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</o:shapelayout></xml><![endif]--></head><body bgcolor=white lang=EN-US link="#0563C1" vlink="#954F72"><div class=WordSection1><p class=MsoNormal><span style='color:windowtext'>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.<o:p></o:p></span></p><p class=MsoNormal><span style='color:windowtext'><o:p> </o:p></span></p><div><p class=MsoNormal>Nestor Gorfinkel, Attorney at Law<o:p></o:p></p><p class=MsoNormal>Licensed in Washington & Florida<o:p></o:p></p><p class=MsoNormal>Florida Civil-Law (International) Notary<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><b><span style='font-size:10.0pt'>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.<o:p></o:p></span></b></p><p class=MsoNormal><b><span style='font-size:10.0pt'><o:p> </o:p></span></b></p><p class=MsoNormal><b><span style='font-size:24.0pt;font-family:Webdings;color:#009900'>P</span></b><b><span style='font-size:24.0pt;color:#009900'> </span></b><b><span style='font-size:9.0pt;font-family:"Verdana",sans-serif;color:#009900'>Please consider the environment before printing this e-mail.</span></b><span style='font-family:"Century Schoolbook",serif'><o:p></o:p></span></p></div><p class=MsoNormal><span style='color:windowtext'><o:p> </o:p></span></p><div><div style='border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b><span style='color:windowtext'>From:</span></b><span style='color:windowtext'> wsbarp-bounces@lists.wsbarppt.com <wsbarp-bounces@lists.wsbarppt.com> <b>On Behalf Of </b>Kary Krismer<br><b>Sent:</b> Tuesday, April 3, 2018 2:58 PM<br><b>To:</b> wsbarp@lists.wsbarppt.com<br><b>Subject:</b> Re: [WSBARP] Form 17 residential<o:p></o:p></span></p></div></div><p class=MsoNormal><o:p> </o:p></p><p>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?<o:p></o:p></p><p>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.<o:p></o:p></p><pre>Kary L. Krismer<o:p></o:p></pre><pre>John L. Scott/KMS Renton <o:p></o:p></pre><pre>206 723-2148<o:p></o:p></pre><div><p class=MsoNormal>On 4/3/2018 1:51 PM, marc holmeslawgroup.com wrote:<o:p></o:p></p></div><blockquote style='margin-top:5.0pt;margin-bottom:5.0pt'><p class=MsoNormal><span style='font-size:12.0pt'>Kary,</span><o:p></o:p></p><p class=MsoNormal><span style='font-size:12.0pt'> </span><o:p></o:p></p><p class=MsoNormal><span style='font-size:12.0pt'>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.</span><o:p></o:p></p><p class=MsoNormal><span style='font-size:12.0pt'> </span><o:p></o:p></p><p class=MsoNormal><span style='font-size:12.0pt'>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?</span><o:p></o:p></p><p class=MsoNormal><span style='font-size:12.0pt'> </span><o:p></o:p></p><p class=MsoNormal><span style='font-size:12.0pt'>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?</span><o:p></o:p></p><div><p class=MsoNormal><span style='font-size:12.0pt'> </span><o:p></o:p></p><p class=MsoNormal><span style='font-size:12.0pt'> </span><o:p></o:p></p><p class=MsoNormal><span style='font-size:12.0pt'>Marc Holmes</span><o:p></o:p></p><p class=MsoNormal><span style='font-size:12.0pt'>Holmes Law Group PLLC</span><o:p></o:p></p><p class=MsoNormal><span style='font-size:12.0pt'>2303 W. Commodore Way, # 306</span><o:p></o:p></p><p class=MsoNormal><span style='font-size:12.0pt'>Seattle WA 98199</span><o:p></o:p></p><p class=MsoNormal><a href="http://holmeslawgroup.com/"><span style='font-size:12.0pt'>HolmesLawGroup.com</span></a><o:p></o:p></p><p class=MsoNormal><a href="mailto:marc@holmeslawgroup.com"><span style='font-size:12.0pt'>marc@holmeslawgroup.com</span></a><o:p></o:p></p><p class=MsoNormal><span style='font-size:12.0pt'>Ofc: 206-357-4224</span><o:p></o:p></p><p class=MsoNormal><span style='font-size:12.0pt'>Cell: 206-849-0853</span><o:p></o:p></p></div><p class=MsoNormal><span style='font-size:12.0pt'> </span><o:p></o:p></p><div><div style='border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b><span style='color:windowtext'>From:</span></b><span style='color:windowtext'> <a href="mailto:wsbarp-bounces@lists.wsbarppt.com">wsbarp-bounces@lists.wsbarppt.com</a> <a href="mailto:wsbarp-bounces@lists.wsbarppt.com"><wsbarp-bounces@lists.wsbarppt.com></a> <b>On Behalf Of </b>Kary Krismer<br><b>Sent:</b> Tuesday, April 3, 2018 1:10 PM<br><b>To:</b> <a href="mailto:wsbarp@lists.wsbarppt.com">wsbarp@lists.wsbarppt.com</a><br><b>Subject:</b> Re: [WSBARP] Form 17 residential</span><o:p></o:p></p></div></div><p class=MsoNormal> <o:p></o:p></p><p>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.<o:p></o:p></p><p>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!<o:p></o:p></p><p><a href="https://www.youtube.com/watch?v=esd0eLwkBRo">https://www.youtube.com/watch?v=esd0eLwkBRo</a><o:p></o:p></p><pre>Kary L. Krismer<o:p></o:p></pre><pre>John L. Scott/KMS Renton <o:p></o:p></pre><pre>206 723-2148<o:p></o:p></pre><div><p class=MsoNormal>On 4/3/2018 12:57 PM, marc holmeslawgroup.com wrote:<o:p></o:p></p></div><blockquote style='margin-top:5.0pt;margin-bottom:5.0pt'><p class=MsoNormal><span style='font-size:12.0pt'>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. </span><o:p></o:p></p><p class=MsoNormal><span style='font-size:12.0pt'> </span><o:p></o:p></p><p class=MsoNormal><span style='font-size:12.0pt'>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 </span><o:p></o:p></p><p class=MsoNormal><span style='font-size:12.0pt'> </span><o:p></o:p></p><p class=MsoNormal><span style='font-size:12.0pt'>Per RCW 64.06.0<u>40</u>(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. </span><o:p></o:p></p><div><p class=MsoNormal><span style='font-size:12.0pt'> </span><o:p></o:p></p><p class=MsoNormal><span style='font-size:12.0pt'> </span><o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:3.75pt;margin-right:0in;margin-bottom:3.75pt;margin-left:0in'><b><span style='font-size:12.0pt;font-family:"'>RCW 64.06.040</span></b><o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:3.75pt;margin-right:0in;margin-bottom:3.75pt;margin-left:0in'><b><span style='font-size:12.0pt;font-family:"'>After delivery of disclosure statement—Additional information—Seller's duty—Buyer's options—Closing the transaction.</span></b><o:p></o:p></p><p class=MsoNormal style='text-indent:.25in'><span style='font-size:12.0pt;font-family:"'>(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.</span><o:p></o:p></p><p class=MsoNormal><span style='font-size:12.0pt'> </span><o:p></o:p></p><p class=MsoNormal><span style='font-size:12.0pt'> </span><o:p></o:p></p><p class=MsoNormal><span style='font-size:12.0pt'>Marc Holmes</span><o:p></o:p></p><p class=MsoNormal><span style='font-size:12.0pt'>Holmes Law Group PLLC</span><o:p></o:p></p><p class=MsoNormal><span style='font-size:12.0pt'>2303 W. Commodore Way, # 306</span><o:p></o:p></p><p class=MsoNormal><span style='font-size:12.0pt'>Seattle WA 98199</span><o:p></o:p></p><p class=MsoNormal><a href="http://holmeslawgroup.com/"><span style='font-size:12.0pt;color:blue'>HolmesLawGroup.com</span></a><o:p></o:p></p><p class=MsoNormal><a href="mailto:marc@holmeslawgroup.com"><span style='font-size:12.0pt;color:blue'>marc@holmeslawgroup.com</span></a><o:p></o:p></p><p class=MsoNormal><span style='font-size:12.0pt'>Ofc: 206-357-4224</span><o:p></o:p></p><p class=MsoNormal><span style='font-size:12.0pt'>Cell: 206-849-0853</span><o:p></o:p></p></div><p class=MsoNormal><span style='font-size:12.0pt'> </span><o:p></o:p></p><div><div style='border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b><span style='color:windowtext'>From:</span></b><span style='color:windowtext'> </span><a href="mailto:wsbarp-bounces@lists.wsbarppt.com">wsbarp-bounces@lists.wsbarppt.com</a><span style='color:windowtext'> </span><a href="mailto:wsbarp-bounces@lists.wsbarppt.com"><wsbarp-bounces@lists.wsbarppt.com></a><span style='color:windowtext'> <b>On Behalf Of </b>Kary Krismer<br><b>Sent:</b> Tuesday, April 3, 2018 11:26 AM<br><b>To:</b> </span><a href="mailto:wsbarp@lists.wsbarppt.com">wsbarp@lists.wsbarppt.com</a><span style='color:windowtext'>; </span><a href="mailto:nestor@pplsweb.com">nestor@pplsweb.com</a><span style='color:windowtext'><br><b>Subject:</b> Re: [WSBARP] Form 17 residential</span><o:p></o:p></p></div></div><p class=MsoNormal> <o:p></o:p></p><p>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)?<o:p></o:p></p><p>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?<o:p></o:p></p><pre>Kary L. Krismer<o:p></o:p></pre><pre>John L. Scott/KMS Renton <o:p></o:p></pre><pre>206 723-2148<o:p></o:p></pre><div><p class=MsoNormal>On 4/3/2018 10:40 AM, <a href="mailto:nestor@pplsweb.com">nestor@pplsweb.com</a> wrote:<o:p></o:p></p></div><blockquote style='margin-top:5.0pt;margin-bottom:5.0pt'><p class=MsoNormal>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?<o:p></o:p></p><p class=MsoNormal> <o:p></o:p></p><p class=MsoNormal><b>Nestor Gorfinkel, Attorney at Law </b><o:p></o:p></p><p class=MsoNormal><b>Admitted to practice law in Washington & Florida </b><o:p></o:p></p><p class=MsoNormal><b>Florida Civil-Law (International) Notary</b><o:p></o:p></p><p class=MsoNormal><b>Puget Property Legal Services, PC</b><o:p></o:p></p><p class=MsoNormal><b>11900 NE First Street Suite 300</b><o:p></o:p></p><p class=MsoNormal><b>Bellevue, WA 98005</b><o:p></o:p></p><p class=MsoNormal><b>Tel. (425) 961-0519</b><o:p></o:p></p><p class=MsoNormal><b>Fax. (888) 837-0616</b><o:p></o:p></p><p class=MsoNormal><a href="mailto:nestor@pplsweb.com"><b><span style='color:black;text-decoration:none'>nestor@pplsweb.com</span></b></a><b> </b><o:p></o:p></p><p class=MsoNormal><b> </b><o:p></o:p></p><p class=MsoNormal><b><span style='font-size:10.0pt'>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. 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