Legal Hotline Attorney, Vern Jarboe, answers legal questions. Access live legal help and get answers to your questions. Click here to subscribe today!
License Law – Earnest Money Not Delivered
Q: You have a situation where a seller accepted an offer and the contract was signed. The contract was delivered to the title company with direction from the buyer’s agent that earnest money will be delivered two days later. It is not delivered and is now outside the time for the license law deposit of five business days.
A: It is not likely that as the listing agent you would have a compliance issue here. It would be a good idea to keep good notes on how this happened in the event of the Real Estate Commission audit.
Contract – Offer and Backup Addendum
Q: You have a situation where a property went under contract. A secondary contract was then put in place under a backup addendum. Contracts in front of the backup contract have all fallen out which now puts the buyer with the backup addendum in first place.
A: Assuming all of these documents are properly completed then it seems likely to me the buyer with the backup addendum is in contract. That doesn’t mean that you can’t make a counteroffer or propose alternative terms, but they are in contract and would have to deal with the fact that the seller does have a contract.
License Law – Brokerage Relationship Disclosure
Q: You called with a question about the brokerage relationship brochure provided by the Kansas Real Estate Commission. You are having some issues with agents with respect to whether or not the document needs to be signed for.
A: Pursuant to the terms of the license law, there is no requirement that a buyer or seller specifically in writing acknowledge they are in receipt of the brokerage relationship brochure – other than in the sale contract where that language is repeated. Some brokers require their agents to get a signature from buyers and sellers receipting the brokerage relationship brochure at the time of delivery to avoid arguments with consumers. It is up to the broker to make that rule.
License Law – Branch Broker License
Q: You have a question about whether or not the principal broker in a firm can also be the branch office broker in a branch office. The alternative would be that these two positions would be held by separate individuals.
A: The license law specifically does allow a broker to be the broker for more than one company. This most commonly happens in situations where the broker has a “regular” brokerage firm and, in addition, has a company that is a referral only company. Since the license law allows a broker to be the broker for more than one company, then I know of no reason the broker couldn’t be the broker of company A and the branch broker for company B. I would recommend talking to the Real Estate Commission. Obviously, they will have to approve the appointment of the broker anyway.
License Law – Broker with Multiple Companies
Q: You have a situation where you may become the broker for a small brokerage firm in a separate city. You asked whether or not you can retain the brokerage position you have in a company you have long owned.
A: In that situation, it seems most likely to me that it would be approved. The license law allows a broker to be the broker for more than one company, so I know of no reason your situation would not work. You should check with the Real Estate Commission since they will have to approve the appointment of a broker anyway.