Property II Outline

Property II Outline - Sale of Land----Sales Contract- ---...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Sale of Land----Sales Contract- --- Anatomy of a Sales Transaction o Four Basic Stages: Locating the Buyer Listing Agreement/Listing Broker Marketing through open houses, MLS Dealing with cooperating broker Negotiating the Contract Preparing for the Closing Inspecting the property Negotiating financing Evaluating Title Closing the Transaction In the East an atty usually oversees the closing In other parts of the country an escrow agent oversees The agent follows escrow instructions signed by both parties At closing, title is conveyed to buyer, the purchase loan is made by the lender, the sales price is paid to the seller, the commission is distributed to brokers, etc. Role of the Attorney o In states that still use attorneys to oversee real property sales tx (their involvement in residential sales have greatly diminished): Negotiate the deal Draft the sales contract Evaluate Tit le Documents Issue a t it le opinion Advise the client about zoning, tax, and other issues Negotiate the terms of the financing Help the client fulfill contract conditions Handle the closing Negotiate and lit igate any disputes that arise Role of the Real Estate Broker o The unauthorized Practice of Law Most jx agree that the broker who merely fills in the blanks on a standard atty drafted form contract is not practicing law o Duties of the Broker Fiduciary Duties to Principal Duty of Care Duty of Skill Duty of Diligence Duty of Loyalty Duty of Good Faith Broker cannot Reveal Principals strategy to opposing party Get a kickback Secret profit Make a full, fair, and prompt disclosure to his principal of all facts that m ight affect the principals interests What duty does the Listing Broker owe the Buyer? At common law o The listing broker owed no duty to the buyer, except the obligation to avoid intentional fraud Modern law: o In some jx: a listing broker must disclose known defects in the property to the buyer o But the listing broker is not reqd to inspect the property for latent defects to determine whether they exist What duty does the Cooperating Broker owe? Technically the cooperating broker is a dual agent, who at least in theory owes a fiduciary duties to both Buyer and Seller In an effort to combat this dilemma some jx have adopted legislation requiring brokers to disclose in advance which party or parties they represent. o Brokers Right to Commission This is governed by the listing agreement. There are 4 types of Listing Agreements: Open Listing only receives commission of procuring cause of tx Exclusive Agency Listing - the only real estate broker authorized to procure buyers; he is entitled to commission even if hes not the procuring cause; but if the seller is the cause then NO COMMISSION Exclusive Right to Sell Listing Broker will receive commission no matter who is the procuring cause even the seller.seller....
View Full Document

This note was uploaded on 06/29/2011 for the course LAW 2 taught by Professor Sylvestor during the Spring '11 term at Golden Gate.

Page1 / 44

Property II Outline - Sale of Land----Sales Contract- ---...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online