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C.A.R. RELEASES NEW FORMS, NEW NAMES AND REVISIONS FOR 2005

When Plato remarked that "All things are in a state of flux", he must have foreseen the state of California real estate compliance! Its time to get used to the fact that the roster of documents that keep you safe when you list and sell property in California will constantly change. C.A.R. has created, revised and renamed a slew of new forms that will be released and available on WinForms by the end October 2004.

Following are the basic forms that Agents need to be aware and should use with residential listings and sales starting January 2005. This list is by no means comprehensive of what the busy C.A.R. lawyers and Brokers have written up for all types of real estate transactions. C.A.R. members can preview and print down all the new and revised DRAFT forms on-line: www.car.org.

1. Buyer Material Issues: BMI, 10/04 ß NEW
2. Market Conditions Advisory: MCA, 10/04 ß NEW
3. Disclosure Regarding Real Estate Agency Relationship: AD, ß Revised 10/04
4. Counter Offer: CO, ß Revised 10/04

   Listing Addendum

5. Seller Instruction to Exclude Listing in MLS: SEL 10,04 ß NEW

1. Seller Statutory Contractual and Supplemental disclosures: SSD, ß Revised 10/04
2. Statewide Buyer and Seller Advisory: SBSA, 104 ß NEW
3. Natural Hazard Disclosure Statement: NHD, ß Revised 10/04

Your local Association of Realtors and title companies will sponsor many free legal seminars (with lunch) to explain what issues the new forms address and why other forms are renamed and/or revised. I highly encourage you to attend as many training seminars as possible.

CANCELLATION HAPPENS

We hate to think about it but we have to face it. Cancellations happen. And, they usually happen near or after the COE date. It would be nice if everyone would just sigh and say "oh well" and go away. But that is not how it happens. Time, money, effort and emotions have been spent. A canceled transaction, therefore, needs closure just as a successful transaction does.

Unfortunately, there are no "no-fault cancellations". Someone is at fault. As the Agent, make sure it's the Buyer or the Seller who is at fault and not you. Your best protection is to make sure that your side has performed due diligence and practiced fair and honest dealing with all parties throughout the transaction as described in the Disclosure of Real Estate Agency Relationships that you signed with your client.

The reasons that a transaction cancels fall into the following basic categories.

THE "PRE-NUPTIALS" OF A SALE

The Purchase Agreement negotiated and defines the terms and conditions of a successful transaction. Why not also negotiate and define the consequences of an unsuccessful transaction? In doing so, the terms of cancellation become part of the escrow instructions and can be applied automatically.

When an escrow falls out, it's all about the money. The Buyer has money in escrow. He wants it back. The Seller wants that money too. Escrow has been collecting invoices for services rendered that need to be paid. To finish up a cancelled sale and move on, often the Buyer's Agents instructs escrow to return all money to the Buyer without consulting the Seller's Agent or Seller or addressing the out-standing service invoices in escrow.

Use the new C.A.R form to clarify the terms of cancellation in the event cancellation occurs.

CC: Cancellation of Contract, Release of Deposit and Joint Escrow Instructions (WinForms).

The Buyer and the Seller document the terms and conditions of canceling the transaction, the payment of out-standing bills in escrow and the mutual agreement of the release of the remainder of the deposit.

A CANCELLED FILE IS A SUEABLE EVENT

Personal circumstances and the market will dictate who is most damaged in a canceled transaction. Some cancellations can be settled in a quick and civil manner. However, some cancellations are emotionally bruising and financially damaging to a Buyer or Seller or both. Don't think for a minute that the damaged parties will simply bear the consequences of a deal gone sour. Not in California!

Regardless of a transaction's outcome, the Agent's file must show due diligence in process and paperwork through the resolution of cancellation. The Broker must retain cancelled transactions the same as closed transactions. Be sure to contact your REMERGE TC coordinator as soon as you suspect a cancellation will occur so that she can attempt to collect payment from the canceling party, complete the transaction file and deliver the resolved cancelled transaction file to the Broker.

CALIFORNIA REALTOR EXPO 2004 - Santa Clara Convention Center Oct. 5-7, 2004

This annual convention sponsored by C.A.R. and affiliates is a "must attend" in my educational calendar, every year. Acquaint yourself with new products and gizmos, innovative software, marketing and lead generation tools. Meet the people behind the services and vendors you have heard or maybe even used for years. Attend informative and accredited seminars that keep you pointed in the direction of where the real estate industry is headed. Learn what the top producers are doing to be more productive.

When you are there, stop by the REMERGE Insurance Services booth and say hello! I will be there! I hope you will be too!

BE MORE PRODUCTIVE! USE REMERGE TC FOR YOUR NEXT LISTING OR SALE!

There is nothing like the peace of mind that you get when you entrust your real estate transaction file to the professionals at REMERGE TC. From the Point of Listing or the Point of Sale, your transaction documents and communications are skillfully and efficiently managed through the close of escrow by a top notch REMERGE TC Coordinator. Your document file is always D.R.E. compliant, guaranteed.

Be more productive by spending your time bonding with your client, getting referrals, prospecting to fill up your pipeline with more potential commissions.

Give REMERGE TC a try on your next listing or sale transaction. You'll be glad you did and so will we!

Go to: www.remerge.com

Click: SAMPLE FILE to see how we work

Click: NEW AGENT to register

QUESTIONS? COMMENTS? TOPIC SUGGESTIONS?

All are welcome. Direct all communications to Shelly Gorenstein, Editor REMERGE TC Gazette at shelly@remerge.com