I once had a great real estate trainer tell me that fair housing laws and regulations and the adherence to them matters in the real estate transaction when it matters. What she meant by that is you may go through your whole career never facing a fair housing charge against you, but if you ever do, that's when your systems, adherence to rules and treating people with respect and fairness, matters.
The same is true about the nuances of real estate contracts. Whatever you face in the fine print in your local contract matters to you if and when you ever face the issues addressed in that contract. It may be that while the paragraph on arbitration and mediation never triggers because the buyer and seller never needed it -- it's safe to have it there.
Sometimes contracts deal with stuff that makes you scratch your head on why on earth it's even in the contract. For instance, it may not matter to you personally the definition of a "day" because your buyer went straight to settlement without any problems, but if you have a buyer who is not performing on the contract, has failed to fulfill various paragraphs of the contract, is flaunting the required deadlines and requirements of the contract and you want to get out of this arrangement, THEN, the fact that he failed to deliver paperwork by a certain number of "days," could make the contract voidable and you could get out of it, keep his deposit funds for your troubles and move on to the next buyer. When did it matter about the definition of "day?" When it mattered.
Thus, as you move forward to looking at your next purchase, know what's in the boot before you slip your foot into it. In many locations, the local contract is several pages (dozens, at times) and this is why you want to get a sample copy of the contract from your Realtor to review as you're driving around looking at houses. Take time with your co-buyer and read through each paragraph. Write notes on it and ask your Realtor what it means.
Most states have title or escrow companies that conduct real estate settlements and have an on-staff attorney. Ask your Realtor for a referral to one of these firms to talk with the attorney if that would make you feel more comfortable in understanding the contract.
Understand it you must and it's your responsibility to know what you're signing.
It's in the details you'll find out who is going to hold your deposit money, when the home inspection will be done and who's going to pay for it. In fact, the contract will most likely pinpoint who's going to pay for several items, such as the home inspection, radon inspection, well/septic certification, termite inspection, home warranty, closing points, etc.
I've seen some "homemade" contracts between parties that was nothing more than an agreement to sell a piece of property from Mr. Smith to Mr. Jones. Great … but then there's no direction on who has to do what, when they have to do it, where it's going to be done and what's the consequence to the defaulting party.
It's like everyone is so excited to sell and/or buy a piece of property that they can't imagine anything would go wrong between the parties. Particular violators of this are folks who think selling a house is like selling a car. Just pull your title out of the file, collect a check from the buyer and you're done.
Unfortunately, it's not so simple. Since real estate transactions come with federal, state and local legal requirements, you know right there that it's going to take more than a wad of cash and a hand shake.
The purchase of a house is the biggest financial investment most consumers make. It only makes sense to make sure your rights are protected and you don't make a huge financial mistake because of ignorance or impatience with the legal and regulatory process.
