Stay up to date on the latest news regarding real estate laws, compliance regulations and risk management issues with “Issues of Importance.”
We’ve summed up the latest news that can impact your real estate business today.
Medical mandate
As more employees return to the office, employers big and small are grappling with how to best provide a safe work environment. There isn’t a one-size-fits-all approach—brokerages must determine what makes the most sense for them.
The Equal Employment Opportunity Commission has made it clear that employers can mandate COVID-19 vaccinations for employees, with two exceptions: as a reasonable accommodation to employees unable to be vaccinated due to a disability under the Americans with Disabilities Act, and in the case of a sincerely held religious belief or practice under Title VII of the Civil Rights Act.
Therefore, before enacting a vaccine mandate, employers must be properly prepared not only to enforce the policy but also to handle employee requests for an exception to the policy.
Multiple offers
It’s been a hot market with presenting and negotiating multiple offers becoming the norm. But this brings the potential for misunderstandings that could lead to complaints and fair housing issues against brokerages. Here are some tips that can help both the seller and buyer understand options and reduce risks for you:
Discuss the potential for multiple offers at the listing interview. Explain the available options to the seller upfront, and get the seller’s instructions for handling them in advance.- Know your state laws regarding duties owed to clients, time frames for presenting offers and what may be disclosed to the other party.
- Promote the interest of your clients while treating all parties fairly and honestly.
- Approach “buyer love letters” with caution—these can trigger fair housing violations for both the real estate professional and the seller.
- Discuss the pros and cons of escalation clauses or addendums with buyers.
Auction sales contracts
A legal case pending with the New Jersey Supreme Court has garnered more attention from the real estate industry on auction sales contracts and whether real estate auction sales are final or should contain a three-day attorney review provision like other sales contracts.
A few of the takeaways from this case are:
- A real estate auction sale may not be subject to the same state laws and rules that apply to traditional real estate sales agreements.
- A liquidated damages clause is enforceable where its terms are reasonable, in light of anticipated or actual losses.
- A court may not deem a contract to be legally impossible solely due to a party’s personal inability to meet the terms of the agreement.
For more updates on legal topics that impact your business, visit NAR.realtor/legal.
Photo: iStock.com/Andrii Zorii
