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By Opening This You Agree To The Terms & Conditions.

By
Real Estate Broker/Owner with KGC Properties LLC, Tucson Property Management & Real Estate

I bought something the other day.  It came with an instruction manual all wrapped up in a sealed package.  The sticker on the package read, "ATTENTION: By opening the contents of the package you are agreeing to the terms and conditions contained herein."

OK.  But I can't read the terms and conditions unless I open the package so I can't read it ahead of time.  Hmmm.  I opened the package and looked at the terms and conditions only to realize, there is no possible way I could read and understand it all in the time it took to open the package in the first place.  But I *agree* anyway based on consumer confidence.

Oddly, this got me thinking about Buyers, Sellers and Renters who sign real estate contracts without really being able to absorb the entire document.  Of course, we do our best to explain each paragraph of the contracts to our clients.  But seriously, how much of that information do you think is really being absorbed in the amount of time you have?  

The best thing you can do when having clients agree to purchase contracts, addendums, lease agreements, etc., is to provide those documents to them ahead of time, even in sample format.  This gives them ample time to review and read before signing. 

If there isn't time to do this, ask clients to thoroughly read the contract later and write down any questions.  If there are questions and concerns, be patient.  Remember, people are agreeing to terms and conditions of contracts based on confidence in you.

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Buying or selling Tucson real estate, Mt Lemmon, Tucson bank-owned homes, Tucson rental homes, or Tucson lease option homes? Visit www.KGCPropertiesLLC.com .

                                                 

 

This blog is written with my opinions and my opinions are  presented with accuracy but not guarantees. Please talk to a professional before making any real estate, financial or agency decisions.    Gabrielle Kamahele Rhind - 2014. If you want to reprint parts of this - just email me for my permission: KGCProperties@gmail.com .

 

Comments (8)

Bill Gillhespy
16 Sunview Blvd - Fort Myers Beach, FL
Fort Myers Beach Realtor, Fort Myers Beach Agent - Homes & Condos

Hi Garielle,  You are so right on the money with this !  Many don't even want a cursory explanation because it mi9ght be a standard form or they are experienced buyers, etc.

Sep 25, 2011 07:21 AM
John Souerbry
Cordon Real Estate - Fairfield, CA
Homes, Land & Investments

There is ALWAYS time to read every word of a contract and receive an explanation before a client signs, whether that takes place prior to or during the signing appointment.  Here are the exact words found just before the signature line on the standard California "Residential Listing Agreement (Exclusive Authorization and Right To Sell)", CAR Form RLA:

"By signing below, Seller acknowledges that Seller has read, understands, received a copy of and agrees to the terms of this Agreement."

I'm sure this language varies in standard forms from state to state.  But here in the land of the whacko's, where even welfare recipients keep a lawyer on retainer, asking a seller to sign without reading, understanding, receiving a copy of and agreeing to the terms of the agreement is asking the seller to sign a false statement.  I would not ask a seller to make a false statement under any circumstances.  Would any licensee? Nawwww, I didn't think so.

Sep 25, 2011 07:41 AM
Gabrielle Kamahele Rhind
KGC Properties LLC, Tucson Property Management & Real Estate - Tucson, AZ
Broker/Owner

HI JOHN!  I admire that you sit and read every word of a contract to your client and ALWAYS have that time!  The presumption that we ask clients to make a false statement if we aren't that exact at any given moment, I think is a little harsh.  This would suggest that every agent, lender, title company, home inspector, lawyer, etc., sit down and read word for word every item in a contract and explains it before having anyone sign - otherwise we are asking them to make a false statement?  I also can't give every client an immediate copy of everything they sign before they sign when I'm out in the field - as the statement reads.  If you can, I am really impressed!  I think it's somewhat unreasonable to be this precise otherwise we are asking someone to lie. There is a margin for doing it right that doesn't always mean being exact as reads.

HI BILL!  I have many clients that don't even want me to explain a BINSR let alone a contract.  I summarize it anyway and we move on!

Sep 25, 2011 08:58 AM
Connie Goodrich
Keller Williams Realty - McKinney, TX
CRS ABR (McKinney Realtor)Texas

I always give the copies of the forms to my client in advance so they can look it over.  Even when highly suggesting this, rarely is this done.  I also try to bring points of the contract up with buyers as we are working to locate their home.  There is a great trust our clients place in us.  Before signing, I look at them and ask if they need some time to read over again, take home, etc. to feel comfortable.  And often they just sign without giving it a second look. 

Sep 25, 2011 09:21 AM
Rob Thomas
Prestige Homes of The Tri Cities, Inc. CALL....423-341-6954 - Bristol, TN
Bristol TN-VA & Tri Cities Agent, ABR, GRI, e-Pro

Gabrielle....very little is taken in......there's just way toooo much for them to understand in such a short period.....you make some really good points.....Thanks!

Hope you had a great weekend!---Rob

Go Vols!

Sep 25, 2011 10:07 AM
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

I think one of the reasons behind the mortgage crisis is that people signed documents they didn't understand. We had some pretty unscrupulous lenders who were willing to assure them that the words were "just standard" stuff, and to go ahead and sign.

I really think many of them didn't understand that their payments were going to double or triple - or that their loan balance was growing each month.

We can sit here and assume that everyone has the same kind of reading comprehension that we do, but it isn't so. So even if they tried to read the documents they wouldn't know what they said.

The same thing can occur with purchase and sale agreements if the agents don't point out and explain the significant details.

Sep 25, 2011 12:19 PM
Nancy Conner
Olympia, WA
Olympia/Thurston County WA
I like and also use that idea of giving buyers a blank copy to read over ahead of time. I tell them that there's a lot of really important info there and that when we find the right house and they are ready to make an offer they'll be way too excited to want to concentrate on all those clauses and paragraphs...
Sep 25, 2011 04:51 PM
John Souerbry
Cordon Real Estate - Fairfield, CA
Homes, Land & Investments

Gabrielle - I don't read every word of a document to a client, but 100% of the time I do email, fax, or drop off a copy of what they will be signing so they can read it at their own pace and call if they have questions.  I don't understand why that is so difficult...

When I decided to do RE for a living, I first got my notary commission so I could do mobile loan signings and look at all the deals that others were doing.  Since I started as a mortgage lender, this was great reading for me.  In the year I did this, I often arrived at a home with a stack of papers, only to find that the borrower wanted to read everything before they would sign, but that their loan officer hadn't provided a copy for them to read in advance.  That meant I had to spend the whole evening sitting there while they went through everything line by line, or they would ask me to leave the documents and come back tomorrow, which I was not permitted to do.  Worse, many of them would read the documents and say, "This isn't what I thought I was getting - I won't sign!"  There went my fee for the trip...  These experiences stuck in my mind as I built my business and I was determined that my clients would always be given documents to read well in advance so that all their questions could be answered before they signed anything.  I'd never ask a client to sign something they haven't read or don't understand.

Sep 26, 2011 12:47 AM