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Common real estate contract errors

On Behalf of | May 27, 2021 | Real Estate |

Putting together a well-thought-out and accurate contract is very important for someone in the real estate business. There are a handful of common errors that a real estate agent in Georgia could make that may cause his or her client to look bad or ruin the whole deal. Here are some of the most common errors that are made on real estate contracts that you need to try to avoid.

Name errors

This is a very simple mistake, but it happens more often than you’d realize. It is important to put the client’s full legal name on the document, which means not putting any nicknames or leaving out a middle initial. If two people are co-buyers who have the same last name, you need to write out both of their full names instead of putting their names together.

Failing to correctly document your client’s full name could lead to a variety of negative outcomes. The lender will most likely require a contract addendum, so you can correct the naming error. In more serious cases, not having the correct name could lead to the cancellation of the entire contract.

Not filling out the contract completely

There should never be any empty spaces left on the contract; everything should be filled in. If you reach a part of the contract that you have no answer to, don’t leave it blank but rather put “N/A,” so a third party won’t have the opportunity to manipulate your contract by putting false information in those blank spaces.

Unrealistic or incorrect deadlines

The contract’s contingency and closing dates need to be reasonable to avoid the deal being canceled. Sometimes, real estate deals take a few weeks to complete, so if you put an unreasonable closing date, and the buyer needs an extension that the seller isn’t willing to give, it can ruin the entire deal.

Many real estate deals are worth tens, if not hundreds of thousands, of dollars, so the contract must be concise and detailed. Contract errors can cost a lot of money, so you must be thorough and diligent to ensure the contract is perfect.

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