Real Estate Contracts

If you are buying real estate, whether your personal residence or commercial property, or selling never assume, just because a contract has been pre-printed into a neat form, that it will protect your rights. You should never sign any contract unless you know for sure the legal effects of what you are signing.

Keep in mind that unless the contract contains a provision to the contrary, once a contract has been signed, it can only be changed if both sides agree in writing. And at that point, neither side can be forced to agree. Once all parties have signed a contract, simply drawing a line through the unwanted portions or penciling in some additional language cannot thereafter modify the contract.

Accordingly, unless you plan to have an attorney review your contract before you sign, it is imperative that you make sure that your contract contains an attorney approval provision. This provision allows you a short period of time, generally 5 to 7 days, to have an attorney review the contract after it has been fully signed to make sure it does what you need it to do. It is during this attorney approval period that you and your attorney can propose the changes that you will need in order to go forward with the transaction.

Many standard form real estate contracts contain attorney approval provisions. If, however, you are faced with a contract that does not contain this provision, ask your realtor to add a rider to provide for attorney approval. If you are forced to deal with a contract that does not contain an attorney approval provision, you should have an attorney review the contract before you sign it. For buyers, this means even before you direct your realtor to submit your offer. For sellers, this means before you sign to accept your buyer’s offer.

Only by thoroughly understanding the obligations that you are imposing upon yourself by signing a contract can you effectively decide whether or not to proceed. We can help you to understand the intricacies of your real estate transaction and also help you maximize your benefits and limit your liabilities under the contract.

If we can answer any questions for you, or if you have a real estate contract which you would like one of our real estate attorneys to review, please do not hesitate to contact us at (815) 923-2107.