The news is littered with reports of Coronavirus outbreaks and quarantines. With around the clock news coverage comes the alarm, panic and overreaction. Times like these may remind us that contracts may have to plan for the unexpected.
Be Careful What You Write
In a recent contract I reviewed, I found the following language in the “Other Terms” section: “Seller to arrange for inspection of fireplace and chimney and shall provide a written report to the Buyer.” We speak with a certain informality, and particularly in person, we can follow up, explain, expand, and clarify all while conveying non-verbal messages with our intonation and expression.
No Good Deed Goes Unpunished
Sam Seller and Betty Buyer enter into a contract for the sale of Blackacre (“the Property”). Sam agrees to provide Betty access to the Property and as part of the contract paperwork, Sam and Betty execute the Buyer’s Limited Access to Premises Agreement. Prior to closing, Betty arranges to have contractors see the Property in order to make arrangements for planned work. In order to save time, Betty authorizes one of the contractors to install new carpeting in the home prior to closing.
The Death Of The Real Estate Agent
As Mark Twain once famously said, “the reports of my death are greatly exaggerated.” Much is written about the disruption of the real estate industry and the desire of technology related real estate companies to cut out the real estate agent from the transaction. There is no question that a number of companies and business plans wish to do just that with the help of private equity financing.
Waiving the Amendatory Clause
With few exceptions, parties to a real estate contract can mutually agree to terms of the contract. However, certain laws and requirements may prevent parties from agreeing to certain contractual provisions, even if both parties are in agreement. Some examples are the buyer’s choice of settlement agent or the buyer’s right to cancel under the Property Owner’s Association Act.
To Tree, Or Not To Tree
Sphere Of Competence
I graduated law school in 1997. Over the years, I have been asked all kinds of legal questions by friends, acquaintances, colleagues and clients. I’ve also been asked to represent people in various areas of the law. I have turned down most of these requests or not been able to fully answer questions because it was not within my sphere of competence.
The Illusion Of The Financing Contingency
So . . .which contract controls?
Throughout Virginia form contracts are provided by Realtor Associations to the membership they serve to create efficiencies through the use of legally enforceable contracts for the purchase and sale of residential real estate. These form contracts provide a familiarity and comfort level for real estate agents, who in Virginia enjoy an exception to the unauthorized practice of law rules for contract work they engage in for clients they represent.
