It is important for REALTORS® to stay up on contracts, since they often are updated. Recently the contracts were updated due to the new TRID guidelines.
In my 12 years of doing real estate, I can’t tell you how many times I have seen REALTORS® using forms that are 5-10 years old.
Along with contracts, a REALTOR® should know how the contract reads. When contracts are updated, terms and contingencies may change.
I use an As-Is contract for my deals, where it clearly states that days are computed in calendar days. Every so often, a REALTOR® will bring up a date, using business days. I then have to remind them to read the contract, and point out the page and line, that clearly states the contract runs on calendar days.
You also need to pay attention to deadlines. I have had buyer’s agents reach out to me (when I had the property listing),
Many people look for various qualities in REALTORS®. Some look for REALTORS® who sell a lot, others look for ones who work their specific neighborhood. Some want REALTORS® who are well-known (more trendy), and others even look for ones that simply look good.
Rarely, do you hear someone looking for a REALTOR®, who knows contracts well. REALTORS® are not lawyers, and when you get your license, you do not get tested on contracts.
How a REALTOR® writes your contract, is one of the most important parts of a real estate transaction. You have money on the line, and a house on the line. If they give you a deadline that you can’t meet, you could risk your deposit, or miss out on backing out or renegotiating during the inspection period. And what if they put a closing date that you or your lender can’t meet? Some sellers (usually banks/foreclosures), charge a daily penalty until you close.
So, next time that you are in the market for a REALTOR®, pay a bit more attention to how well they know their contracts.