DON'T TRIP UP ON YOUR REAL ESTATE DEAL

Earlier this week, I tripped up. Literally.

It is not as if I haven’t tripped up before; however, this is the first time in my entire life that my trip up resulted in crutches and a giant boot on my foot that weighs twice what I do. Of all the stupid, thrill seeking, dangerous, reckless and foolhardy adventures I have chosen to undertake in this life experience, who would have thought my first real injury would come from the perilous pursuit of walking.

In all fairness, I was attempting to embark on said activity in sandals with 1-inch heels. I should know better. How dare I attempt to finagle an extra inch onto my 5’1” height. It is simply short-sighted (pardon the pun).

Walking is an activity that nearly everyone can participate in. One does not need a license. Some training is encouraged, and experience is paramount to success, but it is not required. Yet, as we just learned from the aforementioned anecdote, not everyone should proceed down a path in 1-inch heels, just to try it out. Real estate sales is another activity that any property owner can do on their own, or they can even hire someone at a “discount.” However, there is a very high likeliness of tripping or the proverbial “heel” breaking, resulting in serious debilitating injury and perhaps even permanent scarring.

Recently, a real estate attorney and CEO of a local board of Realtors took the time to share some of the legal “trip ups” he has seen due to lack of experience with the many technicalities needing expert navigation during a real estate transaction process. Warning: The following content is not only 100% true but also glaringly nerve-wracking. Read at your own peril.

Let’s start with the notorious missing refrigerator. There is a very small box on the first page of the real estate purchase contract — hereafter referred to as the REPC — that, when checked, includes the refrigerator (washer, dryer, microwave and other are options as well). If these items have been removed from the home, there is going to be a problem.

Another popular error that has been noted more lately due to the increase of multiple offers on a listing would be the famous two accepted offers by a seller on the same house. I have been a witness to this myself when representing a buyer with a seller doing his own negotiating due to using a discount brokerage. While this may seem like a seam-free process, this became a very big problem. He was legally bound to sell this home to two different parties at the same time. Being unable to produce a second home exactly like it, it cost the seller much more than he “saved” by doing his own negotiating.

Other contractual issues resulting in legal disputes include: missing signatures or initials on an REPC or addenda; responses after expired deadlines; missing dates on contracts; incorrect numbering on multiple addenda; incorrectly marked boxes on REPC or addenda; uncollected earnest money; incorrect cancellation of the REPC; time clause addendum confusion; unclear language on addenda; wrong address or tax ID listed on REPC; and incomplete forms. The initial REPC is not a one-and-done contract. It is ongoing and live until the property has legally transferred ownership.

Lest one thinks it is just the contract that needs to be exact, I assure you there are many logistics outside of just crossing t’s and dotting i’s on a contract. Reading the title report all the way through to ensure clear title is imperative, as is reading the numerous pages of CC& R and HOA documents with a clear understanding of what is and is not required

and allowed. Access issues, easement issues, rental agreements, appraisal issues, occupancy disputes, disclosure inaccuracies, solar panel lease transfers or payoffs, angry tenants and procuring cause are all potential battlegrounds.

These can be financially fatal battlegrounds. You don’t want to be going in there with any sort of “heels.” While the crutches are inconvenient, they are temporary. This cannot be said of all injuries.

Jen Fischer is an associate broker and Realtor with Ascent Real Estate. She can be reached at 801-645-2134 or [email protected].