Contracts play a significant role in real estate transactions

As in the previous written assignment, contracts play a significant role in real estate transactions. A contractual agreement in any aspect will set forth each party’s rights and obligations relative to the subject matter and transaction at hand. Contractual principles can also relate to the real estate professional’s ethical and professional duties as well as the legal professional’s ethical and professional duties.

Scenario

Barbara Buyer wanted to purchase real estate from a trust, which was represented by Sam Salesperson. Barbara Buyer entered into a written agreement with the seller (representative of the trust) as well as entering into a representation agreement with Sam Salesperson, the salesperson, which denoted the dual agency disclosure. This agreement required an earnest money payment. Far before the earnest deposit deadline, Barbara Buyer asked for a two day extension in making the earnest money payment. Salesperson agreed to it and stated that he would send a written document within the same business day to confirm this agreement. Two days passed and Barbara did not receive a written document to this effect.

Buyer contacted Salesperson to ask for confirmation. Salesperson again promised to send it immediately. However, Buyer never received it. Days later, Salesperson notified Buyer that the contract was terminated.

Buyer contacted the seller (representative of the trust) to discuss the terminated contract. However, to no avail. Through Buyer’s persistence and research, Buyer learned that Salesperson never requested an extension. In fact, Buyer found out that there was a higher offer received and the property was sold at the higher price to another purchaser. Buyer sues Salesperson and the seller.

Instructions

(1) Draft a memo, no longer than two (2) pages in length, that includes an appropriate heading addressed to Barbara Buyer (To, From, Re, Date)

(2) Answer the following questions:

(3) Do in text citation for all sources, including cases, statutes, rules, etc.

(4) Submit the 2-page memo in MS Word document format via the Unit 4 Dropbox tab.

The viewpoint and purpose of this 2 page Memo should be clearly established and sustained. Assignment should follow the conventions of Standard American English (correct grammar, punctuation, etc.). Your writing should be well ordered, logical and unified, as well as original and insightful. Your work should display superior content, organization, style, and mechanics. Use the appropriate citation style for all citations. More details can be found in the GEL 1.1 Universal Writing Rubric.

Tips and Suggestions

(1) Think outside of the box. There are numerous causes of actions that could be identified here.

(2) Connect and analyze various concepts. Contracts and ethics will be topics that will frequently occur in any field, especially the real estate and legal professions.

(3) Utilize the law! Research your state’s law on this issue such as disciplinary rules, statutes, cases, etc.