The law is something we are all supposed to understand inherently, yet many of us do not. This is particularly true when it comes to real estate transactions. Whether you are buying or selling, there are some legal issues you need to understand.
You hear about it all the time in real estate. An issue arose during escrow and the seller promised the buyer something that would fix it. When the deal closed, however, the seller refused and the buyer was left hanging.
A man is only so good as his word. If a person says something, they should be held to it, right? We have all seen it in movies, television and the like. We were probably told as much regarding our personal lives by our family.
The idea of keeping your word is a laudable, basic lesson in life. Unfortunately, there are simply a lot of people that do not live by the notion. They will say one thing and do another. In legal terms, an oral promise means almost nothing.
Assume that I am selling my home. I get an offer from a buyer. After going back and forth, we agree to a price. The buyer, however, also wants me to throw in money for upgrading all the plumbing in the home. I agree and we shake on it.
As the days of escrow tick off, the buyer serves me with a $45,000 demand for the fix. I am outraged because I think it should only cost $8,000. We cannot agree on a middle point, the deal fails and into court we go to resolve our differences.
During trial, a funny thing happens. Both of us give our side of the story, but neither has any hard evidence to show we are right. Given this fact, how is a jury supposed to figure out the party that is correct?
A flip of the coin has as much of a chance of coming up with the right decision as a judge or jury does in this case. Instead of deciding on the merits, the decision will be based on who testifies better. This is not a good way to decide cases.
To avoid these situations, the concept of the statute of frauds has been enacted in nearly every state. This statute simply says any oral promise that has a value over a certain dollar figure is void as a matter of law. In most cases, the dollar figure is $750.
This is a vital lesson to remember when buying or selling a property. If the other side promises you something, you better get it in writing that they have physically signed. Only then can you force them to live up to their promise.
This legal issue is there to protect you. Think it through. If the other party is unwilling to put something in writing, what does that tell you? It should tell you there is something fishy going on and maybe you should pass on this deal.
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When buying a Colorado Springs real estate property, be sure that you have all the papers in place and there is nothing left to chance. Hire a reputed Colorado Springs REALTOR to help you understand the complete procedures of buying a home. One who will help you find the home that suits you in every respect. If you have any questions about Colorado Springs commercial real estate please contact Mike Stuard.
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