Author: ft Editorial Staff

The Tour de France

Since 1903, the Tour de France has been the most celebrated and distinguished professional cycling race in the world. Famous for its physically challenging stages, the winner of the Tour is the individual rider who finishes all of the stages in the least accumulated time. The 2006 Tour de France will begin July 1 and the winner will be named July 23. Each stage of the Tour de France requires an entire day. There are 20 stages throughout the competition spanning a total of 2272 miles (3657 kilometers). The competition is divided into 9 flat stages, 4 medium mountain stages, 5 mountain stages and 2 individual time trial stages. Two days are provided for rest. When a rider finishes a stage, his time is recorded and added to his accumulated time from previous stages. In the event a group of riders finish within one bike length of one another, they are considered to be in the same group and given the same recorded time. The overall time given to each rider is a participant’s General Classification (GC). The rider with the lowest GC at the end of the final stage is declared the winner. It is possible to win the Tour de France without winning an individual stage. Throughout the tour, classification jerseys (yellow, green, polka dot and white) are awarded to deserving athletes in ceremonies immediately following each...

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Form 103 – Buyer’s Listing Agreement

This article presents the buyer’s exclusive right-to-buy listing agreement with instructions for an agent’s use of the form. Analyzing the buyer’s listing The exclusive right-to-buy listing agreement, first tuesday Form 103, is used by a broker and his agents to prepare and submit the broker’s offer to act as a prospective buyer’s exclusive real estate agent employed to locate property sought by the buyer in exchange for the buyer’s assurance a fee will be paid the broker if the buyer acquires the type of property sought during the listing period. [See first tuesday Form 103] Formal documentation of an obligation to pay a fee — a written agreement signed by the buyer — is the legislatively enacted and judicially mandated requisite to the right to enforce collection of a brokerage fee from the buyer. Each section in Form 103 has a separate purpose and need for enforcement. The sections include: 1. Brokerage services: The employment period for rendering brokerage services, the broker’s due diligence obligations and any advance deposits are set forth in sections 1, 2 and 3. General provisions for enforcement of the employment agreement and broker fee-splitting arrangements are included in section 4. 2. Brokerage fee: The buyer’s obligation to either pay a brokerage fee or assure payment of the brokerage fee by the seller or a listing broker, the amount of the fee and when the...

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Security to prevent crimes

This article focuses on the responsibility of the landlord to reduce crime through prevention when he has knowledge of criminal activity on the leased premises. Security measures and warnings A landlord of an apartment complex is aware assaults against tenants have recently occurred in the common areas of the property. The landlord receives a composite drawing of the criminal, and a description of the criminal’s mode of operation is released by the local police department. The landlord undertakes none of the security steps available to reduce the risk of a recurrence of the same or similar criminal activities. Later, the landlord rents a unit to a prospective tenant. The landlord does not disclose the recent criminal assaults or the criminal’s mode of operation. The tenant is not given a copy of the composite drawing of the perpetrator developed by the police. Further, the landlord represents the complex as safe and patrolled by security. Later, the tenant is assaulted by the same perpetrator inside her apartment unit, not in the areas open to the public. The tenant seeks to recover losses from the landlord. The tenant claims the landlord failed to disclose the prior assaults and misrepresented the safety of the apartment complex to induce her to rent and occupy. The landlord claims he is not liable for the tenant’s injuries since the assault occurred within the tenant’s apartment unit,...

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Carryback financing in lieu of cash

This article introduces the concept of carryback financing and presents the various forms of documentation and risks involved. Seller financing supports the price Most real estate sales involve the financing of some portion of the purchase price. During economic periods of plentiful and inexpensive mortgage money, the financing needed to fund the purchase of real estate is provided by an institutional or private lender, or more likely a mortgage banker. However, when economic conditions tighten and reduce the availability of real estate loans to previously qualified buyers, a seller hoping to sell his property and maintain his asking price must consider financing the purchase himself if he is to obtain a buyer. Seller financing, also called an installment sale or credit sale, involves carrying back a note for that portion of the price remaining unpaid after the initial down payment. Under most circumstances, the note will be secured by a first or second trust deed on the property being sold. Thus, the carryback seller takes a secured creditor’s position in the property, comparable to that of a mortgage lender. On closing, the legal rights and obligations of real estate ownership are shifted by the transfer to the buyer, while the carryback seller takes on the rights and obligations of a secured creditor. Carryback financing offers considerable financial and tax advantages for both buyers and sellers of real estate when...

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Specific performance and new loan commitments

This article explains and formulates the liability of a breaching seller for any increase in the buyer’s loan rate due to a delay in closing. An offset for interest rate changes   A buyer in escrow obtains a commitment for a purchase-assist loan, as called for in the purchase agreement. During the escrow period, real estate values surge upward, followed by an increase in interest rates. Hoping to get a better price in the newly competitive market, the seller cancels his sale escrow instructions days before the scheduled closing. The buyer makes a demand on the seller to perform under the purchase agreement and escrow instructions. The seller refuses and the buyer files a specific performance action. The interest rate on the purchase-assist loan, a condition of the purchase, increases in the time lapse between: · the date scheduled for performance (close of escrow) in the purchase agreement breached by the seller; and · the specific performance judgment at trial in favor of the buyer.   May the buyer reduce the purchase price by an offset in the amount of the increased interest the buyer will pay for the purchase-assist loan now needed to close escrow? Yes! It is foreseeable interest rates will rise when a seller breaches. Thus, it would be unreasonable for buyers to pay the original purchase price and any higher interest rates at the time...

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[M]ost people join CAR in order to obtain the forms, not for the other services. And if there were any viable choices for agents, CAR would immediately suffer as much as a 40% to 50% loss in membership. […] CAR owns the “for profit” company that produces their software, with top officers in CAR sitting in top management spots in ZipLogix. This is the living, breathing definition of a conflict of interest. […] On their website they parade their forms software as “free” when cost of their forms software for non-members as a percentage of their actual membership cost speaks for itself.

- William Tormey, on CAR is "dangerously close" to having a monopoly on real estate forms, counters PDFfiller

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