A real estate contract is a complex legal document. A failure to draft a proper document can result in a void contract or legal battles. Parties to a real estate transaction can reduce this risk by avoiding some of the more common errors that occur during real estate deals.
Three of the more common mistakes to avoid include:
Missing terms. State law requires the inclusion of certain terms to create a valid real estate agreement. These generally include the names of the parties, agreed upon purchase price and applicable dates. Parties are wise to review the contract to ensure the address is correct and the legal description coincides with the desired property. The contract can also include contingencies. These are terms both parties must complete in order for the transaction to reach closing.
Making assumptions. Parties to a real estate transaction must outline all expectations within the contract. Avoid assumptions. Do not presume all major appliances are included in the transaction or that the property would pass a home inspection. If these terms are expected, include them within the contract. In some cases, this can mean adding addendums within a proposed contract.
Using prepared documents. It may be tempting to use a prepared document. These boilerplate documents do not account for your specific transaction. As such, parties could find themselves facing unexpected legal issues in the future. Parties can avoid these issues by having a real estate contract drafted for the transaction. An attorney experienced in this area of the law can include provisions within the real estate contract to address these matters.
