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Get the Facts  Weekly Membership Newsletter
April 18, 2017  -  Stay Connected!
 
    

 
QUESTION:  Buyer's lender's appraisal was low and buyer gave seller notice by marking the first check box on Form 22AN and delivering 22AN, along with a copy of the appraisal, to seller. Seller marked the second check box in seller's response section and agreed to lower the purchase price to the appraisal value. Both sellers signed. Is buyer required to take any further action with respect to Form 22AN?



ANSWER: There are no further marks that buyer needs to make on Form 22AN and buyer does not need to sign Form 22AN again. Form 22A, lines 80-82, control what happens next. With seller's agreement to lower the price to the appraised value, buyer and seller have both agreed to the new purchase price of the property. Buyer is now required to obtain lender's consent to the price reduction. Assuming buyer's lender consents to the reduced price and funds the loan, buyer and seller must proceed to closing. If buyer's lender does not consent to the reduced purchase price, and the transaction does not close as a result, then buyer is excused from performance of the purchase agreement based on buyer's financing contingency.
 

 

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 Real Estate Commission Opportunity
Washington Governor Jay Inslee will be appointing a new member to the Washington Real Estate Commission later this summer when Commissioner George Pilant of Tacoma concludes his twelve years on the Commission...[Read more...]
 

 
 
We Have Fair Housing Posters!
Washington REALTORS® has a limited quantity of printed 18" x 22" NAR 2017 Fair Housing posters left over from our Spring Business Conference. If you'd like one for your office, please email Cara McNeil and we'll mail one out to you. Quantities are limited and available on a first-come, first-serve basis. The digital version can be accessed here.
 

 
 
NAR Committee Application Process is Open!
The NAR Committee Application Process is open! Are you interested in getting involved at NAR? Now is the time! Find an area to serve that you are passionate about and apply today. Follow the link to update your member profile and apply to serve on a committee. [Read more...]
 

 
 
CLIENT HANDOUT
Homeowner's Guide to Landslides
The Washington Geological Survey and Oregon Department of Geology and Mineral Industries and put together this client handout for your use. "Landslides are one of the most common and devastating natural hazards in the Pacific Northwest. The damage they cause is almost never covered by insurance... [Read more...]
 

Primary Mortgage Rates Survey
(updated every Thursday)

 
 
UPCOMING CLASSES
Date Class Location CE  
20-Apr
Train the Trainer
Vancouver 15 More info...
26-Apr Current Trends in WA Residential RE (CORE) Walla Walla 3.5 More info...
26-Apr NAR Code of Ethics - 3 Walla Walla 3 More info...
27-Apr 2017 RE Business Symposium Seattle 7.5 More info...
27-Apr Disclosure Requirements in RE Transactions Yakima 7.5 More info...
17-May Into the Breach Dalles, OR 4 More info...
17-May CORE Dalles, OR 3 More info...
22-May Statewide Forms - Full Day Vancouver 7.5 More info...
24-May 2017 Legal Symposium Seattle 7.5 More info...

 
 
QUESTION from 4/18/2016 - I was told by another Broker that state law requires listing agencies to share commission with cooperating selling agencies at 50% of the commission in the listing agency agreement. For example: a listing agency that signs a listing agreement having a 6% commission must offer 3% to selling agencies; they cannot offer discounted commission such as 3/1.5%. Is this the case? If so, which rcw state this?


  
ANSWER - There is no Washington statute to that effect. Washington law does not address this issue head on. The Agency Law, however, says that a broker may take no action that is adverse or detrimental to a seller's interest in a transaction. (RCW 18.86.040) With respect to the issue at hand, most conclude that this duty imposes on a listing broker the obligation to secure seller's consent to sharing the commission unequally with a buyer's broker. Under the theory that a property will sell faster if the buyer's broker is well compensated, it could be construed to be detrimental to a seller's interest for a listing firm to retain more of the commission than is shared with the selling firm. For that reason, if a listing broker intends to retain more than 50% of the total commission paid by the seller, listing broker should first obtain seller's consent. ' This is why the statewide listing agreement includes two sets of blanks in the "Commission" paragraph (paragraph 4). The first set of blanks allows seller and the listing firm to agree to the total commission that seller will pay, either as a percentage of the sale price or as a flat fee. The second set of blanks allows seller and listing firm to agree as to the portion of that commission that listing firm will share with a cooperating (selling) firm, again, as a percentage of sale or as a flat fee. Said differently, proper completion of the blanks in the statewide listing agreement forces the discussion between listing broker and seller as to the amount of commission that will be shared with a selling firm and necessarily obtains seller's consent to an equal or unequal sharing.
 
(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.