Ray Hrdlicka – Host – Attorneys.Media
“What advice would you give the first-time buyer, who is, of course, about to enter into a real estate contract? What must they absolutely understand? Because most of the time they’re not going to read that legalese. They’re just going to sign the paper that the escrow company puts in front of them.”
Andre Clark – Real Estate Attorney – Los Angeles/San Bernardino County, CA
“You know, great question, because, in my opinion, that’s one of the biggest problems that come across my desk. People are signing things that they… that are inconsistent with their goal, because they’re not reading these contracts. And they come to me after they’ve already executed a bad deal. And the nature of the business, as real estate agents, they’re salesmen, and they’re a little pushy. They know, really, clients don’t understand these contracts. And most people hire a real estate agent off of trust. I trust that everything he’s telling me about this contract is true. They don’t read it. Even if they have a question,
‘does this contract do this’?
‘Yes.’
They don’t go verify it. And so, it puts a lot of responsibility… that’s why all of these laws govern real estate agents. But I would say, never feel pressured that you have to hurry up and sign things. And if you never sign anything that you don’t understand, and if you have a real estate agent that is so important, or…that he can’t answer and explain the contract, I think you need the second guess if you want that guy handling your transaction.
Because what I found is, real estate agents are very nice, until you sign that contract. Now all of a sudden, he’s not answering the phone and he’s taking longer to get back to you because you’re locked in a deal. And even if the other side is not performing and the contract is due to be cancelled, real estate agents…their primary goal is to get their commission. So, sometimes I’ll get involved, because they’ll say,
‘my agent should have canceled this deal’,
or something like that. And I’m just trying to help my clients. So, I’ll go in and cancel the deal. And the agent is mad because even though the deal is supposed to close in thirty days, he doesn’t care that it’ll close in sixty days, because eventually when it closes, he gets his commission He doesn’t want to cancel and start a whole new escrow. Remember that real estate agents are salesmen. Remember that, although they act like they’re working for you, they really just want to get their commission. And remember, they can’t do anything without your signature, and they actually work for you.
Outside of that, you should probably have an attorney. I know sometimes people don’t…avoid… avoid an attorney…or can’t afford one. But the few hundred dollars or a couple of thousand dollars that you pay an attorney just to stand by your side, look over contracts before you sign up, explain certain things that your real estate agent may not be explaining correctly…that will save you. That might be the difference between a few hundred or a few thousand dollars to a bad lawsuit involving a $500,000 real estate transaction.”
Ray Hrdlicka – Host – Attorneys.Media
“It makes sense.”
Andre Clark – Real Estate Attorney – Los Angeles/San Bernardino County, CA
“Review the contract, ask the questions. The real estate agent’s going to get frustrated because you’re asking all of these questions. Well, maybe he doesn’t want to make your money, but it’s his job, or her job, to give you answers. And they review these contracts. But because they do so many deals, I’m sure they forget certain things. And they’re not lawyers, so they don’t look at it the same way we do. They may just pass on certain things. And I’ve come across plenty of real estate agents… after they take that test, they can’t explain that stuff, they don’t know what certain terms mean.
So, in that sense, I’m not going to go so far as to say that lawyers should handle real estate transactions in California like other states. But it might not be a bad idea, just like with any contract, to have someone that’s trained in reviewing contract language to help you understand. And what you’re doing, they’re not just reviewing it for no reason. They’re making sure that before you sign it…it’s giving you…you’re signing up for what you planned to sign up for. Because once you sign it, you can’t go back and say,
‘Oh, I didn’t understand that provision that I don’t like, that’s hurting me right now’.
You can’t change it. You signed up for it.”
Ray Hrdlicka – Host – Attorneys.Media
“Totally understandable, and a great explanation to somebody who’s just entering into that real estate contract for the first time.”
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