Getting more time on your Contingencies - Listing Agents will hate you

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Education & Training with Real Estate Expert Witness Support

To often,  Seller's agents think they are doing their Seller a favor by countering the buyer's offer with a shorten time frame to remove contingencies.  Then,  when the contract says that the Seller has X days to provide the buyer with disclosures, what happens if the Seller is slow in providing them??  It is not uncommon for a contract to have 5 days for the Seller to provide disclosure documents and 17 days for the buyer to review and remove contingencies.  This means,  according to the contract,  the buyer is to have 12 days to review the disclosures.  Plenty of time.  In the real world,  sloppy listing agents don't get on their sellers,  so the disclosure dribble in to the buyer.  So, what happens if the Seller is late,  does that change the contingency period for removal??  No,  it does not.   So, here are a couple of suggestions that will help you when writing an offer.

1.  Write into the contract, that for time frame purposes,  the clock for contingency removal regarding disclosures and property condition shall begin upon receipt of Seller disclosures.  Note:  This means,  when you get the last one,  the clock starts.  

2.  Add a clause to the contract stating that ...Seller will provide any information reasonably requested by the Buyer.  This seems innocuous but what it allows is that  once the offer is accepted,  the buyer can request in writing any information they want.  For example,  what if you requested information about Insurance claims on the property within the last 5 years or Whether remodeling on the property was done with permit and final inspection.  Not only will this allow the buyer to get all the information they need,  but also would extend the time frame for contingencies,  if you used the idea in #1 above. Until you get ALL the seller disclosures,  the clock hasn't started. 

 

 

 

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Guy Berry

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Comments (4)

Konnie Mac McCarthy
MacNificent Properties, LLC - Cobb Island, MD
Broker/Owner - VA & MD "Time To Get A Move On!"
Great idea......thanks for the advice...
May 08, 2008 01:14 PM
Greg Hampton
Re/Max Around The Mountains - Blue Ridge, GA
North Georgia Mountain Property,Blue Rid
Man, That is great advice! I'll be using it on my next contract you can reat assured of that>
May 08, 2008 01:15 PM
Karen Haas
Bertao Real Estate Group - Hollister, CA
REALTOR
Great advice!  I will definitely use it!
May 08, 2008 01:22 PM
Lorinda Ward
Keffer Realty - Norfolk, VA
Serving, Hampton Roads Virginia. Norfolk, Chesapeake, Va Beach

Great tips!  Thank you very much.  Have a great day.

Welcome to Activerain.

May 08, 2008 01:25 PM