Here We Go Again Another Far Bar

I’m not sure if you noticed it but there is a new Purchase and Sale Contract circulating in the real estate community, specifically designated as 9/2014 FAR/BAR “As Is”. What is ironic is that we see attorneys and a few brokers still writing contracts dated as far back as 2005.
The older the contract the simpler they were. Initially the contracts were specifically designed to protect sellers. However, they have evolved into highly technical legal documents designed to predominately protect the listing broker and agent. There is nothing wrong with this approach as brokers and closing attorneys get together to design the latest contract and addendums based on their and their colleagues’ experiences.
Many of these contract clause changes have evolved because investors have figured out how to use the existing clauses to their benefit. In addition, any clause can be over-written by simply adding an Addendum or another clause. These overriding Addenda are most obvious in contracts required by banks for short sales and REO properties, not in investor contracts.
So here we go again on another quest to dissect each minute part of every clause and see what helps us and what hinders us as investors. Then it is off to the races to add clauses that neutralize these newest onerous mind-bending clauses.
I also have noticed that the banks that have been buying my course on defeating deed restrictions have been changing their addendums to overcome the suggestions I offered in the material. This means you should READ any deed restrictions before you make any assumptions about what you can or can’t do on your next deal.
WARNING – I recently saw a clause in a contract that was way out of place and context and it changed a major closing aspect of the contract. This added “ghost” clause was in a contract that a Student prepared with exactly the correct clauses that he should have used.
However, the buyer’s agent took the contract Addenda page and very carefully typed in a new sentence above a line item so it appeared to be an original clause in the contract. The agent was extremely careful to use the same font type and size so the change was imperceptible until we were ready to go to closing. This additional clause added about $900 to the closing costs that normally shouldn’t have been paid.
What would you have done? Sue? Not closed and lost the seller and buyer? Report her to the FDLE, FDBR, Florida Association of Realtors, or the FBI? This agent is still alive and out there doing her thing so be careful!
In summary, if you don’t read what you are signing you can’t complain that you didn’t get what you deserved. We are all subject to complacency and when you assume anything, it can make an ass-u-me. Contract law is fairly black and white so your belief that some clause really doesn’t matter could be very costly.
To your limitless success!

Dave Dinkel has over 40 years experience in Real Estate Investing which has given him a unique perspective into the Market. Learn the “No Money, No Credit, No Risk” proven methods of today’s successful Investors. Visit America’s Online Real Estate Investing Association created by Dave Dinkel to get you started today! Click the link Now http://www.AOREIA.com

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