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Hotline Attorney Annie Fitzsimmons writes the Legal Hotline Question and Answer of the Week. Please submit questions to legalhotline@warealtor.org or call (800) 562-6027. Please have your NRDS number ready when you call or e-mail the Hotline with your question. The Legal Hotline lawyer does not represent Washington Association of REALTORS� members or their clients and customers. Research this topic and thousands of others online.
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Question:
Buyer timely used form 35R, Section I, to request reduction in sale price in lieu of repairs. Seller timely used form 35R, Section II, to propose an alternate modification in sale price. Buyer timely used form 35R, Section III, to propose an alternative modification in sale price and attached Form 34.
Since there is no Section IV for the seller's response, Listing broker sent an email to the selling broker to inform the selling broker that the seller is adhering to the offer seller proposed in Section II and asking the selling agent to resubmit form 35R with the first box (Buyer accepts Seller's response...) checked IF buyer agrees to the seller's previous response.
Is this a correct procedure? Since there are no time periods specified for Section III response, and given that the inspection process specifically states that time periods shall not repeat, what is the response time for either the buyer or the seller?
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Answer:
When buyer submitted the "alternative modification" in section III of Form 35R, that was a counteroffer to the offer seller made in section II of the form. Based on the boiler plate language of Form 35, seller is not required to respond to buyer's counteroffer. Seller was free to respond at seller's choosing and in this case, seller responded by email communication through listing broker informing buyer that seller's original offer, given in section II of Form 35R, was the only offer buyer would receive.
All of buyer's options are limited by a critical time requirement. At 9 pm the third day following the day that seller gave buyer the section II offer the first time, buyer's inspection contingency will expire. If buyer's inspection contingency expires, then buyer will have no remaining inspection contingency and no on-going right to negotiate repairs or concessions with seller. This is true regardless of when listing broker sent the email to buyer's broker following buyer's counteroffer. The only timeline that matters is the three day period that was triggered by seller's original offer submitted to buyer as seller's section II response.
Within that time limit, buyer may terminate the agreement based on the inspection contingency, buyer may accept seller's offer or buyer may continue making counteroffers to seller. If buyer terminates, buyer may do so using a new Form 35R, checking the termination box in section I of the form, and signing and delivering the form to listing broker prior to expiration of the inspection contingency.
If buyer wants to make another counteroffer, then buyer must keep in mind that every time buyer counters seller's offer, buyer terminates seller's offer and liberates seller to end all inspection contingency negotiations. If seller ends inspection contingency negotiations, then buyer will have the remaining time prior to expiration of the inspection contingency to terminate the agreement using the inspection contingency but buyer will not be able to force seller's agreement to any offers previously made by seller and countered by buyer. Once an offer from seller is countered by buyer, seller can no longer be required to perform the terms of that offer, even if buyer attempts to accept the offer after buyer countered the offer.
Finally, in this case, based on the email from listing broker, seller is apparently willing to revive the terms of seller's original section II offer that buyer countered. In this case, buyer can accept seller's original section II offer, even though buyer previously countered it. However, the email from listing broker is not reliable proof that seller revived the offer. Rather, if buyer wants to accept the terms of seller's section II offer that buyer previously countered, buyer and seller should both sign that offer again, placing new dates next to their signatures, showing that both parties agreed to the terms of seller's offer AFTER buyer originally countered the offer.
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We have scanned and selected interesting tips & tricks articles from a variety of industry publications so you don't have to. Always check with your broker/owner to see if these practices fit within your company policies.
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 WhatsApp - Communicate
instantly with your clients
Latest, and hottest, cross-platform mobile messaging app that lets you exchange messages instantly with your friends, family, and clients. Create groups, send photos, video and audio messages and share your location.  |
Tips for Working with Friends
REALTORS' services are often utilized by friends and family. Many of you know first-hand how quickly that can go down south if something doesn't go well in the transaction. Here is a great YPN blog post with some wonderful tips to keep things smooth when working with friends. |
16 Motivational and Inspirational Quotes for the New Year
Lets face it! We all need a little pep talk occasionally. Here are some great quotes to help motivate and inspire you to be the most successful and best REALTOR you can be in the upcoming New Year!
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Real Estate Industry Insights for 2014...
Inman News interviewed real estate industry leaders for their predictions in the coming year. They give their opinions on what they think will be the top trends and hottest issues, covering topics like technology, innovation, real estate brokerages, associations and MLSs.
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Pending Homes Sales Post Slight November Gain
(HousingWire) Pending home sales grew slighly in November as contracts in the South and West grew, offseting declines in both the Northeast and Midwest, the National Association of Realtors said Monday. The Pending Home Sales Index, a forward-looking indicator based on contracts signed, edged up 0.2% to an index score of 101.7 in November, compared to a revised score of 101.5 in October. The index is now down 1.6% from a score of 103.3 last year.
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 The Secret to Hacking Real Estate Rental Sites
( Forbes - Seth Porges) In uber-competitive real estate markets, such as New York and San Francisco, by the time an apartment hits a rental listing site, it's already too late. If the unit appears to be an even halfway decent deal, with well-lit photos and a competently written description, prospective renters are likely to find themselves battling countless other applicants who are ready to throw down too much money to lock in a listing. Still, even as these markets have become increasingly hostile to normal folks looking for a decent deal, I've been able to help a number of friends find fantastic apartments in my hometown of New York-without having to battle battalions of other would-be renters. |
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| National Averages |
30-Yr FRM
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15-Yr FRM
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5/1-Yr ARM
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1-Yr ARM
| | Average Rates | 4.48% | 3.52% | 3.00% | 2.56% | | Change (from prior week) |
+0.01%
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+0.01%
|
+0.04%
|
-0.01%
| | Fees & Points |
0.7
|
0.7
|
0.4
|
0.5
| | Margin |
N/A
|
N/A
|
2.74
|
2.75
|
Regional Averages
(West) |
30-Yr FRM
|
15-Yr FRM
|
5/1-Yr ARM
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1-Yr ARM
| | Average Rates |
4.46%
|
3.49%
|
2.78%
|
2.38%
| | Change (from prior week) |
+0.01%
|
-----%
|
-----%
|
-----%
| | Fees & Points |
0.7
|
0.7
|
0.7
|
0.5
| | Margin |
N/A
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N/A
|
2.75
|
2.75
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Source: Freddie Mac - Weekly mortgage rates released every Thursday.
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2014 Legislative Day: Register by January 14th for Discount!
Don't miss one of the most exciting events of the year. Join us for two amazing days (January 22-23) of defending our industry in Olympia while enjoying a networking opportunity with hundreds of other REALTORS� from across the state. Online registration at a discount rate is available now!
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FHA Loan Limits Appeals Extended
On Dec. 20, 2013, the Federal Housing Administration (FHA) announced a 25-day extension for communities who wish to request a change to high cost area loan limits. The new deadline for appeals is Jan. 31, 2014. The National Association of REALTORS� and other industry groups urged HUD to extend this deadline. This will allow communities more time to present data to HUD which could result in a reevaluation of loan limits for a particular area.
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For your convenience, Washington REALTORS� Education offers both online education and live classes, including webinars! To participate in a webinar, all you need is internet access and a phone. For more information, or to sign up for classes, visit www.warealtor.org/education.
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Upcoming Live Classes:
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Date
| Course Title |
CE Hours
| Instructor | Location | Registration Option | | 1/29/2014 | Current Issues in Washington State Residential Real Estate | 3.5 | Jan Ellingson | Pullman
8:30-12:00 pm | 509-338-0949 | | 1/29/2014 | NAR Code of Ethics | 4.0 | Jan Ellingson | Pullman
1-5 pm | 509-338-0949 | 1/30/2014
| Professional Standards Express
| 4.0
| Jan Ellingson
| Spokane
1-5 pm
| 509-326-9222
| 2/27/2014
| Current Issues in WA Residential Real Estate
| 4.0
| Michael Alvarez
| Richland
1 - 5 pm
| 509-783-2184
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WIN Home Inspection
WIN is a home inspection company that provides house /home inspection services for buyers, sellers, owners and real estate agents. |
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