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.

Real Estate Agents - A Personal Experience

Wow, what a day.  I have not had to deal with Real Estate Agents on a personal level in a long time.  I can say my experience was disappointing and heart breaking at the same time.  My wife and I put a bid in on a house and we had to take a lot of emotional steps to get there.  One, we had to decide that THIS is what we wanted.  THIS is what was best for us and a potential family we may have in the near future.  By the time we got the bid out, we had invested a lot emotionally.  We were excited and anxious with a realistic expectation that this may not happen, as one is with any real estate transaction.  What we did not anticipate was how INCOMPETENT the sellers' Real Estate Agent was towards what she had listed on MLS and how she had represented what the sellers' wanted.  Needless to say, after we tendered an offer we received a call that the seller had changed their mind as to their original listing.  The owners were no longer interested in owner finance.  They felt they would not live long enough to see the benefit.  On top of that, there was a lot of activity on the house and now the price was going back up, since she had reduced it a day earlier.  This was devastating to both my wife and myself.  I contacted the Real Estate Agent and tried to apply some logic to the situation and offer a balloon payment.  The sellers' Real Estate Agent contacted me back and said, well now they are not going to sell but would we be interested in renting.  It doesn't take a genius to see the obvious contradictions going on here.  At that point the deal was dead.  Not only did we lose the the deal but it dealt a tremendous emotional blow to both of us.  Whose fault was this?  The sellers' Real Estate Agent, for a nationally recognized company, for not knowing her industry adequately enough to explain what was realistic and what was not realistic to her clients.  For failing to talk with them to make sure they knew exactly what owner financing was all about.  For lying and lying badly in regards to the contradiction over not owner financing and then wanting to rent.  Who knows what really happened.  But after talking with my Real Estate Agent, who did a very good job, I was informed this Real Estate Agent had no clue what owner financing was about.  All in all, her incompetence created a very unpleasant experience and a depressing day for both my wife and myself.

In Myrtle Beach, it seems that just about everyone is a Real Estate Agent.  Most are starving.  The ones that strive for excellence stand out and do their client's justice and there are plenty of them in Myrtle Beach.  If you are looking for a Real Estate Agent, please do some research and ask questions of him or her.  Ask for figures on actual sales, ask to talk with satisfied customers.  Talk with past clients.  Just ask questions.  The very nature of agency requires trust and confidence.  Think about that before you hire an Agent to sell or buy real estate.  Not everyone is good at selling real estate.