Most contracts for the sale and purchase of real estate contain a provision that the agreement is contingent on the approval of buyer’s attorney. Buyer’s attorney might cancel or request modification of the contract for any number of reasons. A contract’s lack of an attorney approval provision or buyer’s waiver of that provision can prove to be very expensive. These are three of the top mistakes attorneys see in real estate contacts when we review them.
Short times for performance
Everybody wants the transaction closed as soon as possible, but there must be reasonable times for performance of the respective parties’ duties under the contract. Since performance of those duties often depends on the scheduling and performance of third parties like lenders, unrealistic and ambitious times for performance are not likely to speed up the closing process at all. In fact, they’re likely to create even more work in the context of obtaining extensions. They can even jeopardize enforcement of the contract. Unrealistic time limitations can result in a buyer losing their right to terminate the contract. Should buyer be forced into a decision, they might terminate the contract rather than risk their right to terminate it.
Failing to include the required parties
All parties to a contract must sign it. A husband is not the legally authorized representative of his wife for purposes of entering into a contract. All sellers must sign the contract too. If a spouse isn’t a party buyer to a contract, they can’t be required to cooperate in applying for a mortgage to purchase the property. The contract isn’t enforceable against a spouse that hasn’t signed it either.
All residential real estate contracts provide a space for approximate lot dimensions. There are far too many times when approximate lot dimensions are not given, and the contract provides for lot dimensions as per survey. Dimensions provide a meeting of the minds on the approximate size of the property. That’s a significant factor in the use, enjoyment and ability to sell the property in the future. Per survey can strip you of your right to get the size property that you expect to receive.
Take the time to be sure of these contract pitfalls. Make sure you have an experienced and thorough agent. I am available for assistance at any stage of the process, from contract negotiation to document preparation. Contact me at (405)-232-7980 or online for a free confidential consultation to discuss your specific needs.