Real Estate Boilerplate Contract FundamentalsReal Estate Influence
September 14, 2012 — 956 views
Boilerplate provisions in real estate contracts serve a very useful purpose. Each provision represents a culmination of work over a period of time. The provision has been worked and reworked to reflect the very best and latest thoughts on a particular problem. It is very easy to just insert the boilerplate clause in a real estate contract without much thought. Real estate professionals should pause before taking that easy way out. Look at each boilerplate provision and make sure it really is the one you want. There are
always ways to improve the language.
One way to improve boilerplate provisions is to incorporate real life experiences. For example, if a problem is encountered and the boilerplate language proves less than decisive in resolving the issue, revise the language to reflect the lessons learned. Boilerplate provisions are not set in stone; they are continually evolving. Modify them to reflect the realities of real estate practice. This is especially relevant if a local real estate practice differs from those found in other locations. Make sure the boilerplate language is in keeping with accepted practice and experience.
Another method to improve the language is to actually read the provision before inserting it in a contract. This does not mean reading pages of documents. It means anticipating which provisions might come into play in a particular real estate contract. Then read that provision and make sure it does not contain some standard wording that will create difficulties. It may be great boilerplate language that works in almost every contract. However, it needs to be slightly changed for this particular contract.
There is always more than one way to write a clause for a real estate contract. If a particular boilerplate provision does not quite do the job and it is difficult to revise, then search for a new provision. Use existing research techniques to find a provision that meets the needs of a particular contract. If a situation needs to be addressed in a contract, it has probably arisen before and someone has drafted a response. Find that language and modify it if necessary.
Always look to improve boilerplate provisions. Never be satisfied to just insert language without thinking about its impact. Once a contract is drafted and signed, it is final in most circumstances. Strive to make each real estate the best it can be by selecting the proper provisions and modifying them as needed.