[WSBARP] Form 17 residential

Tue Apr 3 13:51:34 PDT 2018

Kary,

I do not agree with her take on the meaning of striking out the "Info Verification Period" caluse.  Her premise is that the 10 day info verification contingency period insulates the seller from buyer misrepresentation claims based on a material inaccuracy.  Sure, it might give the seller a basis to assert a defense that the buyer waived any such misrepresentation claim but this clause does not contain any waiver language whatsoever and doesn't even mention the word misrepresentation.  That does not seem like enough to constitute a voluntary waiver of a known right.

Moreover, what's so magical about 10 days?  If a buyer has the Info Verification clause in place but does not discover a material inaccuracy until after the 10 day period has run are they just screwed?  They don't have a contractual right to terminate and per Annie's analysis, they have given up their right to later bring a seller misrepresentation claim?  Does that seem right?

If a buyer strikes out the clause in its entirety, isn't that effectively the buyer saying I understand I could have had an extra 10 days for due diligence but I have done enough for my own satisfaction so I hereby reduce this time period to zero days.  Why shouldn't buyers be allowed to make that decision?

Marc Holmes
Holmes Law Group PLLC
2303 W. Commodore Way, # 306
Seattle WA 98199
HolmesLawGroup.com<http://holmeslawgroup.com/>
marc at holmeslawgroup.com<mailto:marc at holmeslawgroup.com>
Ofc: 206-357-4224
Cell: 206-849-0853

From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com> On Behalf Of Kary Krismer
Sent: Tuesday, April 3, 2018 1:10 PM
To: wsbarp at lists.wsbarppt.com
Subject: Re: [WSBARP] Form 17 residential

Marc raises a great point about agents striking the paragraph W information verification period language, erroneously thinking that it helps the seller.  I recently had a multiple offer situation where 40% of the offers struck that language.

Here's a slightly stressed out/annoyed Annie bothered by the fact that agents don't seem to be listening to her!  Paragraph w is covered at about the 2:25 mark--and stay for the surprise at the very end!

https://www.youtube.com/watch?v=esd0eLwkBRo

Kary L. Krismer

John L. Scott/KMS Renton

206 723-2148
On 4/3/2018 12:57 PM, marc holmeslawgroup.com wrote:
If they used an MLS form purchase and sale agreement, look for the Information Verification clause on the last page of that form.  It creates a 10 day contingency period "to verify all information provided by the Seller or Listing Firm related to the Property."  More and more buyers are voluntarily striking this clause but if your client did not and you're still within that time period, then that would seem like a good basis to terminate.

It's not clear who discovered the septic bedroom issue but if it was your client rather than the seller, then you may be out of luck if the Form 17 rescission window has run out and your client either affirmatively waived the info verification contingency or let it lapse

Per RCW 64.06.040(1), a seller has a duty to amend their Form 17 when they learn of a material inaccuracy in the form except when it was brought to their attention by the buyer or someone acting on the buyer's behalf.

RCW 64.06.040
After delivery of disclosure statement-Additional information-Seller's duty-Buyer's options-Closing the transaction.
(1) If, after the date that a seller of real property completes a real property transfer disclosure statement, the seller learns from a source other than the buyer or others acting on the buyer's behalf such as an inspector of additional information or an adverse change which makes any of the disclosures made inaccurate, the seller shall amend the real property transfer disclosure statement, and deliver the amendment to the buyer.

Marc Holmes
Holmes Law Group PLLC
2303 W. Commodore Way, # 306
Seattle WA 98199
HolmesLawGroup.com<http://holmeslawgroup.com/>
marc at holmeslawgroup.com<mailto:marc at holmeslawgroup.com>
Ofc: 206-357-4224
Cell: 206-849-0853

From: wsbarp-bounces at lists.wsbarppt.com<mailto:wsbarp-bounces at lists.wsbarppt.com> <wsbarp-bounces at lists.wsbarppt.com><mailto:wsbarp-bounces at lists.wsbarppt.com> On Behalf Of Kary Krismer
Sent: Tuesday, April 3, 2018 11:26 AM
To: wsbarp at lists.wsbarppt.com<mailto:wsbarp at lists.wsbarppt.com>; nestor at pplsweb.com<mailto:nestor at pplsweb.com>
Subject: Re: [WSBARP] Form 17 residential

Did they just waive the Form 35 inspection rights or also the Form 17 (the second place for the buyer to sign on Form 17)?

If just the former I'm not sure a buyer can still back out where the answer is wrong.  I'd love to hear the answer of others.  But chances are there's at least one answer on the Form 17, the answer to which is not N/A, which the seller failed to answer.  My question would be whether you could ask for the answer to that question at this point and then back out based on the new Form 17 coming in?

Kary L. Krismer

John L. Scott/KMS Renton

206 723-2148
On 4/3/2018 10:40 AM, nestor at pplsweb.com<mailto:nestor at pplsweb.com> wrote:
Client comes in and waived inspection under Form 35. Seller provided a Form 17 that mispresented the capacity of the septic system. The way I see, Buyer can back out due to the mis presentation in spite of the waiver. Any other recourse?

Nestor Gorfinkel, Attorney at Law
Admitted to practice law in Washington & Florida
Florida Civil-Law (International) Notary
Puget Property Legal Services, PC
11900 NE First Street Suite 300
Bellevue, WA 98005
Tel. (425) 961-0519
Fax. (888) 837-0616
nestor at pplsweb.com<mailto:nestor at pplsweb.com>

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