Module 9 Flashcards
Velma Stitch is a sales agent license holder at the real estate firm A to Z Realty. Bob Stout is Velma’s sponsoring broker. Velma listed the home of Ann and Richard Collingsworth and was pleased when the property went under contract after only 30 days on the market.
In the negotiations, the sellers wanted to make it clear that they were going to take all of the swimming pool equipment, such as brushes and the vacuum with them. Velma, using her pen, drew a line through “swimming pool equipment and maintenance accessories” in Paragraph 2.C.
Velma’s actions were a violation because the pool equipment should have been listed as an exclusion in paragraph 2 Property as an Exclusion
Within a few days, the title company delivered the commitment. The buyer discussed with Velma his concern about a pipeline easement on the property and the possibility that it would limit the use of the property. The buyer asked Velma if he should discuss this concern with an attorney. She advised him that most properties have easements and that the easement did not represent a title problem to him. She furthermore advised the buyer that hiring an attorney would add unnecessary expense and complexity to the transaction.
Violation, because a license holder should never give an opinion to the sufficiency of title
The sellers had previously told Velma that they needed two days after closing to move out of the property. In complying with this request, she inserted the following into Paragraph 11: “Possession will be delivered to Buyer at closing and funding plus 48 hours.”
Violation, because the agent could have used a Seller Temporary Residential lease to accommodate the seller’s need to remain in the property after closing date.
Velma, being a very punctual person, and believing that everything in a transaction should be done on time, inserted the words “time is of the essence” in Paragraph 11.
Violation, because changing the legal effect of the contract by a license holder is engaging in the unlawful practice of law.
Contract terms were finally agreed to, and Velma delivered the contract to the title company. She noticed that the contract did not have the effective date filled in, but assumed that would not be an issue because she had inserted “time is of the essence” in Paragraph 11.
Violation, because all contracts must have an effective date.
Four days later, with so much going on, she remembered that she had forgotten to collect the option fee from the buyer.
Violation because the contract stipulates that the buyer must deliver the option money to the seller within three days.
