Posted by: Roby Robertson | November 2, 2009

NC Offer To Purchase,Did you know?

I have recently had questions about the effective date of our NC Offer To Purchase.

Sadly some of the explaining I have had to do was to agents I have done transactions that should have known better.

In a nutshell, here is what you need to know.

The effective date of the contract is the date in which both parties have signed. However, if any changes are made to the contract, the new effective date is the date both parties initial this change. If you or your agent are not also placing a date next to the initialed changes, then you are setting yourself up for potential disputes.

Lastly, where you or your agent enters a timeframe that something is due and you see TIME IS OF THE ESSENCE, it means the date is not something you can let slip.  Allowing the timeframe to slip by without requesting extensions also means that you are waving any condition that required that time to complete.

For example.

Let say you enter on the contract in the section “Buyers right to terminate” (in the portion of the contract defining loan conditions), 30 days from effective date…  If the buyer does not have loan committment within 30 days and the agent or buyer has not requested, in writing, an extension, the buyer is said to have waved the condition.  Probably NOT GOOD.  Also, be aware that in this case, if changes were made to the contract a new effective date would be in force.

Hope this helps all my current and prospective Lake Norman area clients.

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