With the right strategies, REALTORS® can reduce the chances of buyers or sellers backing out of signed purchase agreements and mitigate the risks of unavoidable cancellations.

That’s the gist of the online the National Association of REALTORS®‘ REALTOR® Magazine article, “Avoid Legal Snafus Around Canceled Contracts.” The article – and an embedded YouTube video – explain that buyers or sellers can terminate contracts during the attorney review process or because of mutually agreed upon contingencies. REALTOR® members and all other real estate professionals need to educate their clients about the importance of meeting deadlines, cooperating with other parties and communicating carefully. Clients and real estate professionals who don’t follow the guidance will face a greater likelihood that they will forfeit escrow money or get sued for breach of contract.

“An unfortunate reality is that not all signed contracts reach the closing table,” says NAR staff attorney Mike Rohde.

Advice includes:

• avoiding casual email or text communications with any parties regarding the potential transaction,
• remaining aware of their fiduciary responsibilities,
• avoiding unauthorized practice of law/violation of Article 13 from the Code of Ethics (for those real estate professionals who are REALTORS®, and
• following the implied duty of “good faith and fair dealing” in every contract, which means parties must act honestly, cooperate with each other and not discourage or hinder the agreement’s completion.

Find out more by reading “Avoid Legal Snafus Around Canceled Contracts.”