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Types of Real Estate Clauses

Posted by Ron Neal on Wednesday, October 3rd, 2018 at 9:06am.

Real Estate Clauses: Understanding the Different TypesThere are many different things that go into making up a real estate contract. One of those things is all of the "boilerplate" language that's standard in most all real estate contracts. This standard language includes different clauses that are used for both the buyers and the sellers. Every one of those clauses is generally important, but they might not all apply to every circumstance. Because of that, there are a number of different options for adjusting the clauses, taking them out, or adding in additional information that can be used for that particular transaction.

For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.

Why Real Estate Clauses Matter

Getting the right clauses in a real estate document matters. Without them, something vital could be missed that may harm either the buyer or the seller. A clause that's not in a contract can become a an issue, but so can clauses that are included but don't belong there. For example, even if the buyer doesn't want a property or home inspection but the clause remains in the contract, the buyer may be able to get out of the contract if there is a time period in which to perform an inspection. Without the clause being in the document, the buyer may not have that option of leaving the contract. Some of these kinds of issues can apply to sellers, as well.

Clauses That Affect the Buyer

The main clauses that affect the Westshore home buyer, and that can usually be changed, removed, or adjusted, has to do with financing and inspections. If the buyer is paying cash and doesn't need an inspection, those clauses aren't necessary. For buyers who want the home inspected before they agree to purchase it, and for those who need to finance at least some of the purchase price, these clauses are an integral and very important part of protecting their rights and responsibilities. For those reasons, the real estate agent should handle these clauses carefully.

Clauses That Affect the Seller

Clauses that are designed with the seller in mind include those regarding vacating the property so the buyer can take possession at closing. Another clause might include leaving the property in the condition in which the buyer saw it, and what items are to be removed or not removed from the home by the seller. This clause regarding items left in the home could include appliances, fixtures, and even other items that the buyer may want to have as part of the sale, but that would not typically be included in a real estate transaction. Sellers want to make sure they understand what their responsibilities are, along with having the opportunity to exercise their rights.

Can Any Clause Be Changed or Removed?

In some cases there may be clauses that have to be removed or adjusted outside of what's typically a part of that process. Working with a good real estate agent can help that along, because it's not something that would normally be done. The contract has been designed with its specific clauses for a reason, and it's important to make sure that the contract is not being materially altered in a way that would be a problem for the buyer or the seller. In some cases, when the standard real estate contract and clauses cannot be modified in the way a buyer or seller wants, an attorney should be contacted and consulted.

Remaining fair to both parties and within the confines of the law is highly important for every real estate transaction that takes place. Knowing what should be looked for in all of the real estate clauses is the job of the agent, so they can explain those clauses and the information in them to the buyer and the seller in every real estate transaction.

For informational purposes only. Always consult with a licensed real estate professional or attorney before proceeding with any real estate transaction.

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The Neal Estate Team

The Neal Estate Team is your #1 source for all of your Victoria BC real estate needs. Get in touch with us online or by phone at (250) 386-8181 to speak with a Victoria real estate buying or selling expert today. With decades of experience as a top selling Victoria REALTOR® and ranked in top 1% globally with over 4,000 transactions and $1 Billion SOLD, Ron Neal & The Neal Estate Team have the industry experience and market knowledge to help you make smart and informed buying or selling decisions. 


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