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Get the Facts  Weekly Membership Newsletter
February 14, 2017  -  Stay Connected!
 
    

 
QUESTION: All PSA documents except Exhibit A were signed on January 31. Exhibit A was signed by the parties on February 2. For calculation of the 10 day inspection contingency, which day is mutual acceptance?



ANSWER: The boiler plate language of Form 21 answers this question. The Computation of Time provision specifies that in transactions where the Exhibit A is attached after the parties reach agreement, mutual acceptance, for the purpose of computing time periods, is the date on which the parties reached agreement and not the date on which the parties attached the legal description. In this case, mutual acceptance occurred on January 31. 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 . Please tell us your NRDS number when you e-mail the Hotline with your question.


Thank you, Corporate Sponsors!

   

 

  
Washington REALTORS® Legal Hotline Lawyer Annie Fitzsimmons is here to help walk us through the 2017 Forms Revisions. We've posted the NWMLS bulletin, sample forms, and the first couple of videos in a series we're producing to explain the forms changes [here]. You will need your NRDS ID and password to access. Stay tuned over the next several weeks as we produce more videos on the forms revisions each Friday.
 

 
 
The Importance of Understanding Photography Rights
Zillow has been ordered to pay $8.3M to VHT, Inc., a photography and image management services company, this past Friday. The lawsuit, filed in 2015, was based off of claims that Zillow used VHT images on Zillow Digs. This case is a good reminder for all real estate brokers to be aware of and understand the rights they are being granted from their photographers. Washington REALTORS® Legal Hotline Lawyer addressed this topic recently in the latest edition of RE Magazine and urges brokers to fully understand both the terms of the agreement that sends the broker's listing into the MLS (and to secondary marketers on the internet) and to also understand the rights that a broker has with any photograph. Annie Fitzsimmons writes, "Without a clear understanding of both contracts, broker cannot possibly hope to comply with copyright law."
 

 
 
Here Come 59 Million Buyers!
(Source: REALTORMag) One in four U.S. adults say they are considering buying a home this year, which extrapolates to a whopping 59 million people, according to a recent survey by Bankrate.com. Minorities are expected to be big buyers this year. More than two in five black survey respondents said they were considering buying a home. That is more than double the percentage of potential white buyers. [Read more...]
 

 
 
Take the Online Offline
Social Media Strategist Katie Lance shares some tips on how to take your relationships from just online to the offline realm in order to better and deepen relationships with your clients and colleagues, especially when our lives are ruled by our devices. [Watch the episode...]
 

 
 
Your real estate 'to do' list for the rest of the year
(Source: Inman) Maybe you are super-organized with your business and you did your new business plan in November (like you were supposed to), and by this time in February, your weekly to-do list is all planned out. [Read more...]
 

Primary Mortgage Rates Survey
(updated every Thursday)

 
Come see Annie Fitzsimmons, Michael A. Spence, Jennifer Karol, Samuel Meyler and 12 outspoken REALTORS® battle to see which REALTOR® can out-do, out-wit, out-play and become the Ultimate Survivor!  3 Clock-hour class for ALL REALTORS® - Winner to receive a big bundle of passport unlimited cards. Event date/time:  February 16th, 2017, 10:00 AM - 2:00 PM, Auburn, WA. Seating is limited so register by emailing southkingwcr@gmail.com or by calling Jessica Johnson at (253) 880-2740. [Download the Flyer]
 

 
The 2017 Washington REALTOR Business Symposium is proud to announce nationally recognized speaker Jackie Leavenworth will be spending the day with us and sharing her knowledge, energy, and passion for real estate. Jackie will present two of her most demanded classes: Negotiations: The Games People Play and It's a Price War to the Door. Lunch and parking included! [Get more info and register today.]
 

 
 
UPCOMING CLASSES
 
Why Do We Do This and Not That?
Tuesday, February 21, 2017 (12:45 PM to 4:45 PM) 4.0 CE Hours
Towne Place Suites Vancouver, Vancouver

New Forms, Hot Topics, and Other Industry Fun
Wednesday, February 22, 2017 (8:30 AM to 12:00 PM) 3.5 CE Hours
Hal Holmes Center, Ellensburg

New Forms, Hot Topics, and Other Industry Fun
Wednesday, February 22, 2017 (1:00 PM to 4:30 PM) 3.5 CE Hours
Yakima Association of Realtors, Yakima

New Forms, Hot Topics, and Other Industry Fun
Thursday, February 23, 2017 (8:30 AM to 12:00 PM) 3.5 CE Hours
Tri-City Association of Realtors, Kennewick
 
New Forms, Hot Topics, and Other Industry Fun
Thursday, February 23, 2017 (1:00 PM to 4:30 PM) 3.5 CE Hours
Walla Walla Police Department, Walla Walla
 
New Forms, Hot Topics, and Other Industry Fun
Friday, February 24, 2017 (8:30 AM to 12:00 PM) 3.5 CE Hours
Hell's Canyon Resort, Clarkston
 
New Forms, Hot Topics, and Other Industry Fun
Friday, February 24, 2017 (1:30 PM to 5:00 PM) 3.5 CE Hours
Quality Inn, Pullman
 
Real Estate Safety Matters
Wednesday, March 22, 2017 (9:00 AM to 12:00 PM) 3.5 CE Hours
Hood River Elks Club, Hood River, OR
 
Top Shelf Business Practices
Wednesday, March 22, 2017 (12:30 PM to 3:30 PM) 3.0 CE Hours
Hood River Elks Club, Hood River, OR
 

 

 
 
QUESTION from 2/16/2016 - Assuming seller wants to condition buyer's financing contingency on buyer's use of a particular lender, I would like to know proper language for how it gets written up in the contract. Also, on the flip side, I have recently worked with a couple buyers that insisted on their lender and the lender was awful! Any advice for how to insist our buyers pick from competent lenders as well?

  
ANSWER - If a seller wants to condition buyer's financing contingency on buyer's use of a "preferred lender," there is nothing wrong with that. Seller, working with listing broker, should develop as broad a list of preferred lenders as possible and include it with seller's MLS listing printout. The MLS listing can include a notation that seller will condition any buyer financing contingency on buyer obtaining financing from a lender on seller's list of "preferred lenders". The list of preferred lenders should be attached to the MLS listing. The list of preferred lenders SHOULD NOT be developed in conjunction with other brokers or other firms. Creating a list by group consensus will undoubtedly lead to antitrust allegations. Any "preferred lender" list needs to be developed between broker and seller, not between brokers. As part of the purchase agreement, buyer simply needs to agree that buyer will use one of the lenders from seller's list of preferred lenders. If buyer already knows which lender buyer will use, buyer can agree to use that specific lender. If buyer wants to keep open the option of using any of seller's "preferred lenders," then buyer would agree to that and would include a copy of seller's list as an exhibit to the purchase agreement, identifying the lenders from which buyer has agreed to select. As a buyer's broker, broker is free to share with buyer, her experiences and lessons learned from working with lenders. Broker wants buyer to understand the problems associated with loan applications to incapable lenders. Working with an incompetent lender will result in loss of time and money. There are plenty of proven lenders. Brokers should simply encourage buyers to use a lender known to be capable of fulfilling the promises made by the lender. Ultimately, it is buyer's choice as to the lender used by buyer, unless that choice is curtailed by seller's condition. If buyer is free to choose an incompetent lender and does so over broker's expression of concern, then buyer will have to absorb the difficulties that flow from buyer's choice.
 
(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. Please tell us your NRDS number when e-mail the Hotline with your question.