Do you release contingencies?

By
Real Estate Agent with Coldwell Banker Harris McHaney & Faucette 479-253-3796

I am always anxious to get to the place in a deal where the contingencies are released in writing. Do you release contingencies in writing? Is there a paper trail that tells that the buyers have accomplished their part of the deal, on time?

Sellers have every right to know that buyers are performing on schedule, and fully intend to close escrow. Buyers do not need to be under the impression that they need an 'out' right up until the transfer of the deed. That said buyers can exit a deal over a final walk through gone bad. They can pull the plug and not sign off on a mortgage. They put themselves at risk of reprisal over specific performance in some states. I'm for protecting sellers from agents that do not educate their buyers. I know you're thinking that is an impossible task. I'm not looking for a perfect world. I know deals fall apart, but hey we could do better. I always have a little stern talk with buyers at the time of writing the contract to impress upon them the to do list and the time line. Please, no games here.

Why would we encourage any type of flippant behavior though? IMHO our industry has suffered over our inability to educate buyers. The idea is that the house search is long behind at this point and there is no room for double mindedness now. Please buyers, take all this as seriously as you possibly can. Think carefully before you sign on the line.

I'm just sayin'......

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Proudly serving your real estate needs in Bentonville, Rogers and Bella Vista, AR 479-253-3796. I will provide a free market value analysis of your property. Just ask!

charles.edwards1@coldwellbanker.com 

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Rainer
288,149
John M. Scott
BRE # 01442690, Scott Keys Properties - San Francisco, CA
Broker / Owner San Francisco Bay Area

Charles, David and Jane have already given you my thoughts. As the listing agent, I had a recent closing where the buyers, after removing all contingencies in writing, decided they were wavering about the deal on religious grounds - something about the house didn't fit in to their values....? Never could figure that out. I just told the selling agent that if they walked away now they'd be leaving their earnest money deposit at the title company, never to see it again. They closed.

Aug 05, 2011 02:36 PM #9
Rainer
387,759
Doug Anderson
Tucker Associates Real Estate Services - Danville, CA
Bay Area Real Estate Views

Good evening Charles. I really try to do everything in writing. It's the only paper trail we have when things break down and it becomes "he said...she said". It is very important to not get to the point of experiencing the consequences of liquidated damages.

Aug 05, 2011 04:53 PM #10
Rainmaker
3,534,846
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Charles, California changed contingency removal a few years ago to only do it "in Writing" mostly to prevent unnecessary legal actions by the buyers or the sellers. It is a great system until NOW when lenders can change and withdraw their Loan Approvals in the 99th hour and it can create problems when the buyer in good faith removed their loan contingencies and now the lender is not funding....

Aug 05, 2011 05:52 PM #11
Rainmaker
688,200
Brian L. Sirota, Esq.
Bristar Realty (Realtor/Attorney) - Orange, CA
For Solutions: (714) 501-7660

Charles, coaching your clients to form realistic expectations is always a good idea.   I'm sure you do a great job of it.  Brian

Aug 06, 2011 06:18 AM #12
Rainer
366,102
Scott Hayes
(512) 786-8300 - Austin, TX
Realty Austin, Broker Associate

Charles,

Great question you posed here. From what I read, this varies from state to state. I tend to like the more documentation, the better philosophy as well.

Aug 09, 2011 01:48 AM #13
Rainmaker
559,652
Melinda (Mel) Peterson
Grants Pass, OR - Bend, OR
The Blessed Realtor - ABR, CRS

Chas ~ Setting the expectation upfront by thoroughly communicating the process to both sides... is incredibly helpful in staying on task and achieving each step along the way.  I've found that all parties win when the rules of engagement are clear.  And since so many of us are visual learners, a written flow chart of the steps could prove to be handy tool as well.  And... Yes, I release contingencies ;)

Aug 10, 2011 08:09 AM #14
Rainer
175,061
John Howard
Century 21 LeMac Realty - Mountain Home, AR
GRI, Mountain Home, Arkansas 870-404-3614

Charles,  A Great thought provoking post!  I release contingencies on a timely basis, and yes I have frank discussions with my buyers and my sellers....

Aug 16, 2011 09:02 AM #15
Rainmaker
298,940
Tim Tanz
Platinum Realty - Saint Louis, MO
St Louis Real Estate

Charles, I agree, best to get everything in writing.  On our contracts, after a certain day per most contingencies, if we don't have anything in writing, the contingency is automatically waived.  Keeps us Buyer's Agents on our toes!

Aug 17, 2011 02:27 AM #16
Ambassador
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Barbara-Jo Roberts Berberi, MA, PSA, TRC - Greater Clearwater Florida Residential Real Estate Professional
Charles Rutenberg Realty - Clearwater, FL
Palm Harbor, Dunedin, Clearwater, Safety Harbor

Charles - It is so important to guide both buyers and sellers through every step of the process....too many agents don't do that. Great post!

Aug 27, 2011 03:12 AM #17
Ambassador
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Mimi Foster
Falcon Property Solutions - Colorado Springs, CO
Voted Colorado Springs Best Realtor

Just wanted you to know that it is time to come back and play now.  Hope you are well, but we miss you!!!

Aug 28, 2011 02:47 AM #18
Rainmaker
559,652
Melinda (Mel) Peterson
Grants Pass, OR - Bend, OR
The Blessed Realtor - ABR, CRS

Oh where, oh where has our sweet Charles gone... oh where, oh where can he be?  We're missing your lovely face and your inspirational posts dear sir... I sincerely hope all is okay with you my friend!

Sep 08, 2011 04:51 PM #19
Ambassador
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Joni Bailey
101 Main St. Realty - Huntsville, TX
Your Huntsville / Lake Livingston Area REALTOR®
I am just dropping by to say hello and to let you know that I am thinking if you! Blessings....
Sep 13, 2011 07:31 AM #20
Ambassador
904,639
Mimi Foster
Falcon Property Solutions - Colorado Springs, CO
Voted Colorado Springs Best Realtor

Charles! Charles!  We release contingencies, not friends!  Where the heck are you?

Sep 20, 2011 05:36 PM #21
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1,242,935
Joni Bailey
101 Main St. Realty - Huntsville, TX
Your Huntsville / Lake Livingston Area REALTOR®

Amen to what Mimi said!! Come out, COME OUT, where ever you are!! :(((( We miss you!

Sep 30, 2011 10:20 AM #22
Ambassador
2,091,188
Barbara-Jo Roberts Berberi, MA, PSA, TRC - Greater Clearwater Florida Residential Real Estate Professional
Charles Rutenberg Realty - Clearwater, FL
Palm Harbor, Dunedin, Clearwater, Safety Harbor

Hope all is well.......we haven't seen you here in The Rain in a VERY long time and you ARE MISSED!!!

Oct 03, 2011 02:02 AM #23
Rainmaker
559,652
Melinda (Mel) Peterson
Grants Pass, OR - Bend, OR
The Blessed Realtor - ABR, CRS

Chas ~ I saw you come out and play today in the Rain... and it was lovely!  You've been greatly missed my friend!

Oct 20, 2011 02:58 PM #24
Ambassador
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Gayle Rich-Boxman Fishhawk Lake Real Estate
John L Scott Market Center - Birkenfeld, OR
"Your Local Expert!" 503-755-2905

Charles, you just reminded me to get that release of the repair addendum done, PRONTO!!!

Oct 24, 2011 05:27 PM #25
Ambassador
1,242,935
Joni Bailey
101 Main St. Realty - Huntsville, TX
Your Huntsville / Lake Livingston Area REALTOR®

We saw your sign!! :))))) Sure have been missing you and hope that all is well in your world! 

Oct 25, 2011 02:13 PM #26
Ambassador
2,091,188
Barbara-Jo Roberts Berberi, MA, PSA, TRC - Greater Clearwater Florida Residential Real Estate Professional
Charles Rutenberg Realty - Clearwater, FL
Palm Harbor, Dunedin, Clearwater, Safety Harbor

still looking for a newer blog post from one of my favorite Realtors! Love that sign (above)!!!

Nov 09, 2011 03:28 AM #27
Ambassador
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Joni Bailey
101 Main St. Realty - Huntsville, TX
Your Huntsville / Lake Livingston Area REALTOR®

I was so happy to see your beautiful face this afternoon! THANK YOU for stopping by! ♥

Nov 29, 2011 09:43 AM #28
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Charles Edwards Bentonville

AR REALTOR, Bentonville Real Estate Agent and Broker
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