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A Contract Is Not a Document Just for Your Leisurely Reading Pleasure

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Real Estate Agent with eXp Realty

A Contract Is Not a Document Just for Your Leisurely Reading Pleasure

I take the real estate contract very seriously and as a part to the contract you should too as well as the representing real estate agents (but that's just my opinion).

contract 1) n. an agreement with specific terms between two or more persons or entities in which there is a promise to do something in return for a valuable benefit known as consideration.

Think about it, you receive an offer , you spend days and in some cases weeks hashing out the terms and eventually it leads to a contract.

Why is it then that the minute the offer becomes a contract, people want to change the terms and act as if they've spent countless hours just to say that they have a contract.

The contract says home inspection to take place in xx number of days.  Buyer's agent says after contract:  buyer will have home inspection done after they come back from vacation.  NOT.  Well actually they can take all the time that they want.  More power to them if they want the contingency period to expire.

The contract says that pre-qual letter shall be substituted with a pre-approval letter within 7 days:  Buyer's agent says:  Oh we gave you a pre-qualification letter, we thought that was sufficient.  NOT.

The contract says if buyer wishes to have a septic inspection, then buyer shall be financially responsible for said inspection:  Buyer's agent says after home inspection:  Buyer's request seller to have septic tank inspected since the home inspector recommended that septic tank be inspected.

Before signing a contract, please be sure that all parties are willing to accept the responsibilities that they have agreed upon.  It is a legally binding document and it should be treated as such.

If either party does not want to honor the terms of the contract then they should not agree to it.  And agents should remember that they are there to see that the terms are adhered to (both their clients and the and the party on the other side of the transaction). Be careful what you sign.

 

 

Comments(21)

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Randy Ostrander
Lake and Lodge Realty LLC - Big Rapids, MI
Real Estate Broker, Serving Big Rapids and West Central MI

I get so frustrated with all these foreclosure companies as they pay no attention whatsoever to our contracts. We always have the choice of walking but wouldn't it be nice if everyone did what they agreed to.

Apr 17, 2011 11:29 PM
Liz and Bill Spear
Transaction Alliance 513.520.5305 www.WarrenCountyOhioRealEstate.com - Mason, OH
Transaction Alliance Cincinnati & Dayton suburbs

Charita, Agree or waive the right to that part of the contract... If you can't do the inspections per the contract, that is YOUR problem, not our sellers.  In essence you just agreed to As Is.  And newbie buyer's agents, sorry....but we won't remind you or ask for the inspection requests, it's not in our seller's best interests to do so.  This is where you earn your paycheck.

Apr 17, 2011 11:33 PM
Noah Levy
Coldwell Banker - Highland Park, IL
Coldwell Banker Highland Park IL

Charita - Good points - DO NOT SIGN THE CONTRACT UNLESS YOU AGREE TO THE TERMS!  Also, if you are the seller be sure to review the personal property before signing off!

Apr 18, 2011 12:22 AM
Charita Cadenhead
eXp Realty - Birmingham, AL
Serving Jefferson and Shelby Counties (Alabama)

Oh Gita I know all too well that many times it's the buyer and not the agent.

I know Randy.  That is so irritating.  They treat our offer as if they have never laid eyes on it or don't even know that it was the instrument that opened the door to "negotiations" if you want to call it that.

Exactly Bliz.  I feel bad for newbie agents who don't properly vet and offer and contract, but hey, what can we say. We work for our client not theirs.  I recently close on a transaction and the buyer came back after closing and asked for something that was never even remotely hinted to and what choice did I have except to say that "not gonna happen."

Repeat Noah "be sure to review the personal property before signing."  Appliances have a way of walking out the door don't they?

Apr 18, 2011 01:05 AM
Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

Charita-I've feel like a dog chasing it's tail these days.  Always sending out reminders asking for updates, releases and more.  But it seems to be the only way to make sure my clients are protected in the deal.

Apr 18, 2011 01:14 AM
Charita Cadenhead
eXp Realty - Birmingham, AL
Serving Jefferson and Shelby Counties (Alabama)

I know Cindy and still sometimes the other side doesn't seem to see the urgency of sticking to contract and meeting those ever important deadlines. At times I feel like I'm coming across as being too agressive but, like I said, I just can't go wrong when attempting to enforce the contract and not being sidetracked.

Apr 18, 2011 01:22 AM
Tish Lloyd
BlueCoast Realty Corporation - Wilmington, NC
Broker - Wilmington NC and Surrounding Beaches

Charita ~  Wow, made it here in time to lean -- thank goodness.  Terrific information and think Liz & Bill hit the nail on the head.

Apr 18, 2011 01:36 AM
Kate Elim
Dockside Realty - Spotsylvania, VA
Realtor 540-226-1964, Selling Homes & Land a

Hi Charita...One of our primary responsibilities is to see that everyone lives up to the timetable spelled out in the contract unless subsequent changes are made and agreed to in writing by both parties.  It's not a game.  It is serious business.

Kate

Apr 18, 2011 01:56 AM
Jerry Newman
Brown Realty, 210-789-4216, - San Antonio, TX
Texas REALTOR, San Antonio Military Relocation

Good Morning Charita...I have always thought the purpose of a contract was to have a binding agreement between the parties. If we spend hours during all those counter offers with contingencies, and finally agree to a contract with both sellers and buyers signing off, I can't understand why any buyer's agent would want to take those terms stated in the contract so "lightly". I also agree with Bliz in comment # 3.

Apr 18, 2011 02:01 AM
Charita Cadenhead
eXp Realty - Birmingham, AL
Serving Jefferson and Shelby Counties (Alabama)

Thanks for the Click Tish.  I think Bliz gave the nail it's head and then hit it on target.  Con-tract.  Take it seriously or don't agree to the terms. Seems simple doesn't it.

It's a huge responsibility Kate that our clients have entrusted us with. I can't imagine not living up to it.

I don't know either Jerry.  Sometimes I get the feeling that agent to agent courtesy is expected instead of contract adherence. Bliz got it right for sure Jerry.

Apr 18, 2011 02:05 AM
Dr. Paula McDonald
Beam & Branch Realty - Granbury, TX
Granbury, TX 936-203-0279

Great points that so many agents don't abide by which always surprises the heck out of me.

Apr 18, 2011 02:12 AM
Charita Cadenhead
eXp Realty - Birmingham, AL
Serving Jefferson and Shelby Counties (Alabama)

Paula I don't get it.  I really don't get why people take it so lightly as if it's a fictional document.

Apr 18, 2011 02:14 AM
Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

Gosh, this is good.  Sometimes, when I sit down with buyers they don't even read the thing.  When I either try to read it, or place emphasis on the important things . . . their eyes roll over. 

Apr 18, 2011 04:24 AM
Ann Allen Hoover
RE/MAX Advantage South - Hoover, AL
CDPE SRES ASP e-PRO Realtor - Homes for Sale - AL

I go through the same thing Carla describes.  I don't care how bored they are.....I'm going to pound it into their heads.  I give examples of contract horror stories to get their attention.

Apr 18, 2011 04:55 AM
Charita Cadenhead
eXp Realty - Birmingham, AL
Serving Jefferson and Shelby Counties (Alabama)

Carla and Ann I'm one of these people too that go over the contract paragraph by paragraph and ask questions along the way.

 

Apr 18, 2011 05:06 AM
Gerry Michaels
Glasswork Media Arts - Gettysburg, PA
GettysburgGerry Social Meida

Charita, you will love this, I once had a buyer who could not get his lender to get the closing docs on time and we kept having to reschedule, at one point the buyer informed the lender that the dates on the contract are not just suggestions....I loved that

Apr 18, 2011 07:26 AM
Charita Cadenhead
eXp Realty - Birmingham, AL
Serving Jefferson and Shelby Counties (Alabama)

Gerry I wish I had more buyers like that.  You gotta love it.  You absolutely gotta love it.

Apr 18, 2011 08:09 AM
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

Charita:  I wish I had a dollar for every argumentative closing where the contract terms were still being moaned and groaned about.  As a lender, this is where I tell my IL clients PRIOR to their signing a contract ... get yourself a good real estate attorney and have them go over the contract word for word with you before you do or sign anything. Otherwise, in most cases ... what is done is done.  PRIOR to signing is when arguments should be made and discussions held.  Not after.  You do well to instruct and reinforce the very important message contained within your post, Charita  ...

Gene

Apr 18, 2011 10:45 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Charita, I believe with so many agents being part time, some of the "details" get shuffled under the rug.    The terms and dates should all be adhered to, per contract!

Apr 19, 2011 04:07 AM
Stephen-Michael Washington
Pre-Approval, First Time Buyer, Fixed Rates - Birmingham, AL
FHA and VA Mortgage Loans Alabama

This is great Charita, we all must be accountable, and stick to what the contract says. Great post!

That goes for us to (the mortgage folk) we must close on time all the time!

Apr 20, 2011 09:34 AM