A recap of our most popular weekly Q&As. BY: WILL MARTIN, GENERAL COUNSEL To learn more about each Q&A listed here, visit ncrealtors.org/resolve-library and search by the Q&A title or browse by category. Both are referenced in the parenthesis at the end of each question.
QUESTION #1 »
QUESTION #2 »
Assume seller signs an Offer to Purchase and Contract (form 2-T). At the same time, they tell their listing agent that they want to remain in the property for a period of time after closing. The listing agent calls to tell the buyer agent that the sellers have signed the offer and that he will send the buyer agent a Possession After Closing Agreement for the buyers to sign. When the buyer agent presents the Possession After Closing Agreement to her clients, they refuse to sign it. Is the property under contract?
Does a Mineral and Oil and Gas Rights Mandatory Disclosure Statement have to be provided on a sale of vacant land?
ANSWER: Maybe yes, maybe no. The buyers can argue that the property went under contract when the listing agent communicated to the buyer agent that the sellers had signed the offer. See the definition of “Effective Date” in paragraph 1(g) of the contract. On the other hand, the sellers can argue that no contract was formed since the sellers’ acceptance was dependent on them being able to stay in the property after closing, and thus there was no “meeting of the minds” on all material terms of the contract. In any event, the listing agent clearly “got the cart before the horse” and that has created uncertainty which needs to be resolved. (Counteroffers and the Effective Date in Standard Form 2-T, April 4, 2019, Category: Contract Law)
8 INSIGHT • August 2019
ANSWER: No. (When does a seller have to provide the Mineral and Oil and Gas Rights Mandatory Disclosure Statement? April 11, 2019, Category: Disclosure)
QUESTION #3 » Should property owned by a trust be listed and sold in the name of the trust or the trustee of the trust? ANSWER: Property held in the name of a trust should more properly be considered to be owned by the trustee for the benefit of the beneficiaries named in the trust instrument. However, for purposes of selling trust property, it can be listed and sold in either the name of the trust or the trustee. (How should I list property that is titled in the name of a trust? April 18, 2019, Category: Forms/Seller Forms—100 Series)
