When Did I Agree to That?!
Recently I was in one the Prudential California Realty – San Bruno kiosks at the mall when a seller approached to ask if he, as the seller, has to pay the country transfer tax on a sale he is currently involved in. I asked him a series of questions regarding the transaction and was, frankly, surprised at how little he seemed to know about his own deal.
One of the questions that seemed to confuse him the most was whether or not he had signed a purchase agreement. It wasn’t until I described what the agreement looks like that he realized he had, in fact, signed the agreement and was in contract. I informed him where the information can be found in the contract and he lamented that he didn’t get copies.
My intent is not to pick on this seller specifically but use it as a means to point out the attitude of a variety of buyers and sellers. Like so many people who get involved in a transaction he was completely shocked at the amount of paperwork that has to be completed. Rather than read and understand everything it was easier to sign and hope for the best. “I just signed where the Realtor ® told me to, I didn’t read it all!” was how he explained getting into his situation. It can not be stressed enough, that at the end of the day you, as the principle in a transaction, are completely responsible for all the terms you agree to. By signing any piece of paper put in front of you, you are agreeing to all that paper says. If it comes down to a court of law, telling the judge you just signed where you were told will not absolve you from your responsibilities. This isn’t the first time I’ve heard someone say they didn’t take the time to understand documents because what they were signing was so overwhelming. It is at that point you, as the client, must demand things slow down and you be given the time or additional information needed to make an informed decision. Everything you’re looking at is second nature to the professionals around you so they fly through it. Please, don’t be afraid of looking like an idiot by asking too many questions. It’s better than feeling like one later.
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8 Responses to “When Did I Agree to That?!”
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Great blog Julie! I’ll be sure to send this out on twitter as well. It’s no surprise that the number of documents can be intimidating to people to try to read and understand, but it’s crucial to try to be informed as much as possible. It’s also sad if the person’s agent didn’t take the time to explain at least some of the basic information included in the contract and especially what the different costs would be to the seller. I want my clients to understand what’s going on as much as possible, and I love it when they ask questions. With the market and so many regulations changing, it’s that much more important that people take the time to understand and that we as agents try to guide them through the process so it’s not as overwhelming as it seems on first glance.
Julie,
How true!
A lot of people would be in different situations today if they took the time to understand what they were doing in not just real estate but all financial actions!
Brian
Thanks Julie,you make some great points. It seems we are often feeling too busy to pay attention to the things that matter most.A real estate contract would certainly be at the top of my list of paperwork to understand. The Realtor plays a special role in all this, the consumer needs us to be sure they pay attention, and sometimes we don’t. So a chance to remind everyone, be as sure as possible that you are talking with and to your customer, not at them. There is a big difference between listening and hearing. We need both skills
Julie, that was an excellent blog. I think the majority of buyers and sellers leave the specifics to their Realtors. Not to say you can’t trust your Realtor, however when it comes to signing any legally binding contract you need to read the fine print yourself. I recommend giving clients a contract prior to writing or accepting an offer so they have to time to read it and ask questions. We may be out of school, but sometimes you still need to do your homework!
It is always amazing how someone could just let a person sign without knowing that they understand what they are signing.
It is very important to explain all documents to a client! Especially the contract! Try doing it in Spanish!
Julie, professionals should at least explain the main points of the cotract so the person knows what is being agreed upon.
Great Post Julie,
It is very important for anyone signing papers to know what they are signing. As mentioned earlier it is ultimately the responsibility of the person signing, but their agent should make sure that all questions are answered and they understand what they are signing so that there are no surprises. Keep up the great work!