Saturday, September 4, 2010

How to Avoid Being Intimidated in Contract Negotiation

It seems that larger real estate agencies, especially those who have joined forces with, or are owned in part by builders and developers are trying to control every issue in the contract for a new construction purchase.  If you find yourself or your client in this position, step back and ask yourself why the builder wants to insist that the transaction close at his or her "preferred" attorney's office.  If you ask the listing agent, you will most likely be told that the builder/seller does not want to go to an unfamiliar attorney's office to sign his/her seller documents (deed, lien waiver affidavit, etc.).  The response to that issue is simple: tell the seller that of course, he or she is certainly able to use their own attorney for the work that needs to be done for the seller. 

If this response does not solve the issue, then press the seller or his agent for the real reason.  Whether you get an answer or not, tell the seller or his agent that you or your client will not feel comfortable using the seller's attorney until you have had a chance to contact the real estate commission and the North Carolina State Bar about your concerns.  In my experience, when this statement is the buyer's response, the seller usually concedes to agreeing that the buyer can use an attorney of his/her choice. 

Remember, this is a buyer's market, even in our area.  Most sellers are not going to lose a sale over the chocie of a closing attorney.  Read the prior blog to learn why choosing a competent attorney who is committted to the buyer is more important than you might think.