Subejcts Aren't 'Get Out Of A Real Estate Deal FREE' Cards
- Viddler
Subejcts Aren't 'Get Out Of A Real Estate Deal FREE' Cards
http://kyegrace.com A Subject Clause is condition that states an event of some type needs to occur before either the buyer or seller is required to complete the purchase or sale of Real Estate. Subject Clauses need to have a very clear meaning to be enforceable. Great subject clauses contain clear, concise and specific wording. The whole point of the subjects is to create an enforceable contract to ensure that the buyer or seller follow through on the promise to buy or sell a home but allow time to take steps that are not logical until a price has been agreed upon. For Buyers I feel it is very important to understand that as a buyer, subject clauses are not intended for you to change your mind and walk away from an agreement. Sadly this does happen. Not only is this unfair to the seller, you and your Realtor may find your self facing legal action if the seller feels you didn't act in good faith and make an honest effort to complete the requirements of the subjects. This is likely to occur in a market where properties are slow to sell or values are declining and the seller feels you have impacted their ability to sell or impacted the final sale price the seller could have received by 'tying up' the property for a period of time and not making an honest effort to remove the subjects. For Sellers As a home seller how can this be avoided? As a seller never accept an offer with vague subjects. "Subject to Buyer arranging satisfactory financing by such and such date" is a classic example, pretty vague and subjective. Perhaps any interest rate above 1% is not satisfactory to the buyer. It is essentially a 'Get Out of Our Deal FREE' card. Continued at http://www.kyegrace.com/ViewBlog/248 By Lastcar Tags : Clauses , Estate , Real , Subject , Vancouver
Viddler | June 25, 2009
