To avoid potential pitfalls, follow these tips when drafting purchase agreements
While the Standard CAR and PRDS agreements are regularly updated to prevent disputes, issues can still arise when custom terms or addendums are necessary.
Buyers and sellers may seek to gain an advantage in a transaction by exploiting poorly-worded addendums, leading to blame being placed on agents.
Disputes often arise from ambiguous language in custom addendums, such as disagreements over agreed-upon repairs or improvements, unclear financing terms, and rights related to property use.
When drafting contracts that go beyond standard forms, consult with your broker and legal counsel to protect yourself and your client from potential disputes.
It is important to seek a second opinion when encountering unique contractual issues to avoid any future problems.
Simon Offord is the managing partner of Brewer Offord & Pedersen, LLP, a real estate law firm specializing in real estate matters in Palo Alto.