Hi all. I wanted to give you a heads up regarding three issues with the 1-4 Family Contract:
1. Please make sure if your agents are selecting 6.C.1. in the contract when representing buyers for an existing survey that the survey isn't more than one generation old. It's not required, per se, but surveys are only about $300-$400 for an "average" sized lot (not for acreage) and for that small amount, it's worth the peace of mind to have a current survey. At least they can have the conversation with the buyers to find out how important it is to them. It seems that people have started filling out 6C1 out of habit without really giving their buyers the option. If you want to discuss this in more detail before talking about it at a meeting, please call me.
2. On Paragraph 6D, there is a tiny blank that gets missed a lot. It allows a buyer ___ days after they receive the Title Commitment, etc. to object to defects & encumbrances, but according to my attorney, if this is left blank, technically the buyer could back out until closing. It's a technicality, but one we can easily watch for to reduce risk and conflict, especially when representing the sellers. Please make sure whoever is checking your contracts for your office watches that this blank is filled in.
3. Finally, make sure to watch that they are checking a box in 3.B regarding the type of financing.