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Contracts require a "meeting of the minds" in order for them to be binding. Once a party scratches something out, a meeting of the minds didn't happen. So if a seller scratches something out, the buyer has to initial it as well otherwise it isn't binding as there was no mutual agreement.
This is contracts 101 and I'm very concerned that you aren't solid on this after passing your real estate exam.
Yep, that's why we have counter offers and addendums. There shouldn't be anything crossed off and initialed especially after one party has already signed. Make up a new addendum that all parties agree to, then sign it.
I got you. Come from an IT background, I just want to learn, read up and be prepared hence the question. I am sure when it comes to actually doing it, I sure will contact my broker.
When it comes to actually doing it, 90% of the time, your managing broker will not be around. I've done purchase & sales agreements in restaurants, on the trunk of my car, on the kitchen counter of a vacant house. It IS the most important doc and you should know it by heart, and be able to write it to be solid and accurate for both parties. Maybe you need to do a few samples with your manager and practice until it is flawless. Ditto for all addendums. Best wishes.
On an amendment, do both parties have to initial for it to be valid if there is modification to the amendment? Say buyer's agent sent in an amendment to change closing date to 12/2/16 (from 11/23/16); sellers crossed out 12/2/16, handwritten in 11/23/16 and put their initials there and signed the form (buyers already signed their part.) Which date is legal when it comes to where sellers want to terminate the contract when 11/23/16 came due and the house is not closed then etc... This is just a make up example. I am newbie hence the question for my knowledge. Thank you.
Sorry, but your example is a poor one. Both parties need to sign or initial any changes to the contract. Period. However, in your example, the Seller is merely rejecting the amendment by crossing out the proposed new date and re-inserting the original closing date. While they could do that for emphasis, they would not need to do anything if they didn't agree to the amendment. Unless the amendment is agreed to by them, the proposed amendment is simply not valid.
So...in your example, if the Seller crossed out the proposed new date, the Buyer would not need to initial that change to the amendment. The original closing date--agreed to in the original contract--would still be the valid closing date.
This is for learning and research. I don't want to bother my broker unless I have to.
When I started out, I scheduled short weekly meetings with my managing broker. Throughout the week, I would keep a list of questions just like yours of things that I wondered about, and I would ask him during the meeting. This worked out well for both of us - I got my questions answered and I didn't bother him time and time again as I thought of things.
When it comes to actually doing it, 90% of the time, your managing broker will not be around. I've done purchase & sales agreements in restaurants, on the trunk of my car, on the kitchen counter of a vacant house. It IS the most important doc and you should know it by heart, and be able to write it to be solid and accurate for both parties. Maybe you need to do a few samples with your manager and practice until it is flawless. Ditto for all addendums. Best wishes.
Yes but a company should provide an agent with this basic training before letting them loose on the world. If the company doesn't provide basic training and the broker isn't around to assist then my comment about finding another broker stands.
in my state, the idea of executed documents was covered in licensing school.
I'd second or third the suggestion that the OP keep track of all these little "what ifs" that seem to pop in their head, and then ask their broker all of them at once during a pre-scheduled session.
Because if you screw it up based on how you interpreted information from an internet forum, nobody on your end wants to hear that.
Yes but a company should provide an agent with this basic training before letting them loose on the world. If the company doesn't provide basic training and the broker isn't around to assist then my comment about finding another broker stands.
Yes, and that is why I suggested : "Maybe you need to do a few samples with your manager and practice until it is flawless. Ditto for all addendums."
This education should have been covered in licensing school "Real Estate 101" at the very least; some state exams require that you can do a pro forma closing sheet as well. If you don't have a well written fully signed solid agreement, you've got zip.
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It IS the most important doc and you should know it by heart, and be able to write it to be solid and accurate for both parties. Maybe you need to do a few samples with your manager and practice until it is flawless. Ditto for all addendums. Best wishes.
