Posted by Kary L. Krismer at 2/28/08 3:05 p.m.

A client that reads the contract is the exception. Last month we had a situation where a buyer wanted to use a different title company than the one we obtained the preliminary through. I told my seller that it was not a big deal, but that there'd be a cancellation fee. His response before I could say anything more: "Yes, but the contract says they have to pay that." I just about fell over. He'd actually read the contract!

Posted by Debra Sinick at 2/28/08 4:01 p.m.

Joy,

Good article. Too many times buyers and sellers do not want to take the time to read the paperwork. Sometimes giving it to them ahead of time is a good way to do this. But the buyer and seller still have to read the contract!

I find it helps to do what I call my cliff notes version of the contract. I try to run through the points in the contract with my client. The paragraph that is really important to people is the "included items." People get most upset when things are left, and should not be, or are taken, and should not have been. I had a client take a bathroom mirror that was hanging on a hook like a painting. There was a huge discussion about that one.

The other issues that are critical for the two parties:, price, closing, and possession dates. Again, these are things that upset people the most if things do not work out or are not clear.

Our job as Realtors, among other things, is to make sure earnest money amounts are high enough, there is a pre-approval letter, the inspection and financing dates make sense,the contract is filled out correctly and completely.

Posted by sandykaduce at 2/28/08 8:11 p.m.

Good article Joy. I wish more people would read what they sign, rather than pretending not reading somehow means they are not responsible.

Posted by Mack McCoy at 2/29/08 12:45 a.m.

Sandy, I've been trying all day to think of how to say what you just wrote.

Whether it's in a preliminary meeting with buyers, or at the time of preparing a contract, I think it is essential to go over the document with the buyer so that they understand the obligations and liabilities they take on by proceeding.

Yes, Time Is Of The Essence. Yes, you Can Forfeit Your Earnest Money. No, You Can't Just Change Your Mind If The Fancy Strikes.

With Sellers, I'm usually going over it when we're reviewing offers. But in any case, simply sending clients home with a blank P&SA doesn't satisfy a need that I have, which is to know that they're aware of the obligations the contract provides.

It's the "No Surprise" defense. Works like a charm.

Posted by Leanne Finlay at 2/29/08 9:37 a.m.

Joy, great article. The contracts now for a typical purchase agreement are running about 10 - 14 pages ... lots to read! But, it is a pleasure to go thru the contract with my clients, especially when they are paying close attention and asking questions.

I don't expect clients to remember all the details - we are used to these contracts, and use them daily, but the clients are not that familiar with these forms. Laws say we did our job once the contract is mutually accepted, but I believe our job goes further than that. We represent our clients best when we coach them during the period between mutual acceptance and close of sale, by reminding them of deadlines and obligations, and helping them meet those deadlines and obligations.

The best agents do monitor the details!

Posted by Dugald Allen at 2/29/08 11:43 a.m.

Joy, great article. You are dead on with regards to the gradual decline of a home...

Leanne, dead right - anyone who doesn't follow the contract all the way through closing - and beyond (still chasing a screen door for a closing in November!!!!!!!!!) is doing their clients - and our profession - a bad turn.

I require that my clients and I go through the contract prior to making an offer - sometimes we do it prior to viewing homes. I won't sit down with a client for less than 90 minutes for their first (hopefully last!) offer. I want them to understand fully the terms and conditions (and those pesky business-day-versus-calendar-day time periods!)

It's critical to their understanding of the process and critical to their understanding of a piece of my value!

I'm current on the requirements and I'm held to the same standards as a lawyer when preparing these documents - I need to do these things!