I don't know if many of you read the CAR bulletin about issues we face, but I hope most got to see the judgement that was placed yesterday about the Home Equity Purchase Agreement.
For those of you in states not as sue happy as California, we have a specific contract which is to be used when a noticed of default has been recorded against a property. This contract, also know as, the home equity purchase agreement requires that the agent representing the buyer is insured and bonded for twice the value of the property.
The judgement further acclimated why we as agents need to stay on top of all things legal in our business. The seller decided to sue to get his property back because the wrong contract was used and the courts ruled in his favor, and the buyer lost out on his investment purchase. The buyer has since appealed the decision and is trying to get the home back, but we all know in the end the agents and brokers are going to foot the bill for all involved, like we usually do.
I just thought we would all like to know that if you are working with buyers that are trying to purchase a short sale or home in which and NOD has been filed, make sure the you cross your T's and dot your i's.
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