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 ‘financing’
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…)
The current shutdown of the U.S. Government could have an effect on contracts that you have pending or contracts that you write during the shutdown. Borrowers and agents should check with the specific Lender on each loan. Any sale that has a pending loan that was not fully approved and cleared to close with the closing package sent to the closing attorney as of midnight on Sep. 30 should expect delays to the closing. (more…)
All lenders are requiring any disputed account on a borrower’s credit report to be resolved or the dispute removed before the loan can be approved. The reason for this is that unscrupulous “credit repair” or “credit fixer” companies have told consumers how to use (abuse) the Fair Credit Reporting Act to falsely inflate the consumer’s credit scores.
The Fair Credit Reporting Act allows for any consumer to dispute any credit account or payment history rating they believe to be incorrect. The Act requires that any account that is under “dispute” be omitted or neutralized and not considered in determining the consumer’s credit score. This Law is in place to protect innocent consumers from erroneous credit reporting. (more…)
Today’s real estate market has revealed countless components of people’s character. Many of those components are of the not so pleasant type. The extremely competitive market in which we operate today has its challenges for everyone. Whether you’re buying, selling (or both), representing a buyer or seller, facilitating financing or conducting the closing, the tension in the normal course of doing business can be anything but normal.
Today, I’ll focus on the experience from the consumer’s perspective. A later blog will focus on the service provider’s perspective.
A more thorough understanding of a consumer’s perspective can be instrumental in the service provider’s ability to accommodate the needs of the consumer. Likewise, a more educated consumer can contribute greatly toward less frustration for the service providers. (more…)
In a perfect world, all sellers would finance the sale of their business and realize the additional financial gain associated with the loan interest. It seems like a great opportunity until the buyer decides not to pay the seller. So what are seller financing pros and cons today?
First, most small business owners have an immediate need for the cash or capital generated by the transfer of the business. The seller may be planning to purchase another business, retire or need the money for any number of other reasons.
Any of these reasons make financing the purchase and sale difficult for the seller. The seller’s CPA would be quick to point out certain tax advantages to be enjoyed by the seller but at the same time reluctant to recommend financing most buyers. (more…)