[WSBARP] Form 17 residential

Tue Apr 3 15:23:57 PDT 2018

Thank you all for your responses. After reviewing (again) RCW 64.06, I am of
the opinion that unless Buyer waived the Form 17, once a misrepresentation
or error is discovered, the Seller must be given the opportunity to amend
and the three days restarts the clock to rescind should the Buyer so choose.

Nestor Gorfinkel, Attorney at Law

Licensed in Washington & Florida

Florida Civil-Law (International) Notary

ATTENTION - This e-mail message and any attachment to this e-mail message
may contain confidential information that is legally privileged. If you are
not the intended recipient, you must not review, retransmit, convert to hard
copy, copy, use or disseminate this e-mail or any attachments to it. If you
have received this e-mail in error, please notify us immediately by return
e-mail or by telephone at the phone numbers provided herein and delete this
message. Please note that if this e-mail message contains a forwarded
message or is a reply to a prior message, some or all of the contents of
this message or any attachments may not have been produced by the sender.

P Please consider the environment before printing this e-mail.

From: wsbarp-bounces at lists.wsbarppt.com <wsbarp-bounces at lists.wsbarppt.com>
On Behalf Of Kary Krismer
Sent: Tuesday, April 3, 2018 2:58 PM
To: wsbarp at lists.wsbarppt.com
Subject: Re: [WSBARP] Form 17 residential

I agree it's not entirely clear, but I would side with the position that if
you're given a period of time to do something and you don't do it in that
period, that you're out of luck.  Somewhat similar to what happens with
inspections.  It would be interesting to re-read those inspection cases to
see if the same doctrine could be applied.  Are you allocating the risk
contractually?

FWIW, I don't agree with your interpretation of the effect of striking the
language and it indicating due diligence has already been completed.  I
think it just leaves the parties where ever they would have been if that
language had been entirely omitted from the form.  Or alternatively a
knowing waiver of that contractual right.

Kary L. Krismer
John L. Scott/KMS Renton 
206 723-2148

On 4/3/2018 1:51 PM, marc holmeslawgroup.com wrote:

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

 <http://holmeslawgroup.com/> HolmesLawGroup.com

 <mailto:marc at holmeslawgroup.com> 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>
<mailto: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 <mailto: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

 <http://holmeslawgroup.com/> HolmesLawGroup.com

 <mailto:marc at holmeslawgroup.com> 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>
<mailto:wsbarp-bounces at lists.wsbarppt.com>
<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

 <mailto:nestor at pplsweb.com> nestor at pplsweb.com 

ATTENTION - This e-mail message and any attachment to this e-mail message
may contain confidential information that is legally privileged. If you are
not the intended recipient, you must not review, retransmit, convert to hard
copy, copy, use or disseminate this e-mail or any attachments to it. If you
have received this e-mail in error, please notify us immediately by return
e-mail or by telephone at the phone numbers provided herein and delete this
message. Please note that if this e-mail message contains a forwarded
message or is a reply to a prior message, some or all of the contents of
this message or any attachments may not have been produced by the sender.

P Please consider the environment before printing this e-mail.

_______________________________________________
WSBARP mailing list
WSBARP at lists.wsbarppt.com <mailto:WSBARP at lists.wsbarppt.com> 
http://mailman.fsr.com/mailman/listinfo/wsbarp

_______________________________________________
WSBARP mailing list
WSBARP at lists.wsbarppt.com <mailto:WSBARP at lists.wsbarppt.com> 
http://mailman.fsr.com/mailman/listinfo/wsbarp

_______________________________________________
WSBARP mailing list
WSBARP at lists.wsbarppt.com <mailto:WSBARP at lists.wsbarppt.com> 
http://mailman.fsr.com/mailman/listinfo/wsbarp

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mailman.fsr.com/pipermail/wsbarp/attachments/20180403/59795555/attachment.html>