realestate
Real Estate

Real Estate Law - Contracts

Mon Apr 07, 2008 3:37 pm
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The Unintended Consequences of Poor Decisions

In any real estate transaction there are consequences and unintended consequences that result from "performing" or "not performing" on a "ratified" purchase agreement/contract. Potential Buyers and Sellers try hard to avoid those unintended consequences.

When ratified, a purchase agreement/contract has been signed/initialed and reviewed by both Purchaser and Seller.

Performing on a ratified real estate contract/purchase agreement essentially means that both seller and buyer will do (perform) as the contract has stated.

To not perform on a ratified contract would be considered to be in violation of the contract and therefore non-performing.

Buyers Remorse 

If a buyer changes their mind and want to be released from the terms of a ratified real estate purchase agreement the seller must concur and sign a release prepared in most cases by the Realtor and/or Attorneys representing both buyer and seller.

The purchaser/buyer may be held liable for the "Good Faith Deposit" and be required to forfeit that amount of money. The good faith deposit is typically held in an "escrow" account by the purchasers attorney. The result of the terms and conditions of the purchase agreement and the subsequent negotiations by the Realtor/Buyers Agent/s will typically determine the dispensation of the good faith deposit. The amount of the deposit in most instances will be about 5-10% of the purchase price. This may vary if agreed to by all participants in the purchase agreement.

Buyers need to know, a seller may seek the counsel of their attorney and may opt to seek damages in excess of the buyers/purchasers good faith deposit and or may seek a judgment against the buyer to require the buyer to "perform" on the contract.

Therefore, the choice of the most qualified Realtor/Buyers Agent and Real Estate Attorney is essential to the long term peace of mind of the buyer.

Making decisions based on good information and not emotion is very important. "Buyers Remorse" is a terrible disease to have when making a real estate purchase.

Other Articles

Step One:

The Decision to Purchase Property

Step Two:

Attorney and Buyers Agent

Step Three:

Involving a Real Estate Attorney

Step Four:

Find ing a Realtor

Step Five:

Questions Buyers Should Ask



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