CONTRACT LAW 010 . . . err . . . I mean 101

Hey, this is a really good post.
Congrats on the feature!

Patricia Aulson/portsmouth nh real estate

Northwest Equity Home Sales' comment that in Washington, all real estate transactions and amendments to contracts pertaining to real property MUST in writing, carries over into Oregon, also.  It's the law here.

And it's a RELIEF to know that one cannot (easily) be held accountable for verbal agreements, also known as verbal disagreements!

Great post, Carla.  As always!   :)

Carla - excellent post here, and congratulations on the feature. A contract is involved with real estate.

Carla Great Post!  I have to disagree with you in your response to Richard above though.  If Agent A represents a buyer client and then Agent B lists the perfect home for Agent A's client, Agent A's Client was a client of the brokerage first.  Designated agency works perfectly fine here in Virginia.  I think if you ever experience it you will appreciate it.

Carla, Great post and great info. It is amazing to see how the law changes from state to state.

Carla, Like Your Style.  Great writer!  I thoroughly enjoyed this post and it makes really really good serious points in a fun way. 

Carla, I don't know why you took such offense to my post unless it hit a nerve. I am sorry that you have had experiences with bait and switch agents (unlikely I would think) in the past.  Why do you assume that if an agent gets a call on their listing, they have to do dual or designated agency?  If they represent the seller and disclose that, than they satisfy the law (in Virginia at least).  There is no law saying that a buyer must be represented. 

Since you run a business model that is limited at best in its scenario's, I would highly suggest that you limit your observations to what you actually know, rather than taint those of us who do our jobs and do it well.

I don't think that Richard "Flamed" your blog, he simply made a comment and you responded to it.  I don't think anything in my original post was inflammatory although this one might be.

You are right, I do not know you.  It was my mistake that I thought you posted this for an open discussion.  In the future I will make sure that I give you an "Atta Girl" on every post.

Carla .. interesting post. I see many for sale by owners calling and asking for our state contract. It is a legal contract that is illegal for them to use without a Realtor

Valid contract requires 3 things - offer, acceptance and consideration.  There are other complications from there, but those are the basics.

As to verbal contract, always a bad idea in my opinion.  Additionally, I don't believe that contracts to purchase real estate are legal if they are verbal - another reason to get it on paper.

Great idea for a post - contracts are central to the sale of real estate.

Great post and congrats on the feature. I don't think a lot of people realize that real estate is legal, legal, legal.

Carla,

Very well said.  It is extremely important that an agent knows the in's and out's of the contract for the state where they sell real estate.

All the rights and obligations are in the contract.  And both parties have agreed to those rights and obligations.

Carla, I enjoyed reading your post this morning...as well as all the comments.

In my Texas real estate classes, I learned that oral contracts are valid and enforceable in theory, but good luck presenting adequate proof. That said, Texas is a one-party recording state, so getting conversations on record is that much easier.

I am an attorney....and I wish I could also play one on TV---and I could not agree more with you; legal, legal, legal.  Proof of that is how many deals don't close because of some legal aspect of the deal.  Further proof is just how many times buyers and sellers sign their names on pieces of paper throughout the home buying/selling process. Contract law is confusing and complex.  It goes way beyond mere offer, acceptance, consideration, and a lack of defenses.  That being said, I believe that a grasp of the basics goes a long way for agents, brokers, buyers and sellers. 

A great point was made above; CONTRACT LAW IS STATE SPECIFIC.  Many business law classes offered in colleges are based upon the Uniform Commercial Code Article II.  UCC Article 2 is not itself the contract "law of the land."  While it has been adopted by states (I think all states but LA)...you must understand YOUR states contract law.  States modify the UCC and you must be aware of the differences.  Furthermore, you could have taken a contract law class taught using the 2003 UCC Article 2 modifications which have not been adopted by a single state.

I am happy to say that the best brokers and agents I have met know contract law very well.  I doubt knowing contract law has itself made them great at their job.  But, I think the drive to be great led them to realize that a firm grasp on contract law is one of the skills necessary to thrive and also to protect themselves.

So when discussion commission with a seller and they bring up some sort of reduction this is one of the points that I make. The seller is trying negotiate at the wrong time or with the wrong person. A qualfied and seasoned Realtor can show there value and save the seller much in excess, dollarea and future legal protection, than the 1% or so many sellers try to negotiate.

Great post.

Stefan in the Napa Valley