AVOIDING CONTRACT DISPUTES

AVOIDING CONTRACT DISPUTES

Substantially Reduce Your Risks by Following These Simple Rules

 1.    ALL OWNERS MUST SIGN THE LISTING AGREEMENT.

*Signature by the Agent is INEFFECTIVE
*Signature by the Agent “per meeting” is INEFFECTIVE
*Signature by only one of many owners is INEFFECTIVE

2.     ALL BUYER AND SELLERS MUST SIGN THE PURCHASE AGREEMENT.

*Signature by the Agent is INEFFECTIVE
*Signature by the “per meeting” is INEFFECTIVE
*Signature by only one of many owners is INEFFECTIVE

3.     CONTINGENCY MUST BE REMOVED IN WRITING.

*Buyer has 7 days to provide Preapproval Letter (RPA @ 3H1)
*Buyer has 7 days to provide Verification of Down payment (RPA @ 3G)
*Buyer has 17 days to remove a Loan Contingency (RPA @ 3H3)
*Buyer has 17 days to remove an Appraisal Contingency (RPA @ 3I)

*Seller has 7 days to provide signed disclosures required by RPA 5 (RPA @ 14A)
*Buyer has 17 days to return signed disclosures (RPA @ 14B)
*Buyer has 17 days to make a request for repairs (RPA @ 14B2)

*Buyer has 5 days to approve or disapprove of Seller’s late disclosures (RPA @ 14B3)
*Buyer retains the right to cancel until Seller sends a Notice to Perform (RPA @ 14C2)
*Once contingencies are removed, neither party may cancel
*There is no passive removal of contingencies

4.     USE STANDARD FORMS

*Use standard C.A.R. forms
*Use the correct Purchase Agreement
i.e. Residential, Commercial, Vacant Land, Sale of Business and New Construction.

5.     CONVERSATION LOG

*Time, Date and General Substance of each telephone call
*Confirm all understandings in writing
*Take pride with your transaction file

6.     PROFESSIONAL INSPECTIONS

*Make sure your client has a choice of inspectors
*Inspectors recommended must be CREIA or ASHA inspectors and have E & O
*Get Recommendations and Waivers in writing signed by your client
*Professional Home Inspection
*Termite Inspection
*Mold Inspection

7.     DISCLOSE AGENCY RELATIONSHIP IN WRITING

*Disclose agency relationships in writing as soon as possible.

8.     RETURN CALLS

*Amazing how simply returning calls can resolve disputes.

©

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