Contracts, Negotiation, and Transaction Management
Contract essentials
Offer, acceptance, consideration, capacity, legality, and mutual assent - plus the Statute of Frauds requiring real estate contracts in writing. Electronic signatures are valid under ESIGN/UETA. "Time is of the essence" means deadlines are enforceable; know whether your contract counts calendar or business days.
Contingencies and money
Separate the contingencies: inspection, financing, appraisal, sale-of-home, title, HOA document review. Each has its own deadline and its own remedy. Earnest money is not automatically refundable - its fate depends on which contingency applies and whether notice was timely given. The Closing Disclosure goes to the borrower at least three business days before closing; a changed APR resets the clock.
Disclosures
Agency relationships, property condition, lead-based paint (pre-1978), and state-specific items. Deliver disclosures within the contractual window; delivery date, not signature date, starts many clocks.
Negotiation craft
Identify the BATNA and the ZOPA before you counter. Anchor with evidence (comps, inspection reports), trade low-cost/high-value items (closing date, repair credits, appliances), and put every agreement in writing. Escalation clauses and multiple counteroffers create ambiguity - handle them explicitly.
Worked example: Accepted January 5 with a 10-day inspection contingency. Calendar days, expiring at 11:59 p.m. on January 15. Buyer wants to terminate on January 16 - the right is gone; the buyer now risks earnest money and possibly specific performance.
Traps: treating an inspection contingency as an appraisal contingency; assuming verbal acceptance binds; missing the earnest-money delivery deadline (a common breach); wire fraud - always verify wiring instructions by phone to a known number.