We often get questions from unaffiliated brokers regarding what they may and may not do with their license. The February, 2012 bulletin by the NC Real Estate Commission has an excellent review of what is allowed. Limited Activities Available to Unaffiliated NC Real Estate Brokers
Question: According to the NCAR/NCBA Offer To Purchase and Contract, when does the seller receive the due diligence fee? Answer: It’s important to remember the due diligence fee is made payable to the seller. The due diligence fee is not given to the seller to deposit until the effective date. Agents can show the seller [...]
(Source: Reprinted from the November 2, 2011 edition of the N.C. REALTOR Report published by The NC Association of REALTORS) QUESTION: A broker in my firm works with our local school board in locating and purchasing properties needed for school operations. The agency relationship started several years ago and has already been renewed several times. [...]
(Source: Reprinted from the October 12, 2011 edition of the N.C. REALTOR Report published by The NC Association of REALTORS) QUESTION: A broker in my firm recently referred a seller who owns a property in a different market area to a local firm there to list the seller’s home. My broker orally disclosed to the [...]
(Source: Will Martin, NCAR Counsel and Member/Manager of Martin & Gifford, PLLC) QUESTION: In the blank for settlement date, can a REALTOR use the following phrase “no later than 30 days after effective date” instead of an actual date. ANSWER: I don’t think putting a number of days following effective date in the blank is [...]
Source: Reprinted from the July 20, 2011 edition of the N.C. REALTOR Report published by The NC Association of REALTORS
QUESTION: I am preparing an Offer to Purchase and Contract (form 2-T) on behalf of a client. The client needs to sell her current home in order to purchase a new home so we are using the Contingent Sale Addendum (form 2A2-T). My client doesn’t want to spend any money on inspecting the new home until she knows that her current home is under contract. In paragraph 1 (j) of the offer, in the space where I fill in the expiration of the due diligence period, can I put in the words: “three weeks after buyer’s house goes under contract”? If so, I would insert a settlement date approximately three months from today.
TEST YOUR KNOWLEDGE
(SOURCE: This Question and Answer is reprinted from the NC Association of REALTORS Realtor Report, dated April 6, 2011)
I am the Broker-in-Charge at a large firm. I know that the Real Estate Commission Rules require agents to retain any records pertaining to a real estate transaction (whether completed or not) for three years after the successful or unsuccessful conclusion of the transaction or the disbursement of all trust monies, whichever occurs later. I am concerned about the storage of so much paper. Is it sufficient for our firm to keep electronic copies of the documents?
(SOURCE: This Question and Answer is reprinted from the April 13 Realtor Report from the NC Association of REALTORS)
QUESTION: I represent a seller who recently accepted an offer from an out-of-town buyer. Although the contract provides for an Initial Earnest Money Deposit, it has not been delivered yet. This morning, I received a higher offer from another buyer. The seller would like to accept it. Since the Earnest Money Deposit was not delivered with the offer that the seller accepted, is he legally bound by the contract with the first buyer? If so, can the seller terminate the contract with the first buyer because of his failure to deliver the Earnest Money Deposit?
What impact does a short sale have on FICO® Scores? How about a foreclosure?
How does the new due diligence apply to new construction, when the house is not going to be completed until within weeks of closing?