See it Before You Sign It -- The Sales Contract

Remember walking up to the counter to rent a car while you are on vacation?

You know that before they hand you the keys and walk you out to the lot to inspect the car you'll be driving around in for the weekend, the clerk behind the desk presents you with a multiple page small print contract.

    "Please initial here, here, and here.  Sign and date on the bottom

      right hand corner on Page 3. We need 5 initials on this page and

      make sure you put a check mark in this box.  By the way are you

      waiving the waiver or do you want the supplementary insurance?"

You're longing to get on your way to the beach, the mountains, the hotel, dinner, or the family reunion.  Not to mention, there's an anxious line of would be car renters waiting in line behind you growling and giving you the evil eye as you try to parse through the fine print of the car rental contract. 

Ah, forget it, as you sign the documents, not even knowing what your rights are, or what will happen should you get a dent on the bumper or forget to fill up the tank before returning the car.

MORE PEOPLE GET INTO MORE TROUBLE BECAUSE THEY DON'T READ THE CONTRACTS THAT THEY SIGN!

Okay, let's talk real estate in Northern Virginia.

Back in the day, you could buy land or a home with a handshake.  Sure, you still can -- it's just not enforceable.  Contracts for the sale of real property must be in writing to be enforceable.  So, nobody buys a house based on a gentleman's agreement anymore.  

A few years ago, the entire sales contract in Virginia was about 8 pages.  Today it is a minimum of 18 pages.  Add on a home inspection contingency, other contingencies, lead based paint disclosure forms, etc. and you're well up into the twenties.  Buying a home on your own without the counsel of an experienced REALTOR?  Good luck.

My real estate law mentor Beau Brincefield has a favorite phrase, and I quote verbatim:

"READ THE FREAKING CONTRACT"

"READ THE FREAKING CONTRACT"

"READ THE FREAKING CONTRACT" 

Did you hear that?  This is sound advice for buyers, sellers, and real estate agents alike.  The basis for any real estate transaction is the contract.  Any dispute that ends up in court will hinge upon the language in the contract.  The rights of buyers and sellers are specifically set out in the real estate contract.  Sign and deliver it without reading it first at your own peril!

My philosophy has always been that the first time you see the contract should not be when you are signing it.  At that late stage of the game, emotions are already in play.  You want the house.  You want the sale.  Just give me the papers and let me sign.  Whoa Nellie!

When I meet with clients for the first time, I present them a blank copy of the Regional Sale Contract -- our sales contract for Northern Virginia real estate.  We spend some time going over the major provisions of the document.  As one of the key protections for buyers and important duties for sellers, I always read out loud and in full, Paragraph 7 (Learn more about Mighty Paragaph 7 of the Sales Contract)  We discuss various important clauses like the appraisal contingency, pro rata adjustments, disclosures, default provisions, and more.

I know that buyers are anxious to move on and find out what homes are available in their price range.  Sellers want to know how much their home is worth.  These answers will be delayed momentarily while we review the contract.  I want people to see it, way before they have to sign it.

Every single one of my clients has thanked me for this. 

You will too.

If an agent won't, can't, doesn't want to, or is unable to review the Regional Sales Contract with you, or unable to answer questions about specific provisions, it's time to run, not walk, the other way.  The contract is the basis of your purchase or sale and you need someone who can guide you through the dense contractual legal language and help you understand exactly what you are getting into.

Ready to buy or sell?  Contact me for an appointment at 703-626-0715 or online. 

I'll never ask you to sign something that you don't understand.