Quote:
Originally Posted by escanlan
Responses in blue above.
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So, you admit your gross inexperience in industry topics and real estate markets multiple times in
blue.
And/Or, your unwillingness to read to learn vs. reading to jab.
Got it.
When you cited my "inference" where no inference was implied or reasonably inferred by a capable reader, you exposed your prejudices and lack of gravitas in brokerage topics.
Non-refundable money is very common and typical in NC resales and serves the purpose of gaining a contract in a competitive market tilted to sellers. It often is 5 figures, even mid-5 figures. It is not all about putting buyers under duress to close, but more for assuring buyers get a crack at the house they want to purchase. I worked to protect my buyers, that they did not throw away DD Fees cavalierly.
Home inspector superstitions and banalities are not a factor in DD Fees. Commonly home inspectors would inspect 1 (ONE) property for my buyers, often after I crawled under 3, 4, 5, 6, or more to rule out losers, to protect buyer funds from being thrown to the wind.
Your lack of understanding of markets, brokerage, and NC Due Diligence Fees undermines what is left of your credibility.
Here's some cogent and relevant reading on DD Fees, if you care to learn some basics:
https://bulletins.ncrec.gov/due-dili...s-and-answers/
https://bulletins.ncrec.gov/due-dili...they-refunded/
https://bulletins.ncrec.gov/the-5-mo...s-in-december/
"Question #5: When is the due diligence fee due? What can my seller/client do if it is not paid?
If your clients are using the Offer to Purchase and Contract, Standard Form 2-T, the due diligence fee is due immediately on the effective date of the contract, which is the date the contract is signed by all parties, and acceptance is communicated back to the offering side. If the buyer fails to deliver the due diligence fee on the effective date of the contract, the buyer could be in breach of the contract. Also, the buyer’s failure to provide the funds within one banking day of written notice can result in the contract being terminated by the seller. Moreover, the seller may be entitled to all monies due per the contract, including the due diligence fees, and any earnest money paid or due to be paid.
In the Offer to Purchase and Contract, Standard Form 2-T, if a buyer fails to deliver the Due Diligence Fee and Earnest Money Deposit, the Seller has the right to terminate the contract. However, the contract does not specify a means by which they must formally request the money. The Seller can use Form
355-T NOTICE TO BUYER TO DELIVER CASH, OFFICIAL BANK CHECK, WIRE TRANSFER OR ELECTRONIC TRANSFER and provide it to the Buyer. The Buyer will then have until the end of the next banking day to provide the Due Diligence and/or Earnest Money Deposit to the Escrow Agent as Cash, Official Bank Check, Wire Transfer or Electronic Transfer. If the Buyer does not deliver the monies, the Seller can then use Form
352-T TERMINATION OF CONTRACT (FORM 2-T) BY NOTICE TO BUYER FROM SELLER and check the box.
Once the seller submits Form 352-T, they have unilaterally terminated the contract which allows the seller to place the residential property back on the market for sale. Additionally, it may allow the Seller to sue the Buyer for not only the Due Diligence Fee but the Earnest Money Deposit as well. We recommend brokers advise their clients to seek the advice of legal counsel if they have questions about terminating a contract.
If the Offer to Purchase and Contract, Standard Form 12-T for vacant land is used, the process is similar. The Seller would use form
355-T NOTICE TO BUYER TO DELIVER CASH, OFFICIAL BANK CHECK, WIRE TRANSFER OR ELECTRONIC TRANSFER. If the Buyer fails to comply to the demand for the monies, the Seller would then use Form
353-T TERMINATION OF CONTRACT (FORM 12-T– VACANT LOT/LAND) BY NOTICE TO BUYER FROM SELLER. Next, the seller may place the property back on the market to sell and speak to an attorney about the prospects of suing the Buyer for the Due Diligence and Earnest Money Deposit. If you have questions or comments regarding any information in this article, contact Regulatory Affairs at 919.719.9180.
"
https://bulletins.ncrec.gov/tag/january-2024-ebulletin/
https://bulletins.ncrec.gov/disciplinary-actions-66/
"BARBARA ELIZA HART (RALEIGH) – By Consent, the Commission suspended the broker license of Hart for a period of 12 months, effective December 15, 2023. The Commission then stayed the suspension in its entirety upon certain conditions. The Commission found that Hart, acting as a buyer’s agent, failed to review the Working with Real Estate Agents disclosure with her client at first substantial contact. Hart advised her buyer-client that she could submit multiple simultaneous offers, which included due diligence fees. Hart advised the buyer-client that the due diligence fees would not be due for 24 hours after acceptance and would not be owed if the contract was terminated within the 24-hour period. Hart’s buyer-client submitted simultaneous offers on three properties, each including a $10,000 due diligence fee. One of the three offers was accepted but the buyer-client terminated within 24 hours. The seller requested the $10,000 due diligence fee and when it was not paid they took legal action against the buyer-client. The seller was awarded a judgment for the due diligence fee plus interest and costs totaling $10,882.57."
"EXP REALTY LLC (RALEIGH) – By Consent, the Commission reprimanded the firm, effective December 5, 2023. The Commission found that the firm failed to provide specific policies or training regarding buyer agent communications with a buyer regarding the payment of due diligence fees and multiple offers."
^^^Huge error, with some not insignificant penalties.
Some CD wisdom from over the years:
https://www.city-data.com/forum/real...agree-due.html
https://www.city-data.com/forum/real...nc-agents.html
https://www.city-data.com/forum/real...-question.html
https://www.city-data.com/forum/rale...ence-fees.html
Have fun!
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