Contract Effective Date

| July 27, 2011 | 0 Comments

I have come to notice many of you may be misreading the FAR/BAR contract effective date paragraph, and not completing it or just forgetting to change it if necessary. Let me explain why this paragraph completed properly is so important.

By completing the paragraph you are starting the time ticking for acceptance of the offer and note that if the offer is NOT accepted by this time the offer is automatically will be withdrawn. Yes that’s right withdrawn! So if you are negotiating and the time passes and then the contract comes together you need to CHANGE the date of acceptance to match or go beyond the actual date the contract will be signed by ALL PARTIES!

The second sentence states that a counter offer has 2 days for response. This still stands however we still need to document the date of acceptance so there is NO question as to the date all things start.

Do not be fooled to believe that the second sentence in the effective date gives the seller 2 days for acceptance from initial offer, it is in fact only a 2 day response time for counter offers only!  Should an offer be accepted during the counter offer stage you still need to check that the acceptance is within the date you originally put on the offer or it MUST be changed to match the acceptance date on the final contract signatures.

Remember check and double check so as not to ever leave a potential “grey area” or “loop hole” in the contract.

Category: Words Of Wisdom

About the Author ()

Nikki along with her husband Gary, became licensed in 1986 and over the years built a mega sales team that has served over 3700 families with a volume of 560 million dollars in sales. They both hold the CRS designation. Nikki is also the broker/owner of 3 Keller Williams Realty offices, 2 Title companies and the operating partner for the South Florida region for Keller Williams Realty. Nikki has spoken and trained for FAR, CRS, Howard Brinton Star Power, Numerous real estate boards, Aetna insurance, The Rotary, Tampa Bay Builders association, and the YMCA to mention a few. She is a master trainer for Keller Williams University and has helped to write many courses for real estate professionals. Being a firm believer in education she is continually sharpening her skills through education and walks the walk by sharing her knowledge and experience.

Leave a Reply