First, what is a contract?
A contract is a LEGALLY ENFORCEABLE AGREEMENT between 2 or more parties that creates an OBLIGATION to do or not to do a particular thing.
It is an exchange of promises that the law will enforce.
What are the elements of a contract? We will take each of these elements one after the other and for today we shall focus on the first element.
The first element of a contract is an OFFER
An offer is a promise to act or refrain from acting, which is made in exchange for a return promise to do the same.
A buyer’s power of acceptance is created when the seller conveys a present intent to enter a contract in certain and definite terms that are communicated to the buyer.
Like marriage, acquiring a space (lease or outright buying) is one part love, one part legal transaction, and starts with a proposal. When brokering the transaction for your client making an offer is important: oral promises are not legally enforceable in real estate sale.
Below are 2 more duties you have as an agent to your client:
- Act with prudence in the Client’s interest: You have to put your client’s needs over your personal gain, this way you become known for your integrity and increase your client base.
- Duty to account to the client: Any and all plans to front-load the price of a property must be revealed to the Client (whether buyer or seller). This is part of the Duty to account.