Read Get the Facts including the Legal Hotline Q & A
Get the Facts is a Membership update sent to Washington REALTOR® members and contacts each Tuesday.   Click here if you are having trouble viewing this message.
Get the Facts  Weekly Membership Newsletter
January 24, 2017  -  Stay Connected!
 
    

 
QUESTION: Form 35 says: "If Seller agrees to make the repairs proposed by the Buyer, then repairs shall be accomplished at Seller's expense in a commercially reasonable manner and in accordance with all applicable laws...." Does "in accordance with all applicable laws" mean the work must be done by a licensed contractor?



ANSWER: No, not necessarily. Both "commercially reasonable" and "in accordance with all applicable laws" could require use of a contractor, depending on the circumstances. There is certainly work, however, that can be done in a commercially reasonable manner, in accordance with all applicable laws, that does not require the use of a contractor. For example, seller agrees to pull the flower bed dirt away from the side of the house to eliminate earth to wood contact. Seller is not obligated to use a contractor for that work. However, if seller agrees to replace the electric panel, then the law would require seller to hire a licensed electrician or do the work personally. "Commercially reasonable" would require seller to hire a licensed electrician unless seller is one. The language used intentionally allows fairly broad flexibility. If buyer wants to insure, however, that seller uses a licensed, bonded and insured contractor, then buyer should use that language in creating the clear and specific work order for seller. Printable Version

The Legal Hotline Lawyer does not represent Washington REALTORS or its members. To browse through our database of past Q & A's, visit www.warealtor.org. Attorney Annie Fitzsimmons writes the Legal Hotline Question and Answer of the Week. Please submit questions to legalhotline@warealtor.org or call (800) 562-6027. Please have your NRDS number ready when you call or e-mail the Hotline with your question.

 

Thank you, Corporate Sponsors!

   

 

 
 
The Big Challenges Home Buyers Face in 2017
(Source: REALTOR Mag) What are the top challenges your home buyers face this year? A recent survey from realtor.com® reveals the following:  [Read more...]
 

 
 
FHA Price Cut Officially Halted
(Source: National Mortgage News)  A suspension "leaves the door open to implement the cut in the near future," National Association of Realtors President William Brown said Thursday, before the news was made official. NAR estimates that roughly 750,000 to 850,000 homebuyers would face higher costs and 30,000 to 40,000 new homebuyers will be left on the sidelines in 2017 without the premium reduction. "For now, we believe that the benefits of the mortgage insurance premium cut will shine through during this review period so it can be quickly put back into place," Brown said. [Read more...]
 

 
 
REALTORS® on the Hill and more!  Legislative Day was productive...
Nearly 400 REALTORS® from many communities across Washington were at the state Capitol during the annual “Legislative Day” event this past week, visiting with local legislators and weighing in on the issues that impact our communities.  [View materials and photos here...]
 

 
 
 
Ask the Expert: How Can I Provide Consumers Instant Gratification without Sacrificing Time?
(Source: RIS Media) Lead response time is a prime example of today’s real estate consumer’s need for instant gratification. Time and again, we’ve seen potential clients ask questions about a listing, and the longer it takes for an agent to respond to a consumer’s inquiry, the less likely that agent is to convert the lead into a client. In fact, according to InsideSales.com, leads contacted within the first five minutes are 100 times more likely to close. [Read more...]
 

 
 
You paid for the image... and still got sued for using it?  Washington REALTORS Legal Hotline Lawyer Annie Fitzsimmons talks about copyright law and your listing photos. The real estate industry is populated by professionals licensed, trained and experienced in putting together the most impactful and complicated transactions that most Americans will encounter in their lives. So why is it that we have so much trouble navigating the purchase, use, and ownership of photographs? [Read Annie's article here...]
 

Primary Mortgage Rates Survey
(updated every Thursday)


 
 
UPCOMING CLASSES
 
NAR Code of Ethics Webinar
Thursday, January 26, 2017
9:00 AM to 12:00 PM  
3.0 CE Hours
Location:  Live Webinar   
 
Put a S.O.C. In It
Wednesday, February 8, 2017
8:30 AM to 4:30 PM  
7.5 CE Hours
Location:  Tacoma  

 
Why Do We Do This & Not That?
Tuesday, February 21, 2017
12:45 PM to 4:45 PM  
4.0 CE Hours
Location:  Vancouver   
 
Disclosure Requirements in RE Transactions
Thursday, March 9, 2017
8:30 AM to 5:00 PM  
7.5 CE Hours
Location:  Kennewick  
 

 
 
QUESTION from 1/22/2016 - Buyer has a Form 22B Home Sale Contingency and a Form 22A Financing Contingency for a VA loan. Seller sent buyer a bump notice and in response, buyer waived the Form 22B, Home Sale Contingency. Buyer has not yet sold buyer's home. In an effort to close the purchase of seller's home without having sold buyer's home, buyer switched loan types to a Conventional loan. Must buyer obtain seller's permission prior to switching loan types?

  
ANSWER -  No. If buyer still had a Financing Contingency, buyer would have to obtain seller's permission prior to switching loan types in order to preserve the benefit of the Financing Contingency. However, when buyer waived the Form 22B Home Sale Contingency, buyer also, automatically, waived every additional contingency benefitting buyer. Buyer has already waived the Financing Contingency. Thus, there is no requirement or incentive for buyer to seek or obtain seller's permission prior to switching loan types. At this point, buyer must do any and everything buyer can do to close the transaction. Buyer's contractual obligation, following waiver of the Home Sale Contingency, is to close the transaction thirty days later. If buyer fails to timely close the transaction, there are no remaining contingencies protecting buyer's failure.
 
(You will need your NRDS# & password to access the Legal Hotline)
 
The Legal Hotline Lawyer does not represent Washington REALTORS or its members. To browse through our database of past Q & A's, visit www.warealtor.org. Attorney Annie Fitzsimmons writes the Legal Hotline Question and Answer of the Week. Please submit questions to legalhotline@warealtor.org or call (800) 562-6027. Please have your NRDS number ready when you call or e-mail the Hotline with your question.