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Category: Dear Forms Committee

Dear Forms Committee: I represent a seller who has received a cash offer. The buyer has indicated in Section 5 that they will provide the verification of funds within 3 business days of the Effective Date. The seller is concerned about taking their property off the market and then having the buyer present a form of verification that is unacceptable to the seller. What types of verification would meet (or fail to meet) the objectively reasonable standard?

Dear Forms Committee: I represent a seller who has received a cash offer. The buyer has indicated in Section 5 that they will provide the verification of funds within 3 business days of the Effective Date. The seller is concerned about taking their property off the market and then having the buyer present a form of verification that is unacceptable to the seller. What types of verification would meet (or fail to meet) the objectively reasonable standard?

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A legal definition of objectively reasonable would include the following sub-definitions: “Objective” means not influenced by personal feelings or opinions. “Reasonable” refers to being fair, appropriate, and prudent. Put together, “‘objectively reasonable” means determining what a fair and prudent person would do without the influence

Dear Forms Committee: I represent a homebuyer on an offer the seller has accepted. We agreed to the Licensed Professional Inspections section of OREF 001– Residential Real Estate Sale Agreement and are currently within the ten-business-day inspection period. Today is day nine. I delivered to the seller’s agent a Buyer’s Repair Addendum signed by the buyer several days ago and the seller has not yet responded. When I asked the seller’s agent about it, they said the seller may or may not agree; they haven’t decided yet. What should I do?

Dear Forms Committee: I represent a homebuyer on an offer the seller has accepted. We agreed to the Licensed Professional Inspections section of OREF 001– Residential Real Estate Sale Agreement and are currently within the ten-business-day inspection period. Today is day nine. I delivered to the seller’s agent a Buyer’s Repair Addendum signed by the buyer several days ago and the seller has not yet responded. When I asked the seller’s agent about it, they said the seller may or may not agree; they haven’t decided yet. What should I do?

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The Licensed Professional Inspection contingency contained in OREF 001– Residential Real Estate Sale Agreement specifies that the buyer and seller must complete all inspections and negotiations prior to 5:00 pm on the final day of the inspection period. Prior to this deadline, the buyer may

Dear Forms Committee: I’m preparing an offer for a buyer on a home where the assessor’s office shows a tax assessment of $32 per year for a special fire district. Should I mark the ‘is’ box in section 42 of the Sale Agreement, Levy of Additional Property Taxes, due to this special tax assessment?

Dear Forms Committee: I’m preparing an offer for a buyer on a home where the assessor’s office shows a tax assessment of $32 per year for a special fire district. Should I mark the ‘is’ box in section 42 of the Sale Agreement, Levy of Additional Property Taxes, due to this special tax assessment?

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No. Section 42 of OREF 001– Residential Real Estate Sale Agreement applies to properties that receive a tax deferral for a reason approved by the county (such as farm or forest use). The accrued amount of the deferred taxes is tracked by the county for

Dear Forms Committee: I currently have an active listing – we have not yet received an offer. The seller has received notice of a pending assessment to be levied by their neighborhood HOA. Accordingly, the seller has disclosed this fact under question 7D of OREF 020 – Seller’s Property Disclosure Statement. Is there anywhere else this assessment should be disclosed when we do receive an offer?

Dear Forms Committee: I currently have an active listing – we have not yet received an offer. The seller has received notice of a pending assessment to be levied by their neighborhood HOA. Accordingly, the seller has disclosed this fact under question 7D of OREF 020 – Seller’s Property Disclosure Statement. Is there anywhere else this assessment should be disclosed when we do receive an offer?

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Yes. In the Seller Representation section of the Residential Real Estate Sale Agreements, item (d) makes the representation that the seller has no notice of any liens or assessments to be levied against the property. In this situation, that representation would be false. To correct

Dear Forms Committee: How do I make sure the Buyer Representation Agreement clearly outlines that if a seller agrees to cover the fee in a Sale Agreement, that the buyer does not have to pay it?

Dear Forms Committee: How do I make sure the Buyer Representation Agreement clearly outlines that if a seller agrees to cover the fee in a Sale Agreement, that the buyer does not have to pay it?

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Page 1, section 4 of both versions of the OREF Buyer Representation Agreement (050 [lines 28-29] & 052 [lines 27-28]) state “If a seller, lessor, or optionor agrees to pay compensation to the Firm, that compensation will be credited against the Fee.” This default language

Dear Forms Committee: Do I need to disclose the existence of dual agency if I have two buyers looking for a similar property in the same area?

Dear Forms Committee: Do I need to disclose the existence of dual agency if I have two buyers looking for a similar property in the same area?

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Under Oregon law, a buyer’s agent may show properties which their buyer may be interested in to other prospective buyers without breaching an affirmative duty to the buyer (see ORS 696.810(4)). It becomes more complicated if two buyers are seriously interested in the same property.

Dear Forms Committee: A listing (seller’s) agent is requesting a copy of my Buyer Representation Agreement. Am I required to provide it?

Dear Forms Committee: A listing (seller’s) agent is requesting a copy of my Buyer Representation Agreement. Am I required to provide it?

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Buyers’ agents owe a duty of confidentiality to their buyers. A contract between the buyer and buyer’s agent is a confidential agreement between those parties, similar to a listing agreement, which is a confidential agreement between the seller and listing agent. You should always check

Dear Forms Committee: I see references in the OREF forms to “material terms” or “material breach.” what does “material” mean in determining whether something is considered “material” or not?

Dear Forms Committee: I see references in the OREF forms to “material terms” or “material breach.” what does “material” mean in determining whether something is considered “material” or not?

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A material term is a provision that relates to significant terms of the agreement, such as price, contingencies, or other provisions that could make an impact on whether or not a buyer or seller would move forward with a transaction. Examples of material terms would

Dear Forms Committee: Last month, you suggested a list of forms we should include in our buyer representation packets. What about listing packets? Do you have a list of suggestions we should include for our seller presentations?

Dear Forms Committee: Last month, you suggested a list of forms we should include in our buyer representation packets. What about listing packets? Do you have a list of suggestions we should include for our seller presentations?

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Here are the must-haves to include in your seller presentations: OREF 047 – Advisory Regarding Real Estate Compensation OREF 042 – Initial Agency Disclosure Pamphlet OREF 040 – Disclosed Limited Agency Agreement for Sellers OREF 043 – Advisory Regarding Electronic Funds OREF 104 – Advisory

Dear Forms Committee: I noticed questions about disclosure-type items in OREF C-501 – Commercial Sale Agreement in the Seller Representations section. If Oregon law doesn’t require a seller property disclosure statement for commercial property, does my seller have to answer these?

Dear Forms Committee: I noticed questions about disclosure-type items in OREF C-501 – Commercial Sale Agreement in the Seller Representations section. If Oregon law doesn’t require a seller property disclosure statement for commercial property, does my seller have to answer these?

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No, but not answering them has the effect of turning the offer into a counteroffer, which the buyer may not want to accept if the seller is unwilling to provide such basic information.  While Oregon statutes don’t require a seller property disclosure statement for commercial