In light of the recent hurricanes, the Legal Helpdesk has compiled a few questions, with answers, that may arise after a disaster. For other questions and answers by topic, see AAR’s Legal Helpdesk Overview.
Q: A buyer and a seller did not close on the closing date. Is the contract still enforceable?
A: Maybe. This depends on the specific provisions in the contract and the specific situation, but, in general, contracts to purchase realty are considered options where the period of time is considered “of the essence” to the contract. Once the time period for closing has passed without a closing, the purchase contract is generally unenforceable.
Law: Jackson v. L.D. McReynolds, Inc., 430 So. 2d 873 (Ala. 1983); Ex parte Keelboat, 938 So. 2d 873 (Ala. 2005)
Q: Property owned by my client and under contract was damaged. Can I help coordinate repairs?
A: This depends on the extent of the damage. In general, a real estate licensee can coordinate repairs below $10,000 on behalf of a client, but if repairs exceed $10,000, a home builder’s license is required. The Homebuilders Licensure Regulations specifically exempts licensed real estate agents operating within the scope of their license. The Alabama Real Estate Commission’s regulations provide for the coordination of physical maintenance and repairs for real property under rental or lease management agreement with Alabama real estate licensees, if other licensure is not required (i.e., work over $10,000). It is important that real estate licensees avoid construction, and for repairs or maintenance under $10,000, real estate licensees should only coordinate work by licensed sub-contractors.
Law: Ala. Code § 34-14A-6(4), § 34-14A-2(10); Ala. Admin. Code. R. 465-X-3-.03(4); Ala. Admin. Code R. 790-X-1-.03(1)(i)
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