Financing Contingency Pitfalls One of the surprises lurking in the standard Minnesota Financing Addendum is the weaker of the two clauses addressing the Buyer’s financing. In layman’s terms, it says that if the closing date arrives and the Buyer’s financing falls through: a) there’s no deal; and b) the Buyer gets their earnest money back. For...Read More
The most important date in a residential real estate deal? Easy — closing. So, what’s the second most important date? At least in Minnesota, the date that the Buyer’s Written Statement is due. See, “You Mean There’s No Deal, AND the Buyer Gets Their Earnest Money Back?!?” Significance Up until that date, all the home Seller...Read More
Smoking Guns & Yellow Flags I think it’s fair to say that — as a rule — compared to “laymen,” Realtors put much less stock in things like Seller motivation; historical information like what the owner paid (unless it raises the prospect of a short sale); and even representations (or lack thereof) in the Seller’s Disclosure....Read More
Porous Guaranty; or, “But, Can You Take it to the Bank?” I feel the same way about “guaranteed” Pre-Approval Letters that I do about “guaranteed” pizza delivery or promises of “on-time” service calls by my cable company: a) Officially dubious; and b) Reminded of the reason companies (often) need to offer such promises in the...Read More
“Brittle” vs. “Supple” Deals He who negotiates least, negotiates best. –saying OK, so that’s not how it goes (the original version substituted “government” and “governing”). But it’s still accurate. There are 3 reasons why that’s so, at least that I can think of. One. While some people actually like to negotiate — Realtors often do,...Read More
“No News is Good News” In an initial public offering (“IPO”), the interval between when a company files its paperwork with the SEC and the SEC approves it, is known as a “quiet period.” What’s the equivalent in residential real estate? The interval between when the lender’s appraiser submits their report, and the lender completes...Read More
