Wouldn’t it be easier for the Buyer and seller to agree to a price and closing date and shake hands?
That might have worked for Cave People, but we’ve “evolved” the transaction to something MUCH bigger.
There are other factors to consider than price and closing date.
To some degree, we’ve gotta create and negotiate a contract that will protect the parties from harming each other.
After all, we ARE talking about folks’ RESIDENCE . . . Their home.
This is BIG stuff, and we know it’s dangerous to leave the details to chance . . . so we “Structure” multi-page contracts which:
- Document the mutually agreed Purchase Price and Closing Date
- Establish Who pays for what in the way of closing fees
- Define Time Deadlines
- Establish Contingencies for Financing, Property Condition, and everything we can think of happening
- Ensure that the property is “Sellable” with a clear Title to transfer to the Buyer at closing
- Describes what is being sold (House and land and appliances and fixtures and the little black dog)
- Sets up responsibilities for both Buyers and Sellers
- delineates the “Rules” of the process between the “Binding Agreement Date” and the Closing date.
When everyone involved honors these rules, transactions flow much smoother with less anxiety than when someone doesn’t.
Interestingly, some Buyers or sellers develop amnesia shortly after signing the contract and/or don’t feel it’s important enough to comply with it’s requirements.
They might allow Deadlines to pass without fulfilling their obligations with little consideration of the potential (expensive) consequences.
A contract is a written PROMISE to perform per the agreement.
I’m always mystified when I witness a Buyer, Seller, Agent, Lender, or Attorney nonchalantly disregarding the terms of the written contract.
Even more perplexing are those times when the Sh_t hits the fan, and we learn that it’s more simple un-caring . . . It’s also unknowing.
Yep! They signed a document they didn’t understand . . . got in trouble . . . and engaged an attorney who doesn’t specialize in real estate contract law and ALSO does not understand what they signed . . . but does the only thing they can think to do . . . Threaten LAWSUIT.
The contracts don’t precipitate lawsuits – Ignorance does.
So . . . There IS a purpose for Written Contracts (all of the above).
I simply beg of you: “If you are going to go to the trouble of building a contract and signing it, please be certain that you fully understand what you are promising to whom and when.
The Vital Few agents of Pareto Realty are masters at leading our clients through the process of Buying and/or selling a house. We always go the extra mile to be sure our clients understand what