If you don’t have the right equipment, you may have to drive to meet your clients to get signatures. All pages should be included and be facing the same way. Make sure the contract is scanned or printed on the correct paper size and all parts are visible and legible. Once the contract is fully executed, it should be entirely readable without the aid of a magnifying glass. While this seems like common sense, agents often rush through this process. Taking a few extra minutes to make sure all parties can read the contract could save you hours of headaches later on. Illegible or sloppy contracts are common – and they’re often due to laziness or improper scanning. Relying on faxes and bad scannersĬontracts need to be legible. Failure to do so could cause significant delays or even cause the deal to fall through completely. Be sure you’re using the correct address and PIN or Permanent Real Estate Index Number on the contract. Needless to say, this small error caused significant problems. In this instance, the transaction made it all the way to the closing table without anyone noticing the mistake. In one instance, the buyer intended to buy “123 Home Ave,” for example, but the agent listed “123 Home Street” on the contract. We’ve seen it happen: the contract and all associated documents – including the title and property – were written for the wrong address. Not using the full or correct address of the property being purchased, along with the corresponding Property Index Number (PIN) or Permanent Real Estate Index Number You should also consult with the buyers and ensure all names on the contract are the full legal name. Title work will need to be completely redone, leading to delays and increased fees.īefore submitting the contract, check and double-check that all names are correct.The lender will be unable to approve the intended buyer because their name(s) were not on the contract. It is entirely possible for a contract to be canceled over this issue. Oftentimes, if the property is a bank REO or other distressed type sale, they will not permit a name change (or name to be added or removed).The lender will need a contract addendum to use the correct name.The most common issues related to improper names on contracts: Not including all buyers’ names on the contract.For instance, “John and Jane Smith” rather than “John Smith and Jane Smith.” Combining spouses or co-buyers into one name instead of listing names separately.Not including a buyer’s middle initial, or including the incorrect middle initial.Using nicknames, such as “Rich” or “Rick” when the legal name is Richard.The most common name-related real estate contract errors: Not using the full legal name for the buyer(s)įailing to correctly use a client’s full legal name can have several consequences. Make sure every contract is filled out completely, every time. Don’t be the reason your client loses a sale or misses out on the perfect home. It’s not uncommon for closings to be delayed because contracts are not completed correctly. If something does not apply, use a dash ( - ) or enter “N/A.” Uncompleted areas of the contract create confusion and increase the chance of contract manipulation. This practice should become a regular habit. Fill in all necessary spaces and check every applicable box. You should never leave blank spaces in a real estate contract. Failing to completely fill in the contract Here are 8 common real estate contract errors (and how you can avoid them): 1. If you feel you need to alter the contract to effectively present or accept the offer, consult an attorney. It is considered practicing law if you alter the contracts, and unless you are an attorney, just don’t do it. All you have to do is complete or fill in these forms. ***Warning*** As a real estate agent, you likely have contracts provided to you by your local association. Let’s all take a minute to review these errors, and make a commitment to avoid them in the future. Too often, agents make common real estate contract errors, therefore making themselves and their clients look bad. No matter how many contracts we see each week, there are always mistakes. Improving Our Businesses By Avoiding Common Mistakes Share on Twitter Share on Facebook Share on Pinterest Share on LinkedIn
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