Form 1347). This would terminate the brokerage relationship only and allow that seller, after this is completed, to sign a listing agreement with your new brokerage. In doing so, however, the seller could still potentially be obligated to the prior broker for any contractual obligations under the prior listing agreement, including the obligation to pay a commission. In order to terminate both the brokerage relationship and any contractual obligations of the parties under the former listing agreement, both the seller and the former broker would have to execute a Termination of Listing Agreement (GCAAR Form 1349).
QUESTION: Regarding this section of the Washington, D.C. code: § 42–1904.11. Resale by unit owner; seller to obtain appropriate statements from association and furnish to purchaser; scope of provisions. The seller has three business days to review the documents. If the seller reviews the documents the first day and is OK with the documents, can the buyer send an addendum to the seller stating they waive the remaining time for their review period and is ready to proceed with the contract and settlement date? I have a few colleagues telling me that the three-day period is mandatory and is not considered a “contingency.” Therefore, they say, it cannot be shortened, and the addendum is not valid. Recently, I had a client review a condo resale package. They accepted the information and wanted to end their review period. The listing agent said it’s “mandatory” to review for three days. Please give me an opinion on these questions.
ANSWER: Under the statute cited, in the event of a resale of a condominium unit, the unit owner has 10 business days following the date of execution of the contract to provide a copy of the condominium instruments and a certificate to the purchaser. The purchaser then has the right, for a period of three business days following receipt of the documents, to cancel the contract by giving notice in writing and returning the documents to the seller. Since the condominium document review period is a statutory requirement rather than a contractual one, these time frames cannot be waived or negotiated differently. That being said, if a buyer chooses to proceed to settlement before the expiration of the review period, there is no bar to them doing so. By proceeding to settlement, the buyer voids their right to cancel pursuant to Section 42-1904.11 (a-1)(4). However, until they go to settlement or the three-business day period expires, that right to cancel would remain.
QUESTION: I am handling an estate sale in Montgomery County and am wondering whether the REA is still required to be completed. ANSWER: Yes, the REA, or Regulations, Easements and Assessments (REA) Disclosure and Addendum (GCAAR Form #900), is required on all contracts in Montgomery County. It does not provide for an exemption in an estate situation. The REA is a compilation of required disclosures under the Montgomery County Code and other local municipalities.
DISCLAIMER: The answers provided here are the opinion of the authors, are for informational purposes, and are only for GCAAR members. Neither Counselors Title, LLC, nor Pardo & Drazin, LLC, is providing legal advice, but rather providing a general statement of law. No lawyer/client relationship is – or will be – established as a result of this material. Readers are encouraged to retain their own counsel for their specific questions. Answers may have been edited for formatting purposes.
CAPITAL AREA REALTOR ® — Winter 2019 17