legal
QUIZ
Top Legal Hotline Questions of 2021 BY WILL MARTIN, GENERAL COUNSEL
It’s always challenging to create a list of the top questions we get on the Legal Hotline because we get so many questions on so many different topics. The nature of the questions we’ve gotten this past year has been greatly influenced by the existence of a global pandemic, which has notably resulted in a demand for housing that has far exceeded supply in many areas of the state. This has resulted in unprecedented competition for relatively few properties. Most of the questions on this year’s list reflect this state of affairs in one way or another. I have made an effort to select different questions than those that appeared in an article I wrote on my all-time top questions for the last issue of Insight. I have also made sure to include at least one question from each of the top categories of hotline questions we’ve handled this past year, which are, in order of frequency: (1) Offer to Purchase and Contract, (2) Disclosure, (3) Real Estate Commission Rules, (4) Landlord-Tenant/Property Management, and (5) Contract. I’ve also identified any relevant Q&A and where it can be found in the archived Q&As on the NC REALTORS® website. 26 INSIGHT • February 2022
QUESTION: Is it okay to use a non-standard addendum, for example, an appraisal addendum, with the Offer to Purchase and Contract? (Buyers have been coming up with all kinds of non-standard addenda in an attempt to make their offers stand out.)
ANSWER: The short answer is yes. Any non-standard addendum should be drafted by a North Carolina real estate attorney who has a good understanding of how the Offer to Purchase and Contract works. A broker who recommends the use of such an addendum should also have a working understanding of what the addendum says and how it will affect the rights of the parties to the contract, and should encourage their client to consult with a North Carolina real estate attorney if they have any questions. A listing agent receiving an offer with a non-standard addendum must deliver it to their seller client and discuss it with them, and should encourage their client to consult with a North Carolina real estate attorney if they have any questions. Regarding the use of an appraisal addendum, if it is essentially nothing more than a promise by the buyer to purchase the property even if the appraisal is low, we believe such an addendum is of questionable value from a legal perspective. [Guidance for Agents Considering the Use of an Appraisal Addendum; Is an addendum necessary to make the contract “as-is” or obligate the buyer to purchase the property even if the appraisal is low? Category: Forms/ Addenda to Offer to Purchase and Contract]
QUESTION: What are the duties of a listing broker whose seller tells them that the seller has decided not to sell their property after it has gone under contract? (Not a new question, but we’re getting it more often. In this market, some sellers want to back out of contracts because they can’t find a place to move
