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What Is A Contract?

By
Real Estate Agent with RE/MAX Compass 0524642

In Texas we submit offers, not contracts. So what is a contract? The difference between the two is very different. An offer isn't a contract because the seller hasn't signed it and there isn't an execution date. Every state and mkt can be different. Different terminology is used for the same exact things, it just depends what mkt you're in. In the Houston area we open title versus putting a contract in escrow.

5 days ago I emailed an offer to a listing agent/attorney. For whatever reason he had trouble getting my emails, so I faxed it to him. Today he calls to inform me that he had the contract and not to worry. Great! My next priority was to ensure the checks were hand delivered to him so we could proceed with inspections and opening title.

I drove 20 minutes to downtown Houston, parked in a garage, took an elevator, exchanged pleasantries with a few suits and voila, finally, I get to meet this agent/attorney. I hand him the checks and ask.. "Where's the contract?"

 

His response..."Well, I'm waiting for the seller to sign it. "

 

Do you see the problem with interchanging the words? He then told me he received "my contract" I had to remind him (an Atty) that a contract is where the seller has signed it and the broker/atty has written an execution date on page 8. I left his office without a contract. Had I known this before hand I wouldn't have driven to his office.

If I needed an attorney in real estate I'd make sure they were a real estate attorney versus a family law attorney. Proctologist and Dentists are both doctors, but they work on two totally different ends of the body. I'd prefer my dentist focus on my teeth and not my rear end.

 

 

Posted by
Greg Nino
Realtor
RE/MAX Compass 
Direct & Text 7 days a wk: 832-298-8555 
 
 
Realtor since 2004
Mediator & Arbitrator for the TX Assoc. of Realtors
Member of the Professional Standards Committee for the TX Assoc. of Realtors
Arbitrator for the Comptroller's office for the State of TX for Arbitration of Property Tax Values

 Member of the RE/MAX Hall of Fame & Platinum Club

 

The information contained in this blog is believed to be reliable and while every effort is made to assure that the information is as accurate as possible, the author of this blog, and its comments disclaim any implied warranty or representation about it's accuracy, completeness or appropriateness for any particular purpose. All information is copywritten and the property of Greg Nino.  

Comments (10)

Lynda White
Bluegrass Homes & Farms Realty, Agent Know How - Louisville, KY
Admin. Mgr., Keller Williams Realty

Since he is an attorney, double shame on him. I had one of our previous buyers agents do the same thing with me. He'd hand me a "contract" that was only an offer. I told him I couldn't process it without the signatures.

Sep 10, 2012 04:08 AM
Beth and Richard Witt
New York, NY
The best Retired Brokers !!!!

You have such a unique way of getting your point across... LOL

Sep 10, 2012 04:11 AM
Doug Rogers
RE/MAX Coastal Properties - Destin, FL
Your Real Estate Resource!

For every attorney that graduated first in his/her class, there's one that graduated last. Bet I know which end he favored!

Sep 10, 2012 04:14 AM
Eric Michael
Remerica Integrity, Realtors®, Northville, MI - Livonia, MI
Metro Detroit Real Estate Professional 734.564.1519

Greg, did you leave the check with him anyway? I don't understand how something this simple can get botched. I send over a Purchase Agreement, and once it's all signed by everyone, THEN it's a contract. Totally different things.

Sep 10, 2012 05:31 AM
Michelle Gibson
Hansen Real Estate Group Inc. - Wellington, FL
REALTOR

Greg - Offers and Contracts mean the same thing here and I can't count how many agents refer to an offer as a contract, there is a HUGE difference between the two.

Sep 10, 2012 05:38 AM
Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

He was a proctologist all right. Hope you didn't have to pay for parking too!

Sep 10, 2012 08:57 AM
Sussie Sutton
David Tracy Real Estate - Houston, TX
David Tracy Real Estate for Buyers & Sellers

Eric: " I don't understand how something this simple can get botched." Our countries leaders are all lawyers...now you know why we are where we are.

THANK YOU GREG! This is the first really good laugh today! Your last paragraph said it all! Best post ever, well maybe the one with the picture of the dirty pans on the stove.

Sep 10, 2012 10:55 AM
Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

A tooth ache or a pain in the ass, which is worse?  The attorney who can't figure out his contract from his offer!!  People here get "signing" and "closing" confused.

Sep 10, 2012 02:59 PM
Harry F. D'Elia III
WEDO Real Estate and Beyond, LLC - Phoenix, AZ
Investor , Mentor, GRI, Radio, CIPS, REOs, ABR

I tell my son when it comes to playing baseball-remember the basics. A contract is an agreement between two parties signed and ratified.

Sep 10, 2012 11:01 PM
Brian Kuhns
Coldwell Banker Roth Wehrly Graber - Fort Wayne, IN
Fort Wayne Real Estate by Brian Kuhns

Good point. You'd think that an attorney would know the difference not to confuse the two. It would've saved you the time and headache it did.  On the bright side, you met a few new suits

Sep 10, 2012 11:20 PM