How Well Do You Know Your Contract

By
Real Estate Broker/Owner with HomeRome Realty 410-530-2400 311291

 Contract

 

For new and seasoned agents, there is something to learn with each transaction. Going over the contract with your client line for line each time you write, will teach you the ins and outs of the legal document quicker than anything. You will be continually answering their questions, and most of the time, those answers can be found right on the printed page. 

 

When receiving a contract for a seller or writing one for a buyer, I like to go through the entire offer line by line. I ask them to take the time to review the forty to fifty pages and make a list of questions.  In our Maryland contract, the first ten pages, alone,  have sixty bold paragraphs. 

After review, we go through each page line by line. Sometimes it is quick, and sometimes it can take an hour or two, depending on the client's knowledge and in-depth questions. Make sure the person signing knows what they are putting their binding signature on. When a problem arises, we refer back to the contract.

How well do you know your contract?

 

Margaret Rome

 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
ActiveRain Community
Location:
Maryland Baltimore County Pikesville
Groups:
Cosmic Cow Pie...The Rome Way
Bananatude
Old Farts Club
Tags:
homerome
how well do you know your contract
maryland real estate contract

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Ambassador
1,949,969
Debb Janes EcoBroker and Bernie Stea JD
ViewHomes of Clark County - Nature As Neighbors - Camas, WA
REALTORS® in Clark County, WA

Great advice and practice. 

Often our clients will say, "we trust you, we'll just sign." And we say, thank you for the trust, but it's important to know exactly what you're signing. These contracts are quite complex - and binding. Let's just take some time to make sure you're comfortable with everything. 

Jan 26, 2020 07:34 AM #21
Ambassador
3,109,694
Margaret Rome, Baltimore Maryland
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

Debb Janes EcoBroker and Bernie Stea JD  

It is wonderful that our clients do trust us! And we have to continue to earn that trust by doing the right thing.

Jan 26, 2020 07:55 AM #22
Rainmaker
73,518
Leanne Smith
Dirt Road Real Estate - Golden Valley, AZ
Relocation to NW AZ with elbow room & more freedom

One of the reasons I took the classes to be Certified Risk Management qualified was because of the contract and my lack of knowledge being new to real estate. Outstanding question Margaret Rome, Baltimore Maryland and one I believe many cannot answer.

Jan 26, 2020 07:57 AM #23
Ambassador
3,109,694
Margaret Rome, Baltimore Maryland
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

Leanne Smith Great reason to take this course.  We cannot learn too much about our contracts and all of the subtle changes!

Jan 26, 2020 08:21 AM #24
Rainmaker
806,048
Cindy Edwards
RE/MAX Checkmate - Johnson City, TN
CRS, GRI, PMN - Northeast Tennessee - 423-677-6677

Our contracts change all the time.  It is som important to stay on top of them and making sure you understand them.  And speak them in layman's terms.

Jan 26, 2020 11:39 AM #25
Ambassador
4,122,829
Jeff Dowler, CRS
eXp Realty of California - Carlsbad, CA
The Southern California Relocation Dude

Margaret:

Contracts are far too complex to not spend the time reviewing them in detail and answering questions. And after the fact saying you weren't aware doesn't cut it...it's in the contract you signed.

And ours changes some every year!!

Jeff

Jan 26, 2020 12:32 PM #26
Ambassador
3,109,694
Margaret Rome, Baltimore Maryland
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

Cindy Edwards For sure! Make sure you understand the contract and make sure that you can explain it in layman's terms. Good comment!

Jan 26, 2020 02:11 PM #27
Ambassador
3,109,694
Margaret Rome, Baltimore Maryland
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

Jeff Dowler, CRS Great comment...And after the fact saying you weren't aware doesn't cut it...it's in the contract you signed."

Jan 26, 2020 02:20 PM #28
Rainer
13,723
Michelle Enciso
Pikes Peak Dream Homes Realty - Colorado Springs, CO
Exceptional Service for Exceptional People

Thanks to Kathy for highlighting you post! I am very glad I read it. Great advise and information. I, too, agree that the more time spent reading through and explaining the contract the quicker and more educated you yourself will be in understanding and interpretting it. 

Jan 26, 2020 08:57 PM #29
Rainmaker
3,881,476
Dorie Dillard CRS GRI ABR
Coldwell Banker United Realtors® ~ 512.750.6899 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

Good morning Margaret Rome, Baltimore Maryland ,

You are so right..knowing our contracts inside and out is so important for our clients. Our contracts are promulgated contracts drawn up from our Texas Real estate Commission. We have an addendum that covers everything! Not near as many pages but every year or two their are changes and tweaks that we need to know. Explaining what your clients are signing is imperative and definitely keeps you out of the courts!

Jan 27, 2020 05:56 AM #30
Rainmaker
2,146,975
Sharon Tara
Sharon Tara Transformations - Portsmouth, NH
New Hampshire Home Stager

Excellent advice Margaret.

I've been in signing situations where I was simply asked to sign...no explanation or details. It's hard to trust someone who doesn't take the time to explain and confirm your understanding of the agreement.

Jan 27, 2020 06:47 AM #31
Ambassador
3,109,694
Margaret Rome, Baltimore Maryland
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

Michelle Enciso  Good comment..."the more time spent reading through and explaining the contract the quicker and more educated you yourself will be in understanding and interpreting it.'

Jan 27, 2020 09:05 AM #32
Ambassador
3,109,694
Margaret Rome, Baltimore Maryland
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

Hi Dorie Dillard CRS GRI ABR I have been thinking about you!

This is so true..." Explaining what your clients are signing is imperative and definitely keeps you out of the courts!"

Jan 27, 2020 09:07 AM #33
Ambassador
3,109,694
Margaret Rome, Baltimore Maryland
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

 

Sharon Tara I remember working with an attorney selling his home. He asked if there was anything in the contract that I thought he should read. You know my answer!

Jan 27, 2020 09:09 AM #34
Rainmaker
594,042
Gwen Fowler-CRS- 864-638-3599 SC Mountains & Lakes--
Gwen Fowler Real Estate, Inc - Salem, SC
Gwen Fowler Real Estate, Inc.

Our contracts had some big changes at the first of the year. Some just don't make sense. And some are more efficient. But every contract needs going over carefully, always. 

Jan 28, 2020 07:34 AM #35
Ambassador
3,109,694
Margaret Rome, Baltimore Maryland
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

Gwen Fowler-CRS- 864-638-3599 SC Mountains & Lakes-- Every contract needs going over and carefully!

Jan 28, 2020 10:46 AM #38
Rainmaker
1,533,264
Georgie Hunter R(S) 58089
Hawai'i Life Real Estate Brokers - Haiku, HI
Maui Real Estate sales and lifestyle info

It is SO important to do this and make sure buyers and sellers understand what they are signing.  Even then, it's sometimes confusing and hopefully they will ask questions.

Jan 29, 2020 01:31 AM #39
Ambassador
3,109,694
Margaret Rome, Baltimore Maryland
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

Georgie Hunter R(S) 58089 Forty some pages...yes, of course, it is confusing. Even if you memorized the entire contract and all addenda, there would still be changes and questions that are answered in the contract.

Jan 29, 2020 03:21 AM #40
Rainmaker
87,575
Kris Collis, Associate Broker
Smart Way America Realty - East Stroudsburg, PA
Professional Results you Expect 702-574-8102

Hello Margaret,

In our market of esign technology and relocation buyers, sit-downs for review of docs becomes increasingly challenging, esp. after a day of showing in 2 or more counties and buyers have a long drive home....as can happen in the sparsely settled areas of the country.  

Depending on client and esp. with first-time buyers I might include the Buyer Guide to the Agreement which explains paragraph by paragraph.   You are so right about explaining the contracte in plain language.  That is an art in itself.

Jan 30, 2020 03:32 PM #41
Ambassador
3,109,694
Margaret Rome, Baltimore Maryland
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

Kris Collis, Associate Broker Those sit-down reviews can be done over the phone. After a long day, a guide for a buyer to READ is not quite enough. Explaining in plain language is, as you say, an art in itself. 

Jan 30, 2020 05:12 PM #42
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Ambassador
3,109,694

Margaret Rome, Baltimore Maryland

Sell Your Home With Margaret Rome
Sell Your Home Margaret Rome 410.530.2400
*
*
*
*
Spam prevention