CNBC real estate reporter Diana Olick broke a story on Jan. 15 about some piggyback lenders – or second lien holders – committing alleged short sale fraud by demanding a cash payment to release their lien in order for a short sale to take place. Basically, because so many homeowners have taken equity out of… CONTINUE
What Brokers Need to Know About REOs: Part 1
By now, if you don’t know that REO stands for Real Estate Opportunities, you’ve been living under a rock. For agents and brokers in California, REO (bank parlance for foreclosed properties which are now, to them, “Real Estate Owned” assets) properties ARE the market. After all, with home values plummeting nearly 50% in some areas,… CONTINUE
When a Broker Gets Sued
When a broker gets sued, we step in: as the hand-picked attorneys for the broker – all at the insurance carrier’s expense. A broker is generally sued for negligence and some form of intentional misconduct. Why? Because plaintiffs want “punitive damages” and they can’t get that from a ‘negligence’ claim. That’s a problem for the… CONTINUE
Juries
Wave goodbye? Not! Lease or contract provisions commonly state: “In the event of litigation between them, the parties hereto expressly waive trial by jury.” Now, three years later, there is a dispute, and you want a jury. Are you stuck with that waiver? Nope. The California Supreme Court has ruled that: “…pre-contract jury waivers are… CONTINUE
Congratulations – You’ve Been Sued!
A “hot” market just means deferred litigation. For many. We’re not the only ones that think so. Calls from brokers, buyers and sellers tell us: time in court is coming a broker’s (and agent’s) way. The rising real estate market covered a multitude of sins, sins which are now becoming clear. In addition, 85% (… CONTINUE
Renewals
If you don’t do it right, it just wasn’t done. A tenant with an option to extend a Lease must strictly comply with the terms of the Lease with respect to how to exercise that option right. If the Lease is silent on how, the tenant can merely call the landlord and say that the… CONTINUE
Lis Pendens aka “Deal Killer”
It’s a simple document – that can strike fear in the heart of the most experienced owner, buyer, or broker. A Lis Pendens (Latin for: Notice of Pending Action) is recorded to advise a potential purchaser or lender of another’s claim to ownership of the real property that is adverse to the owner of record…. CONTINUE
Nine Tenths
“Possession is 9/10ths of the law.” Is it really? Can somebody buy real property without a written agreement? Generally, no. But then again, there are always exceptions. The “Statute of Frauds” states that an agreement to buy real property must be in writing to be enforceable. One of the exceptions to the Statute of Frauds… CONTINUE
BFP – BFD
“Bona-fide purchaser for value without notice” Huh? So what? Those words can save somebody when a 3rd person makes a claim of ownership adverse to theirs. Like the times when a seller sells the property twice. Who owns it when the first buyer didn’t record the deed yet? Generally, the second buyer if they record… CONTINUE
Special Delivery!
If you get lucky and get a good deal at a foreclosure sale, can the former owner challenge your bid and get it set aside? Sometimes. The key is to get the Trustee’s Deed DELIVERED to you as soon as possible. Acceptance of delivery (which doesn’t require recording, but that’s important too) gives you, as… CONTINUE
Verify This!
“The seller told me – so it must be true.” Don’t bet on it. At least not without checking first. President Reagan wasn’t the only one to say, “Trust; but verify.” Under California law, a real estate broker has an obligation to independently verify information passed on to a client OR, advise a client of… CONTINUE
Statute of Limitations
Few of us know exactly what “statute of limitations” means; even fewer know how long one has before it’s “too late”, and even fewer know the exceptions to the rules. There’s this great moment in “Philadelphia“, the movie starring Tom Hanks as a fired lawyer with AIDS, when he is being told that the complaint… CONTINUE
