Offer to purchase

Writing the offer to purchase (OTP), and associated Addendums, is the most important job we have.  Our customers rely on our expertise to look out for them, and Household Real Estate relies on us to reflect our values and deliver on our mission of providing exceptional service.  This is also the area that comes with the highest degree of legal risk, to you as an agent, and to Household Real Estate as a company.

Persistent Problems

In the course of reviewing consumer complaints, the Real Estate Commission’s legal staff has noted a variety of ongoing mistakes brokers commonly make in preparing and submitting purchase agreements. A few of the most persistent and serious problems include:

• using the phrase “owner of record;”
• failing to clearly list fixtures the seller does not want to convey;
• failing to clearly specify personal property the buyer wants the seller to convey as part of the sale, even if identified in the MLS information as personal property that will convey;
• failing to clearly define all critical dates, preferably by stating a date certain, rather than vague descriptions of time periods;
• failing to timely present offers or provide all parties with copies of the fully executed contract;
• confusion as to the timing of requesting and negotiating repair issues versus the completion of agreed repairs as it relates to the due diligence period.

Although the proper completion of purchase agreement, appropriate addenda, and other standards forms may require a little extra effort at the outset, it can save significant time, effort, and perhaps expense later. When a contract clearly sets forth the obligations of the parties and avoids confusing and improper language, smooth transactions are generally the rule, rather than the exception.