In addition to ready, willing and able buyers and sellers, the real estate professionals’ ability to collect a commission is dependent on how solidly the agreement is written. Whether you are the listing agent receiving the offer on behalf of a seller or the selling agent preparing the offer on behalf of an interested buyer, every agent involved in the transaction has an obligation to ensure the contract is well written. Many contracts are filled with loopholes and scenarios that could render the deal void if challenged. Below are the top ten issues that we see in Broker Support that could cause contract nightmares and possibly cause the contract to be voided by one party or the other. (more…)
Posts Tagged ‘contract’
In the process of writing offers, there are several exhibits and addendums that seem to be more widely used than others. The purpose of exhibits and addendums is to formalize the process of accommodating various common reoccurring situations during the negotiations process. When combined with the standard purchase and sales agreement, the exhibits and addendums give additional definition and requirements to the transaction.
At a quick glance, the following are the most commonly used exhibits and addendums in today’s market. (more…)
Every new buyer prospect brings hopes of finding the perfect property, writing the cleanest offer, working with the most professional and cooperative of co-op agents, attending the most jovial and pleasant closing and collecting a nice commission check.
Likewise, every new listing brings hopes of the sunniest of Open House days, receiving the cleanest and most serious of offers, working with the most honest and hard-working co-op agent who represents the most reasonable and considerate buyers with solid financing already arranged. Oh, happy days!
Helloooooooooo??? Sorry to wake you from your pleasant dream, but reality does rear its ugly head, often and at the least convenient times.
You KNOW your deal’s in trouble when: (more…)
Buyer Clara Careful entered into a binding agreement on July 1 to purchase a home through her buyer’s agent, Sally Speedqueen. The home Clara wanted to buy was in “rough” condition and there were several obvious repairs which Clara wanted the seller to complete prior to Clara hiring a home inspector to check out the house (and the repairs the seller would have just completed). Not a problem for Sally Speedqueen, who quickly created a Special Stipulation stating that the seller would make the specific repairs AND that Clara Careful’s “14-day due diligence period shall not begin until the above repairs are completed.” Clara put up $5,000 earnest money, which Sally’s broker deposited on July 3.
The seller, Pete Procrastinator, took his sweet time doing the repairs, much to Sally Speedqueen’s consternation. In fact, he took so much time that Clara Careful decided to terminate the deal and look elsewhere. Clara Careful signed a Unilateral Termination on July 14 citing her ability to cancel the deal within her Due Diligence period. (more…)