Avoiding Contract Loopholes
The housing market today is frenetic, booming with robust demand, minimal days on the market, and dwindling supply due to shortages and homeowners reluctant to sell. Add to the mix emerging bidding wars fraught with complicated cash buy-outs, frustrated homebuyers, and cancelled closings… and you’ve got a sizzling barbecue of a real estate market.
As a buyer or seller, the legal documents you sign need to be done extremely carefully with the utmost attention to detail. It is pivotal to understand the contracts, disclosures and other forms you are signing. Realtors® are trained on pertinent legal and technical regulations to ensure your home transaction goes smoothly from start to finish.
If you’re thinking of buying or selling your home, here are 9 common contract “loopholes” or problem areas you need to be aware of and avoid.*
- Buyer not delivering and depositing the earnest money within the deadline required in the purchase contract.
- Buyer’s earnest money check bounces.
- Missing initials.
- Missing signatures.
- Missing performance deadlines and dates.
- The seller accepts the offer the day after the Acceptance Deadline and fails to address this issue in a subsequent addendum. The seller later uses this to argue there never was a valid contract.
- Improperly numbering multiple addenda in your purchase contract which creates confusion.
- Poorly written language in an addendum that creates an ambiguity.
- Buyer needs a settlement extension but doesn’t get it in writing. Seller later argues Buyer breached the contract.
While selling on your own might seem like an attractive way to cut corners, you need an experienced Realtor® to help guide you through one of the most pivotal transactions of your life, to help avoid those loopholes. As realtors, we know the ins and outs of forms and disclosures required for the transaction of a home, and we can also help you stage your home as you prepare to sell and ensure sure you net the best possible price for it.
A recent study showed that homes sold by Realtors® sold for $60,000 to $90,000 more than homes sold by owners without an agent (FSBO). Realtors® can provide buyers and sellers specialized knowledge and valuable market intel of neighborhoods and current market conditions. As Realtors®, we can also assist you with commercial real estate such as offices, industrial, and land properties.
As Coldwell Banker agents, we are always undergoing training to become more knowledgeable. Even after being award-winning agents for over twenty years, we believe in constantly improving and bringing all we can to the table as your real estate agent. Having our useful skills and seasoned experience will help you avoid loopholes as you buy or sell your home.
The basic skillset of any Realtor® includes:
-Knowledge of local market value
-Marketing techniques
-Expertise in forms and legal documents
-Money-saving negotiating skills
-Lien and encumbrance protection
-A database of ready and willing buyers
To avoid contract loopholes in your real estate transaction, it’s important to hire a Realtor® who has experience with the local market and can understand and fulfill your needs. Make sure when hiring a Realtor® that you check their background and credentials to guarantee they’re the right fit for you.
We would be happy to answer any questions you might have about avoiding contract loopholes, buying or selling your home. Contact us today!
References:
- Bullock, Curtis. “Curtis Bullock, Salt Lake Board of Realtors.” Facebook, Curtis Bullock, 3 May 2021, www.facebook.com/profile.php?id=100013640683572.
