Agents Please Read Your Contracts

By
Real Estate Broker/Owner with Dockside Realty, Inc. BK3027547

Contracts can be a very scary proposition for many agents.  I have always tried to teach my agents to read them over and over again so they know exactly what is in them.  Our contracts in Florida are actually very simple, which tents to create problems.  Agents fill in a few blanks and then submit the offer.  They are not paying attention to detail.

I received an offer recently that proves my point very well.  This was an offer that had a contingency for selling the buyer's home.  Because of the contingency there was an extended closing date of almost 2.5 months.  So far that is OK!  However, the financing contingency has a time frame as well, which on this offer, was only 30 days.  The agent had the buyer making an initial deposit of $1,000 and then a huge second deposit in 10 days, after the inspection period.  If this offer would have been accepted it is likely that the finance contingency would have been expired before the financing was actually approved.

On Florida offer contracts the financing contingency field defaults to 30 days if it is not filled in.  We see this field left blank all of the time and often it could be a major issue for the buyer.  This situation will become even more critical starting in August with the new closing guidelines.  Closings are likely to take longer.

Agents need to realize that they have a responsibility to buyers, sellers and their brokers when filling out these contracts.  We all make mistakes, but some can be more costly than others.

Comments (5)

Georgie Hunter R(S) 58089
Hawai'i Life Real Estate Brokers - Haiku, HI
Maui Real Estate sales and lifestyle info

My old broker used to make us fill in some practice contracts and then we'd go over them together. It was a good exercise and helped to familiarize us with the terminology.  Welcome to blogging at Activerain and I hope you get a lot out of it.  Keep on blogging and interacting with other members and you'll soon be hooked.

May 29, 2015 12:14 PM
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

Roy - It is important for agents to understand the contracts. Taking classes can make a big difference, and August is going to make things worse.

May 29, 2015 04:35 PM
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

Roy - Congratulations on completing your first post in the Rain, and welcome to the community.

May 29, 2015 04:35 PM
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

The ambassadors, those of us with orange badges, are here to answer questions as you get started.

May 29, 2015 04:35 PM
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

very often the agent is in a hurry to submit.... Just about every offer coming here from less polished agents have flaws, missing signatures, address etc. No excuse not getting it right.

May 30, 2015 01:24 PM