Real Estate Consumer Advice..

by The Consumer for the Real Estate Consumer...


Any RE contract and especially Standard listing contracts can be changed anytime as long as both parties agree and the change is within the scope of the law. (Remember: if it doesn't make sense, then mostlikely it's not legal)

1) Listing Period, do never - ever give more than 6 months, preferably only 3 months and tell them you will renew. They will tell you they have to invest money... (well, that's their business) so don't be intimidated. Thereafter, you should extend only on a "month to month basis"

2) Items to be left on property - don't be talked into anything.(Agents often try to make you believe a stove, refrigerator etc. goes with the house - curtain rods) - not so.... Just be plain in stating what STAYS...

3) Status of Property: Note - you can sell "AS IS'............if you so desire

4) Statutory disclosures: they have to be done - as it's required by "law".

5) Commission:

Know, you do not have to pay the percentage they write into the contract. YOU can negotiate. Whatever the listing agent has to pay a selling agent (who could even be from another office) is between them. ALSO know, that any and all agents/brokers are ALWAYS after the listing. That way they have THEIR COMMISSION locked in, no matter who sells. That's why they try to overwhelm you to get the listing and seem to be dead once they have it.

6) Seller's Property Disclosure:

Be careful that a precomposed standard statement lists the word "may" next to something similar to:

"The subject property MAY contain":..... as the standard contract lists zillions of components, fixtures and personal property.

7) Water Rights Disclaimer: Note that in most Montana standard RE contracts the Real Estate Office makes sure it cannot be sued and has a disclaimer regarding quantity or quality of (WELL-) water etc. and expect you to sign this. Note:
add a disclaimer for YOURSELF right there - stating something like: "Seller, also, cannot affirm or warrant anything listed in the preceding paragraph." Make sure, this statement is above your signature.

8) Relationships in Real Estate Transactions (Seller Agent, Buyer Agent and Dual Agency)...... Keep in mind, regardless of anything that .... in the end ..... the seller (a well informed seller) has the upper hand. It is not always true that the "buyer" pays for the commission because it's added on to the sales' price. Depending on the market or on the need to sell quickly, the commission might be very well the exact amount the "seller" looses.

10) Often agents and brokers are uninformed about the property they represent. Most of them don't know anymore than their sellers know. And often the sellers don't know all, because they bought it on an "uninformed" basis. This means, BUYER BEWARE! How often are there real estate transactions and the new buyer does not even know there are covenants and or variances on the lot, the existing access is not properly recorded or THERE is no proper LEGAL ACCESS, or THERE IS an easement over their property. Most agents, in any case, are not familiar with the various types of 'property easements' that "legally" exist and what their legal definition and hence the "meaning" is. In some cases no (original) septic approval was obtained. Make sure that as seller you provide this information / documents to your RE agent and have him sign for it and as buyer make sure that it states somewhere that there are no covenants or that there are covenants.... etc. If there are - get a copy of them BEFORE making an offer.

11) In particular in Lincoln County many so called "Lots" are only a piece of land, which was previously "surveyed" and then recorded (and of course this was done, especially to circumvent the subdivision law. A few years later this is being sold as a (legal) LOT and the Clerk and Recorder "never" checked it out - and JUST recorded a "survey of land". Other hot items in Lincoln County used to be "occasional sales" remainders and family transfers. All of them could and were used to circumvent subdivision laws with the county commissioners and clerk and recorder probably asleep on the wheel or occasionally blinking.

12) Remember, you the "seller" are the employer as far as the RE goes. Therefore, if you don't agree with the description of your property - let them know or ask before it goes into the MLS. Also make sure that you see the pictures which your agent puts into the MLS. So many of them put "very dark" pics into the MLS and or of areas that are not especially advantageous for the seller. In fact, do as some smart sellers do: "provide your own digital pics".

13) Sellers might/should discuss with the listing agent how the property will be marketed.