SC Law Blog

Welcome to the South Carolina Law Blog where there is open discussion through feedback on hot legal topics in this state. Feel free to comment and/or suggest a topic to address.

Monday, August 20, 2012

Contracts in Real Estate Transactions

Contracts are the basis for every real estate transaction.  Contracts are also the first thing that a lawyer looks at when something goes wrong with a transaction.  For this reason, it is very important for a real estate agent to have a firm grasp on contract law.

First the basics.  There must be an offer and there must be an acceptance of that offer.  This is called a meeting of the minds.  Pretty simple right?  Well, you would think but here is where it gets more complicated.  No one should use a word or phrase in a contract unless they came up with it or unless they are aware of every implication which can be drawn from that word or phrase as it relates to the contract.  Oh, and commas really matter.  One comma can change the meaning of an entire clause.  I have seen countless times where a supposed boiler plate paragraph was inserted which contradicted the rest of the contract and called into question the entire contract itself.

There is no shame in keeping things simple.  One should not try to be impressive at this level of the game with flowery words or complex phrases, the meaning of which is not totally understood by the author.  Be specific with who is entering into the contract.  First, Middle, Last, (suffix, if applicable) of each party needs to be spelled out in the contract.  Do not use "Owner of Record" or any type designation which does not specifically name the parties involved.  As a real estate agent, you should be protecting your client to the best of your ability and if "Owner of Record" runs off with a earnest money deposit, John A. Smith needs to know who to name in the lawsuit to recovery monies.  Make sure money is actually exchanged when an earnest money is given or received.  I know this sounds stupid, but I have seen where agents have fabricated the existence of the earnest money deposit.  Guess who got sued.  The agent.  Never take, "don't worry about that clause" as an answer.  I have seen this as well and it became a problem they had to worry about.

Last and most importantly, if you don't know, ask someone that does.  

Daniel A. Selwa, II, would like to announce the relocation of his real estate office to 302 Main Street, North Myrtle Beach, SC 29582.  If you have a closing and you want it done right, contact Daniel A. Selwa, II.

13 comments:

  1. "Online real estate investor/Home investor’s community helps to provide wide range of comprehensive real estate investment property information and also to promote and grow your business.
    Thanks for Information
    Real Estate Investment
    Real Estate Investors
    Real Estate Investor"

    ReplyDelete
  2. Yeah, real estate contracts are very crucial so better check your deal.

    Click Here

    ReplyDelete
  3. Real estate is the best way where people can invest their money and can get good return in future because real estate is promising business.

    ReplyDelete
  4. I like this post short but meaningful and helpful,thanks for sharing and i'm looking forward to you next post.

    ReplyDelete
  5. Rates are decides according to the area if in city more will be cost as more facilities, while in villages less cost as compared to the cities.
    Bhiwadi Flats

    ReplyDelete
  6. Real estate is the best way to make money and people can grow their career in this business as investor. I like this business because it gives very fast financial benefits.

    شقق للبيع

    ReplyDelete
  7. Real estate transactions can affect to country growth like it can help to increase our economy. It gives many benefit to financial market.

    ReplyDelete
  8. Contracts are very important in real estate transaction.real estate deal should be handled correctly each step of the way.The full name of the parties must be on the contract. The agreement to sell between a buyer and seller of real estate is governed by the general principles of contract law. thanks for sharing.

    Jeffrey T. Angley

    ReplyDelete
  9. Commercial Real Estate closings is the major part we solve most of the time. We assist individuals and businesses with their legal needs in areas of Residential & Commercial Real Estate closings, Family Law, Immigration Law, Business Law, Wills & Estates and all kinds of Notary Services.

    ReplyDelete
    Replies
    1. The contracts in real estate transaction has been given in the post here. Know all about it

      Delete
  10. Contracts in real estate transaction is given in the post here. Read all about it

    ReplyDelete