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<p>I assume you're talking about Homeowner Benefit Agreements, and
not "The Point." I've personally not seen or heard of these. The
only thing I recall similar is some HOA covenants were being set
up to require significant transfer fees, and to the developer, not
to the HOA. I recall there was a statute which limited those.
But that is the extent of my recollection.<br>
</p>
<pre class="moz-signature" cols="72">Kary L. Krismer
John L. Scott, Inc.
206 723-2148</pre>
<div class="moz-cite-prefix">On 12/5/2022 7:20 PM, Douglas Owens
wrote:<br>
</div>
<blockquote type="cite"
cite="mid:91CA64DB-A203-4855-9C3B-7D7DD1B49120@seattlerelawyer.com">
<meta http-equiv="Content-Type" content="text/html; charset=UTF-8">
Dear listmates, I have a few questions. Is it the sense that
these contracts are usually sold to the purchaser of the property
by either the listing or the selling broker in connection with the
purchaser’s transaction by which he or she comes into title? Has
anyone seen the wording of one of these contracts? The company’s
website says that a “memorandum" of the agreement is what is
recorded. Much would depend on what the contract says, about such
things as are usual in a listing agreement such as the term of the
listing, the efforts the broker must make and the amount of the
commission. At a minimum it seems that these contracts raise
issues about restraint of trade, being explicit barriers against
the property owner using any other brokerage to sell the property
in the future, no matter what competitive offers such brokers
might make. This might be a violation of Section 1 of the Sherman
Act if the company is out of state, or a violation of RCW
19.86.050 if not. Another question involves the disclosure given
to the property owner at the time of the signing of the agreement
concerning the potential securities issues. By these contracts in
effect the property owner is receiving money currently in exchange
for a promise to pay the broker a much larger amount in the future
if certain conditions exist. I am not a securities expert and
perhaps others could indicate whether this issue is any thing a
property owner should be warned about. Yours truly, Doug Owens<br
class="">
<div><br class="">
<blockquote type="cite" class="">
<div class="">On Dec 5, 2022, at 12:26 PM, Dwight Bickel <<a
href="mailto:dwight@dwightbickel.com"
class="moz-txt-link-freetext" moz-do-not-send="true">dwight@dwightbickel.com</a>>
wrote:</div>
<br class="Apple-interchange-newline">
<div class="">
<div class="WordSection1" style="page: WordSection1;
caret-color: rgb(0, 0, 0); font-family: Helvetica;
font-size: 12px; font-style: normal; font-variant-caps:
normal; font-weight: 400; letter-spacing: normal;
text-align: start; text-indent: 0px; text-transform: none;
white-space: normal; word-spacing: 0px;
-webkit-text-stroke-width: 0px; text-decoration: none;">
<div style="margin: 0in; font-size: 11pt; font-family:
Calibri, sans-serif;" class="">
<span style="font-family: Verdana, sans-serif;" class="">There
are several messages on the King County real property
lawyers’ listserve about something that I have not
seen, but I believe similar to agreements that have
been used around the country. Title companies confirm
these are being sold in Washington, binding the
property owner to use a certain firm for brokerage
upon the next sale. On the national real property
lawyers’ listserve, this was posted regarding actions
that may need to be filed, and legislation may need to
be passed, to protect against such contracts:<o:p
class=""></o:p></span></div>
<div style="margin: 0in; font-size: 11pt; font-family:
Calibri, sans-serif;" class="">
<span style="font-family: Verdana, sans-serif;" class=""><o:p
class=""> </o:p></span></div>
<div style="margin: 0in 0in 0in 0.5in; font-size: 11pt;
font-family: Calibri, sans-serif;" class="">
<b class="">From:</b><span class="Apple-converted-space"> </span>DIRT
- Real Estate Lawyers Listserv <<a
href="mailto:DIRT@LISTSERV.UMKC.EDU" style="color:
purple; text-decoration: underline;"
class="moz-txt-link-freetext" moz-do-not-send="true">DIRT@LISTSERV.UMKC.EDU</a>><span
class="Apple-converted-space"> </span><b class="">On
Behalf Of<span class="Apple-converted-space"> </span></b>Whitman,
Dale<br class="">
<b class="">Sent:</b><span class="Apple-converted-space"> </span>Wednesday,
November 30, 2022 11:11 AM<br class="">
<b class="">To:</b><span class="Apple-converted-space"> </span><a
href="mailto:DIRT@LISTSERV.UMKC.EDU" style="color:
purple; text-decoration: underline;"
class="moz-txt-link-freetext" moz-do-not-send="true">DIRT@LISTSERV.UMKC.EDU</a><br
class="">
<b class="">Subject:</b><span
class="Apple-converted-space"> </span>[DIRT] Homeowner
benefit agreements (so-called)<o:p class=""></o:p></div>
<div style="margin: 0in 0in 0in 0.5in; font-size: 11pt;
font-family: Calibri, sans-serif;" class="">
<o:p class=""> </o:p></div>
<div style="margin: 0in 0in 0in 0.5in; font-size: 11pt;
font-family: Calibri, sans-serif;" class="">
You may remember a previous conversation some months ago
on DIRT about so-called homeowner benefit agreements,
under which a real estate brokerage firm makes a cash
payment to a homeowner. In return, the owner signs a
contract promising to use the firm for brokerage
services when the house is next listed for sale, any
time in the next 40 years. The contract is recorded and
purports to run with the land, binding future owners. It
also has the effect of acting like a lien, discouraging
or making impossible the refinancing of the house or
placing a second mortgage or HELOC on it.<o:p class=""></o:p></div>
<div style="margin: 0in 0in 0in 0.5in; font-size: 11pt;
font-family: Calibri, sans-serif;" class="">
<o:p class=""> </o:p></div>
<div style="margin: 0in 0in 0in 0.5in; font-size: 11pt;
font-family: Calibri, sans-serif;" class="">
The brokerage firm will cancel the contract, but only on
the payment by the homeowner of a substantial fee,
typically 3% of the property’s current value. (One
suspects that this is the firm’s main source of revenue
from these contracts.) All of this is spelled out in the
contract, of course, but is not well explained to the
homeowner who is entering into the contract and
receiving a check.<o:p class=""></o:p></div>
<div style="margin: 0in 0in 0in 0.5in; font-size: 11pt;
font-family: Calibri, sans-serif;" class="">
<o:p class=""> </o:p></div>
<div style="margin: 0in 0in 0in 0.5in; font-size: 11pt;
font-family: Calibri, sans-serif;" class="">
The Florida Attorney General’s office has just filed a
suit against one of the main purveyors of these sorts of
contracts. The AG seeks damages, penalties, and an
injunction, relying mainly on the Florida consumer fraud
statute. The word is that more state attorney general’s
offices are readying similar suits. These things are
predatory and deserve, IMHO, to be stamped out.<o:p
class=""></o:p></div>
<div style="margin: 0in 0in 0in 0.5in; font-size: 11pt;
font-family: Calibri, sans-serif;" class="">
<o:p class=""> </o:p></div>
<div style="margin: 0in 0in 0in 0.5in; font-size: 11pt;
font-family: Calibri, sans-serif;" class="">
Dale<o:p class=""></o:p></div>
<div style="margin: 0in 0in 0in 0.5in; font-size: 11pt;
font-family: Calibri, sans-serif;" class="">
<o:p class=""> </o:p></div>
<p style="margin-left: 0.5in;" class=""><span
style="font-size: 10pt; font-family: "Arial
Narrow", sans-serif;" class="">To add or remove
from this mailing list, please go to <<a
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class=""></o:p></p>
<div style="margin: 0in; font-size: 11pt; font-family:
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<span style="font-family: Verdana, sans-serif;" class=""><o:p
class=""> </o:p></span></div>
<div class="">
<div style="margin: 0in; font-size: 11pt; font-family:
Calibri, sans-serif; background-color: white;
vertical-align: baseline;" class="">
<span style="font-family: Verdana, sans-serif; color:
rgb(0, 32, 96);" class="">Dwight A. Bickel<o:p
class=""></o:p></span></div>
<div style="margin: 0in; font-size: 11pt; font-family:
Calibri, sans-serif; background-color: white;
vertical-align: baseline;" class="">
<span style="font-family: Verdana, sans-serif; color:
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Advisor<o:p class=""></o:p></span></div>
<div style="margin: 0in; font-size: 11pt; font-family:
Calibri, sans-serif; background-color: white;
vertical-align: baseline;" class="">
<span style="font-family: Verdana, sans-serif; color:
rgb(0, 32, 96);" class="">Washington Title
Professional<o:p class=""></o:p></span></div>
<div style="margin: 0in; font-size: 11pt; font-family:
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<span style="font-family: Verdana, sans-serif; color:
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padding: 0in;" class=""><a
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style="color: purple; text-decoration: underline;"
class="" moz-do-not-send="true"><span
style="color: rgb(0, 32, 96);" class="">Dwight@DwightBickel.com</span></a></span><span
style="font-family: Verdana, sans-serif; color:
rgb(0, 32, 96);" class=""><o:p class=""></o:p></span></div>
<div style="margin: 0in; font-size: 11pt; font-family:
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<span style="font-family: Verdana, sans-serif; color:
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href="http://dwightbickel.com/" style="color:
purple; text-decoration: underline;" class=""
moz-do-not-send="true">dwightbickel.com</a><o:p
class=""></o:p></span></div>
<div style="margin: 0in; font-size: 11pt; font-family:
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<span style="font-family: Verdana, sans-serif; color:
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padding: 0in;" class="">206-484-1976</span><span
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