Write & Ratify
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Write what you mean…
In complicated transactions, there is sometimes a temptation to make an assumption rather than a statement. No where is it more important to avoid this mindset than in the real estate transaction. The contract is the law of the transaction. Once the parties have agreed to it, in writing its is both affirmed and enforceable in almost every case. Once again two key factors come into play. The ability and experience of your agent or broker, and the transparency you extend to that professional. With all the information, an experience licensee can help you craft purchase agreement which reflects everything you need and/or expect to receive from and give to the seller. With less than all the information, it is highly likely that even the most experienced agent could miss something that you find vitally important. Take nothing for granted. Ask every question that comes to mind. Above all make sure you understand exactly what the contract and all addenda mean before you sign anything.
Offers and contracts…
One thing that has always concerned me about the residential real estate business is the sometimes unfamiliar vocabulary used with buyers and sellers. No where is it more concerning than in the interchanging of the words “contract” and “offer”. So, as you move forward bear-in-mind that the two are not the same thing, though it is more than likely you will hear them used as if they are the same thing by someone in the transaction.
Offers…
First, an offer, is what you have when only one party has agreed to all of the most recent terms of the “contract” forms. When you as a buyer write a “contract”, you are in fact writing an “offer”. It will only become a contract, if the seller agrees to all the terms without making any changes. If the seller makes even the slightest change, then your offer has been “rejected” and the seller has sent you a new “counter-offer”. This back-and-forth process can go on for multiple cycles until all parties are satisfied that the offer reflects their needs and expectations for the transaction.
Contracts…
When the parties are in agreement, the final changes are initialed, or sometimes the terms of that final version are re-written on a new document and, then signed. Finally once every term is agreed to in writing, by all parties, the date is added to the contract to signify all are in agreement. This date is the “ratification date” and will be significant as the transaction moves forward.