Question

I wrote up an offer for a buyer on some vacant land that I have listed and he waved having contingencies including a finance addendum because he has a private backer. I had him sign that he was advised to have a feasibility study period and chose to wave it. Yet I didn't think to have him sign one for waving the financing addendum. I don't believe there is any issue at this point, But I was curious, Do we need to have a buyer acknowledge all contingencies that they choose to wave in a given offer?

Answer

Anytime a buyer chooses not to include a traditionally accepted contingency, it is a good idea for broker to document the firm's transaction folder showing that buyer and broker discussed the wisdom of including the contingency and that buyer opted against including the contingency. Broker's advice to buyer should always include advice to seek the advice of an expert such as an inspector, a lender or a lawyer, depending on the contingency that buyer is waiving.

Date of Posting

10/16/2020

Legal Disclaimer

The Legal Hotline Lawyer does not represent Washington REALTORS® or its members. The advice contained herein does not constitute legal counsel. Please consult with your managing broker for best practices.

Association Name

WASHINGTON ASSOCIATION OF REALTORS®