9/18/2020

We have a client who owned several lots in a subdivision. He hired a contract to build spec homes on the lots and is paying the builder cash for the construction. We are the listing firm for the new construction homes, and another broker in our firm is the selling broker. One of the homes is scheduled to close soon, and the builder has not completed the home. After the walk through yesterday, the buyer did some checking online and found that the contractors license with the state of Washington has been Suspended – does not meet L&I licensing requirements. We also found that they do not have a contractors bond as required by Washington state. So no current license – it was suspended in March. The bond expired in May of this year. This is causing the buyer concern, as well as my partner who is the Designated Broker. We are working with the seller to try to encourage him to take care of this & get his contractor re-licensed & bonded. In the event that does not take place before closing, if at all, what are the ramifications to the buyer? And what is the potential exposure to the Firm?

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9/18/2020

I am a managing broker with a real estate sales firm (no property management). The owners of a property management company (no real estate sales) would like me to become their designated broker as their current designated broker is stepping down at the end of the year. Based on my reading of RCW 18.85.121 it would seem that I cannot keep my managing license with my current RE Sales Firm if I become designated broker at the PM Firm. The owners of the Property Management Company have checked with their attorney and have said that they were advised I could hang a managing license and a designated license at the same time as one company is Sales only and the other is Property Management only (not competing Firms). Is their attorney correct, can I continue to hang my managing brokers license and hang a designated license with the property management company?

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9/18/2020

When a buyer wants to terminate based on the inspection they mark the second box of buyer's reply: Buyer rejects sellers response . Buyer disapproves of the inspection and this agreement is terminated. The earnest money shall be refunded to the buyer. For years I have always used MLS form 51 Rescission - it seems at one of your classes you mentioned not to use this form when terminating. The buyers broker sent over with the 35R form 50 to disburse earnest money - is this all we need to actually terminate the transaction?

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9/18/2020

Seller can not get title insurance on existing escrowed sale because, Originated with Countrywide Mortgage. B of A then purchases Countrywide with no release of loan or new deed recording. Only recording that still exists per title is original deed by Countrywide. B of A sells loan to Nationstar without recordation. Nationstar becomes Mr. Cooper. Mr. Cooper has deed in file of wrong property from B of A. But does have a blanket authority letter notice to service and collect payments. B of A refuses to cooperate. Buyers lender won't lend if seller can not provide clear title at close of escrow. Advised seller to contact an attorney. Attorney advised it could take quite some time and money to clear up the issue. What recourse does seller have after trying with 2 title companies?

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9/18/2020

Seller's property is burdened by an irrigation well easement benefiting a neighboring property. The easement is disclosed on the title report. Must seller disclose the easement on the Form 17?

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9/18/2020

I have a question regarding a failed retaining wall, the neighbors are on the uphill, the wall has failed a total of 3 times over… 10-15 years. The first 2 times, they mickey moused it back, it was never done correctly to start with, no rebar, no permits, no licensed and bonded people doing the work. She had said that the wall is just fine and does not want to hear another thing of it. So I just left it, it’s unstable, hazardous to any work done by my gardener much less my dog who goes into that area. After she had said she did not want to hear another thing of it. I decided I’d better get a survey, make sure that wall is on their property and not mine. As an agent, I would not touch this with a 10ft pole, because she keeps saying nothing is wrong with it. The last time was Dec. 25th, 2019 where a huge portion of it failed, when speaking to them, we had discussed having it done by a licensed bonded company and getting a permit so that this does not continue. when it falls, it falls into the downhill property (mine), not theirs. They decided to have it done by a non licensed bonded company, who spoke very little english and of course, did it on the weekend, the workers have to enter my yard to fix because it’s fallen onto my yard, I asked that they call me and let me know when they come, so that my dog does not hurt them or attack. they did the first day, when I talked to the worker and got his card, when asked if he was licensed and bonded he said no that he was not, but had insurance. My concern of course was that if something happened, they’d be on my property. When I found this out the 1st day, I contacted the neighbors and said that they are not allowed on my property, that they are not licensed and bonded. Unfortunately it was the day after that, I was on an appointment when I returned they along with the homeowner was on my property, very quickly putting up the blocks to finish. When I asked them to leave, and that they were trespassing now, they quickly finished it up, had a confrontation and then left. After saying if it falls again, they’ll fix it again. I also asked the city if a permit is needed, originally they said yes, the guy from the city said that I would have to file a formal complaint if I wanted anything done, I asked if it’s for sure that they need a permit and he confirmed yes they do. At that time I filed a formal complaint. long story with the city, but first they said yes, then the owners new husband who is 6’8...

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9/18/2020

We assisted a Buyer with making an offer on a listing yesterday and their mortgage broker suggested they include a “buyer love letter” with their offer. We explained the potential fair housing pitfalls for Sellers with buyer love letters , and the Buyers agreed to just submit their offer without the letter. The offer was submitted yesterday evening. Today, we were notified by the Listing Broker that the mortgage broker sent him a buyer love letter directly along with an email of his own highlighting how wonderful the Buyers are. The Sellers instructed the Listing Broker to not send it to them to avoid potential fair housing issues with the letter. Our question is, would the mortgage broker’s direct communication with the Listing Broker to provide the buyer love letter and in essence attempt to negotiate the transaction constitute him furnishing unlicensed real estate brokerage services?

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9/18/2020

Buyer and seller reached mutual acceptance but the contract included an obligation on seller that seller did not fully appreciate prior to mutual acceptance. Fulfillment of the obligation was either prohibited by the subdivision statute or it would be expensive. Consequently, seller wanted to change the purchase price. Seller viewed it as a counteroffer because of the difficulty associated with fulfilling the obligation. Buyer viewed seller's proposed change as a request to modify an already binding contract. Which was it?

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9/18/2020

I represent the buyers. The sellers are representing themselves. They listed their home through our MLS using one of the for sale by owner brokerage firms. Originally the sellers excluded the washer and dryer from the listing, so we did not ask for it in the offer. My buyers offered higher than list price, which sellers accepted, because the sellers said there was another offer. After the sellers accepted my buyers offer they emailed me and said that they were so grateful of the higher price that they would leave the washer and dryer for my buyers. I emailed them back and said the buyers would appreciate that and said thank you. We are close to closing and the sellers had to make repairs because of the home inspection. The sellers are now saying that they would rather sell the washer and dryer to the buyers because of the costs of the repairs and that we did not prepare an addendum to include them. We accepted their email as notice and that it was valid enough not to warrant an addendum. Am I wrong?

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9/18/2020

This is a multi-part question on Lines 143-145 on the Form 17 Seller Disclosure Statement. The form asks if an inspection was done and when. What I typically see industry wide is a Seller include the year they purchased and include the name of the home inspector they used at time of purchase. Is Seller also required to include a copy of that old inspection report to be in compliance with the language in the instructions of the Form 17 that instruct a Seller to include any relevant documents that are not publicly recorded? Is there a certain time frame when the old inspection no longer becomes relevant? 2 years old? 5 years old? 10 years old? 20 years old? If Seller does not want to disclose because they feel the old report is no longer a relevant document, and they are using the same Broker they used to purchase the property who has an old copy of the report on file, Is the Broker left with the duty to disclose the old report as a material fact and provide the old inspection report to prospective Buyers? Is Broker required to re-create notes on the old inspection report of repairs that were done as a part of the inspection negotiations also as material facts? Could this type of document creation of a notated old inspection report create even more liability for the Broker? If Firm requires the Seller or Brokers to disclose old inspection reports, could this dis-incentivize a Seller to work with their past Agent when they go to list as either the standards of the Firm policy for interpretation of Form 17 instructions or the requirements of Broker disclosure be greater than if a Seller just worked with a new Broker to list or with another Firm who is not interpreting the Form 17 in the same way? In summation: Relating to lines 143-145 of the Form 17 Seller Disclosure, does Seller have to provide an inspection report from when they purchased the home? Is there a point when the old report no longer becomes relevant (e.g. 5 years, 10 years, etc)? Is it fair to attach an old home inspection report when the condition of the property may have changed, but Seller would not know without a fresh report? What is the best pathway forward for a Broker when you know Seller had a home inspection done at the time of purchase?

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