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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