My Word Is My Contract… Uh-Oh
This person makes the offer to purchase the property.
Seller signs the buyer’s offer exactly as written.
What is acceptance?
This contractual protection commonly gives a buyer time to investigate the property’s condition.
What is an inspection or due-diligence contingency?
A party fails to perform a contractual obligation when required.
What is default or breach?
Offer, acceptance, consideration, competent parties, and lawful purpose are commonly associated with creating this.
Buyer offers $500,000. Seller says, “Sure—$515,000.”
What is a counteroffer?
This contingency may protect a buyer if the buyer cannot obtain the financing specified in the agreement.
What is a financing contingency?
Buyer and seller both agree to terminate the transaction and release each other from further performance.
What is mutual cancellation or rescission?
Seller signs the offer but changes the purchase price before returning it. Congratulations—the seller just created this.
What is a counteroffer?
Buyer receives a seller counteroffer and says, “Absolutely not.” An hour later the buyer says, “Okay, fine.” The problem is that the buyer may already have done this to the counteroffer.
What is rejected or terminated it?
The buyer wants to cancel during due diligence. Before saying, “No problem,” the agent should look here first.
What is the purchase agreement and applicable addenda?
Rather than money damages, a buyer asks a court to force a seller to convey the property as promised.
What is specific performance?
The buyer says, “We shook hands on it, so we have a deal.” This legal principle may have something to say about an unwritten agreement for the sale of real estate.
What is the Statute of Frauds?
Seller makes a counteroffer, then wants it back before the buyer accepts it. Subject to the agreement and applicable law, this is generally called this.
What is revocation?
A Nevada buyer receives a resale package for a home in a common-interest community. Nevada law generally gives the purchaser this many calendar days after receipt to cancel in writing.
What is five calendar days?
Nevada requires certain sellers of residential property to provide the buyer with a property disclosure form. If the required completed disclosure form isn't served, the purchaser may have this right before conveyance.
What is the right to rescind the purchase agreement without penalty? Nevada's statute expressly provides that remedy in specified circumstances.
Seller signs the buyer’s offer before its deadline, but the acceptance is never properly communicated before expiration. The big legal question is whether this ever occurred.
What is effective acceptance/communication of acceptance?
Seller has an outstanding counteroffer to Buyer A and receives a much better offer from Buyer B. Buyer B’s offer automatically does this to the outstanding counteroffer.
What is nothing?
The buyer says, “My inspection period is over, financing is approved, and I just don't like the house anymore.” Unless another cancellation right exists, the buyer may now be facing this.
What is a potential default or breach of contract?
After contract formation but before closing, the property is substantially destroyed through no fault of either party. Nevada actually has a statute addressing which party bears this.
What is the risk of loss? Nevada addresses the rights and duties of purchaser and seller when real property under contract is destroyed.