Realtor® Legal Tip – Real estate basics 101 – Refresher
August 23, 2018
Author: Curtis Bullock
Ok, this is going to sound really elementary but I come across this sort of thing often.
Here’s a recent situation – Property is under contract and today is the Due Diligence Deadline. The Buyer’s agent calls the Listing Agent at 5:15pm and says, “the buyer would like the Seller to pay $500 in closing costs.” The Buyer’s agent then asks the Listing agent to write up the addendum and to send it over after the Seller signs it.
What’s wrong with this?
First, the Buyer’s agent is too late to ask for stuff as part of the Due Diligence Deadline. ALL DEADLINES IN THE REPC (unless stated otherwise) END AT 5PM MOUNTAIN TIME (NOT 12 midnight). So in reality the Buyer had waived her Due Diligence because the deadline passed (see section 8.1(c) of the REPC). Luckily the Seller was nice about it and agreed to pay the $500 in closing costs but the Seller could have refused. Scroll down my timeline and see my post last year dated April 25, 2017 to see how important deadlines really are.
Second, since the Buyer is asking for the seller paid closing costs, the Buyer’s agent should be the one to write up and send over the addendum, not the Listing agent. That just makes more sense.