When working with realtors, is it ok for a realtor to use my purchase agreement or are they mandated to use their official state contract? My contract has investor lingo with CYA wording that covers me, the investor. The state contract doesn't appear to have some of that wording in it.
I don't want to take any unnecessary liabilities and want to do 60 day options, so is there a way to use the official state contract with a realtor and not assume any unnecessary liabilities?
Being a broker it is necessary to use the forms which are promulgated by the state committee for clients. By using forms that are not promulgated I am in violation of state statute for practicing law. As a principal to the contract you can use any form you wish. If you need the assistance of an agent figure out how to use their forms and have an attorney craft any addenda that need to be included.
Yes, when dealing with listed properties you'll have to use the FARBAR. 60 day options, with no substantial option fee, are going to be extremely rarely accepted. You're better off trying to find off market properties.
I agree with Jarrod. Most real estate agents will not use forms other than those mandated by the state. However, I have used the state forms and altered them to make certain changes, having both the buyer and seller initial and date the changes (as is common practice). If I want to include something outside of what the standard forms cover, I will add an addendum that includes the terms, special restrictions, ect. of what I (or my clients) want. Initially, some buyers or sellers may balk at this, but all have eventually agreed.
It is still a binding contract and is protected as such under the law.
Jennifer you can just look at the differences your contract has and then also look at what you do not like in the state contracts. Then there is usually a section called SPECIAL STIPULATIONS at the end of a purchase and sale where you manually put in all the different things you want changed or don't like etc.
The special stips usually have language that they override the existing printed contract and they shall control. Each stip needs to be initialed by buyer and seller showing each provision was agree to.
Every state is different and this is just a general explanation. No legal advice.
@Jennifer Blanks - The Florida Association of Realtors may have a standard option contract too. We have that here in TN.
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