Legal Update on what is REALLY important:
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- Dylan Potter
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1 Legal Update on what is REALLY important:
2 Current Hot Topics Teams Case law update - Purchase contracts - Undertaker Liability
3 Team Advertising Rule 61J Team or group = name or logo of one or more licensees who represent themselves to the public as team or group, No requirement to use the term team in a name Prohibited in name: agency, associates, brokerage, brokers, company, property, properties, real estate, realty, corp., or Other similar words that suggest team or group is a separate brokerage
4 Compliance by July 1, 2019 Covers all team advertisements Team name and logo can not appear in larger print than name or logo of brokerage Monthly, Broker must keep written record of names of team members Violations: have not yet been affixed
5 Diaz v Kosch Attorney Buyers, the Diazes had substantial experience with real estate transactions and title matters 9/12 buyers entered into AS IS Residential contract for $2,850,00 for Coral Gables home, initial deposit, $50,000 2nd deposit, $235,000 due last day of inspection During 10 day inspection, Buyer timely discovered open permit and believed Sellers had unpermitted work performed; they tell their broker
6 Inspection Period Not Extended Buyer s Seller on last day of inspection period, accusing Seller of misrepresentation, lack of good faith, as a result property is less valuable. Buyers threaten litigation, and asserts contact requires extension of inspection period but DID NOT actually obtain extension of inspection period or terminate Then, Buyer tenders the second deposit after, Buyer cancels. Escrow agent unsuccessfully sought mutual releases, Buyer files suit Oct, 2012
7 Buyer Sues for Breach of Contract and Fraud 5 years later, Court found - can t extend inspection period unless mutually agreed Ruled for Sellers on summary judgement: number of issues on appeal, too numerous for our discussion, but court found contract controlled B tried to argue inspection period extended by making second deposit - this was part of original agreement, not a modification extending inspection period, with additional consideration Sellers were awarded $850,000. (attorney fees and costs)
8 Conclusion: The AS IS residential contract developed jointly by the Florida REALTORS and The Florida Bar reflects a middle of the road form intended to reduce the legal fees that could be incurred if purchase contracts started from scratch for each transaction. The form reflects a wealth of experience with both successful and failed transactions among real estate professionals and real estate attorneys.
9 Muchnick v Goiman- 3rd DCA Be careful what you promise Leasing agent & tenant live in the same building
10 Leasing Agent: Directed tenants to property, Unit leased for 2 years: $7,500/mo to be paid in 6 month installments, At walk thru cosmetic issues noted - scuffed floors, touch up paint needed Agent said this would be fixed prior to move in Not done, but tenants moved in
11 Undertaker s Doctrine: There is liability if you undertake an act - exercise reasonable care, which results in increased harm to the beneficiary or the beneficiary relies upon the one providing the service and is harmed.
12 OTHER HOT TOPICS: Do not call or text without permission. Telemarketing and Cold Calling Window to the Law: TCPA and Texting Reduce Your Risk of Copyright Infringement Copyright risk reduction Listing Photo Sample Agreements
13 Thank you! Margy Grant:
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