Residential Real Estate Contracts – Tip # 2 because they can be tricky.
One must use care and be aware of having an unenforceable contract — this means that the way a contingency is written could make it difficult to enforce the contract.
Example, in the Subject to Finance clause — one has to be extremely careful how the blanks here are completed. There is a place that says that a satisfactory loan approval will be provided to the seller within ________ (blank) consecutive days with no income, asset or credit conditions. (Referencing the SC State Assoc of Realtors contract form).
I am here to let you know that if the contract is subject to financing, you are not going to get this approval mentioned above until closing. Buyers and sellers (and real estate professionals) need to be aware of this — the lenders just don’t give this final approval until day of closing.
If one puts in this blank space 10 days — it is just NOT going to happen and you have a potential unenforceable contract. Thus you have your residential real estate contract tip #2
Liz Loadholt
Broker/Trainer
AgentOwned Realty
Copyright – 2010 – Liz Loadholt – “Residential Real Estate Contract – Tip # 2″
