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May 29, 2018 • Stay Connected!
         

QUESTION:  So many agents do not include a proper Exhibit A with their listings, and instead use an old deed with initials. Is this acceptable? Also, if only one party initials the Ex A, or none do, is this acceptable?



ANSWER:   Neither of these questions can be answered with certainty, in the absence of surrounding facts. It is easy to imagine a scenario where any of the bad practices described in the question could lead to a sale fail with a corresponding claim of negligence against a broker. If both parties are committed to the closing of the transaction from mutual acceptance through closing, then the bad practices described in the question will not matter because if there are any problems, the parties will easily and happily agree to fix the problems and press on.
 
The import of the question asked only comes into play in scenarios where one party wants out of the transaction. Then, the question is ... will the Ex. A, as included, constitute a deficiency in the agreement, rendering the PSA unenforceable? That is the only question that matters and since the answer to that question will be "yes" if the Exhibit A is incompetent, the industry has created best practice protocols around this issue that may not be fully appreciated by any broker until the broker has had to explain to his/her client why the agreement that broker drafted is actually unenforceable, allowing the other party to escape without consequence.
 
Best practices demand that the Exhibit A be the Ex. A prepared by a title company and attached to a preliminary commitment for title. To accomplish this, listing broker MUST order the preliminary commitment for title as soon as the listing is taken and attach the Ex. A as an attached document to the MLS listing as soon as the Ex. A is available. Will the use of an old warranty deed cause a problem? It could cause a problem if it is no longer an accurate reflection of the legal description of the property. Legal descriptions can change over time, as easements are granted or revoked, as quiet title actions unfold, as boundaries are modified, etc. As a result, the preliminary commitment Ex. A is the only reliable legal description to use. If an old warranty deed is used by parties until a preliminary commitment is available, then the old deed should be replaced with a title company, preliminary commitment Ex. A as soon as it is available.
 
As for initialing, best practices demand that both parties date and initial attachment of the Ex. A to avoid all arguments later about whether a party knew that Ex. A was attached and/or what Ex. A says. Disagreements regarding the enforceability of the PSA are possible if a party can argue that the Exhibit A was not attached when the party signed the PSA or that a different legal was attached or some other argument along those lines. All of those arguments are quieted if the correct Ex. A was initialed and dated by both parties at the time of mutual acceptance.

 

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.


 

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Primary Mortgage Rates Survey
(updated every Thursday)  Source:  Freddie Mac
 
 May 24, 2018       30-yr FRM  15-Yr FRM  5/1-Yr ARM
 Average Rates  4.66%  4.15%  3.87%
 Fees & Points  0.4
 0.4
 0.3
 Margin  N/A  N/A  2.77



 May 17, 2018       30-yr FRM  15-Yr FRM  5/1-Yr ARM
 Average Rates  4.61%  4.08%  3.82%
 Fees & Points  0.4
 0.4
 0.3
 Margin  N/A  N/A  2.77



 May 10, 2018       30-yr FRM  15-Yr FRM  5/1-Yr ARM
 Average Rates  4.55%  4.01%  3.77%
 Fees & Points  0.5
 0.4
 0.3
 Margin  N/A  N/A  2.76



 May 03, 2018       30-yr FRM  15-Yr FRM  5/1-Yr ARM
 Average Rates  4.55%  4.03%  3.69%
 Fees & Points  0.5
 0.4
 0.3
 Margin  N/A  N/A  2.76



 April 26, 2018       30-yr FRM  15-Yr FRM  5/1-Yr ARM
 Average Rates  4.58%  4.02%  3.74%
 Fees & Points  0.5
 0.4
 0.3
 Margin  N/A  N/A  2.76


 
 UPCOMING CLASSES
Date Class Location CE  
29-MAY To Disclose or Not to Disclose Wenatchee3.5More info...
29-MAY Best of the Legal HotlineWenatchee4.0More info...
30-MAY CORE & MoreKennewick7.5More info...
06-JUN Water Rights & Water Supply IssuesOmak3.5More info...
06-JUN Water Rights & Water Supply IssuesWenatchee3.5More info...
13-JUN Code of Ethics in Real LifeChelan3.0More info...
13-JUNCode of Ethics in Real LifeE.Wenatchee3.0More info...
21-JUNThe Hotline Vs. The Bottom LineShelton3.5More info...
21-JUN To Disclose or Not to DiscloseShelton4.0More info...
26-JUN NAR Code of EthicsBellingham3.0More info...
27-JUN NAR Code of EthicsOlympia3.0More info...
29-JUN NAR Code of EthicsPuyallup3.0More info...
     


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Expires on: 11:59PM PST 05/31/2018 
Promo Code: RELAX  Expires on: 11:59PM PST 05/31/2018 Discount amount: 27%  Restrictions: Cannot be combined with any other offer. Can use as entire cart discount or individual products. Unlimited use until expiration date. Does not apply to Ethics Adventure products.