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.
 
Weekly Membership Newsletter
July 10, 2018 • Stay Connected!
         

QUESTION:  I need explanation of the Form 90K (the notice form associated with Form 22B, the Buyer's Home Sale Contingency). My listing sold, with a home sale contingency (Form 22B) and a Form 21 that showed a close date of July 11. The buyer’s agent ended up sending me the 90K saying that the contingency was satisfied, however she didn’t mirror our close date of July 11th. Rather, she put a close date of June 21 on the buyers sale. On the 22B, paragraph #5 it states: “The sale of the Property shall close 3 days after the closing of the sale of Buyer’s Property”. Does the seller have no say in the actual closing date, considering that our initial close date was July 11? On the 90K, in the first checked box at the end of the paragraph, it states “or as otherwise consented to by seller". Please explain what that is referring to?



ANSWER:  When seller signed the boiler plate language of Form 22B as part of seller's agreement to sell the property to buyer, seller had seller's "say" at that point. Seller agreed to close the sale of seller's property three days after the closing of the sale of buyer's property. It is for this reason that buyer's sale of buyer's property is restricted (on Form 22B) to a closing date of not less than 30 days and not more than 60 days, without seller's consent. That is the "seller's consent" referenced in the first check box paragraph of Form 90K.
 
In a more typical market than the aggressive seller market we are experiencing, it can be anticipated that buyer's home sale will take a bit longer and closing date expectations will more closely align. In today's market, however, the buyer's property is often gobbled up by anxious buyers just as quickly as seller's property was. Thus, the closing date provision of Form 22B is having a serious impact on sales that was never a typical experience in home sale contingency transactions previously.
 
The fact is, as soon as a Form 22B is included in a PSA, the closing date on the face of Form 21 has no further meaning or impact. It becomes wholly irrelevant. The closing date provision of Form 22B controls the closing date if buyer's property sells and it also controls the closing date if buyer's property fails to sell but buyer chooses to waive the home sale contingency. With that boiler plate language, there is nothing left of the closing date provision on the face of Form 21.
 
Sellers must be advised of the reality of this Form 22B provision at the time they are entering the PSA with buyer. If seller cannot tolerate the closing date that may be created by a quick sale of buyer's property, then listing broker is going to have to write (freehand, without the use of boiler plate language) a provision that will overcome the Form 22B closing date paragraph and establish a "not sooner than" closing date provision.

 

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!

  VHT Studios


  
 
Fair Housing Resources
Washington REALTORS® continues to celebrate the 50th Anniversary of the Fair Housing Act. We've compiled links to articles, resources, the latest poster, our Legal Hotline Fair Housing video series, and more on our website in one place for ease of access...  
More →
  
  
  
Millennial Buyers Face a Tough Housing Market
(Source: RIS Media) “Contrary to popular opinion, millennials are not buying avocado toast instead of saving for a down payment; they’re paying their student debt,” Lautz says. “Somebody with $41,000 in student debt is going to be buying something far away with a long commute..."
 
More →
  
  
  
Why Buying a Home Is Becoming More Urgent
(Source: REALTOR Magazine) If your clients are wavering on whether to buy a home, there are several reasons they may want to get more serious about their real estate search, according to MagnifyMoney, a personal finance website. Most importantly, mortgage rates remain historically low—but that isn’t expected to last.
 
More →
  
  
  
 
What You Need to Know About Cold-Calling
(Source: NAR) Calls made by REALTORS® to potential home buyers and sellers are subject to both the FTC and FCC telemarketing regulations. As a result, REALTORS® who make cold calls to consumers with whom they have not done business in the past must comply with all of the Do-Not-Call (DNC) rules... 
More →
  
  
  
Instagram Influencer Marketing
(Source: Joy Bender - YPN Lounge) "With 1 billion Instagram users, you’re missing out if you’re not using Instagram influencer marketing as part of your luxury property sales strategy. To help other real estate professionals figure out how to market on Instagram, I’ve created a two-part blog series. This post outlines what social media influencer marketing is and how can be advantageous to your business."
 
More →
  
  
 
Primary Mortgage Rates Survey
(updated every Thursday)  Source:  Freddie Mac
 
 July 5, 2018       30-yr FRM  15-Yr FRM  5/1-Yr ARM
 Average Rates  4.55%  4.04%  3.87%
 Fees & Points  0.5
 0.5
 0.3
 Margin  N/A  N/A  2.77



 July 5, 2018       30-yr FRM  15-Yr FRM  5/1-Yr ARM
 Average Rates  4.52%  3.99%  3.74%
 Fees & Points  0.5
 0.4
 0.3
 Margin  N/A  N/A  2.77



 June 21, 2018       30-yr FRM  15-Yr FRM  5/1-Yr ARM
 Average Rates  4.57%  4.04%  3.83%
 Fees & Points  0.5
 0.4
 0.3
 Margin  N/A  N/A  2.77



 June 14, 2018       30-yr FRM  15-Yr FRM  5/1-Yr ARM
 Average Rates  4.62%  4.07%  3.83%
 Fees & Points  0.4
 0.4
 0.3
 Margin  N/A  N/A  2.77



 June 7, 2018       30-yr FRM  15-Yr FRM  5/1-Yr ARM
 Average Rates  4.54%  4.01%  3.74%
 Fees & Points  0.5
 0.4
 0.4
 Margin  N/A  N/A  2.77



 
 UPCOMING CLASSES
Date Class Location CE  
26-JULY  NAR Code of Ethics Kennewick 3.0 More info...
16-AUG  The Hotline Vs. The Bottom Line Spokane 7.5 More info...
16-AUG  NAR Code of Ethics Webinar Live Webinar 3.0 More info...
23-AUG  CORE & More Longview 7.5 More info...
29-AUG  To Disclose or Not to Disclose Yakima 4.0 More info...
29-AUG  Don't Get Whacked by the WACs Yakima 3.5 More info...
29-AUG  NAR Code of Ethics Bellingham 3.0 More info...
30-AUG  The Hotline Vs. The Bottom Line Walla Walla 7.5 More info...
         

More Classes →


  
COE WEBINARS ARE BACK BY DEMAND
Washington REALTORS® will host COE Webinars starting in August to assist members with completing the mandatory training. Don't wait until the last minute, though! These webinars are capped and they fill up fast...
 
THURSDAY, AUGUST 16TH REGISTER
THURSDAY, SEPTEMBER 6TH  REGISTER 
THURSDAY, SEPTEMBER 20TH REGISTER
THURSDAY, OCTOBER 18TH REGISTER
THURSDAY, OCTOBER 25TH  REGISTER 
THURSDAY, NOVEMBER 29TH  REGISTER
WEDNESDAY, DECEMBER 5TH REGISTER
THURSDAY, DECEMBER 13TH  REGISTER 
THURSDAY, DECEMBER 20TH  REGISTER