Writing a Real Estate Contract Oakland CA

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I spend a fair amount of time trying to convince clients that their real estate contracts are not long enough. While most clients just want a one page, quick and simple contract, I try to convince them that we need to add more language, not less, to the agreement. I’m frequently met with resistance. The clients’ meaning is clear: Stop "over-lawyering" and get my deal done. At the risk of once again being accused of the dastardly “over-lawyering,” the following are a few examples of why silence is not golden in real estate investment contracts—and how to write a better real estate contract.

Pay attention to liability and damage coverage

I have seen installment land contracts that didn't obligate the buyer to maintain any liability or damage coverage on the subject property. Now, if you're the buyer, I suppose that's a good thing (but only if the contract requires the seller to maintain such coverage!). But if you're the seller, unless you’re willing to provide the coverage—which is usually not the case—then the agreement needs to bind the buyer to do so. It’s not good enough that the buyer actually shows proof of the coverage; it must be a contractual obligation, or the buyer can cancel coverage at any time with little recourse for the seller. And what about that same contract with no buyer indemnities to seller in the event of an accident on the property? That's a time bomb ticking.