Profile picture for natewolf

New North Carolina Sales Contracts

So the new contracts seem like a radical shift in Real Estate for North Carolina. Any thoughts on whether these changes are good or bad?
  • November 16 2010 - Charlotte
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Answers (7)

Profile picture for Sharon Lewis
We think these contracts will be great. Take your classes sooner than later though...
  • November 30 2010
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Profile picture for the_country_hick
As a buyer I now have to pay for being able to insert contingencies? It also removes some of those protections from me? That is bad and I will x out every part of the contract that attempts to do that.
  • November 30 2010
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Dan, From what I was told, you will not have to do any of what you speak on. It's all negotiable.
  • December 02 2010
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It's good, in a sense, because it makes the contract more balanced.  However, there are many who wish the due diligence period was like the commercial due diligence periods...a "Free Look", instead of a FEE look.

The good thing for the buyer is...no need for contingencies...for the loss of the FEE, you can walk away for ANY or NO Reason whatsoever...
  • December 02 2010
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Profile picture for the_country_hick
Dennis, explain to me how having to pay a fee makes a buyer more likely to want to buy a house.

I could explain how having to pay a fee then finding out the house has serious problems would get me to no longer want to buy in your state.

It may be negotiable, but what individual with an IQ over 55 would insert that into a contract and think that buyers would accept it easily? It will hurt sales as buyers prepare to buy a house, see they now have to pay money for NOTHING!!! and decide not to buy.

I would prefer to insert contingencies. They are FREE!!!

Why was the contract not written instead so all contingencies are automatically installed at no cost? Was a bribe given to someone in power or what? This is just a way to suck money from people. It will be reacted to badly and rewritten.
  • December 02 2010
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Dear Dan,

     Buyers alway have the option of hiring an attorney to draft offers to purchase at their expense...and the seller has the right to accept or reject that contract.   Buyers and Sellers (as principals to the contract) have the right to strike-through and rewrite anything they want...if the other side agrees.  (Agents cannot alter forms).  The REALTOR association and Bar Association revised the contracts to make them more balanced, as they should be.  Imagine you are the seller, taking your home off the market for 2 weeks for a buyer to have a free look...then the buyer walks away...you've lost 2 weeks on the market, and for some reason, when homes come back on the market after being under contract...they take MUCH longer to sell.

The new contracts aren't perfect by any stretch...but they are an attempt by the REALTOR association to be fair and balanced.

Why would a Seller take their home off the market for someone who isn't willing to put a little skin in the game?

Your question about bribes leaves me asking the question:  Who would benefit from that?  Why would anyone offer bribe money to the forms committee or the real estate commission when they could simply pay an attorney to draft the contract to their specifications... I know the chairman of the Forms committee, and I'm quite certain he would never accept a bribe if someone was dumb enough to offer him one...  

Remember, buyers eventually become sellers, and sellers almost always become buyers...  

Contracts in North Carolina are constantly written and rewritten to meet the needs of buyers and sellers as times and needs change.

There are lots of commercial buyers that use due diligence contracts every year...I can assure you, people buying multi-million dollar properties have IQs way north of 55.
  • December 02 2010
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Profile picture for LoriBee
Dan, 

Dennis provided you with the a thorough and honest answer.  And by placing the home into 'contingency,' one is effectively taking the home off the market while you look.  The buyer should pay, IMHO, for this opportunity to "look & inspect." This type of contract has been the norm in many states for years. In fact, it was the standard back in West Virginia back when I purchased my first house in 1995!  

And a thought to consider, the fee you would pay an attorney to draft you a different contract, may very well be more than the amount of money for the contingency. ;)

Best Wishes!
  • December 05 2010
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