Solid contracts = solid results
Why are Purchase and Sale Agreements are so Important in Real Estate Transactions? There is A LOT at stake in a real estate transaction.
What is included or omitted within a contract can be the difference between a smooth transaction or lengthy court costs, and wasted time and money, not to mention stress.
As an agent who…
has written hundreds of successful contracts of purchase and sale
has represented hundreds of Buyers and Sellers over the past 15 years
holds a degree in Criminology
has worked as a former litigation officer within the Provincial government
…solid negotiation and strong and enforceable contract writing is my passion.
Solid Contracts = Solid Results
Call me to represent YOU in the most important transaction of your life.
I can help you minimize these risks. Here’s how:
Whether you are purchasing a home, a rental property, or land, buying real estate can be both a big investment and a big risk. Selling property is just as important. Whether you’re a first-time buyer or a seasoned real estate investor, the decision to buy or sell depends upon the successful purchase or sale of a property.
Whenever someone enters into a real estate transaction, or any contract for that matter, there is an element of risk. If a contract is poorly written or unenforceable, the consequences can be devastating.
Buyers and Sellers must always do their due diligence in order to fully protect their rights and interests. The best way to ensure that you are protecting yourself is through a well-drafted contract written by an experienced REALTOR®.
Purchase and Sale Agreements are Contracts
Aside from the basic requirements for any valid contract (offer, acceptance, and consideration), there are no “standard” terms for a Contract of Purchase and Sale. Most Vancouver Real Estate agents use standardized forms and clauses, however, this can sometimes be inadequate and more is required based on the nuances of the property being acquired and the interests and motivations of the parties. Many times, clauses are written or omitted based on the climate of the market itself (ie. a “Buyer’s” or a “Seller’s” market.).
There is no one-size-fits-all: For some contracts, a few subject clauses will suffice; in others, the clauses are far more numerous and complex.
When it comes to contracts, every word matters. Nothing is implied. If it is in writing, then it exists. If it is not stated, it can not be assumed. If you have negotiated for something, PUT IT IN WRITING. If your contract has already been accepted, and something new is added or omitted, draft a written addendum to cover any and all changes, regardless of how small or seemingly insignificant they may be at the time.
Like any other type of contract, a purchase and sale agreement is legally binding. It’s important to remember that there really is not much room for buyer’s remorse in real estate. Once both the buyer and the seller sign a purchase agreement, they have entered into a legally binding contract. If one party fails to adhere to the contract, the other party generally has the right to take legal action to recover damages from any harm that the first party’s failure to perform has caused. There have been far too many instances recently in the news where one party has sued to force the other party to perform the terms and conditions agreed to within their contract.
Understand what you’re signing
It is always in your interest to fully understand the implications of every single term and condition contained in any contract you sign. This is said over and over again, but it’s worth repeating and I cannot stress this enough: READ WHAT YOU ARE SIGNING.
You would be astounded by how many people will simply sign a contract worth millions of dollars without even reading it, only later to find out that they have in fact agreed to many things, like build a fence, install new blinds on every window in the house, repaint the house, replace appliances etc. If you do not understand what is written in a contract, ask questions. If the wording is unclear, you must insist that the wording is corrected.
Lack of fluency in the English language is not an excuse. If your contract were to end up in front of a judge and you were asked why you signed something that was unclear or did not make sense, what would you say? You would likely have no recourse.
Make an informed decision
NEVER feel pressured to sign something that you do not understand. A good REALTOR® will take the time to go over a contract with you. This is what agents are paid to do. You can also talk to a lawyer or the managing broker of your agent’s office, or simply get a second opinion if needed.
It is critical that your Contract of Purchase and Sale is tailored to your specific circumstances and is drafted by a knowledgeable and experienced REALTOR®.
In negotiations, there is no substitute for knowledge and experience. Hiring the right REALTOR® who has an intimate understanding of contracts will put you in a better position to negotiate with the opposing party, and to protect your interests and ultimately get you what you want.