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Posts tagged "real property sales"

Supreme Court Rules On Dual Agency

This morning, November 21, 2016, in a unanimous decision, the California Supreme Court re-affirmed that when the real estate agent for the seller and the separate real estate agent for the buyer, both work for the same real estate brokerage company, then they both are fiduciaries for both the seller and the buyer. That means both agents must tell the buyer anything they know about the property which would tend to lower the price, and they must tell the seller anything they know about the buyer's situation which might tend to raise the price. The only exception is a statute which says that the agents cannot tell the buyer that the seller is willing to accept a lower price and cannot tell the seller that the buyer is willing to accept a higher price. 

Title Report Warning

First American Title Insurance Company recently won a case which highlights an important limitation of title reports and title insurance policies. First, a title report is nothing more than an offer to sell a title policy. You cannot sue a title company over something omitted from a title report. Second, a title policy only insures owned interests in the subject property. There are a variety of notices which get recorded which are not interests in the property. Omitting such notices from a title report, even from a title insurance policy is not covered.