Section 8: UNIT 3
let's evaluate which contingencies matter most to you then consider omitting the rest
If your client is in a competitive bidding situation and want to include multiple contingencies in their offer what should you say to them?
reasonable time
time in which the parties must complete contract terms, if the date is not specified
The price
what is A legitimate reason to counter an offer
The buyer could walk away
what is a risk of a countering offer?
buyer offers $650,000 with claws that the buyer will be all competing offers by $3000 up to $675,000
what is an example of an escalator offer
The buyers earnest money
what is put at risk if a buyer misses a contingency deadline?
Home sale contingency
what is the riskiest contingency
performance must take place within a reasonable time
When a contract doesn't provide specific dates for when the terms need to be met, what should the parties assume regarding performance of the contract?
Time is of the essence
A legal phrase that means that the parties agree that the deadline set are vital to the contract and that no one will unduly delay their completion
counter offer
Any response to an offer (other than outright rejection) which presents alternative terms for a contract.
Multiple Offers
Occurs frequently and hot markets or when a property has been priced low
how to handle multiple offers
To select the best offer and if necessary counter it on terms that the seller prefers in other offers. However your goal as a listing agent is to represent the seller's best interest, and that sometimes means countering even stellar offers.
bidding acceptance
Tristan's offer has been signed by all parties and delivered to the seller this means what has occurred?
ensure that Katrina knows that not all contingencies have been cleared
Your client Katrina is ready to close on her new home, but when you check yesterday, the seller still haven't dealt with the foundation issue that the inspector found. What is your responsibility at that point?
to accept, counter, or reject, the offer
after a seller counters the buyers original offer, what options does the buyer have related to the new offer?
closing date, earnest money deposit amount, date of deposit, amount financed or type of financing, inspection. Length, contingencies, particularly a sales contingency in which the buyer has to sell his current home before moving forward with the purchase
legitimate reasons to counter include, but are not limited to, the following:
acceptance
occurs when all parties have signed a contract
Binding Acceptance
occurs when the excepted signed offer is delivered according to the delivery procedures outlined in the contract, including the deadline for delivery
" you definitely want to make it as easy as possible for the seller to choose your offer, but you also have to protect your interest."
you're working as a buyers agent for Neil and Sharon, who just found the home of their dreams. However, they're concerned about the condition of the roof in the moisture in the basement, and don't have endless funds to make repairs. When they ask you about adding contingencies to their offer, what do you tell them?
