local real estate news, statistics, and commentary without the sales spin.
Anyone who has read this site for any length of time knows that I am not exactly Zillow’s biggest fan (to put it lightly). However, I like to keep an open mind, and I don’t want Seattle Bubble to become an echo chamber.
Therefore, I’m happy to present a point-counterpoint on the topic of Zillow’s value in the real estate marketplace. Rather than participating myself, I’ve invited two long-time Seattle Bubble regulars and local real estate professionals to debate the subject for us all.
The statewide financing contingency form, Form 22A, present parties with some serious issues to consider. Prior pieces addressed seller and buyer concerns, but Form 22A also presents brokers with serious issues to consider.
The most complex issues for listing brokers may involve the seller’s decision to send a request to the buyer to waive their financing contingency using Form 22AR. Some attorneys believe that a seller’s request for waiver should frequently be sent simply because the waiver of the financing contingency would benefit the seller. In contrast, I would note that in practice I have seldom seen Form 22AR sent, either by my listing clients or sellers when I represent buyers. That calls into question why there is a difference between what some lawyers in Washington think should be done, and what actually occurs…
As discussed in the prior piece on Form 22A, the statewide financing contingency form in many ways heavily favors the interests of buyers. That is because absent drafting custom language, the financing contingency can remain as a buyer protection though the date of closing. After the passage of a specified period of time the seller can ask the buyer to waive the contingency, but the seller cannot force the buyer to do so. Therefore if a buyer cannot get financing, and their offer contains a non-waived Form 22A financing contingency, then the buyer will not be in breach of contract if they cannot close due to lack of financing…
Most offers written within the Northwest Multiple Listing Service area use what are referred to as the “statewide forms,” a collection of real estate forms which can be selected and completed by real estate brokers and others. While some attorneys might argue those are not the best forms, they are in general well balanced between the interests of buyers and sellers, and serve the parties well. In contrast, there is one form, the Form 22A financing contingency, which some argue heavily favors the interests of buyers, and which I would argue is poorly drafted…
Disputes over the release of earnest money are extremely rare, but anyone who has ever been involved with one knows they can be an extremely miserable experience. For a buyer with limited funds it can mean a lengthy delay in being able to make an offer on another property. For both parties it can be very emotionally draining and expose them to the potential of paying attorney fees—both their own and those of the other party.
The most common scenario for an earnest money dispute is after a buyer terminates a contract based on the Form 35 inspection contingency…