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Lifehacker
Lifehacker
1y ago 36 views

Beware of These Warning Signs in Realtor Contracts

This article highlights certain red flags that potential home buyers and sellers should be aware of when reviewing contracts with realtors. It emphasizes the importance of understanding terms, potential pitfalls, and how to protect oneself from unfavorable conditions.
Beware of These Warning Signs in Realtor Contracts
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This article highlights certain red flags that potential home buyers and sellers should be aware of when reviewing contracts with realtors. It emphasizes the importance of understanding terms, potential pitfalls, and how to protect oneself from unfavorable conditions.
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Key insights

  • 1

    Exclusive Right to Sell Clauses

    These clauses can limit your ability to sell your property independently and may bind you to a specific realtor for an extended period. Be cautious and ensure you understand the terms before agreeing.

  • 2

    Commission Rates and Hidden Fees

    Be aware of the commission rates charged by realtors and any potential hidden fees. Clarify these details upfront to avoid unexpected costs.

  • 3

    Length of Contract

    Long-term contracts can be restrictive if you're unhappy with your realtor's performance. Look for agreements with shorter durations or options to terminate under certain conditions.

  • 4

    Cancellation Policies

    Understand the terms under which you can cancel the contract. This includes any penalties or notice periods required, which can affect your flexibility.

  • 5

    Dual Agency Disclosures

    If the realtor represents both the buyer and the seller, conflicts of interest can arise. Ensure that dual agency is disclosed and consider the implications for your transaction.

Takeaways

It's crucial for potential home buyers and sellers to thoroughly review realtor contracts and be aware of common red flags. By understanding these potential pitfalls, you can make more informed decisions, ultimately leading to a smoother and more transparent real estate transaction.