Archive for the ‘Real Estate Attorneys’ Category

Every year the Chamber of Commerce collects what it considers the most ridiculous lawsuits of the year.  At first,  they seem funny but they are costing our economy Billions each year.

I saw a recent interview with a CEO of a major company who stated that he spends up to 20% of this time,  working on defending litigation.  So,  instead of running the company,  they are wasting 1/5th of their time on lawsuits….not to speak of the legal costs involved.

How ridiculous…..and scary. This affects you in another way.  In my capacity as an expert witness, I have seem my share of crazy cases and you are always the target with a claim of negligence or fraud.

What I think is most puzzling is not that some people get crazy ideas that someone one else is to blame for their dysfunctional lives but that an lawyer actually takes the case.  Think they are doing it for free?  I doubt it.  But,  even if  they find a lawyer to take their case,  why doesn’t a judge simply throw out the case and sanction the attorney for malicious prosecution ?  Oh,  I forgot.  Judges are attorney also. And,   judges never  want to be embarrassed if they throw out a case and are later overturned on Appeal.   Never good for their career opportunities.

No matter what the reason,  this should be unacceptable.  So,  when you hear people discussing LEGAL REFORM,  it is not only trying to limit settlements on medical cases.

Click here to link to the full article.

It seems to me that there are two major reasons why these fall apart:

• Lack of commitment:  Since most Short Sale Addenda say the process doesn’t even start until the sale is approved from the bank,  they buyer has no skin in the game.  In most cases,  they also have no deposit.  Most buyers are not emotionality qualified to wait month after month,  without going out and looking at other houses.  Most agents don’t realize that the Short Sale Addendum does not allow the buyer to walk until AFTER the date in the Addendum.   On solution might be to ask the buyer for a minimal deposit upfront.  Also,  the listing agent might counter that buyer agrees that they will remain in place until the drop dead date.

• Lack of Understanding: This leads to the real problem…..the buyer’s agent.  Too often,  the buyer haven’t been counseled about how short sales are different.  Have they told the buyer to expect to wait months and months,  only to have the lender counter back with some unreasonable counter offer.  One solution might be to have the listing agent meet with the successful buyer and their agent,  before acceptance.  In case the buyer’s agent hasn’t explained the process,  the Seller’s agent will have an opportunity and if the buyer isn’t committed,  they don’t accept their offer.

This business is too hard right now to have to re-sell a property more than once.

For more information,  check my website: www.guyberry.com

The new CAR form might confuse a few agents who have been accustomed  to using the old one.  The language regarding deposits was that ….the agent has gotten a check. In the real world,  that was not always the truth,  so CAR changed it.  It now defaults that the buyer is to deliver the deposit to the Escrow holder within 3 business days.    That creates a few things agents should consider:

• Contractually,  the buyer does not have to provide a check with the offer. As a listing agent,  this concerns me.  A buyer who has not written a check is not financially committed.  It is too easy to go home and say,  “What are we doing?  Have we lost our mind?  And if you accepted the offer on a Friday,  that means they don’t have to provide a check until Wednesday….assuming Monday isn’t a holiday

• Can you trust your buyer to take the check in?  I don’t think so.  First of all,  where did you open Escrow.   Is it near where they work?    Do they have the escrow #?   What if the buyer forgets?

• The only valid reason that I can think of for this clause is on a large property where the buyer is putting down thousands of dollars in excess of their checking account,  and need to get it from their money market.  But,  with a little planning,  buyer could have a money market check ready or better yet,  transfer the money into checking when they get close to making an offer.

• As a listing agent,  I think I would be countering that the buyer show me a check within 24 hour.

• BTW,  if the buyer takes the check directly to Escrow,  it does not have to be logged into your trust account.   And,  what happens when your office asks for a copy of the check,  especially if you are the listing agent?   Will escrow give the Seller a copy of the check?

• And,  do you trust escrow enough to call you if the money arrives?  or better yet,  doesn’t arrive?  Will I have to call to check?

Just wanted you to think about his a little more seriously.