The Real Estate Process: Pros Discuss Buying & Selling Your Home. Vi Brown

lawyer or notary may have to make with respect to property taxes, prepaid fees, rents and the like.

      The offer has a limited life span. This means that it is only open for acceptance for a specified period of time. This can be as little as a couple of hours or a couple of days or even more depending on the market conditions and situation. In some jurisdictions, this date is referred to as the irrevocable date.

      The last date in this grouping is the acceptance date. This is the date on which both buyer and seller agree to the terms of this contract. This may be the same as the offer date or several days later if counteroffers have gone back and forth. Besides the acceptance date itself, often the time of acceptance is also noted.

       Agency Relationship

      The Contract of Purchase and Sale also addresses this relationship. It requires that we stipulate who represents the buyer; who represents the seller; is it dual agency; or is one of the parties not represented.

      We discussed all of these scenarios when you signed the `Working with a REALTOR®` brochure at our first meeting. The contract requires that the relationships be spelled out here.

       Terms Agreeable to both Buyer and Seller

      Clients often ask me what kind of subject to’s or conditions should be placed in a contract. There are major conditions that have to be inserted to protect you but aside from that, there are few restrictions. The important aspect is that both buyer and seller have to agree to the terms.

      Perhaps this example will illustrate my point.

      I had clients who had been renting for years and had been thinking of purchasing a small home. Prices were too high for a single family home but a mobile home might be possible. They drove through some mobile home parks and found one that they just loved - on a hill with ocean view and a sun room! They called me and I suggested that they get pre-approved. A few days later, they told me that they couldn’t get financing for a mobile. I then recommended that they see someone else and I arranged the appointment. In another few days, they called and said that they could get pre-approved, if they had an additional $3,000 for their down payment. Also the pre-approval dollar amount was a bit less than the asking price for the mobile. They indicated that they had a relatively new scooter that they have been trying to sell and if they could sell it they would have enough money for the down payment.

      To disclose any of my client’s personal information, I needed to obtain their permission. Having obtained it, I verified their situation with the mortgage broker and then called the listing REALTOR®. I chose to discuss part of the circumstances with the REALTOR® instead of proceeding with an offer because this was a unique situation and I didn’t wish to waste any one’s time. I explained that I had a client who was very interested in her mobile home listing but was a little short on a down payment and could not meet the full price. However, with a little creativity and flexibility we might be able to work it out.

      The REALTOR® approached her client and briefed him on the circumstances and, although not excited at the prospect, he was anxious to see an offer. So, after my clients viewed this mobile home, I drew up the offer.

      The price was the maximum they could be approved for and, among other conditions, the contract was subject to the seller taking on the scooter by completion day in exchange for $3,000. The seller accepted the contract as written. Apparently, the seller was anxious to relocate and purchasing the scooter was a means by which he was able to move on with his life. Needless to say, I had very happy clients who delighted in their new home!

      It has been my experience that a little creativity and working ‘outside the box’ can turn into a win-win situation for buyer and seller. Those times make my job so delightful!

       Inclusions in the Purchase

      As a rule, all fixtures are included in a purchase. These generally pertain to items which are ‘attached’-- light fixtures, doors, curtain rods, tracks and valances, fixed carpeting and so on. Not everyone views ‘fixtures’ in the same way so it is best to specify some of these inclusions. For example, a built in vacuum cleaner is attached and should, therefore, be included. However, the attachments may not be included!

      Items like washer and dryer and stove and fridge are not automatically included unless they are built in. Items such as drapes and curtains are not automatically included but the rods are. When in doubt - clarify!

       Subject to Clauses or Conditions

      All subjects/conditions must be clearly written, have a time frame for satisfying the condition and indicate if they benefit the buyer or seller or both.

       Financing

      We now decide what conditions are required to protect you in this contract. As your REALTOR®, I certainly have recommendations in this area. The major one is the financing. If I don’t include this condition, and for some reason your mortgage does not materialize, you are still committed to this contract. Even if you have been pre-approved, I still include this clause because the property forms part of the mortgage qualification.