Accepting an Offer to Contract

You and your agent have been going through showing of the property to potential buyers. Your agent will keep you informed when an offer comes and pass on that offer to you. If there is lot of interest in the property, you may expect multiple offers to come especially when economically it is sellers’ market. The offers that come are on standard legal contract form which is recognized or put out by the local Association of REALTORS.

The Sale-Purchase Contractand other standard forms arevery lawyerly and non-alterable standard forms crafted and drafted by attorneys having many “fill-in-the-blanksand check-boxes”for the real estate agents fill inwith full understanding of the clauses that the agents are obligated to explain to their clients. Expect purchase offers to be presented to youfrom your agent for contract to the sell your property. You can accept or reject any offer. Understand the offer before you fix your signatures to turn it into a contract.

In these days of digital signatures and transmission, it is legal to have the Seller and the Buyer sign the documents by digital signatures and initialswhich carryfull force of legal documents.

Oftentimes, the offers come with some conditionsandcontingencies. Youragent will advise you on the importance and significance of these provisions as part of the Buyer’s offer to the Seller to contract. Your agent is expected to clarify and point out the effect of conditional offer to contract;it is up to you to decide andgive instructions to your agent.The offer may involve some negotiation by way of counter offers. This negotiation is common to happen till both Seller and Buyer agree to final version, called ratification of contract and sign on documentas final.

It isimportant that any formal or informal exchange of emails, texts, or phone conversation between all players in the contract or associated with the contract are reduced in writing every step of the way, since such exchanges have monetary effect and timelineoncompletion of the contract. There are no promises to make to have implied effect or meaning in the conduct of contract, but addendums to the contractto be signed by parties for implementation. A simple plain English language of intent is the best in the addendumsthat the parties to the contract will understand without ambiguitiesof legalese. You do need your agent to be experienced and educated enough to draft these addendums during negotiations prior to entering into contract, and during concurrencyof the post-contract implementation.

As a seller, when having contract to sell, can legally compel the buyer to buy if buyer tries to wriggleout of contract. Even the legal assignsof the parities to the contract are obligated to bring the contract to its completion. So be aware!

And now this is very important!

Remember you the seller aregiving Warranty Deed to the buyer for transfer of title of the property. Make sure you are passing on clean title and the property in good livable condition unless otherwise specified in the contract. Hidden or not-obvious defects in the property including encroachments if known to you must be disclosed.

Give full access to the buyer’s home inspector to prepare inspection report and receive it well for carrying out repairs pointed outwithin specified timeframe to remove contingency. Monetary negotiation to get past this hurdle to remove contingency will move the contract forward.

If you ever got additions and alterations done to the property, you must have copies of permits by the county, copiesof contracts with licensed construction contractors, payment receipts and inspection sign offs from the county inspector. Even if your buyer misses to ask you for it, give its copiesthrough your agent.Do transfer your contract with the Appliances Warranty Company, or offer to buy for the buyer for one year in support of your assertions that all appliances are in good conditions and you expect them to work well.

Disclosures! Goodwill! Move to timeline! These are keywords for you as you sell property to the new owner.