The #1 hotline call is REPAIR PROCEDURE disputes…callers are asking if the buyer can terminate or will the buyer be in breach when terminating. Usually, the issues involve "improvements – structurally sound" or "systems – operative condition" and both are decided by judges based on expert opinions.
The #2 hotline call is EARNEST MONEY.
2016-2017, SCR legal backed a BIC who disbursed per the 2012-2017 SCR310 financing contingency and the BIC prevailed against LLR in 2017. Then the 2017 LLR SCREC Chair and another commissioner spoke at the 2017 SCR conference’s forms committee meeting and stated they would not follow this test case and would continue to pursue BICs on this issue.
So, SCR forms removed the disbursement language under pressure from LLR.
But, lawyers are not regulated by LLR.
So, hotline recommendation is to use a law firm to hold the earnest money under an escrow agreement borrowing from the old SCR310 language "Parties agree the escrow agent shall disburse the earnest money to the buyers unless the seller’s attorney delivers a summons and complaint regarding the earnest money upon the escrow agent within 30 days of the contract’s failed closing date."
EARNEST MONEY calls to the hotline were virtually zero from 2012 until 2017 with the contractual disbursement language added in 2012 after the BIC shooting and removed in 2017 under LLR pressure.
Prior to 2012 and after 2017, earnest money calls are one of the top calls to the hotline.
Now, earnest money is also a question of who breached the contract and this question is decided by judges based on both sides presenting evidence.
Posted by: Byron King on 09/02/20 (This information is only accurate as of 09/02/20. You must contact SCR for updates and changes to this information after 09/02/20 as laws and regulations may change over time. SCR 803-772-5206 or email Byron)