When it comes to any kind of contract, it is expected that all parties will work in good faith to see that the terms of the contract are met. When it comes to a real estate purchase agreement, there are many terms, conditions, and deadlines which must be met. It is expected that all parties to the transaction will work in “good faith” to meet their obligations under the contract – such as depositing money into escrow in a timely fashion, carrying out inspections, appraisal, loan approval, etc. Put another way, it is expected that the parties will maintain their integrity – they have a written agreement, and the parties promise to do certain things by certain times. But does that matter? YES. A contract is only as good as the people who are behind the contract. There has to be trust. Trust is gained by staying within your integrity – by doing what you say you’re going to do. When one party or the other does not meet the various and sundry terms of the contract, the other party or parties will lose faith that you are a reliable business partner and may well seek to either end the contract or become less accommodating and more insistent that every letter of the contract be fully and forcefully invoked – which may not yield the happiest of results. If you’re a buyer or a seller, you need to understand what your rights and duties are under the contract, and work to make sure that you are holding up your end of the bargain!
Good Faith Negotiation
Real Estate Purchase Offer Expiration Dates
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