If the legal description is inadequate, the contract is not enforceable. The best practice for un-subdivided property is to always attach the full legal description obtained from the seller’s deed as an exhibit to the contract. This is most often a problem on un-subdivided, rural property.
Do not put this in special provisions!
Who is paying if the title policy is amended?
Contracting to provide an existing survey which the seller does not have or cannot find will result in the seller being required to pay for a new survey. Simply informing the buyer that the seller cannot comply with the agreement to provide a survey does not absolve the seller of the responsibility for providing a survey. Always make sure the seller has a survey before contracting to provide a copy.
No Address For Notice. If the address for notice is not completed for a buyer or seller, it makes it very difficult to give proper notice to a party. For instance, if a buyer desires to terminate the contract under the Termination Option and there is no address for notice, the buyer cannot be certain of the address for sending notice of termination. This can be especially stressful if the buyer is operating under very short time periods and needs to give notice by email.
You should allow a reasonable time for performance of the various due diligence matters in the contract. Unrealistic time periods are unlikely to make the contract close sooner and may cause enforcement of the contract to be jeopardized. For instance, requiring a loan to be obtained in an unrealistic time period or negotiating an unrealistic inspection period can increase the probability that the buyer will terminate the contract. If there is inadequate time to obtain a loan or inspect the property, the buyer is faced with losing the right to terminate and may choose to terminate rather than lose the option to terminate.
Not filling in the EFFECTIVE DATE on the executed contract. Be sure the executed contract is delivered to all parties.
Send to your BackAgent Email Address and from there, deliver the executed contract to:
Failure To Date The Contract. Often the times for performance in the contract are calculated from the “effective date” of the contract. If there is no effective date, it can be difficult to compute, with certainty, the time for performance. For instance, the termination option time in the TREC contract is calculated from the effective date. Failure to specify the effective date could result in a buyer missing the opportunity to terminate the contract under that provision.
Failure To Complete Required Check Boxes. Both the TREC and TAR forms have extensive check boxes which must be checked in order to make the provisions of a paragraph part of the contract. If the applicable check box is not checked, the provisions are not part of the contract. It is not uncommon to see blanks completed in a paragraph with no check in the box making the paragraph with filled in blanks a part of the contract. That can result in entire applicable provisions not being legally enforceable as part of the contract.
Lead Base Paint Addendum
A broker is obligated under TREC rules to use current form. If you engage in a transaction with an agent using outdated forms you are just as responsible as the agent that sent them. Make sure you are using the most current documents.