Questions & Answers

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)

QUESTION:
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?

The following Q & A appeared in the March 16, 2011 issue of the NC REALTORS “REALTOR Report”

QUESTION:

I represent a buyer who signed a contract to purchase a condominium unit. In paragraph 5 of the Offer to Purchase, we checked the box to indicate that my client intended to obtain an FHA loan to finance her purchase. My client paid a due diligence fee and an earnest money deposit. At the end of the due diligence period, we believed that everything was going well with the loan application process. However, a few days before closing, the lender notified my client that the condominium development did not meet FHA guidelines. We informed the seller that we could not close on the purchase, and asked the seller’s agent to return the earnest money deposit. The seller refused to release the deposit. Under the FHA/VA Addendum (form 2A4-T), is my client entitled to a return of her earnest money deposit?