Real estate contracts are all about terms and conditions.  Each paragraph represents an item that needs to be reviewed and understood by both parties to the transaction. In Virginia our contracts are long and complicated.  Different localities in Virginia also have addendums to the contract which create and additional layer of complexity.

As agents we need to make sure that we have dotted our i's and crossed our t's.  We need to explain to our clients all of the various contingencies that the contract provides.  The simplest of mistakes can cost clients thousands of dollars and perhaps even worse the home of their dreams.

One of the easiest parts of the contract is the sales price.  Or one would think so.  It says clearly SALES PRICE in big letters on page one of the contract.  No debate other than if someone doesn't read what they have initialed and signed on a contract.  Except this week it seems a buyers agent apparently told his client and their mortgage company that the SALES PRICE on the contract was not what was initialed and signed but a LESSER amount. 

When the loan paperwork arrived at the settlement company the round of phone calls began.  First there was the horrified gasps from the settlement company, the "you have got to be kidding me" from the listing agent and "the but the sales price is really less because we are getting closing costs" says the buyer's agent.  WHAT? 


Even the broker said this was a first. Needless to say the scramble began.  Calls to the settlement company, calls to the mortgage company, calls back and forth between the agents and brokers.  Countless hours spent in trying to salvage the deal.  The buyers wanted the house and of course the seller wanted the deal finalized.

In the end a number of compromises were made so everyone could walk away from the settlement table with a completed deal.  The buyers agent has learned an expensive but valuable lesson.  When the contract says X dollars next to SALES PRICE that is the price the clients are expected to pay for the home.

Just another day in real estate!