PRESQUE ISLE, Maine (WAGM) -When participating in a real estate transaction, sometimes guarantee by word of mouth isn’t enough. A verbal agreement needs to be solidified by a contractual agreement. That’s the focus of this week’s Real Estate Matter…
A verbal agreement or a firm handshake isn’t enough to make a contractual real estate transaction firm and binding. Both parties need to sign on the dotted line and adhere to several clauses and stipulations. And that includes all parties of a real estate transaction beyond just the buyer and seller.
Stephanie Fields Realtor, Fields Realty LLC.
“we talk about buyer representation and seller representation and since the act of serving a client involves trust and responsibility agents are required to adhere to certain fiduciary duties under law and real estate ethic laws and these duties require to keep the clients’ interest above their own and follow the legal instructions for the client.”
Shawn Cunningham NO STANDUP
One the clauses both parties need to keep in mind is something called seller representation…
“Seller contracts typically require the seller to make guarantees or statements to the agent. For example, the seller must state that the seller is the property owner and has told the agent about any possible interests that others may have in the property, such as liens or a mortgage against it”
Next would include dealing with a dispute resolution…
“Some contracts include a dispute resolution clause, also known as arbitration or mediation clauses. These clauses require you and your agent to first participate in a mediation or arbitration process before taking any dispute to court. The mediation or arbitration clause typically states which process is required should a dispute arise, and identifies who is responsible for paying for the process. Mediation and arbitration are ways disputing parties can resolve their disagreement without going to court (litigation).”
And finally something called Brokerage/Agent Separation…
“This clause states whether you can terminate the contract if the agent leaves the brokerage, or if you are obliged to remain with the brokerage if the agent you originally used leaves or is fired”
All good clauses and contract know how’s so that all parties are well in the know of what’s expected in a successful real estate transaction. Shawn Cunningham, NS 8
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