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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link=blue vlink=purple><div class=WordSection1><p class=MsoNormal>Craig,<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>I think a learned judge is going to have to shed light on this. <o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Thank you all.<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><span style='color:black'>Nestor Gorfinkel, Attorney at Law<o:p></o:p></span></p><p class=MsoNormal><span style='color:black'>Licensed in Washington & Florida<o:p></o:p></span></p><p class=MsoNormal><span style='color:black'>Florida Civil-Law (International) Notary<o:p></o:p></span></p><p class=MsoNormal><span style='color:black'><o:p> </o:p></span></p><p class=MsoNormal><b><span style='font-size:10.0pt;color:black'>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;color:black'><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;color:black'><o:p></o:p></span></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><b>From:</b> wsbarp-bounces@lists.wsbarppt.com <wsbarp-bounces@lists.wsbarppt.com> <b>On Behalf Of </b>Craig Blackmon<br><b>Sent:</b> Monday, October 7, 2019 1:56 PM<br><b>To:</b> WSBA Real Property Listserv <wsbarp@lists.wsbarppt.com><br><b>Subject:</b> Re: [WSBARP] NWMLS Form 35<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><div><p class=MsoNormal>Colleagues, I've considered the issue and have reached the opposite conclusion. By providing a portion of the report, buyer breached. No further performance is due, and seller is entitled to the liquidated damages (forfeiture of earnest money). <o:p></o:p></p><div><p class=MsoNormal><o:p> </o:p></p></div><div><p class=MsoNormal>This is exactly the purpose of liquidated damages. The seller's injury -- learning of a defect that must now be disclosed in the future, with the resulting loss in value -- cannot be ascertained. The way the contract is written, I think seller is entitled to the earnest money. Presumably the parties can negotiate a better resolution than that -- but seller keeps the earnest money otherwise.<o:p></o:p></p></div><div><p class=MsoNormal><o:p> </o:p></p><div><p class=MsoNormal>Note that I am really disappointed with this recent change to the form. I feel it impairs a buyer's ability to communicate the defect that must be cured in satisfaction of the inspection contingency. The authors of the form felt that the change was needed to prevent buyers from using inspection reports (and the resulting duty to disclose to a subsequent buyer) as an unfair negotiating tactic. <o:p></o:p></p></div><div><p class=MsoNormal><o:p> </o:p></p></div><div><p class=MsoNormal>I'd like to see an exception inserted that allows a buyer to provide those specific and limited portions of a report that identify repairs the seller must address in order to satisfy the inspection contingency. In the meantime, I see risk of a dispute between buyer and seller either just before or right after closing, as to whether the seller fixed the defects as "agreed." The parties can foreseeably have a misunderstanding, given the inability to share the relevant portions of the report.<o:p></o:p></p></div></div><div><p class=MsoNormal><o:p> </o:p></p></div><div><p class=MsoNormal>We'll see how it unfolds.<o:p></o:p></p></div><div><p class=MsoNormal><o:p> </o:p></p></div><div><p class=MsoNormal>Craig<o:p></o:p></p></div><div><div><div><div><div><div><div><div><div><div><div><div><div><div><div><div><div><div><p class=MsoNormal><span style='font-size:9.5pt'>Craig Blackmon, Attorney at Law<o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial",sans-serif'><a href="http://www.seattlepropertylawyer.com/" target="_blank">Seattle Real Estate Lawyer</a></span><span style='font-size:9.5pt'><o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:#212121'>92 Lenora St. (The Makers Space, a shared work environment) </span><span style='font-size:9.5pt'><o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:#212121'>Seattle WA 98121</span><span style='font-size:9.5pt'><o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Arial",sans-serif;color:#212121'>Office/Cell: </span><span style='font-size:9.5pt'>(206) 369-5949 Fax: (206) 770-7328 <o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-size:9.5pt'><a href="https://twitter.com/LawyerBroker" target="_blank">@LawyerBroker</a><o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-size:9.5pt'><a href="http://www.seattlepropertylawyer.com/blog?category=Buy+without+an+Agent" target="_blank">How to Buy Without an Agent</a> | <a href="http://www.seattlepropertylawyer.com/blog?category=Sell+FSBO" target="_blank">How to Sell FSBO</a> | <a href="http://www.seattlepropertylawyer.com/blog?category=Real+Estate+Glossary" target="_blank">RE Glossary</a><o:p></o:p></span></p></div><div><p class=MsoNormal><span style='font-size:9.5pt'>CONFIDENTIALITY NOTICE: This communication is a private, confidential electronic communication encompassed by 18 USC 2510. It is for the sole use of the intended recipient and receipt by anyone other than the intended recipient does not constitute a loss of its confidential or privileged nature. Any review or distribution by others is strictly prohibited. If you are not the intended recipient please inform the sender and destroy all copies.<o:p></o:p></span></p></div></div></div></div></div></div></div></div></div></div></div></div></div></div></div></div></div></div><p class=MsoNormal><o:p> </o:p></p></div><p class=MsoNormal><o:p> </o:p></p><div><div><p class=MsoNormal>On Mon, Oct 7, 2019 at 1:46 PM <<a href="mailto:nestor@pplsweb.com">nestor@pplsweb.com</a>> wrote:<o:p></o:p></p></div><blockquote style='border:none;border-left:solid #CCCCCC 1.0pt;padding:0in 0in 0in 6.0pt;margin-left:4.8pt;margin-right:0in'><div><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'>Kerry, I am not sure I follow your last line where Buyer would be liable for damages.<o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'> <o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'>After a proper and timely 35R was provided by the Buyer and Seller doesn’t want to make the substantial repairs and says if you don’t close we keep you deposit because I received the report, why would the Buyer be in default? I don’t think Seller has been given that hammer to wield in this circumstance. <o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'> <o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'>Also, I am not following the intent of this clause, unless it was done to prevent Buyers from sending a huge garbage list of repairs where the Seller is now on “notice” to amend a Form 17 based upon these reports if the Seller doesn’t; acquiesce to the Buyer’s demand.<o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'> <o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'> <o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'>Nestor Gorfinkel, Attorney at Law<o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'>Licensed in Washington & Florida<o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'>Florida Civil-Law (International) Notary<o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'> <o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><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.</span></b><o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><b><span style='font-size:10.0pt'> </span></b><o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><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><o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'> <o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'> <o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'> <o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'> <o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'> <o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'> <o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'> <o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'> <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 style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><b>From:</b> Kary Krismer <<a href="mailto:Krismer@comcast.net" target="_blank">Krismer@comcast.net</a>> <br><b>Sent:</b> Monday, October 7, 2019 1:27 PM<br><b>To:</b> <a href="mailto:nestor@pplsweb.com" target="_blank">nestor@pplsweb.com</a><br><b>Subject:</b> Re: [WSBARP] NWMLS Form 35<o:p></o:p></p></div></div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'> <o:p></o:p></p><p>I would agree with you about the consequences. Note the form does not say the contract is terminated and the EM is to be returned to the seller. IMHO you'd need a material breach for damages, and I have a hard time imagining a situation where the buyer wouldn't be allowed to just waive their inspection contingency and proceed to closing after having provided the inspection report. In that scenario the seller would not have been damaged at all (ignoring aggravation). <o:p></o:p></p><p>It's where the buyer doesn't proceed to closing and/or makes "unreasonable" demands for an adjustment that the clause and damages come into play.<o:p></o:p></p><pre>Kary L. Krismer<o:p></o:p></pre><pre>John L. Scott, Inc. <o:p></o:p></pre><pre>206 723-2148<o:p></o:p></pre><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'>On 10/7/2019 1:22 PM, <a href="mailto:nestor@pplsweb.com" target="_blank">nestor@pplsweb.com</a> wrote:<o:p></o:p></p></div><blockquote style='margin-top:5.0pt;margin-bottom:5.0pt'><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'>The recently updated form 35 adds to paragraph 1a. the following...”Buyer shall not provide the inspection report, or portions thereof to Seller unless Seller requests otherwise or as required by paragraph 1.b”.<o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'> <o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'>Selling broker provides a 35R with copy of reports to Listing Broker. Seller now wants to hold Buyer in default and forfeit Earnest Money because Selling agent provided copy to Listing Agent.<o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'> <o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'>I can’t see how the Buyer defaulted (for a couple of reasons to start) and forfeited the deposit. Curious to hear your thoughts.<o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'> <o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'> <o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'>Nestor Gorfinkel, Attorney at Law<o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'>Licensed in Washington & Florida<o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'>Florida Civil-Law (International) Notary<o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'> <o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><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.</span></b><o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><b><span style='font-size:10.0pt'> </span></b><o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><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><o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'> <o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'> <o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'> <o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'> <o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;margin-bottom:12.0pt'><o:p> </o:p></p><pre>***Disclaimer: Please note that RPPT listserv participation is not restricted to practicing attorneys and may include non-practicing attorneys, law students, professionals working in related fields, and others.***<o:p></o:p></pre><pre> <o:p></o:p></pre><pre>_______________________________________________<o:p></o:p></pre><pre>WSBARP mailing list<o:p></o:p></pre><pre><a href="mailto:WSBARP@lists.wsbarppt.com" target="_blank">WSBARP@lists.wsbarppt.com</a><o:p></o:p></pre><pre><a href="http://mailman.fsr.com/mailman/listinfo/wsbarp" target="_blank">http://mailman.fsr.com/mailman/listinfo/wsbarp</a><o:p></o:p></pre></blockquote></div></div><p class=MsoNormal>***Disclaimer: Please note that RPPT listserv participation is not restricted to practicing attorneys and may include non-practicing attorneys, law students, professionals working in related fields, and others.***<br><br>_______________________________________________<br>WSBARP mailing list<br><a href="mailto:WSBARP@lists.wsbarppt.com" target="_blank">WSBARP@lists.wsbarppt.com</a><br><a href="http://mailman.fsr.com/mailman/listinfo/wsbarp" target="_blank">http://mailman.fsr.com/mailman/listinfo/wsbarp</a><o:p></o:p></p></blockquote></div></div></body></html>