In a recent conversation with an attorney he shared the 3 items that have consistently killed transactions over his 30+ years as a practicing RE attorney.
- Lack of a proper legal description – the abbreviated form is not adequate. Attorneys routinely get clients out of transactions because of the agents failure to provide a correct legal description. Such action can be considered negligence. Agents cannot pursue a commission if the transaction is terminated for lack of a correct legal description. Note: Washington state has the highest standard for legal descriptions in the country.
- Power of Attorney – be sure the POA is correctly filled out, has not expired and is acceptable to the title and escrow company. If a party is ‘out of country’ have them acquire a POA from the American Consulate. Most everyone will accept it and there is usually no charge to have it prepared. Also, check with the lender and make sure they will accept a POA at closing. Some lenders want original signatures from the buyers. This is not something you want to find out at the closing table.
- Who owns the property? – Do you have the ‘real’ seller signing that listing and purchase and sale agreement? And do you have ALL of the parties signing?
LLC’s are becoming more of a problem as frequently the person signing the listing or the purchase and sale is not a Managing Member therefore, the contracts are unenforceable.
None of these issues is difficult to solve. They just take a little time and attention.