Want to decrease your chances of ending up embroiled in a lawsuit when you buy or sell property? Then don't rely on verbal agreements.
Real estate deals are usually some of the most complicated, expensive transactions in people's lives. Yet, time and again, misunderstandings occur. Buyers think sellers promised to make certain repairs. Sellers assert that the buyers agreed to let them stay in the home after closing. It doesn't matter if you're outlining your relationship with an agent, making an offer on a home, negotiating repairs, or some other key task. Get it in writing.
Show good form
The easiest way to obtain a written record of an agreement in a real estate deal is to fill in the blanks of a form specifically created for your type of transaction. This form, when filled out properly, provides a clear statement of everyone's intentions and responsibilities. Such contracts, forms and addenda exist for many types of real estate transaction, and you can access forms for common activities related to real estate from the Texas Real Estate Commission's Web site, www.trec.state.tx.us.
As public records, these forms are available to anyone who wishes to view them. However, you shouldn't use these documents unless you know what you're doing. Filling out the forms incorrectly can put you at risk of losing money or creating an unenforceable contract; a mistake on just one blank can put a deal worth thousands of dollars in jeopardy.
An improperly used form could end up as unenforceable as a verbal agreement, so make sure your written agreements are prepared by someone trained to handle real estate transactions.
Just for you
While the Texas Real Estate Commission puts out forms that cover some real estate transactions, the Commission has some holes in its forms library-no listing or buyer-representation agreements, property management contracts, forms for commercial property, or residential leases.
Many of these types of forms are created by attorneys and associations. For example, Realtors-those real estate agents and brokers who choose to join the Realtor association and abide by a professional Code of Ethics-regularly use the approximately 30 forms promulgated by the Texas Real Estate Commission. However, Realtors have almost 100 additional forms at their disposal for every type of real estate situation imaginable. These additional forms are available only to members of the Texas Association of Realtors® and Houston Association of Realtors®.
For example, Realtors have at their disposal forms that:
- Detail what items convey with the sale of a property
- Specify whether a buyer walked through the property and accepted its condition prior to closing
- State any contingencies (such as the sale of one property being contingent on the buyer selling his existing home) or provide notices to remove or waive contingencies
More forms, more protection
So, Realtors have more forms. What's the big deal?
Well, when you work with a Realtor, you benefit from access to all those forms. You can put in writing all the details of your transaction exactly as you want them on a form specifically created for your type of deal. That means that your intentions and responsibilities are clearly stated for the record.
Many of the Texas Association of Realtors® forms are also translated in Spanish. Even though these forms aren't legally binding, they provide a way for consumers more comfortable speaking and reading Spanish to better understand what they're agreeing to.
If you want to avoid surprises, hassles, misunderstandings and lawsuits, get it in writing. Your Realtor has the form designed for your transaction and the expertise to fill it out correctly. For more information, visit http://www.texasrealestate.com/ or http://www.har.com/ and for all of your Pearland TX and Northern Brazoria and Galveston County real estate needs, please visit my site at http://www.danfrankrealty.com/. Danny Frank is a local Pearland Real Estate expert.
This column was published in the 30March08 edition of the Galveston County Daily News.
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