How many agreements have you signed that you later regretted?
How many clients have you had who enthusiastically signed a purchase agreement along with all of the disclosures and later in the deal it becomes apparent they had NO clue what they had agreed to?
The unfortunate truth is that the written agreements don't change over time . . . and more often than I like to see the parties either aren't paying attention to what they are signing or there is an epidemic of amnesia that strikes only those who have signed contracts.
Most great REALTORS put a lot of energy into educating their clients during the Offer writing stage . . . The missing link is often the client's lack of complete focus and/or attention.
The minutia in the contract is not all that important . . . until something goes awry.
Do we need one more form?
How 'bout a really simple one that simply says:
--------------------------------------------------------
DO YOU KNOW WHAT YOU JUST SIGNED?
THIS IS A BINDING CONTRACT!
NOW IS THE TIME FOR ANY CLARIFICATION IF THERE ARE ANY TERMS YOU DO NOT FULLY UNDERSTAND.
BY SIGNING BELOW, I ACKNOWLEDGE THAT I UNDERSTAND ALL TERMS AND CONDITIONS OF THIS AGREEMENT!
___________________
Signature
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The sad part of this is that this language is already in the Purchase agreement but seldom understood.
OK REALTORS!
If you're nodding your head in agreement about the fact that Buyers and Sellers tend to sign things they do not understand fully . . .
Are YOU any different?
If someone were to bring you the world's greatest "business opportunity" that you were CERTAIN would make you a millionaire in short order . . . would you be interested?
And this person gives you the full pitch and you become a devout believer/follower and the moment comes when YOU say:
"I'm IN!"
"Where do I sign?"
Papers appear in front of you and because you trust this other person, you glance through the papers and search for the signature block . . . Sign - date - DONE!
Months later, things aren't panning out quite as well as you expected, and you make the heart-wrenching decision to QUIT. You have no hard feelings . . . You just want to move on and "go a different direction"
Suddenly, the meaning of the signed agreement becomes of CRITICAL IMPORTANCE to EVERYONE. You are looking at the agreement now from the position that you must understand the terms well enough to know your options for exit . . . and you discover "HUGE PENALTIES FOR EARLY TERMINATION" written clearly in the middle of the agreement.
I'm certain the person who presented the agreement knows those terms . . .
NOW, we have a problem.
and there's no turning the time back and unsigning what you signed.
What do you do?
Evade?
Negotiate?
or acquiesce?
Let's be clear about who it is in this scenario that has the problem . . .It's the person looking for an exit from an agreement he/she signed without full understanding/scrutiny . . . This is NOT a position of strength . . . Friendly negotiation - perhaps some prayer - and a dose of luck are all necessary.
None of this would be an issue if you had fully understood and negotiated the terms BEFORE SIGNING!
I see this scenario play in a variety of ways - Home Buyers and Sellers - REALTORS entering into "Partnerships" or joining teams - and all kinds of people diving in to agreements for "Get rich quick programs" "Coaching Programs" "Cell phone contracts" . . . etc etc
I am NOT advising that you not sign any contracts because contracts have great merit
I AM advising that you NOT sign any contract that you don't fully understand.
After all, you DO want to be able to keep your first born child . . . Don't you?
(Those with teenagers may be on the fence about this :-))
Best,
b
twitter @barryowen
Barry Owen
Principal Real Estate Broker
Keller Williams Realty
30 Burton Hills Blvd
Nashville, TN - Green Hills
615-568-2123
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