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THE LAWSUIT IS IN THE DETAILS

By
Real Estate Agent with Dunnigan, Realtors, Sacramento (916) 425-9715 CalBRE # 01188158

With the voluminous paperwork created in any escrow, it is easy to miss the little things....and the little things can cost exhorbitant amounts of money.  Here are a few things you may want to check:

Does your fax machine and computer have the right day and time?

This becomes vital when 2 contracts come in and you need to prove which one came in first.  It also will become vital when you need to prove you sent something in a timely manner.

Did you date and time your Agency disclosure?

By law, you must have a signature on your agency disclosure before you even begin to write a contract.  If sued, an attorney can claim there was no fiduciary understanding if you did it bass ackwards.

Did you read the details of the pest report?

You come to an agreement regarding who is paying for what on the pest report and you think you know the total cost.  All signatures are in place.  Then you discover that little print that says a supplemental report is needed.  The buyers think that they are getting a total clearance.  The seller thinks that they know the expenditures.  The supplemental may have thousands of dollars in cost that were not allowed for.

Did the seller check the box that said that all additions were done with permits?

Did the seller tell you verbally that he personally enclosed the back porch? Hmmm...may be a problem there!

Does the buyer think that the freestanding stove is staying?  Does the seller think that their classic Wedgewood, freestanding stove is going with them?

Even if the stove is stuck between two cabinets, don't assume that it stays.  Many agents have purchased their clients a new stove because they "assumed" something.

These are just a few examples.  In real estate, the devil is in the details.  Be sure the devil doesn't bite you!

Comments(5)

Kristal Kraft
Novella Real Estate - Denver, CO
Selling Metro Denver Real Estate - 303-589-2022

Good information for folks in California.  Of course in other states, like mine, procedures are a little different. It's no wonder our consumers are baffled when the rules are different from state to state. 

kk

Jan 19, 2011 12:29 PM
Lyndsey McDonald Garza
Pointe West Properties - West Galveston, TX
Galveston Vacation Real Estate

Great post! There are so many details involved in our industry that is too easy to accidentally overlook one, at the least. What seems like something that would be a minor detail can easily become a HUGE deal. Unfortunately, the easiest way to learn many of these lessons is by making the mistake. After one mistake, you always seem to pay very close attention to that "minor detail." Realtors always need reminders on this, especially in this type of a market where everyone seems to be lawsuit happy.

Jan 19, 2011 12:34 PM
Nevin Williams
Fairway Independent Mortgage Corporation - Cary, NC
Senior Mortgage Advisor

Paula - this is so true.  We usually get the "big" items.  The small details is what catches us off guard.

Jan 19, 2011 03:13 PM
Harrison K. Long
HomeSmart, Evergreen Realty - Irvine, CA
REALTOR , GRI, Broker associate, Attorney

Paula ... I like your article that "the lawsuit is in the details" of a real estate transaction. That's so true, and I am watching for as many of those details as possible when purchase contract is formed, on the last day when the buyers clear contingencies, and then again 3 days prior to close of escrow.

Jan 19, 2011 06:11 PM
Larry & Jacque Ficek
Alaska Dream Makers - Wasilla, AK
Realtors - Wasilla Alaska

I have to agree, sometimes sellers simply forget that they agreed to leave the fridge (even though it was initialed and dated by them when they listed). When they get to the closing table, everyone realizes the mistake but emotions can kick in.

We all need to be diligent and look at the details closely and often to make sure we are all on the same page.

Jan 19, 2011 06:47 PM