Agent Must Recommend Professional Advice Prior to Pre-Possession Agreement
Posted on February 1, 2012 by AAR
FACTS AS PRESENTED BY THE CALLER:
The buyer wants to take possession of the property before the close of escrow. The seller, who does not occupy the premises, has no objection to this pre-possession.
May the listing agent draft a pre-possession agreement to facilitate the parties’ desires?
The listing agent may assist the parties in preparing a pre-possession agreement. However, the Commissioner’s Rules require that the listing agent recommend that the clients seek “appropriate counsel from insurance, legal, tax and accounting professionals regarding the risks of a pre-possession” agreement beforehand. See A.A.C. R4-28-1101(K). If the seller refuses to seek the advice of these professionals, the listing agent may want to decline the representation because of the inherent risky nature of a pre-possession agreement.
Arizona REALTOR® Magazine – February 2012