When I first started selling real estate in 1984, every company had an attorney prepare their documents according to the broker’s specifications.
Back then, when an offer was received on a listing from a cooperating brokerage company , an agent would have to carefully examine the Purchase and Sale Agreement for unfamiliar language or unique clauses. Since both agents usually represented the seller, resolutions in differences were rarely, if ever, adversarial.
As time went on, documentation became more and more standardized, and the age of Buyer’s Agency dawned. Although the documentation was easier to examine, the actual negotiation of the offer was often verging on the brink of belligerency.
Fast forward to 2010, and we are seeing that in many cases, we have reverted back to the days of 1984. Many institutional sellers require offers on their own contract forms or addenda.
And once again, the bank/investor seller seems to be in charge of the negotiation process, often with a “take it or leave it attitude.”
It seems that much of the progress that was made over the last few decades has been lost, as nobody wants to buck the system.
The more things change, the more they stay the same.
All content, including text, original art, photographs and images, is the exclusive property of Coweta Fayette Real Estate, Inc., and may not be used without the expressed written permission of Coweta Fayette Real Estate Better Homes and Gardens Metro Brokers, Newnan Georgia. All information is believed to be accurate but is not warranted, Copyright 2003-2009. Richard Weisser REOS, E-Pro. licensed Auctioneer. 770-827-6225.
Learn more about Coweta County and Fayette County Georgia Real Estate, and to search the entire Georgia MLS for free with no registration required. Visit CowetaFayetteRealEstate.com! Photos of the Great Smoky Mountains National Park. North Georgia Photos.
Very good point. I do not like the 'take or leave it' attitude I see with some REO properties contracts. However, if your buyer wants the house, you have to deal with it.
Richard well said. Our local builders are doing exactly what you have described here...and most don't care if you leave it. See the same thing with short sales and bank owned properties too.
Richard, so-o-o-o true...
We never had the middle period here, Richard, as contracts are prepared by seller's attorney's from pet boiler plates, often ridiculously slanted to their advantage. Then you have the buyer attorney's markups, and 30-point riders which volley the ball of advantage to the other side of the court. It takes two stressed out buyers and sellers to tell their respective lawyers to cut the crap in order for some files to actually have executed contracts here.
There was never a Bar Association approved contract everyone used, and I doubt there ever will be.
Yep, you are right. Even our new Florida residential contract was revised this year by the lawyers ...from 4 pages to 11!
Richard, I had a bank owned contract with multiple pages of addendum's, and one glaring change from the standardize doc was...the buyer was to pay "ALL" the transfer tax (usually split at closing) this was a $2,250 additional cost to the buyer.
Hello Richard:
I gather that your comment is more about REO's than the industry at large and therefore, spot on. I am a broker in multiple states and my take on this that we have an orderly process to get to the accepted offer stage almost everywhere. The pushing and shoving happens between accepted offer and closing.
NC has experienced the same. What used to be a simple easy to use contract is now full of blanks for just about any possibility imaginable!
Indeed. Which is why I always suggest to REO buyers they have THEIR attorney review the contract and closing docs that the sellers attorney has prepared.
Excellent Point~~~Kelly in the KEYS
I have seen the increase in paperwork. I didn't start until 1995 and we used standard forms at that time. But, every now and a gain some attorney will come in and much things up. I have had a seller tell the attorney, NO It is my way or forget it. You are making things to complicated. The buyer agreed and got rid up his attorney.
RIchard - the riders I am seeing these days to accompany the standard NJ Contract are getting unbelievable. It certainly makes for a tense, and yes, often complicated - start to the procedure !
The same thing applies to some of these relocation folks. Their insane, long-winded addenda are beyond ridiculous. Also, they seem to want to make the transaction a lot more difficult than it needs to be.
The banks have the money my friend, and many of the homes for sale. They seem to be holding most of the cards these days.
Richard: I'm not having this issue in my market, thank goodness. At least not with other Brokerages. Banks with their REOs always want to use their addendums.
We use a standardized Offer to Purchase form here in NC. But the bank owned REO's often times use their own addendums that have that "take it or leave it" language in it.
We also use a standardized Offer to Buy or Sell in Louisiana. Up until two years ago you could use any form in the state. This created a lot of confusion.
Banks and relocation companies do seem to hold all the cards. And they don't seem to have paperless offices either.
Cheers,
Robin