Legal FAQs

/Legal FAQs

How to deal with Earnest Money

By | July 10th, 2017|Legal FAQs|

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 [...]

How to Use Due Diligence Correctly

By | July 10th, 2017|Legal FAQs|

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 [...]

Notice about changes to the LLR updates the Seller Disclosure…SCR updates SCR230 (Seller Disclosure)

By | July 10th, 2017|Legal FAQs|

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 [...]

Why is the SCR definition of Business Days unusual?

By | July 10th, 2017|Legal FAQs|

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 [...]

Commonly Forgotten SCR Residential Addendum

By | July 10th, 2017|Legal FAQs|

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.  [...]

A warning about using Text Messaging

By | July 10th, 2017|Legal FAQs|

Based on hotline communications, licensees are often very informal and imprecise in their text messaging. Therefore, SCR and the SCR310 discourage the use of text messaging primarily by allowing electronic writing that must be timely and properly delivered and received to the Contract's agreed upon: Notice address [typically brokerage office - can use FEDEX/UPS/Courier or [...]

Advertising Ethics – Standards of Practice

By | May 10th, 2017|Legal FAQs|

Make statements about yourself, not your competition.  The public will make their own comparisons.  This is also a defense against your competitors who watch your advertising close from filing REALTOR® ethics complaints and/or real estate license law complaints. Article 12 Realtors® shall be honest and truthful in their real estate communications and shall present a [...]

Federal Legal Holidays, Deadlines, and the Residential Sales Agreement

By | April 4th, 2017|Legal FAQs|

Federal Legal Holidays, Deadlines, and the Residential Sales Agreement The SCR standard residential sales agreements set various deadlines via a business day count. To stop arguments about when a document was physically or electronically delivered and received (9:59 am or 10 am or 10:01 am), SCR310 begins the counting of 24 hour periods on the [...]