OfflineHey Everybody!
Being an active investor and real estate agent I am working on contracts all the time. Let me tell you...I hate reading "legal speak" that is contained in contracts. In fact, the only people that do like reading this language are attorneys.
That being said, it is our responsibility, as investors, to become somewhat familiar with the contracts that we are dealing with. As a business person you should be able to talk about what is contained in the contract and what the contract requires of you.
Please don't leave the outcome of a deal or your business up to the knowledge of a real estate agent or attorney. Take responsibility and learn the contracts that you are using. You can get the opinion of an attorney but don't rely solely on their knowledge.
Do your homework and become familiar with those contracts and if you have any questions ask your attorney.
Also, make sure that all clauses in the contracts say what they mean. Here's an example (taken from an article by By Tracey C. Velt) of how a clause may be interpreted differently from buyers and sellers point of view:
"The purchase contract provided that the sale was "contingent upon this property appraising for no less than $620,000," according to court documents.
Two appraisals were done. One arranged by the buyers, came in at $560,000. The Sellers secured an appraisal that valued their house at $635,000. The buyers refused to close and terminated the contract. The sellers sued for breach of contract, arguing that any appraisal of $620,000 or more obligated the Buyers to buy the house. The Buyers argued that any appraisal for less than $620,000 allowed them to terminate the contract.
Who's right?
Too often, homebuyers and sellers think a contract allows for one thing, when the language says something else.
"Contingencies should be written in full sentences," "In this case, it should have read, 'This agreement is contingent, at buyers' option, on the property appraising for at least $620,000 as determined by the appraiser for the buyers' lender.' There's no confusion in that language."
Valerie
“And will you succeed? Yes indeed, yes indeed! Ninety-eight and three-quarters percent guaranteed!” ― Dr. Seuss
"I believe in angels, the kind that heaven sends; I am surrounded by angels, but I call them friends" - Unknown
My journal: http://www.deangraziosi.com/real-estate-forums/investing-journals/59110/...
That is so true. Rather than spend hundreds of dollars on an attorney to read the contract. Spend the time necessary to understand what the contract means and what each part is designed to cover. This will help you to know when a buyer or a seller "sneaks" something in that pulls the contract into their favor.
These are great comments about the clarity and understanding of the legal documents in our business, but particularly the contract. It's a great reminder of what we need to know and why it is important. Thank you all.
Be your very best always- Judy Williamson
What you focus on is where your energy goes-Kristin
With gratitude,
Patrick
Very true!
My question to all since I am new do we use the standard contract that the bar for that state uses or the one the realtor has?
Being an active investor and real estate agent I am working on contracts all the time. Let me tell you...I hate reading "legal speak" that is contained in contracts. In fact, the only people that do like reading this language are attorneys.
That being said, it is our responsibility, as investors, to become somewhat familiar with the contracts that we are dealing with. As a business person you should be able to talk about what is contained in the contract and what the contract requires of you.
Please don't leave the outcome of a deal or your business up to the knowledge of a real estate agent or attorney. Take responsibility and learn the contracts that you are using. You can get the opinion of an attorney but don't rely solely on their knowledge.
Do your homework and become familiar with those contracts and if you have any questions ask your attorney.
Watch your thoughts, for they become words.
Watch your words, for they become actions.
Watch your actions, for they become habits.
Watch your habits, for they become character.
Watch your character, for it becomes your destiny.
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Our Heart's Desire must be nurtured by our mind,to give birth to common sense, that will enable us to seek out the path less traveled, with the greatest Personal Growth. -J.R.-