, then neither the sell
Radon
The California Department of Health Service's (DHS) Radon Program goals are to educate and increase the public awareness of the risks of radon in indoor air. California law requires professional providers of radon services to be certified. It is str
Radon is an odorless, tasteless, colorless RADIOACTIVE gas produced by the natural decay of radioactive substances. Radon readings can vary from house to house. You should NEVER assume or let your customer assume that just because the house down the stree
Other environmental issues include the following:
Licensees should remember NOT to take a stand on controversial health issues. Remember, your job is simply to refer your customers to the experts in a given field.
Carbon monoxide is a by-product of fuel combustion, and is colorless and odorless. Exposure to carbon monoxide causes severe sickness, and can even result in death.
Electromagnetic fields are caused by the movement of electrical currents, and have been th
Carbon Monoxide Detector
On May 7, 2010 Senate Bill 183 was signed into law requiring the placement of carbon monoxide detectors in all California dwelling units. SB 183 also requires that the presence or absence of those devices be disclosed when residen
After July 1, 2011 all existing single family dwelling units must have carbon monoxide detectors installed consistent with either new construction standards or approved installation instructions. The devices may be plug-in, hardwired with a battery backup
Methamphetamine
Under this legislation, until that property owner receives a notice from his local health officer stating that the related property "requires no further action," this property owner must notify the prospective buyer in writing of the order
Legislation requires local health officers to make an assessment of a property after receiving notification from a law enforcement agency of potential contamination or of known or suspected contamination by a methamphetamine laboratory activity. Within 48