Use Precise Language in your Contract

by Nick 29. August 2014 14:57

Can my Buyer get out of the contract if the Seller failed to repair the agreed-upon repair items?

The contract language said the Seller agrees to repair the items or to credit the Buyer for the items. When the parties spoke, the Seller agreed to hire people to do the repairs, but just before the closing the repairs weren't done. The Seller said he would credit the Buyer instead, escrowing money for repairs.

Because the Buyer and the Lender expected the repairs to be completed, they were not prepared to switch to a Seller credit or escrow for repairs.

Now, because of the contract language, the problem falls upon the Buyer because the Seller is willing to perform according to the contract terms.

So, the bottom line is, make sure the contract states what you expect. If the Seller agrees to the repairs, change the contract to state Seller repairs, and remove the option to credit the Buyer.

In contract negotiations things are moving fast, but you have to slow down and double-check the language to make sure there is no "WIGGLE ROOM" for the other party.

Also, it is always a good idea to have another person review the language to see if it says what you think it says.

Nick

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