True (Non)Confessions

First, my definition of “dumb”:  something that adds nothing to the contract — or worse, confuses things.

In the former category?

dunceThe line on the Financing Addendum where the Buyer is supposed to fill in the maximum interest rate on the mortgage they’re applying for (to buy the home).

Too low an interest rate, and Sellers have to worry whether the Buyer will qualify; too high, and Sellers wonder if the Buyer has decent credit.

Aware of that bind, experienced Buyers’ agents simply fill in “market” — as in, the Buyer will get a mortgage at a “market” interest rate.

Isn’t that what every Buyer does?

Exactly.

“Drum Roll, Please . . .”

Which, of course, leaves what I regard as the absolutely dumbest part of the Purchase Agreement.

Namely, the line near the end of the (Minnesota) Seller’s Disclosure asking if the home has been used to make meth.

First off, if the home used to be a meth lab, there are usually multiple, glaring tip-offs (smell, appearance, condition).

Second, I’ve yet to encounter the meth dealer who’s OK violating multiple federal and state drug laws, but somehow doesn’t want to risk misleading prospective Buyers on their Seller Disclosure (for the record, the number of meth dealers I’ve encountered — at least as far as I know — is officially zero).

About the author

Ross Kaplan has 19+ years experience selling real estate all over the Twin Cities. He is also a 12-time consecutive "Super Real Estate Agent," as determined by Mpls. - St. Paul Magazine and Twin Cities Business Magazine. Prior to becoming a Realtor, Ross was an attorney (corporate law), CPA, and entrepreneur. He holds an economics degree from Stanford.

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