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Contract of Purchase and Sale in British Columbia

By
Real Estate Agent with Century 21 Coastal Realty Ltd.

Hmmmm, day two of the 30 day in a row blog challenge. What shall it be today. Yesterday I was caught up in the drama of HST emergencies but I have those resolved and hopefully no new files will rear their ugly heads today so on to something new.

I watched a video on blogging online and the advice was to write about something you are passionate about. I am passionate about well written Contracts. How many Buyers actually go and review their Contract with a lawyer before signing? Two percent? Five. No, five is too high. For that matter, two is probably too high. That means that the bulk of Buyers are relying on their Real Estate professional to write them a good Contract.

Oh my word, I have seen some awful Contracts over my 30 years of working for lawyers. I have to say as well though, I have seen many excellent ones (and I would like to thank those Realtors because I have kept copies as precedents). What is the difference? I think that a Realtor who takes the time to play devil's advocate on a deal and assumes that anything that can go wrong will go wrong will unless they stop it end up writing a good Contract. Don't accept verbal agreements - if it has been brought up or expressed as a concern put it in writing even if it all seems fine, things can change. A perfect example is dealing with the HST on new construction (see my previous blog). Be specific about the rights, obligations and covenants given by both parties. A handshake is not enough. All agreements dealing with Real Estate must be in writing or they are not enforceable. Try to stay informed about recent litigation decisions and learn from them.

It all starts with precedents. Take the time to draft a really good and thorough template and don't just accept everything offered as "standard" to be "good enough". As new situations arise add to your template. It doesn't hurt either to go and get some legal advise from a really experienced real estate lawyer. A few dollars spent may save you thousands. Most deals are not just cookie cutters so put yourself in the position of the Buyer. What are their special concerns? Pretend it is your money on the line and protect yourself from nasty litigation and at the same time keep our professional insurance costs down.

Once you have your template perfected than it is much easier to remove subjects when you are in a hurry than to start re-inventing the wheel for the bulk of the Contract. Often a precedent template will remind you of situations that could apply that you might otherwise have missed if you are pressured to get that offer in to compete with, or beat, the competition.

There, I warned you that I am passionate about this subject. Wonder what I am going to come up with for tomorrow. Hmmmmm, already thinking - have a good one,

Posted by

I will do what it takes to earn your trust.  I am not just looking for "a deal", I am looking for lifelong clients who will use me for all their real estate needs for years to come and wouldn't hesitate in recommending me to family and friends.  Give me a call if you are thinking of buying or selling real estate in Delta, Surrey, White Rock or Langley, BC.  

Diane Friesen
Century 21 Coastal Realty Ltd.
Realtor in Delta, Surrey, White Rock and Langley, BC
(604) 866-5944
www.OnlyYourNeighbourhood.ca

Comments(4)

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Brian Madigan
RE/MAX West Realty Inc., Brokerage (Toronto) - Toronto, ON
LL.B., Broker

Diane,

Good post and excllent advice.

Sophisticated clients will appreciate a well-deafted contract.

Brian

Aug 27, 2010 04:26 AM
Diane Friesen
Century 21 Coastal Realty Ltd. - Surrey, BC

Thanks for your encouragement Brian and while I agree that a sophisticated buyer would appreciate a well written Contract my concern is equally for the first time homebuyer who wouldn't really know the difference.   After all, the terms of the Contract continue as protection for both parties even after the completion and transfer of title.     

Aug 27, 2010 02:45 PM
Peter Pfann @ eXp Realty Pfanntastic Properties in Victoria, Since 1986.
eXp Realty, Victoria BC www.pfanntastic.com - Victoria, BC
Talk To or Text Peter 250-213-9490

Hi Diane,

well done, good post, and well on your way to win the bonus points

 it always gets a little tricky when the markets cool and offers a few and far between, and the one that comes in is a very poorly written one.

Do you suggest to the seller to fix it and if they agree, run the risk of a buyer with cold feet, do you let it go (even after explaining the risks to the seller) and hope to fix it after the subjects are removed. dilema's dilema's

Happy Selling

Aug 27, 2010 06:27 PM
Diane Friesen
Century 21 Coastal Realty Ltd. - Surrey, BC

Thank you so much.   I follow your blogs all the time so I feel really good that you read mine and agree.   Speaking from my experience, better, I think, to air all the differences when the Contract is being signed than tie up the property for a month and still have the deal fall apart on the day of completion in the lawyer's office.   Been there and seen it many times.  But you are right, sometimes it slides through.   Like you say, dilema

Aug 27, 2010 09:01 PM