OfflineThis is in no way intended to be a negative article about real estate professionals. However, as in any profession or job, there are varying levels of competence and dedication. Whether you’re a buyer or seller in a real estate transaction, you should pay attention to details and not place blind trust in any professional. One of the areas in which you can run into trouble or use a mistake to your advantage is in the many deadline and due dates in a real estate transaction.
• Delivery of contract copies.
• Offer and counter offer acceptance or response deadlines.
• Completion of inspections and delivery of inspection reports.
• Response to reports and objections to their contents.
• Appraisal deadline due dates.
• Survey deadline due dates.
• Buyer objections to other title investigations and reports.
• Deadlines for buyer application for and receipt of insurance and financing.
• Repair due dates prior to closing.
There are many more very specific contractual requirements and dates for delivery of documents and responses in a real estate transaction. It’s a fact that real estate professionals are constantly dealing with these deadlines and due dates, and this can lead to a laxity in responding on time. This is especially true when there isn’t any reason for either buyer or seller to complain, so the real estate agents simply go through the paces, even when due dates or missed.
This isn’t necessarily a problem for you as a buyer or seller, unless you have a problem with the transaction or no longer want to go through with the deal. Then you may not hear from your real estate professional that there is an OUT available to you. Due dates are not in a contract as “guidelines.” They are requirements, and you should always know when the other side has missed a due date. You may not have a problem and let it pass, but if you do have issues with how things are going, the other side missing a deadline can give you leverage to make things better.Doug Clark
I hope there is a lot of traffic here, Randy's post provides some very valuable information that can be used to your advantage.
Conversely, as Randy indicated, when a deadline exists in a contract, there is a performance obligation associated with it, and many of these deadlines apply to you. It is a good idea to make sure you understand what your obligations are, and to transfer any critical deadlines to your master calendar so that you don't accidentally fail to perform. You do not want to find yourself in the position of losing money or a deal because you didn't pay close enough attention to what you agreed to and when it was due.
With respect to the overall comments about working with Realtors on these deadlines, I'd like to draw a little analogy. There is a saying about being a landlord that says: "You either manage your properties, or you manage your managers."
The same is true in working with Realtors. Your agent should be considered as an asset that you can leverage, but you should not rely on them to be the watchdog over your affairs. You will be the one who loses, or is fined, or pays penalties if you do not perform, so manage your relationships with your agents and manage the obligations that you sign to perform in your real estate contracts. Forgetfulness and ignorance do not release you from responsibilities in real estate investing. On the other hand, being on top of your game, and looking for others oversights can increase your opportunities. After all, how many people "forget" to pay their property taxes each year, and end up paying penalties, and sometimes even losing the property as a result of that oversight.
Dallin Wall
Real Estate Training Team
Forum Blog Location--A collection of my
"Best of" posts:
http://www.deangraziosi.com/blogs/dwall
as boring and long the re contracts are, every investor should read them, for every transaction that they do; and especially read the addendums which are different for every property....
If there is something that you don't understand in the contract... ask! don't sign documents if you don't understand what you're signing
Valerie
“And will you succeed? Yes indeed, yes indeed! Ninety-eight and three-quarters percent guaranteed!” ― Dr. Seuss
"I believe in angels, the kind that heaven sends; I am surrounded by angels, but I call them friends" - Unknown
My journal: http://www.deangraziosi.com/real-estate-forums/investing-journals/59110/...