Minnesota has a lot of real estate that changes hands each year. When you’re considering buying a new property, you’ll need a real estate contract. When constructing that contract, be sure to avoid these common contract errors.
Not filling in all the blanks
When you buy or sell real estate, you’re going to have many different contingencies in your contract. One of the most common may include the number of days you have to cancel the contract. If you don’t fill in all the blanks, you may leave yourself open to contract manipulation. Do yourself a favor and fill in each blank. If you don’t have an answer or it’s not applicable to your situation, then use “N/A” to signify you’ve read the information and don’t have anything to fill in.
Not using a person’s full legal name
Contracts are formal agreements that you must handle with the utmost care. When filling in people’s names, you need to use their full legal names. Many mortgage lenders won’t accept a contract that has a person’s name shortened. For example, using the name Rick instead of Richard can create confusion with a lender and require a new contract to be drawn up.
Not filling in the full address
It may seem pretty easy to fill in the address on the contract. However, sometimes mistakes are made. A simple switch of road and street can create a world of chaos. It’s likely that the contract will be denied by the lender or title agency.
Real estate contracts are formal documents that must be completed in order to transfer property from one person or entity to another. When filling out a real estate contract, you should avoid the common errors mentioned above. Realize that any mistakes you make can hinder your ability to close on time. A real estate attorney may be able to assist you in this.