Read Get the Facts including the Legal Hotline Q & A
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Get the Facts  Weekly Membership Newsletter
February 21, 2017  -  Stay Connected!
 
    

 
QUESTION: Buyers have a Form 22B, Home Sale Contingency, and received a bump notice. They have responded that they are going to “waive” their contingency Form 22B (Sale of Buyer’s Property). The paragraph says, “Buyer understands that by waiving this contingency, Buyer waives all other contingencies in the Agreement (including inspection, financing, etc). Our PSA includes Forms 22A (clear this is being waived), Form 35 (clear this is being waived), Form 22S (Not clear on this one).
 
Questions – Do the sellers still need to perform the septic inspection and have the septic pumped if deemed necessary? Or, do they still need to do the inspection, but the sale isn’t contingent upon the report and/or status of the system? Or, are sellers relieved of all obligations identified in Form 22S?



ANSWER: By waiving the Home Sale Contingency, buyer waives all contingencies that give buyer an ongoing right to terminate the agreement. Nothing about buyer's waiver, however, relieves seller of any contractual obligations. If seller has agreed to make repairs, seller still has that obligation. If seller has agreed to make documents available for review, seller still has that obligation.
 
With respect to Form 22S, seller still has the obligation to take all actions seller agreed to take in Form 22S. Buyer simply has no right to terminate the PSA based on buyer' prior septic contingency.
 
If seller fails to perform the terms of the agreement that seller agreed to perform, then broker should advise buyer, in writing, to seek legal counsel. Buyer may have the right to terminate the agreement but it would not be based on any buyer contingency. Rather, it would be based solely on the fact that seller breached the agreement, thus relieving buyer of the obligation to perform. The reason broker must advise a buyer, in this situation, to seek legal counsel, is because buyer needs legal counsel to assist buyer in determining buyer's options in the face of seller's breach. Not every seller breach gives a buyer the right to terminate the agreement. Buyer must consider buyer's legal remedies and options and broker is not licensed nor insured to assist buyer in that consideration. 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. 


 
 
3 Serious Legal Issues Brokers Are Facing
(Source: REALTORMag) There are three hot legal issues affecting real estate companies today that broker-owners need to keep on their radar: website accessibility, copyright infringement, and cyber fraud. During the 2017 REALTOR® Broker Summit in San Diego this week, NAR General Counsel Katie Johnson summarized how brokers are at risk and what they can do about it. [Read more...]
 

 
 
Housing Affordability Measure Affirms Imbalance
Between Housing Costs and Wages
(Source: RISMedia) A new housing affordability measure, the REALTORS® Affordability Distribution Curve and Score from the National Association of REALTORS® (NAR) and realtor.com®, affirms the imbalance between housing costs and wages—and indicates inventory will continue to be constrained this spring. [Read more...]

 

 
 
5 tips for real estate agents showing homes in the winter
(Source: Inman) Being prepared in less than ideal weather conditions is of utmost importance. Here are a few helpful tips on how to prepare for such a situation. [Read more...]
 

 
 
Tips for the Spring Market
(Source: YPN Lounge, Drew Heasley) The spring market is traditionally the hottest real estate market across the country. For my area in Pennsylvania, the busiest parts of the year are early spring and then again when school lets out. As an agent, you need make sure you and your clients are prepared for these annual peaks. [Read more...]
 

Primary Mortgage Rates Survey
(updated every Thursday)

 
 

 
Online, interactive courses!  With several options to satisfy your continuing education needs, GENERATION is a full, interactive product that works on any device with a current web browser.  Spend five minutes per session, or five hours - this product tracks your total time across all your devices! Get more info & PLAY! 
 
 

 
APRIL 27TH - HILTON SEATTLE AIRPORT & CONFERENCE CENTER
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.]
 
 
 
 
 

 
MAY 24TH - SEATTLE AIPORT MARRIOTT
The 2017 Washington REALTOR Legal Symposium is back and better than ever!  This event has outgrown our original venue so we've relocated to the Marriott Hotel across from the airport.  This event gathers leading real estate attorneys in Washington to share current legal issues affecting the industry & to help our members to stay out of trouble! This year, we have; Annie Fitzsimmons, Justin Haag, Lars Leste, Doug Tingvall, Chris Osborn, Jeannie Simpson, and Mark Schedler. [Get more info and register today.]
 

 
 
UPCOMING CLASSES
 
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
  
Wow, It's HOT!  Current Legal Issues & Hotline Fun!
Friday, March 3, 2017 (8:30 AM to 4:30 PM) 7.5 CE Hours
Useless Bay Golf & Country Club, Langley
 
Current Issues in Residential WA Real Estate
Wednesday, March 15, 2017 (9:00 AM to 12:00 PM) 3.0 CE Hours
Windermere Real Estate, Puyallup

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 3/15/2016 - I am looking to grow my real estate team and as such I would like to operate and market my team independently of my current brokerage even though we will continue to hang our license and affiliate with the brokerage. I would like to create signage that says "The John Doe Group" rather than having to say "The John Doe Group at ABC Real Estate." Does this mean that I will need to file an assumed name affidavit with the state of Washington? In doing so, does that assumed name apply to my entire brokerage, or only to my group? Also, if I create an LLC, can I have my brokerage make direct deposits of my real estate commissions directly into the business account? Is there any special licensing required for this? Can these deposits be made into the business account if some members of the LLC or S-corp are not licensed RE brokers?

  
ANSWER - A broker and/or a broker's team may only advertise without reference to the firm's name IF the broker or team has an assumed name license. The assumed named license must be obtained from the Department of Licensing by broker's firm. Broker cannot, independently of broker's firm, obtain an assumed name license. The firm must obtain the assumed name license and then the firm will own the license. The team or the individual broker does not own the assumed name license. The assumed name license will expire when the firm license expires and will have to be renewed annually. So long as the firm continues to renew the assumed name license, the name could not licensed to any other firm. Broker should also confirm their firm's office policy. Many firms have an office policy requiring all brokers (and teams), licensed to the firm, to advertise in the firm's name. To advertise independently of the firm, broker would need an assumed name license and office policy that allows independent advertising. Broker compensation can be paid from firm directly into broker's LLC or other business entity only if the entire ownership of the business entity consists of licensed RE brokers and the spouses of those brokers. There can be no unlicensed owners or members of the business entity other than the spouses of licensed owners/members.
 
(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.