In the course of reviewing file documents it has come to our attention that we need to be more careful about important dates on documents.
- All contracts, counter offers, addendum and disclosures must have the date they are prepared plus a reference date to the leading document if applicable. For example in if a subsequent document is going to be part of the original contract or listing agreement it will show the date of the document it is referencing and will have the date it is being signed by the client.
In addition ALL pages of a multiple page document must be dated to avoid any confusion as to when it was prepared.
- All signatures by Buyer, Seller or Agents must be dated! Importance of this and possible consequences of not having dates is below.
- IMPORTANT FOR CA Transfer Disclosure Statement! This document has an “AS OF” date in the middle of the first paragraph. That date must be filled in and should be current within a short period before it is given to a Buyer for review. If it has been more than 60 days since the TDS was completed have the Seller review their answers, adjust the date and have them initial indicating no changes since they first completed the form.
In Nevada, the Sellers Real Property Disclosure (SRPD) should be completed signed at the time the listing is taken. Remember it must be completed by the sellers. Buyer is to return an acknowledged copy to seller within 4 working days of receipt.
- Calendar all important dates as soon as you enter into a listing agreement or contract for purchase. Day one of any contract is the day following acceptance, not the day the document is signed. If you are using a TC they will assist in tracking important dates such as contingency removals and dates for delivery of disclosures, etc. If you are handling your own files, put all important dates on a calendar or in the task list on SkySlope.
Why are all dates important? Since many rights of the Buyer and Sellers are tied to specific dates, it is critical that you know when someone signed something. For example, if a Seller discloses a new material fact to a Buyer during the escrow period, the Buyer may have a new 3CA-4NV day right to get out of the contract, even if all contingencies have been removed. If the date on the TDS or SRPD is 6 months old, or worse, not dated at all, then how does the Buyer know if the answers given are current?
DON’T TAKE A CHANCE! MAKE SURE TO CHECK THAT ALL DOCUMENTS ARE DATED CORRECTLY AND NEVER DATE THE DOCUMENT NEXT TO A SIGNATURE FOR A CLIENT!
Written by Linda Kaneko, General Sales Manager, Select Group Real Estate. For questions or further information email Linda.Kaneko@selectgroupre.com.
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