Archive for year: 2021
How soon or late can a notice to perform be sent?
A common question that I get asked is when can a seller send a notice to perform to a buyer. if this usually comes up when a buyer’s agent receives a notice to perform from the listing agent prior to the expiration of a contingency period. Contained inside the residential purchase agreement is verbage that basically says a seller can send a notice to perform to a buyer prior to the expiration of the contingency, but no more than two days prior to the expiration. This means that if a buyer does not remove their contingencies in riding on the day of the expiration then the seller can cancel the transaction the following day. This usually happens in situations where the seller is eager to end the transaction, likely because there is a higher backup offer oh, so the seller puts pressure on the buyer to perform as soon as possible. the alternative is when the seller waits for the expiration of the contingency date to arrive, and then sends a notice to perform, which means the buyer has two additional days to remove their contingency in which the seller must wait. After that, the seller can then cancel after waiting the 2 days.
What happens if a buyer does not close escrow on time?
Sometimes I see real estate agents send a notice to perform if the buyer isn’t closing on time. For example, let’s say you’re the listing agent and the date of closing has arrived, but the buyer isn’t ready. Well, occasionally I see a notice to perform sent from the listing agent to the buyer’s agent asking the buyer to close. However, this is not the correct real estate form for this scenario. The correct form is actually a demand to close. similar to a notice to perform, a demand to close has a waiting period. That waiting.. Is 3 days as opposed to the two days of a notice to perform. This means that if a listing agent Waits until the closing date to send a demand to close, then the seller has to wait three more days after the close of escrow date in order to cancel. If there is any doubt that the buyer may not close on time, I highly recommend the seller send a demand to close to the buyer 3 days prior to the close of escrow. Again, like the notice to perform, the notice or demand can be sent prior to the expiration or closing date. However, it’s important to remember that these notices cannot be sent earlier than 2 days for a notice to perform and 3 days for demand to close, that is the earliest. The two and three day waiting periods are explicitly outlined in a residential purchase agreement, and therefore cannot be changed once the offer is signed. I should mention, however, that while an offer is drafted the number of days in that waiting. Can be modified, but I’ve noticed that and agents never do that. In summary a notice to perform can be sent 2 days prior to exploration of buyers contingencies. A demand to close can be sent 3 days prior to the closing date.
If you find yourself in a position of the listing agent and you want to pressure the buyer to adhere to strict timelines then it’s a good idea to send the nurse to perform 2 days prior to any contingency expiration, and if you have any doubt that the buyer may not close on time then to send a demand to close 3 days prior to close of escrow. And of course, these notices can be sent after the expiration or after the close of escrow date, Because unless the seller delivers one of these notices, the seller cannot cancel. The residential purchase agreement obligates the seller to deliver this notice to a buyer in order to correct their breach before cancelling. if you have any questions about a notice to perform or a demand to close please feel welcome to email info@Balboateam.com
The Listing agent tells me the person handling the trust does not know anything about this property since they have been rented to the same families for the last ten years.
He could have her fill out disclosures with all “unknown” or can she do an “Exempt” TDS, he is asking me.
If the property is held in a trust and the trustees didn’t occupy the premises or own property outside of the trust in the last year, then the seller can use the exempt seller disclosure.
If any trustee did in fact reside at the property or owned it outside of the trust in the last year, then they are required to do a TDS.
“Unknown” should be marked as a no. A disclosure asks whether it is known, yes or no. If the seller doesn’t know then the “no” box should be checked.
Offer was contingent on inspection and we are not going till Monday morning because just today one of the families provided negative COVID results after having contracted it, if we see problems with the properties we can still cancel, correct? Yes, you can cancel until you remove the inspection contingency in writing.
Also, buyer will be flipping them, my question is with such long tenancies, is there anything we need to do besides giving them 60 days notice, and can we do it 3 days after COE?
We already wrote that number on the tenant transfer form. Yes, as long as your 60 day notice is compliant with the moratorium and give a valid reason (extensive remodel in your case). The landlord (buyer) will likely need to either pay tenant relocation or a rent waiver.
Here is the reason cited from civil code 1946.2: (D) (i) Intent to demolish or to substantially remodel the residential real property.
If an owner issues a notice to terminate a tenancy for no-fault just cause, the owner shall notify the tenant of the tenant’s right to relocation assistance or rent waiver pursuant to this section. If the owner elects to waive the rent for the final month of the tenancy as provided in subparagraph (B) of paragraph (1), the notice shall state the amount of rent waived and that no rent is due for the final month of the tenancy.
Is there a problem with me helping my buyer do that after we close? Once you close escrow, your role and duties as a real estate agent ends. Any help you do would be on a personal level. You have to be very careful to not act on the client’s behalf, especially when it comes to property management or the lease termination.
California Real Estate Seller Disclosure Timeline
What happens when HOA docs have been ordered but take too long to arrive?
- A listing broker has the legal obligation as a fiduciary to present all offers to the seller.
- The seller is not legally obligated to respond to any offers. This means that you could send an offer to a listing agent and there is no requirement for the seller to sign a rejection or even respond.
- A selling broker (buyer’s broker) can request in writing that the listing broker affirm in writing the offer has been presented to the seller or the seller has refused (in writing) to review any more offers. This is not statutory, it’s just NAR/CAR code of conduct.
- If a buyer’s broker makes a reasonable attempt to make contact, and is completely ignored by the listing broker for at least one day, the buyer’s broker can inform the listing broker in writing that they are left with no choice but to contact the seller directly and proceed. Please make sure you contact me before you do this.
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