Once again I am reminded how important it is to have complete and accurate contracts and agreements with any Real Estate purchase or sale. Below is a list of the Contracts and Addenda, and Clause that the Utah Association of REALTORS and the State Attorney Generals Office have complied for the licensed agents use.
- The Residential Purchase Contract – 6 pages – 25 sections
- The New Construction Purchase Contract – 7 pages – 25 sections
- Commercial Purchase Contract – 2 legal pages – 24 sections
- 6 addenda – 8 pages ( approx. 80 sections)
- 21 Clauses – 23 pages (115 sections)
That’s a total of 42 pages and 269 sections of legal language.
That’s a lot for to know. But, each of these documents have a specific purpose.
It is absolutely critical to have an agent that is knowledgeable in the language and purpose of the contracts and addenda and clauses. This can avoid many serious situations.
See, what you need to know is in Real Estate when we have a problem with a transaction, we create a form. So there are many forms, because we have had many problems. Real Estate transaction can be very complex and dangerous if we do not use the appropriate forms.
It is also important to understand that not all situations have been addressed in the agreements we currently have. There can be times were the average agent may wonder where their client stands in the contract.
I answer between 10 – 20 contract questions a day. I would like to think I have become very good at noticing potential problems. And although the client may never speak to me (because I’m the Broker and act behind the scenes) I would like to think I have saved them from many disastrous legal issues.
Today I dealt with two interesting situations.
1. Back up offer Contracts and the deadlines. Does the buyer have to spend their money on inspections and the appraisal if they are not the primary offer?
2. Subject to the Sale of Buyers Residence Addendum. What happens if after the buyer has their offer accepted, the sell of their old property fails? What is the status of the new offer? The seller has accepted the offer with understanding that the buyers house was under contract. The Answer? There is not language to protect the seller of the new property.
Okay, maybe this stuff is too much to understand for the average person.
My advice? Hire agents that make knowing the agreements a top priority!!! Or agents with supportive and knowledgeable Brokers. You’ll be glad you did.
